TITLE PAGE

THE IMPACT OF STRATEGIC PLANNING ON THE GROWTH OF

BUSINESS ORGANIZATION
(A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC NGWO
NINETH MILE ENUGU.)
BY
CHEWENDU FLORENCE NKEIRUKA
08H/1164/BAM
A RESEARCH PROJECT PRESENTED TO THE DEPARTMENT OF
BUSINESS ADMINISTRATION AND MANAGEMENT, SCHOOL OF
BUSINESS MANAGEMENT AND TECHNOLOGY, FEDERAL
POLYTECHNIC NEKEDE OWERRI P.M.B 1036 IMO STATE
IN PARTIAL FULFILLMENT FOR THE AWARD OF HIGHER NATIONAL
DIPLOMA IN BUSINESS ADMINISTRATION AND MANAGEMENT

AUGUST 2010

APPROVAL PAGE
This is to certify that this project has been approved by the department
of Business Administration and Management Technology, Federal
polytechnic Nekede, Owerri Imo state in partial fulfillment of the
certificate award of Higher National Diploma.
BY
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Mr. C.O Chikwendu Date

(Project Supervisor)

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Engr. C.C Emekeoma Date

(Project Cordinator)

---------------------- ----------------------

Mr. D.C. Ohadinma Date

(Head of Department)

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External Examiner Date

DEDICATION

With a grateful heart filled with appreciation and thanks giving, I

solemnly dedicated this work to Lord God Almighty for seeing me
through and leading me so far till this day, who have been my helper
since I started this journey and making my dream come true.
Also to my amiable parents (Rev. and Mrs. Chewendu) who have
been by my side through their prayers, encouragements and love.
To the loving memory of Rev. J.E Emenike for his prayers answered
on my behalf.

ACKNOWLEDGEMENT

Whole heartedly appreciating God for His grace first. I also

immensely thank my project supervisor Mr. C.O Chikwendu, for his
fatherly advise and been patient with me during supervision. I say a big
thank you.
My immeasurable thanks goes to my parents Rev. and Mrs. Samson
Chewendu who helped me through their moral support, prayers,
financially and love throughout my academic years. I also wish to thank
my Godly mother Mrs. Ngozi Emenike who was or played a role of a
mother through her prayers and advice.
This work is also successful as a result of some roles played and
contributed by some persons like sister Mrs. Jane Chinedu, Uchenna, Ken,
Chidi, Uchechukwu K., Clinghton and my nieces who were able to give
me conducive environment to write (Jerry, Ruby, Olive, Josiah and little
Emmanuel).
I also appreciate the effort of Mr. Charles who was a guardian and
ever ready to attend to me when there is the need. I say thank you. I
also wouldn’t be satisfied without mentioning my cousin Chinedu, who
showed me a great love throughout the period of my academic pursuit.

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ABSTRACT

Failures of the corporate business organizations in Nigeria are trends,

that are now becoming a recurring decimal in our national life. Eminent
business scholars and practitioners have blamed this ugly development
on non-application of strategic planning by these corporate business
entities in their management styles. This work has therefore attempted
an up-to date analysis of the effects of strategic planning on the growth
of business organizations by carrying out an in-depth study of the
various departments in the Nigerian Bottling Company and their
contributions to strategic planning, as a means of achieving
organizational goal. The study involved the use of the necessary
research techniques such as questionnaires, oral interviews, personal
observations, and relevant literatures to get to the root of the subject
matter. The work revealed that there is a fundamental need for all co-
operate management units to develop in manner that will be devoid of
ambiguity, setting out perceivable targets with clearly defined wider
objectives.

