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THE EFFECTS OF MANAGEMENT STRATEGIES ON ORGANIZATIONAL PRODUCTIVITY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The crux of every management job lies in the job holder’s capacity to obtain the commitment of people and the ability to apply an excellent strategy in order to achieve the main objectives of the organization. Strategic management is not a box of tricks or a bundle of techniques or methods but it is analytical thinking process and commitment of resources to action. Besides, an excellent execution or application of an excellent strategy is the best test to managerial excellence and the most reliable and dependable recipe for effective organizational success. The tasks of crafting, implementing and executing enterprise strategies are the heart and soul of managing a business organization effectively and efficiently. Generally, enterprise’s strategy refers to the game plan or method management is using to watch out a market position, conduct its operations, attract and please customers, compete successfully and achieve the objectives of the organization. It is note worthy that without a good and reliable strategy, the organization is like a ship without a rudder to move it to the appropriate direction.
Modern business managers operate in a dynamic environment. The changes in the environment have been rapid and unpredictable and consumers have been showing complex behaviours both in local and international markets. Competitors have been applying one strategy or the other to adapt to the dynamic and unpredictable business environment. Many organizations are using some management strategies to make effective decisions. It is essential to note that management strategies may not always guarantee success if not properly applied in business. Hence, management strategies allow a business organization to be more productive than reactive if properly implemented. Success in today’s manufacturing environment is measured by how successfully the firm or company meets the needs of their customers. Effectively satisfying your customers require tools and solutions that support efficient and consistent production operation. In today’s competitive global landscape winning over customers is not an easy task. The companies that are able to win over the customers are the suppliers that provide the best mix of product, price and production etc. Finding a competitive advantage requires implementing top business management solutions business solutions are tools that assist managers to meet the needs and want of the customers.
THE HISTORICAL BACKGROUND OF THE STUDY
The Champion Breweries Plc, Uyo is one of the manufacturing and marketing company existing in Akwa Ibom State. The company is situated along Aka Obot Idim Road, Uyo in Akwa Ibom State. Champion Breweries Plc was incorporated as a Private Limited Liability Company on the 31st of July 1974 with the name South-East Breweries Limited. But due to political imperative in Nigeria, the company was changed from South East Breweries Limited to Cross River Breweries Limited and thereafter to Champion Breweries Limited. The name – Champion Breweries Limited was latter changed to Champion Breweries Plc on the 1st of September, 1992.
On the 24th of November 1974, the government of then South East State of Nigeria signed an agreement with Messrs Haase Braverie GMBH of Hamburg (Technical Partners) for the supply and construction of a turnkey brewery in Uyo with a capital of 150,000 hectolitres. The foundation stone of the Breweries was laid on the 19th of March 1975. on the 11th of December 1976, the Breweries was officially commissioned and it products – Champion Lager Beer launched into the market with success.
On the 22nd of July, a second contract was signed with the Technical Partners to increase the capacity of the Breweries from 150,000 to 500,000 hectolitres. The foundation stone for the expansion was laid on the 24th of December, 1977. The expansion which incorporated more sophisticated machinery, was completed and put on trials run in September 1979. The second production line was officially commissioned on the 11th of December 1979, the same year the company products – “Champion Lager Beer” and “Champ Malta” won silver medal at International contest in Paris, France, Champion Lager Beer had previously won International Medal for quality at the 16th World Selection for Beers and Non-Alcoholic Beverages in Luxemburg.
Consequent upon pressure of demand for its product, the company took a decision to double its capacity to one million hectoliters. The third expansion, which gulped substantial resources, could be realized. The non-completion of the expansion programme coupled with lack of working capital and inadequate maintenance of the plants forced the company to close its door for business between 1990 and 1991. All subsequent reactivation attempts did not yield the desired or positive results.
