An Assessment of Strategic Management and Its the Effect on Organizations Performance
(a Case Study of Krisoral Group of Companies Limited Onitsha)
CHAPTER ONE
OBJECTIVE OF THE STUDY OBJECTIVE
The overall goal of the research is to:
- Investigate the impact of strategic management on the performance of the organization.
- Investigate the factors militating against strategic management in Krisoral group of companies.
- Investigate the impact of strategic management on companies sustainability in competition market.
CHAPTER TWO
LITERATURE REVIEW
Theoretical Perspectives
A theory can be described as a set of similar concepts, which yield a logical view of phenomena for explanation or prediction of phenomena. According to China and Kramer (1999), a theory is a creative and rigorous structuring of ideas, an expression of knowledge that project a tentative, systematic and purposeful perception of phenomena. A theoretical framework shows particular constructs through which we explore a topic. It supports the proposed study by demonstrating the known relationships among variables and setting the study’s limits or boundaries. This study will be anchored on two theories namely, Mckinsey 7S Framework and the Resource Based Theory.
The investigation trusts that these frameworks give the premise to understanding the connection between strategic management practices and organizational performance. Strategists have been using the RBV theory to explain the lasting inter-firm performance differences (Barney & Griffin, 1992).
The theory supports that companies have a number of unique operational resources and capabilities, of great worth, non-substitutable, and which gives the firm a sustainable competitive advantage. Strategists can implement the framework in a broader scope of business situations where management wants to align perspective and processes, for example, in assisting senior managers to better organizational performance, study within the firm, the expected effects of future changes, arrange processes and departments of the firm when undergoing mergers or acquisition and further determine the profitable way management can implement a proposed action plan. The business alignment issues apply to all firms regardless of how you decide to define the scope of the areas you want to investigate.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
Research methodology
defines the techniques or specific approach used to pinpoint, determine, process, and analyse material and or information about a study. The methodology section permits anyone reading the study to critically assess a study’s validity and reliability. Kothari (2004) observes that research methodology describes in detail the logic that is behind the methods used in the perspective of the research and it explains why researchers are using specific methods or techniques to ensure findings have the ability to be evaluated by the researcher or any other person.
The chapter discusses various sections of the methodology adopted in this study with the aim of achieving the set objectives for effective interpretation of research findings. The chapter has discussed the research design, target population, sampling technique, data collection and data analysis.
DATA ANALYSIS, RESULTS AND DISCUSSION
Introduction
This section has discussed summary of findings, conclusions and recommendations based on the objective of the study, which is to examine the link between strategic management practices and performance of Krisoral Group of Companies Limited.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This section discusses summary of key findings, conclusion and recommendations as guided by the objective. This has been discussed in detail in the following sections.
Summary
This study sought to examine the influence of strategic management practices on performance of Krisoral Group of Companies in Nigeria. The findings presented in the study are based on an analysis of 101 (82%) questionnaire, which were collected after data collections.
On the highest level of education majority of the respondents had diploma (54%) and a degree (28%). Most of these respondents had worked in the company for over 10 years meaning they were able to provide the required information based on their knowledge of their organization. Most at times, Krisoral Group of Companies is able to introduce 9 or more new products in a five-year term. This can make the organization become competitive in the market.
The findings shows, Krisoral Group of Companies limited had, for the last three years, spend over 16 million on Research and Development (R&D). Consequently this investment in R & D demonstrates the organizations commitment to improve quality of products and update its existing technologies. Over 70% of the respondents believe the organization has a strategic plan which guides the implementation of activities.
Performance of Krisoral Group of Companies had improved through its innovativeness as they allocate more resources. In order to take advantage of the emerging trends, the organization uses modern technology where majority say the adoption of new processes is done faster. Majority 70% of the respondents suggested that in strategy formulation the organization assesse all its resources including financial and human resources. According to 56% of the respondents, the organization fairly identifies its competitors and is able to respond or intervene where necessary.
Majority of the respondents observed that the organization’s strategic behaviour and choices are in line with environmental developments and hence is often incorporated at strategy formulation. By allocating more resources, the organization is able to increase production and enhance customer service resulting to high performance. Overall, in the last five years the organization had increased its profit. This has seen increase in net profits, sales revenue and market shares.
Conclusion
Based on the findings presented in the above section, this study concludes that strategic management practices that can help enhance performance are important for the organization. Therefore organization should ensure they develop the right strategies and implementation framework.
Krisoral Group of Companies increase its innovation through increased investment on research and development. Organizations should understand effects of social, environmental and political charges on the growth and performance of the organizations. Organization identifies, develops and implements strategic management practices that are suitable for local and international markets
Recommendations
This study has examined strategic management practices and performance of Krisoral Group of Companies in Anambra. It recommends that the organization should improve its process improvement in order to enhance performance. In addition, the study recommends that there is need for organizations to increase resource allocation in sectors that are likely to increase production. Lastly but no least, future studies can examine strategic management practices in other sectors for comparative purposes.
REFERENCES
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- Ansoff, H. I. (1987). Corporate strategy. New York: McGraw Hill.
- Aosa, E, (1992). An empirical investigation of aspects of strategy formulation and implementation within large private manufacturing companies in Nigeria. Unpublished PhD Thesis, University of Strathchide, Glasgow- Scotland.
- Barney, J. (1991). Firm resources and sustainable competitive advantage. Journal of Management, 17(1), 80-91.
- Chandler, A. (1962). Strategy and Structure: Chapters in the History of Industrial Enterprise. New York: Doubleday.
- Chandler, A.D. (1962). Strategy and Structure: Chapters in the History of the American Industrial Enterprises. Cambridge: Cambridge MIT Press
- Code of Conduct for the Practice of Journalism in Nigeria. Retrieved from http://www.mediacouncil.or.ke/en/mck/index.php/publications/codeofconduct
