Strategic Issues and Organizational Performance
CHAPTER ONE
Objective of the Study:
The primary objective of this study is to investigate the relationship between strategic issues and organizational performance, taking into consideration various mediating factors and the influence of industry context. Specifically, the study aims to achieve the following objectives:
- To assess the extent to which strategic issues influence organizational performance.
- To identify and analyze the mediating factors that play a role in shaping the relationship between strategic issues and organizational performance.
- To investigate how industry context interacts with strategic issues to influence organizational performance
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
Concept of Strategic Management
Strategic management is an important aspect of management that elicits research interest among scholars and practitioners. This can be attributed to the universal application of this aspect of management discipline. One of the recent conceptual studies in Nigeria (Ujunwa and Modebe, 2012) advocated for the adoption of strategic management approach in ensuring capital market efficiency following the perceived pivotal role of the capital market in economic development. The strategic management measure they reviewed ranged from effective regulation to achieving favourable macroeconomic environment. They posit that these strategies will promote economic performance. Despite this, insufficient empirical work exists to measure the level of association between the adoption of these techniques and organizational performance (Askarany and Yazdifar, 2012). Strategic Management is involved in deploying a firm’s internal strengths and weakness to take advantage of its external opportunities and minimize its external threats/problem (Adeleke, Ogundele & Oyenuga, 2022) Thomas Batman and Scott define strategic management as a process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies. They define strategy as a pattern of action and resources allocation designed to achieve the organizational goals. Thomas and Strickland (2003) defined it as the managers’ tasks of crafting, implementing and executing company in its chosen market arena, competing successfully, pleasing customer, and achieving good business performance. Institute of strategic management, Nigeria (2010) defined strategic management as an integrative process of management in which all managers of an organization engage in continuous rethinking and auditing of themselves, the organizations and the environment, and in developing, implanting, implementing and controlling the organization direction, strategies and programmes, aimed at effecting positive changes, building competitive advantage and achieving all the time successful performance. Stoner (1982) defines Strategy of an organization as an integrated plan through which an organization accomplishes it objectives. According to Kapic (2002) the fundamental issues in the field of Strategic management are: how firms achieve and sustain competitive advantage and how and why certain firms build competitive advantage over others. Strategy is defined as a pattern, purpose, policies, programmes, actions, decisions, or resources allocations that define what an organisation is, what it does, and why it does. Strategy can vary by level, function and by time frame Kapic (2012). Johnson and Scholes (2019) noted that “Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a changing environment, to meet the needs of markets and to fulfill stakeholder expectations”. The view that strategy is a perspective identifies with those organizations where there is a powerful group of strategy makers. It is their whims, predilections and personality that influence organizational direction. This of course raises an issue about whether such views reflect an organizational consensus. Anah (2008) defines strategic management as an increase in the responsibility of managers to respond to change in business environment through Strategic planning, Capability planning, Real-time response management and Management of strategic change. Onwuchekwa (2000) defines strategic management as a stream of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objective and it is the process through which strategist determine objectives and make strategic decisions. Arieu (2007) asserts that there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context. Strategic management is an ongoing process that evaluates and controls the business and the industries in which the organization is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitor; and then reassesses each strategy annually, quarterly or regularly to determine how it has been implemented and whether it has succeeded, or needs replacement by a new strategy to meet changed circumstance, new technology, new competitors, a new economic environment, or a new social, financial, or political environment Meier, O’Toole, Boyne and Walker (2012) summarized the concept of strategy as being characterized as senior managers’ response to the constraints and opportunities that they face. Therefore, the better the fit that an organization achieves with external circumstances, the more likely it is to win financial and political support and they improve its performance. Thus, the study defines strategic management as the way and means through which the top management uses to get the employees to appreciate the corporate vision and mission statement and to work towards achieving them. Kotelnikov (2007) came up with the three hierarchical levels of enterprise strategy. An enterprise strategy is concerned with the match between your company’s internal capabilities and its external environment. He posits that the three levels of strategy comprise: corporate strategy, business strategy and functional strategy.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
It is important to ascertain that the objective of this study was to ascertain Strategic issues and organizational performance. 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 Strategic issues and organizational performance
Summary
This study was on Strategic issues and organizational performance. Three objectives were raised which included; To assess the extent to which strategic issues influence organizational performance, to identify and analyze the mediating factors that play a role in shaping the relationship between strategic issues and organizational performance and to investigate how industry context interacts with strategic issues to influence organizational performance. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Nigeria bottling company in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In conclusion, this study contributes to the growing body of knowledge in strategic management by shedding light on the intricate dynamics between strategic issues and organizational performance. By offering actionable insights and encouraging ongoing inquiry, the study equips organizations with the tools needed to navigate complexities, adapt to change, and achieve long-term success in a world of evolving challenges and opportunities.
Recommendation
Based on the findings and insights derived from this study, several recommendations are offered to guide organizations, leaders, and policymakers in effectively managing strategic issues and enhancing organizational performance:
- Enhance Environmental Scanning: Organizations should invest in robust environmental scanning processes to continuously monitor and assess external factors that could impact their strategies. Regular scanning allows for the early identification of potential strategic issues and enables proactive responses.
- Promote Strategic Flexibility: Organizations should cultivate a culture of strategic flexibility, encouraging the willingness to adapt and pivot in response to changing circumstances. This involves fostering a learning-oriented environment and empowering employees to propose and implement innovative solutions.
- Optimize Resource Allocation: Resource allocation should be aligned with the strategic priorities of the organization. Effective allocation ensures that resources are channeled toward addressing strategic issues, allowing for the efficient implementation of strategic initiatives.
- Develop Scenario Planning: Organizations can benefit from scenario planning exercises that simulate various potential future scenarios. This approach helps organizations anticipate multiple outcomes, enabling them to develop strategies that are robust and adaptable across different circumstances
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