Assessment of the Impact of Long-term Planning on the Growth of Large Corporations
CHAPTER ONE
Objectives of the Study
The main objective of the study is an Assessment of the impact of Long-Term planning on the growth of Large corporations ( A case study of Dangote cement Gboko).
The specific objectives of this study are:
- To find out the operational efficiency of the long-term plan at Dangote cement.
- To find out the main factors that affect Long-Term planning practices at Dangote cement.
- To find out how Long-Term planning affects Dangote cement’s corporate performance.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
This chapter is devoted to the review of literature that relates to the concept of Long-Term planning and how it has been used to impact on performance. Here, the impact of long-term planning on performance is placed in the context of existing literature and the relationship of each work to the others under consideration is determined.
The Concept of Strategy
The word “strategy” has always been associated with and indeed been prominent in any discussion on the subject of management of an organization because of its importance. Pitts et al (2003) explain that it is to ensure that an organization applies its strengths and distinctive competences in such a way that it gains a competitive advantage over its rivals in any given environment. However, I am of the view that, an organization should also be aware of its weaknesses to help position it better ahead of its rivals. Strategy is the framework which guides those choices that determine the nature and direction of the firm (Tregoe, Benjamin and Zimmerman, 1980). In the view of (Johnson et al, 2008; and Mintzberg, 1994), strategy is a game plan, a pattern in a stream of decisions and actions, a position and a ploy intended to outwit competitors whiles fulfilling stakeholders‟ expectations in line with the organization’s scope of business.
The word strategy comes from the Greek word Strategos which refers to military generalship and combines stratos (the army) and ago (the lead). The history of Long-Term planning has its roots in and it‟s a heritage of the military (David, 2003). The Webster‟s New World Dictionary alludes to this militarism defining strategy as the science of planning and directing large scale military operations of maneuvering forces into the most advantageous position prior to actual engagement with the enemy. Clearly, the key aim of both business and military strategy is to gain competitive advantage or combat superiority over competitors or foes as the case may be.
Military strategy books such as “The Art of War” by Sun Tzu (1965) “On War” by Von Clausewitz (1975) and “The Red Book” by Mao Zedong (1965) have been an invaluable knowledge base for many of the concepts especially on business tactics, the dynamic and unpredictable future and principles of guerrilla warfare; these have guided and informed the writing of many books on strategic management in general and marketing warfare strategy in particular (Wikipedia, 2009).
Nickols (2008) in his article on “Strategy, Strategic Management, Long-Term planning and Strategic Thinking” explained that before coming to a good understanding of the term “Long-Term planning” it is best to examine the terms separately. He thus deposes that strategic means “of or having to do with strategy” and being “of great significance or import”. His point therefore underscores the reasons why strategies exist or must exist at various levels of
the organization to give a clear direction (where it is headed) and destination (what it is to become). For our purposes then, strategic means “of great importance” be it at the corporate, business unit or functional level and whether it be for medium or long-term; 2-7 years purposes (ibid.).
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
Research design is a detailed outline of how an investigation took place. It entails how data is collected, the data collection tools used and the mode of analyzing data collected (Cooper & Schindler (2006). This study used a descriptive research design. Gill and Johnson (2002) state that a descriptive design looks at particular characteristics of a specific population of subjects, at a particular point in time or at different times for comparative purposes. The choice of a survey design for this study was deemed appropriate as Mugenda and Mugenda (2003) attest that it enables the researcher to determine the nature of prevailing conditions without manipulating the subjects.
Further, the survey method was useful in describing the characteristics of a large population and no other method of observation can provide this general capability. On the other hand, since the time duration to complete the research project was limited, the survey method was a cost effective way to gather information from a large group of people within a short time. The survey design made feasible very large samples and thus making the results statistically significant even when analyzing multiple variables. It allowed for many questions to be asked about a given topic giving considerable flexibility to the analysis. Usually, high reliability is easy to obtain by presenting all subjects with a standardized stimulus; observer subjectivity is greatly eliminated. Cooper and Schindler (2006) assert that the results of a survey can be easily generalized to the entire population.
