Effects of Strategic Management on SMEs Performance in Lagos Nigeria
Chapter One
Objective of the study
The objective of the study is to ascertain the effect of strategic management on SMEs performance in Lagos state. The specific objectives are;
- To ascertain if business strategy influence performance of SMEs in Lagos state
- To find out if Organizational structure have effect on the performance of SMEs in Lagos state
- To find out if environment have effect on performance of SMEs in Lagos state
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
It is not only pertinent for all businesses to understand why they are in business but they must put in place a formidable strategic plan to improve their efficiency and business performances. Strategy is a source of sustainable competitive advantage and in recent years, large enterprises have adopted various strategic management practices in a bid to guarantee their continuous survival within the constraints of their environment. However, due to the growing interest the field has gained popularity in terms of its applicability to both social and business environments resulting from the rapid and competitive external market forces. According to Eniola and Ektebang (2014) business that fail to drive good planning practices and tools forward, will not only stay bound by slow, stovepipe planning processes, but also find it difficult to compete in good conditions. Strategic management is a disciplined approach utilizing the principles and process of management to identify the corporate objective or mission of any business. It determines an appropriate target to satisfy the objective, recognize existing opportunities and constraints in the environment, and device a rational practical way by which objective can be achieved Thompson and Strickland (2003). Strategic management is both the process and philosophy for determining and controlling the organizational relationship in its dynamic environment. As a process, it attempts to define approaches and techniques to assist management adapt to the changes in today’s business environment, through the use of objectives and strategies. Strategic management endeavors to achieve effective and efficient programs that help organizations accomplish the goals and objectives. As a philosophy, it changes how manager looks at competitors, customers, markets and even the organization itself. Its objective is to stimulate management’s awareness of the strategic implication of environmental events and internal decision. According to Jeffrey and Caron (2012) strategic management is a process through which organizations analyze and learn from their internal and external environments, establish strategic direction, create strategies that are intended to move the organization in that direction, and implement those strategies, all in efforts to satisfy key stakeholders. Strategic management is the process of examining both present and future environments, formulating the organizations objectives, implementing and controlling decisions focused on achieving these objectives in the present and future environments (Adeleke, 2008). However, it is necessary for managers to first understand the strategic management practices that best suit their firms and the way such practices affect their operations in a given industry; given that every organization, at any phase of its lifecycle, can be affected by some external environmental conditions and internal factors and as such finding ways to have competitive advantage is indispensable (Agwu, 2014)
Concept of Strategic Management
Babalola and Taiwo (2016) followed strategic management to the 1980s when strategic planning was supplanted by ‘strategic management’. Micheal Porter (1980) is among the founding fathers of strategic management as an academic field. He made a central commitment to the field of strategic management with the key spotlight on the competitive strategy of the firm. Porter’s dedication lies predominantly within the competitive positioning which represented the dominant strategy paradigm of the 1980s (Stonehouse & Pemberton, 2002). The assessment among strategic planning and strategic management is that the previous is focused on settling on best technique selections, even as the last is centered on developing key outcomes: new markets, new items as well as new improvements (Babalola and Taiwo, 2016). Sajuyigbe, Adeyemo, and Abodunde (2015) accentuation the want for machine improvement in businesses and he pushed ahead to symbolize the process for instance of objectives, purpose, and targets expressed in a method to represent corporations’ enterprise now and later on. He in addition constructed up the concept of SWOT (Strengths, Weaknesses, possibilities, and Threats) exam planned for estimating each of the inner and outdoor business conditions of the organisation (O’Shannassy, 2003). His thoughts were key in the gift enterprise attempting to plot methodologies to empower them to prosper within the competitive market circumstance. Strategic management is about recognizable proof and portrayal of the methods that supervisors can carry a good way to accomplish better execution and a top hand for their agency.
CHAPTER THREE
RESEARCH METHODOLOGY
Research is the process of arriving at a dependable solution to problems through planned and systematic collection, analyzing and interpretation of data (Osuala, 1993). Green and Full (1975) defines research methodology as the specification of procedures for collecting and analyzing the data necessary to solve the problem at hand such that the differences between the cost of obtaining various levels of accuracy and the expected value of the information associated with each level of accuracy is optimized. Thus, in this chapter the method and techniques of data collection and analysis for this study are discussed in details, research design, population of study, sample and sampling technique, sources of data collection, research instrument, validity of the instrument, reliability of the instrument, procedure for administration of research instrument, as well as the limitation of the research methodology. This will be important in order to assess the effect of strategic management on SMEs performance in Lagos state.
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from selected SMEs in Lagos state in order to determine the effect of strategic management on SMEs performance in Lagos state. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be the selected (75) selected SMEs in Lagos state
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 75 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on effects of strategic management on SMEs performance in Lagos state. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of effects of strategic management on SMEs performance in Lagos state
Summary
This study was on effects of strategic management on SMEs performance in Lagos state. Three objectives were raised which included: To ascertain if business strategy influence performance of SMEs in Lagos state, to find out if Organizational structure have effect on the performance of SMEs in Lagos state, to find out if environment have effect on performance of SMEs in Lagos state. In line with these objectives, three research questions and hypotheses were formulated and answered. The total population for the study is 75 selected SMEs in Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study.
Conclusion
This study focused on the effect of strategic management on the performance of SMEs in Lagos State, Nigeria. Based on the result of the hypothesis tested, it can be concluded that the all the variables of strategic management (environmental, business strategy and organizational structure) are positively significant to the performance of SMEs. Also, that the not all the SMEs are aware of strategic management strategic management
Recommendation
Based on the findings of this study, it is therefore recommended that SMEs should continually scan their environment, introduces suitable business strategy and adapt a suitable organizational structure. Also, those strategic vision that must be communicated to all employees.
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