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ABSTRACT
The topic of this project is “the effect of strategic management on organization’s performance”, with a particular reference to Krisoral Group of company’s Ltd Onitsha. The problem of this study si that most business organizations fail not because they lack good employees but because their management lack adequate strategy. How organizations can successfully adapt to their environment to ensure growth, survival, profitability and continual existence is the concern of this project. The objectives being to bring to focus the necessity for effective and efficient management strategy in organizations such as:
1. The extent to which the organizations involve in strategic management.
2. Why strategic management fails in some organizations.
3. The relationship between strategic management and secondary data collected. Whereas the secondary data
were collected from text books, journals, Internets
Data analysis involved sampling out a particular number from the population of study in order to make generalization. The work went as far as testing the hypothesis formulated in chapter one f this project. It was found out that clear understanding of a company’s business objectives to a large extent determines the rate of managerial efficiency. Proper monitoring and control of company’s strategy is very essential in organization’s efficiency. Flexibility of strategy is necessary for organization to stand the test of time. In conclusion, strategic management is a means towards attaining success in business endeavours. Therefore strategic management is inevitable for organization to stand and continue in existence.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND INFORMATION
Business today operates in a highly competitive, fast paced, globally connected environment where change is a constant. This environment presents challenges to any leadership team attempting to lead and manage successful and sustainable business in the global area.
Strategizing ahead becomes of paramount importance to the leaders of organizations. Spot and strategic management is therefore critical as the strategies implemented will help lead organizations to assume their best position in the global market.
Nowadays, demands on corporate strategists are increasingly heavy, as strategic implementation is becoming more complex in the real world. Therefore, there is a need to develop a conceptual model to integrate
and make the theory of strategic implementation easier to understand and apply.
An organized enterprise does not exist ina vacuum, but is dependent on its external environment.
The enterprises therefore receives inputs, transforms them into processed outputs and delivers them to the environment are composed of
1. Customers (both distributors and users)
2. Suppliers of materials, Labour, Capital equipment and work space
3. Competitors for both the markets and resources and
4. Regulatory groups including governmental agencies, unions, and inter firm association
General environment includes economic policies,
Technical system and demography
Managers have no control on these forces but rather respond to their changes. Their ability to respond to
these external variables and internal forces are the major trust of this study.
(Akpala 1990, P.12) Poor management of any organization will likely bring about poor undesired performance necessitated by inappropriate organization structure which is the pivot or building block for management. Without a known framework, management of organization cannot be effective and efficient. It is within this framework that organization management process thrives effectively. According to Akpala, management as the process of combing and utilizing or of allocating an organization’s input (i.e. men is human resource, material and money) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services)desired by customers to achieve organizational objectives or goals. The ability of any organization to achieve its aims and objectives within specified limits is known as managerial efficiency. How
well an organization uses its available resources to achieve desired goals is a source of concern for managers in this era of scarcity of resource.
Human resource management, one of the key factors to improve business performance can be regarded as a general approach to the strategic management of intentions of organization on the future direction it wants to take. It is concerned with long-term people issues and macro-concerns about structure, quality, culture values, commitment and matching resource to future need.
Since early 1990s, there has been evidence being generated on the impact of people’s management practices on business performance. It is useful for all organizations and inherent framework which reflect the business strategy. They can ensure that various aspect of people management are mutually reinforcing in developing to achieve business success.
(Akpala 1990, P. 12) Poor management of any organization will of no doubt bring about undesired performance necessitated by which the pivot or building block for management.
Without a known framework, management of an organization cannot be effective and efficient. It is within this framework that organization management process thrives effectively.
According to Akpala, management as the process of combining and utilizing or of allocating an organizations inputs (men, material and money) by planning, directing and controlling for the purpose of producing outputs (goods and services) desired by customer to achieve organizational objectives. The ability to any organization to achieve its aims and objective is known as managerial efficiency. How well an organisation uses its available resources to achieve desired goals is a source of concern for managers especially in this area of scarcity of
resources. So, in strategic management appropriate organizational structure which will match the environment and productive activities of an organisation is chosen.
Sometimes, when an organisation is implementing the strategies it has formulated, the environment can change further thereby indicating that there should be further strategic planning analysis of these new events which the organisation did not anticipate before they occurred during the strategic implementation process. These new issues are called real-time response management (Ansoff, 1984). When implementing strategies formulated to respond to changes in the environment, two major problems are faced by the general management which are
1. Behavioural resistance to change and
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