STRATEGIC PLANNING AS A TOOL FOR CORPORATE SURVIVAL

STRATEGIC PLANNING AS A TOOL FOR CORPORATE SURVIVAL (A CASE STUDY OF CADBURY NIG. PLC)

ABSTRACT

This project is on strategic planning as a tool for corporate survival with reference to Cadbury Nigeria Plc ,Agidingbi, Ikeja, Lagos. Effective management of business environmental changes depends on careful planning. Strategic planning has been the cornerstone of business organization survival, because of numerous benefits derived from a well formulated and implemented strategic planning. In setting firms strategy, various elements such as objectives, resources and opportunities are put into consideration. The organization conducts its business environment situation analysis I order to identify its strengths, weakness, threats and opportunities (SWOT). Towards this, there are basic steps in strategic planning which enables the enterprise to develop strategic options. The chosen strategic options need to match organization opportunity with the strengths so as to achieve corporate objectives. The process of strategic planning is a useful framework for business management. It bears heavily in organization success or failure, when all the spectrum of strategic planning are done well, an organization may overcome inefficient use of internal resources but it is unlikely for the organization to survive with poor strategies. The project ends with recommendations of quantitative forecasting technique in addition to judgment and assumptions, which are common with some business organizations today.

TABLE OF CONTENTS

Title page                                                                                          i

Certification/Approval                                                                  ii

Dedication                                                                                        iii

Acknowledgement                                                                          iv

Abstract                                                                                             vi

Table of Contents                                                                            viii

List of Tables                                                                                    xi

CHAPTER ONE

1.1       Background of Study                                                           1

1.2       Statement of Problem                                                         2

1.3       Objectives of Study                                                             2

1.4       Research Questions                                                 3

1.5       Research Hypotheses                                                          4

1.6       Significance of Study                                                          5

1.7       Scope and Limitation of Study                                          5

1.8       Historical Background of Study                                        6

1.9       Definition of Terms                                                             7

References                                                                                        10

CHAPTER TWO

2.1       Nature of Strategic Planning                                             11

2.2       Corporate Planning Approach                                          12

2.3       How to Develop Strategic Plan                                         14

2.4       Strategic Planning Process                                                14

2.5       Characteristics of Strategy                                                16

2.6       Criteria for Effective Strategy                                           16

2.7       Types of Strategies                                                              17

2.8       Strategic Management                                                        20

2.9       Formulation of Strategy                                                     21

2.10    Objectives and Goals                                                           23

References                                                                                        26

CHAPTER THREE

3.0       Characteristics of Population                                           27

3.1       Research Sample                                                                  27

3.2       Methods of Data Collection                                               27

3.3       Procedure of Statistical Analysis                                     28

3.4       Research Design                                                                  28

CHAPTER FOUR

4.0       Data Analysis and Explanation of Data                           29

4.1       Testing of Hypotheses                                                        37

CHAPTER FIVE

5.0       Summary of Findings                                                          40

5.1       Conclusion                                                                            41

5.2       Recommendations                                                              42

Bibliography                                                                                   44

Appendix A              Questionnaire  Cover Letter

Appendix B              Questionnaire

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF STUDY

In order for an organization to thrive succeed in its environment of operation and achieve its set objectives and goals, there exist fundamental environmental forces that influence management decision making (formulation and implementation of policy) process.

Organization must adapt to these environmental forces as they plan and carryout their strategies and activities.

The success of the organization or its failure is determined largely by how well it recognizes and adjusts to planning. Organization can predict changes in environmental forces that will influence business direction through strategic planning.

Planning covers the whole process of determining what purpose to pursue and the means of attaining them as well as the mechanism for monitoring results.

Planning helps organization define their purpose and activities. All managers at various levels in the organization plan. Planning is one of the important managerial functions. Its importance can be deduced from the popular adage – He, who fails to plan, plan to fail. Thus, for a manager to succeed, he has to plan.

It is therefore, the responsibility of managers to make use of a firm’s resources in adjusting to the changing environment. Activities carried out by the organization should stem from strategy. Non existent or poorly defined strategy results in ineffective utilization of resources.

This project therefore, attempts to study the significance of a well-formulated strategy as a basis for organizational success.

1.2