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TABLE OF CONTENT

Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract vi
Table of contents vii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 3
1.2 Statement of the problem 6
1.3 Purpose/objectives of the study 8
1.4 Research questions 9
1.5 Research hypothesis 10
1.6 Significance of the study 11
1.7 Scope/delimitation of the study 12
1.8 Limitation of the study 13
1.9 Definition of the term 14
CHAPTER TWO
2.0 Literature review 16
2.1 Introduction 23
2.2 The planning concept 30
2.3 Strategic management 32
2.4 Strategic planning process 34
2.5 Strategy formulation 36
2.6 Strategic evaluation 39
CHAPTER THREE
3.0 Research design and methodology 45
3.1 Introduction 45
3.2 Research design/method 46
3.3 Population of study 47
3.4 Sample size determination/sample
technique procedure 48
3.5 Methods of data collection 50
3.6 Administration of data collection instrument 52
3.7 Validity and reliability of measuring instrument 53

CHAPTER FOUR
4.0 Data presentation and analysis 55
4.1 Introduction 55
4.2 Presentation of data 55
4.3 Analysis of data 57
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4.4 Test of hypothesis 71
4.5 Interpretation of result 78
CHAPTER FIVE
5.0 Summary, conclusion and recommendation 81
5.1 Summary of findings 81
5.2 Conclusion 83
5.3 Recommendation 84
5.4 Suggestion for further researchers 86
Bibliography 87
Appendix 91
Questionnaire 92

CHAPTER ONE

1.0 INTRODUCTION
In order to assess the level of success or otherwise of a corporate
body, its established strategic plans relative to the performance of the
organization in all fronts of operations have to be ascertained.
Formulating, implementing and the evaluation of a Strategic Plan
indisputably become a major activity in both profit and not-for-profit
organizations, especially, the banking sector. Strategic Plan provides the
basic direction and rationale for determining the focus of an
organization; and also provides the specification against which any
organization may best decide what to do and how to do it. Simply put, it
is a process for creating and describing a better future in measurable
terms and the selection of the best means to achieve the results desired.
It is important to note that not all planning is actually strategic even
though they may be termed so. It is said that failure to plan leads to
planning to fail.

Strategic planning standardizes the processes of goal/objective setting,

situation analysis, alternative consideration, implementation and
evaluation that enable an organization to attain its goals and objectives
(Tapinos et. al. 2005). Sarason and Tegarden, (2003) asserted to the
positive correlation between strategic planning and performance
achievements as very beneficial for organizations. In their studies Dyson,
(2000); McAdam and Bailie, (2002) further emphasized the need for
organizations to align their strategies with their performance
measurement systems. Performance measurement has significant
5
influence in supporting the achievement of an organization's goals and
the effectiveness and efficiency of its strategic planning process.
Thus, in order to assess the level of success or otherwise of a corporate
body, its established strategic plans in connection with the performance
of the company in all fronts of operations had to be established. Strategic
management expert Toffler (2003) writes that a company without a
strategy is like an airplane weaving through the skies, hurled up and
down, slammed by winds and lost in the thunder heads. If lightning or
crushing winds do not destroy it, it will simply run out of gas.
In a similar line of thought, Ross et al (2000) note that, without a
strategy an organization is like a ship without a rudder. It goes round in
circles and like a tramp, has no specific place to go. Clearly, these
statements emphasize the importance and the need for a
comprehensive, systematic and dynamic strategic planning for every
company which seeks to survive competition in the ever-changing global
competitive business environment. Ansoff (1970) argues that planning
generally produces better alignment and financial results in companies
which are strategically managed than those which are not. This suggests
an apparent correlation between strategic planning and the ultimate
performance of a company in terms of its growth, profits, attainment of
objectives and sustained competitiveness (Strickland, 2004).