CHAPTER FOUR
DATA ANALYSES AND DISCUSSION OF RESULTS
Introduction
This chapter presents the data analyses of the administered questionnaires, the presentation of the analyses and the fall out of the results as well as discussions for the study. Descriptive statistics such as frequency and mean were used in the analyses.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter presents the summary of findings of the analysis, the conclusion drawn from the study and the needed recommendations for further study and enhancement of Long-Term planning.
5.1 Summary of Findings
5.1.1 Efficiency of Long-Term planning Operations in Dangote cement
The study reveals that, there is an existence of Long-Term planning in Dangote cement, the various dimensions used for the assessment of Long-Term planning show a consistency of the factors in use throughout the Firm, respondents were highly in agreement with most of the factors of the various dimensions indicating an efficient and effective operations of the Long-Term planning in Dangote cement. Again various factors individual scores show a more agreement or neutrality but with less insignificant disagreement by the respondents who are staff and management of the Firm. This shows that, Dangote cement has an efficient Long-Term planning in operations in all of its various departments within the Firm.
5.1.2 Main factors that Affect Long-Term planning at Dangote cement
Various factors within the dimensions were found to be affecting the Long-Term planning at Dangote cement either positively or negatively. This study shows that, all factors under the mission, planning, structure, people, system, result and quality and relationship were consistent and cumulatively contribute positively to the Long-Term planning in overall terms with the
exception of the dimension of „leadership‟ whose agreement was not so consistent and did not enjoy a comprehensive and strong agreement among all members. This is very vital due to the fact that, leadership steers the affairs of the entire corporate body and hence a less comprehensive support may derail the effectiveness of the process of Long-Term planning which could ultimately affect the performance of the institution.
5.1.3 Effect of Long-Term planning on the Performance of Dangote cement
Corporate performance is dependent on policies and planning for every corporate body. The study reveals that, a thorough support of Long-Term planning and its execution leads to greater performance within the industry. The result and quality dimension shows that, customers of the Firm show a satisfaction level of service delivered by the Firm and hence helps the Firm to achieve its targets which is part of its performance measure. Hence a positive Long-Term planning was found to affect corporate body performance. This study shows that, Dangote cement‟s Long-Term planning is affecting the performance of the Firm positively and puts it in a unique position in the industry.
5.2 Conclusion
Strategic planning of corporate bodies is an essential instrument for planning and forecasting which positions the organization to meet demands and changes which might come up in the course of discharging its services. This study reveals that, Dangote cement as a corporate body has a clear strategic plan which is articulated to all of its employees at various levels and departments within the Firm. It reveals that, the strong agreement of factors of various dimensions of Long-Term planning indicate the effectiveness and efficiency of such planning adopted by employees of the Firm and hence affects the Firm‟s performance positively.
5.3 Recommendations
Based on the analysis discussed, the following recommendations are made so as to help the Firm to enhance its operations.
All factors of various dimensions should be put into the right perspective, so as to help the general workforce of the Firm to understand the main objectives and the strategic plans in place to achieve the objectives of the Firm per each fiscal year of Dangote cement. This will enlighten the employees of the Firm to jeer towards delivering services to enhance the general strategy of the Firm and to raise its performance.
Moreover, the factor „In-depth program evaluation is conducted as part of the planning process. This includes assessment based on identified benchmarks for quality and specific outcomes and process objectives‟ should be redefined, well communicated to staff and corrected where mistakes are committed so as to bring it back on board to achieve a great measure on it to help the Firm‟s Long-Term planning policy.
Again all the factors relative to leadership should be well articulated to management and staff of the Firm. This will help the employees to know and understand the style of leadership adopted for the operations and governance of the Firm to keep them focus in working towards achieving the objectives of the Firm.
It is also recommended that lines of communication between managerial and non-managerial staff should be improved in order to encourage and support the flow of information and feedback mechanisms.
In addition to the above, set program goals and budgets should be properly communicated to staff for them to have a knowledge of the Firms goals and resources budgetary allocations.
Furthermore, it is recommended that Dangote cement develops quarterly fora to provide employees the opportunity to be heard on matters relative to the Long-Term planning practices at Dangote cement.
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