With the advent of democracy in Nigeria on May 1999, the government of Akwa Ibom State made the reactivation of the brewery a cardinal activity. Consequently, the Akwa Ibom Investment and Industrial Promotion Council (AKIIPOC) was charged with the responsibility to reactivate the company pursuant to this mandate, AKIPOC in conjunction with the Board of Directors of the company, went to the market to solicit for core Investors/Technical Managers. In the process, Messrs. Montgomery Ventures incorporated of Panama was identified and brought into the company as core Investors/Technical Managers after a Memorandum, a reactivation committee was set up by Board of the Company to work with core Investors/Technical Managers for the revamping of the company. The reactivation process, which commenced in February 2000, lasted about nineteen months. Now, the company has been revamped and restructured to use one hundred percent locally sourced raw materials. The brewery is now fully operational and the capacity is 500,000 hectolitres per annum.
The reactivated brewery was officially commissioned on the 23rd of October 2001. Champion Lager Beer is now in the market and is doing well. Already the company has successfully held an extra-ordinary General Meeting of the shareholders during with approval for the authorized share capital of the company to be increased from N25m to N450million. The second phase of the reactivation programme has begun already. The aim is to diversify the company’s product and bring the capacity to 1,000,000 hectolitre per annum. Champion Breweries Plc, Uyo is a manufacturing and marketing organization with the following departments:
Production Department
Marketing Department
Administrative Department
Accounting Department
Sales Department
Perfectly, every successful organization must see to find out these problems and eradicate them in order to remain active in the economy.
1.2 THE STATEMENT OF THE PROBLEM
In every organization, it is the duty of the management to formulate and implement some strategies that will help the organization to operate and succeed in the complex and in a dynamic environment. Observation shows that some organizations do not know the proper management technique they have to adopt at a particular period of time and this has in turn affected the organizational productivity.
1.3 THE OBJECTIVES OF THE STUDY
This research will enable the researcher to suggest some strategies that can assist Champion Breweries Plc on the sale of its products.
. To ascertain the effects of management strategies on organizational productivity.
. To verify the extent of satisfaction derived from the company products as a result of proper management strategies.
. To appraise the role of commercial organizations in the development of the Nigeria economy.
1.4 THE SIGNIFICANCE OF THE STUDY
Generally, the success and continuity of any business organization is determined by its productivity. In this regards, students and interested readers would find this work very useful for reference purposes. Similarly, this research will help the executives and whoever at a management position of any organization to properly make and implement some decisions that will assist in the attainment of a common goal or set of goals. Hence, any other individual(s) who wish to go into further research on this topic will find this work very useful.
1.5 THE RESEARCH QUESTIONS OF THE STUDY
The following research questions are formulated to guide the direction of the study.
In what ways do management strategies contribute to organizational productivity?
What management strategies have been adopted by the company?
What are the causes of organization low productivity and what are the ways to remedy the situation?
What problem is faced by managers in implementing their management strategies?
1.6 THE DEVELOPMENT OF HYPOTHESIS
Ho: Effective management strategies do not affect organizational productivity.
HI: Effective management strategies affect organizational productivity.
Ho: The objective of organization cannot be accomplished through management strategies.
HI: The objective of organization can be accomplished through management strategies.
1.7 THE SCOPE AND LIMITATIONS OF THE STUDY
The study concentrates on the effects of management strategies on organizational productivity and this study is only limited to just one company (Champion Breweries Plc, Uyo) because it is practically impossible for the researcher to work on all organizations in Nigeria within the short time available for this project and some other things like inadequate of data from workers, delay in returning of the questionnaire from the respondents and inefficient data for the study.
1.8 DEFINITION OF SOME TERMS AS USED IN THE STUDY
Organization: Robbins and Judge (2017) defines organization as a consciously co-coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
Productivity: It is the rate at which a company or a worker produces goods and the amount produced, compared with how much time, work and money is needed for the production.
Management: This is the process of working with and through with people in order to achieve organization set goals.
Environment: These are institutions or forces outside the organization that potentially affect the organization’s performance.