Though these assertions are largely true, Pitts et al (2003) affirm that
exceptional situations also arise when some companies gain not because
they had in place any strategy but because they just benefited from
some sudden conditions in the external environment. Nonetheless, and
still consistent with the need for evolving and constantly reviewing
strategy, it is important to note that having a sound strategy in itself
does not necessarily translate into desired performance goals if it is not
properly implemented. Both strategy and implementation must be good
and timely to achieve positive results. As for a company driven by wrong
strategic planning, Malamud (2004) likens it to a train on a wrong track
saying, every station it comes to is the wrong station.
These fundamental principles essentially hold true for all industries
globally and as should be expected; management is subject no less to
the dynamics of these tendencies. It is assumed that strategic planning,
like other management initiatives developed basically for business, can
be adapted in spite of the differences between profit and not-for-profit
organizations.
The need for organisations to plan and monitor their activities in order to
focus resources and efforts to ensure their future survival has spawned
an industry of practitioners, consultants and educational programmes.
Strategic planning is now a routine part of business or organisations with
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an accompanying set of beliefs and protocols that underpin the day-to-
day practice. As indicated in the works of Ring and Perry (1985), Bryson
and Roering (1987) as well as Nutt and Backoff (1993), the
conceptualization that best recognizes and appropriates all the
possibilities of strategy may be termed strategic. Each of the three
aspects is essential to the others: Strategic Thinking, Strategic Planning,
and Strategic Action

1.2 STATEMENT OF THE PROBLEM

As already stated in the introduction, the role of strategic planning
in the growth of business organization cannot be over-emphasized.
We know that the Nigerian economy is fast growing in leaps and
bounds. The growth of the economy which does not need strategic
planning. Many business organizations have collapsed simply because
they failed to plan. The economy is dynamic different changes take place
in the economy while these changes are taking place, business
organizations must equally adapt to the dynamics of the economy. If
they do not do so, they cannot fit in for business organizations to meet
up, they have to embark on planning.
However, planning is not an easy task, it is forth with problems.
These problems include designing goals and objectives of the business
unit, forecasting future trends in marketing and anticipating high
productivity, profitability and ensuring the continued survival or
existence of the firm.
There is no vain saying, the fact that many business units do not
take these indices into consideration while planning, some small-scale
industries which are run or managed by people may not see the need to
adopt planning on a large scale. Some plans may have a long run impact
on returns or short run effects or impacts of plans may become inpatient
and despondent with the plan. This situation may generate the demise of
the organization.
In the same view, the government which fails to understand the
short-run or long-run returns of planning may not satisfy her subjects. It
then becomes pertinent that this study is aimed at finding out the role
and impact strategic planning has on the growth of business organization
with particular reference to the Nigerian Bottling company limited.
Headquarters and few of its branches as Enugu and Owerri plants.

1.3 OBJECTIVES OF THE STUDY

The general purpose of the study is to study the relationship or the role
strategic planning plays in enhancing the growth of a business
organization. Finally, the study has the following objectives.

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1. To ascertain the effects of strategic planning as a tool in the growth
and survival of SMEs in the country.
2. To measure the contribution of strategy planning in the enhancement
of productivity and workers performance.
3. To identify the steps and processes that should be taken in
implementing strategic planning in an organization.
4. To identify the problems militating against the survival of SMEs in the
country and make recommendations on how to solve these problems.

1.4 RESEARCH QUESTIONS

1.To ascertain the effects of strategic planning as a tool in the growth
and survival of SMEs in the country.
2.To measure the contribution of strategy planning in the enhancement
of productivity and workers performance.
3.To identify the steps and processes that should be taken in
implementing strategic planning in an organization.
4.To identify the problems militating against the survival of SMEs in the
country and make recommendations on how to solve these problems.
5.Is there any positive relationship between strategic planning and the
corporate performance?
6.Is there any correlation between the failure of some firms and lack of
strategy planning?
7.Do environment factors have any impact on strategic planning?
8.How frequent are Nigeria firms involved in planning?
9.Can the employment of more resources research planning?

