Failures in corporate business organization in Nigeria is a case that is becoming a rule nowadays instead of an exception in our national life. Such a phenomenal dimension has assumed to be threatening the National Economy.
This unexpected development has put fear in the minds of many potential investors both government and individuals and thus discouraging meaningful investments. Professionals in business and practioners has lodged blame of this ugly development to non-application of strategic planning by these corporate business entities in their management styles. They believe that it was either because the present corporate executives are ignorant of the concept of strategic management or that they lack the required skills to meet the expectations of strategic planning.
This study has attempted an up to date review of existing literature on strategic planning process and also has analyzed the extent to which this could be used to enhance organizational productivity. Questionnaires, interview and personal observations formed the primary source of data while periodical from the Nigerian Bottling Company Plc, Newspapers, journals make up the sources data.
Two hypothesis were formulated and put to test and using “Chi-Square Distribution” for hypothesis one and two. And the T-test distribution to prove that the internal and external environmental factors surrounding the company has significant influence on its strategic planning.
Furthermore, a linear relationship has found between strategic planning and the corporate performance of the company too, thus reveal that in real life situations, strategic planning and its applications have the potentials of reviving and sustaining corporate entities through increase productivity. This calls for top company management to engage only on the skilled personnel who adopt scientific techniques to plan strategically.
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Bibliography. 71
Questionnaire 74
BACKGROUND OF STUDY
The focus of every businessorganisat5ion is viability, profitability, and continuity. The first requirement of the spirit of organization is high performance standard for the group as well as for individuals in the organization.
Bernet and Wilsted defines strategic planning as the process that involves analyzing the opportunity and threats in the market places .building the strength and connecting the weakness within the firm, also involves setting goals for specific product market and for the firm.
It is highly imperative for business organization to adopt strategic planning in order to enhance productivity since it is received as the mediating force between the organization and its environment. Business organization nowadays need to be efficient in order to survive high price caused by tremendous increase in production in production coaster coupled with severe liquidity squeeze necessitated by the dwindling external value of our national currency which indeed has a serious dampening effect on consumer demand. Having being faced with a high cost of production, diminishing market and environmental uncertainties, business organization have had to compete more aggressively with one another in order to attain acceptable volumes of production, sales and good market share.
That is to say therefore, that the complexity of today’s business coupled with the turbulence in the economic waters of nation, makes it difficult and very doubtful if any modern business organization of reasonable size can survive this competitive environment without adequate strategic planning. This has become increasing important to managers in recent years. since it defines fundamental goals and objectives in specific terms and determine the means to achieve them as well as provide a basic long range frame work into which other focus of planning can fit it, also said to have a very strong influence on the survival and growth of an organization, most especially in a volatile environment.
Consequent upon that, business organization need plans to be able to predict unforeseen contingencies, minimize production cost as well as envisage and then be able to grapple with competitions in a programmed manner which is the essential of strategic planning. All business organizations need to plan ahead whatever the kind of market, competitive, oligopolistic monopolistic in which way they operate. An organization operating as a competitive market need to plan and design strategies; will ensure firms its survival and its continuity and portability. A firm operating in an oligopolistic market has more critical reason for planning because of the fierceness of the competition in such market, and even the monopolistic organization has to continually devise new strategies to maintain its position or else it will soon be faced with competition. A wrong investment decision in today’s business world is likely to entail a huge financial loss’s business world is likely to entail a huge financial loss.
A successful organization is most efficient enter pries. One of the major focuses of management by objective (MBO) is to have managers set high performance standard for themselves.
According to Akpala (1990:3). A manger performs his function by avocation and integration of human and economic resource through the process of planning, organizing, directing and controlling for the purpose of producing out put (good and services) desired by its customers so that the objectives of the organization are achieved. A manager work with people and other resources to realize these organizations objectives.
Since strategic planning with its environment is therefore said to be based on the principle of comparative advantage, necessary for survival and growth under competitive additions. A firm cannot survive or grow unless it maintains one or more comparative competitive advantages which provide the basic rationale by which customers will prefer that particular firm to another related firms.
Thus, it is against this background that this study intends to assess the effect of strategic planning on the productivity of the Nigerian Bottling company plc (NBC). It is hope that this study will be in the long run afford the rare opportunity of understanding and appreciating the significance of strategic planning in today’s organizational restructuring, planning and improvement.
After independence was ushered in, the Nigerian policy makers placed the trust on industrialization on the shoulders of the manufacturing sector which has presented a problem of unsteady and less result oriented production activities. In some manufacturing sector, they do not adhere to the already laid down strategic plans of the organization thereby combining productivity with any available productive resources and this has caused a lot of production of sub-standard goods etc.
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