1.5. HYPOTHESIS II
Ho: Firms has not been able to rise successfully to the challenges of
their internal and external business environment
Hi: Firms has been able to rise successfully to the challenges of their
internal and external business environment

1.6 SIGNIFICANCE OF THE STUDY

It is worthwhile that the researcher highlights the significance or
importance of this study to the growth of the business organization.
The presence of business organization and infrastructural facilities
is an index of development. The business organizations cannot grow
appreciable if they lack strategic to define their goals and objectives.
When these goals are clearly defined the entrepreneur works towards
the achievement or realization of these goals.
This research will therefore be useful to business organizations,
managers’ entrepreneurs and students / scholars to the students are as
follows:
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a. This text will give additional information to students who will come
across it in the area of planning.
b. This research work will give the students about strategic planning
c. It will act as a guide to them in future, especially students that will
find themselves in the field of management or the future managers.
d. It will also help the students to know the basic method or means of
setting a plan and how to actualize it.

1.7 SCOOPE OF THE STUDY

The study is concerned with strategic planning l as a tool for the survival
of small and medium scale enterprises but because of time and cost the
study was limited to Abia state with star paper mill limited Aba, as a case
study.
The researcher was of the view that since the industries and firms are
located in the same geographical and socio-economic conditions, the
constraints and challenges affecting one, affects others.

1.8 LIMITATION OF THE STUDY

Consequently, before the actualization or conclusion of set of work
or activity, there many be some challenges that may arise during the
process or course of the work.
The researcher encountered series of constraints during the period of the
research. These constraints made the research work not to be easy as
earlier thought. Some of these constraints are, time factor, fiancé and
the process of retrieval of information. There was no adequate or
enough time that would prompt or enable the researcher to travel or visit
all the areas that the Nigerian bolting company operates. Financial
incapacitated also contributed or acted as a constraint, this is because
some of the materials needed were unreachable as a result of lack of
fund.
Also, some of the information generated were outdated and as a
result of the dynamic nature of business organization and its operation in
Nigeria.

1.9 DEFINITION OF THE TERM

STRATEGY: This outlines the fundamental steps that management plan
to undertake in order to reach an objective.
Strategy is also the direction and scope of an organization over the long-
term, which achieves advantage for the organization through its
configuration of resources within a challenging environment, to meet the
needs of markets and to fulfill stakeholder expectations.
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PLANNING: This is act of choosing a course of action and deciding in
advance what is to be done, in what sequence, at what time, and how.

GOAL: This is synonymous with objective; it is a statement of what is to

be achieved. Goals are objectives which are made specific with respect
to degree and time.

STRATEGIC MANAGERS: These are individuals who bear responsibility

of the overall performance of the organization, or for one of its minor self
contained division.

CORPORATE STRATEGY: These address what business an organization

will be in and how resources will be allocated among those businesses or,
it relates to the overall character and purpose of the organization, the
business it will enter and leave, and how resources will be distributed
among those businesses.

CHAPTER TWO
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2.0. LITERATURE REVIEW
In this chapter, the researcher is to review some literatures that are
related to this research. What was reviewed in this chapter include the
theoretical framework, historical overview, protagonist views antagonist
views and the summary.

2.1. CONCEPTUAL FRAME WORK

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 strategic 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).
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Nickols (2008) in his article on “Strategy, Strategic Management,
Strategic Planning and Strategic Thinking” explained that before coming
to a good understanding of the term “strategic 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.).

Plans of action and planning whether for business or the battlefield

always consider what is to be achieved (the ends, goals or objectives)
and how it is to be achieved (the means; steps, actions or programmes).
Simply, plans are a set of intended outcomes coupled with the actions by
which those outcomes are to be achieved. On the other hand, (Ackoff,
1981; Nickols, 2008) point out that planning involves thinking about the
future, identifying and specifying in advance (now) what has to be done
or achieved (objectives) and selecting the most suitable means to
accomplish these objectives.
Planning can be formal or informal involving a lot of documentation or
very little. The information base could be large; stated in reports,
studies, databases and analysis depended on a few knowledgeable
people. Plans, and thus the planning activities that produce the desired
ends frequently set timeframes, milestones, detailed schedules and
allocate resources whether in the form of money, people, equipment etc.
(ibid.).

The Concept and Evolution of Strategic Planning

Strategic planning has been defined differently by various authors. The
substantive issues are however, the same; they focus on making plans
and taking actions today for the future prosperity and competitiveness of
a firm in its environment with the optimal use of available resources.
McNamara (2008), identifies some of the major activities that are
common to all strategic planning processes as conducting a strategic
analysis; setting the strategic direction, action planning, that is, carefully
laying out how the strategic goals will be accomplished etc.

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Chandler, 1962; Andrews, 1980; Porter,1980; Wyland, 2004 are
unanimous in stating that strategic planning is a systematic process by
which an organization formulates achievable policy objectives for the
future growth and development over the long term, based on its mission,
vision and goals and on a realistic assessment of the human and material
resources available to implement the plan. Dubrin (2006) sees it as
encompassing all those activities that lead to statement of goals and
objectives and the choice of strategies to achieve them.
It must be said that, I notice a relationship between the comprehensive
contributions above and Bryson (1998) who states that it is a disciplined
effort to produce fundamental decisions and actions that shape and
guide what an organization is, what it does, and why it does what it does.
The process defines its medium- and long-term goals and objectives and
approaches by which to achieve them. It is a look into the future that
identifies the mission, vision, goals and objectives of an organization with
prescribed actions necessary to achieve the vision.
The importance of strategic planning to any organization cannot be
overemphasized. It is the first in order and safe to say the most critical
management process. This is evident from the (Nickels et al 2000)‟s
definition of management which is “the process used to accomplish
organizational goals through planning, organizing, directing and
controlling organizational resources‟. Thompson et al (2004), buttress it
further stating that the central thrust of strategic planning is undertaking
moves to strengthen the company‟s long term competitive position and
financial performance This intricate and complex nature is upheld by
David (2003) who espouses that strategic planning takes an organization
into uncharted territories and does not provide ready-to-use
prescriptions for success. Instead it takes an organization through a
journey and offers a framework for addressing questions and solving
problems aware of the potential pitfalls and being ready to address them
and being successful.
I support David‟s point of view in that, strategic planning does not take
account of all exigencies. These views are also shared by McConkey
(1999) who adds that plans are less important than planning. This just
means that though plans are vital as business road maps with goals,
objectives or targets to be met, the idea of planning being a process
introduces the dimension of a continuous, ongoing and never-ending
paradigm of implementation, monitoring and adjustments (Mintzberg,
1978, 1994; Markidis, 1999) to ensure that any unforeseen,
unanticipated or emerging developments are contained. It emphasizes
the point that process (planning) may be much more influential than
content (the plan).

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Success in businesses or military exploits does not come by fluke but it is
the product of both continuous attention to changing external and
internal conditions and the formulation and implementation of the
insightful adjustments to those conditions. It entails the use of an
organization or army‟s strengths to exploit the competitors‟
weaknesses and cash in on opportunities in the external environment.
At the same time the firm takes steps to avoid, foil or defend possible
attacks from competitors into its areas of weakness. It is thus both an
attack and defense weapon which Hofer and Schendel (2005) see as the
mediating force or „match‟ between the organization and the
environment.
The term strategic planning according to David (2003) originated in the
1950‟s and gained prominence in the mid 1960s to mid 1970s. I ts use
has traversed the 1990‟s and become widely practiced as an
indispensable tool in the management process in almost all organizations
because of the influence of globalization, technological advancements
and internet capabilities for business.

The Impact of Strategic Planning on Performance

Strategic planning is a management function that focuses on the growth
and future sustained wellbeing of an organization. Ansoff, (2003) affirms
that the interest in strategy grew out of the realization that a firm
needed a well-defined scope and growth direction not just extrapolations
of past performances which were being used to project into the future.
Hart and Banbury, (1994), made an observation of firms‟ recognition for
the need to do strategic thinking and planning. Since the 1950‟s and
particularly the early 1970‟s, rapid changes and/or advancements in
technology, globalization and market competition have compelled
organizations to approach this management task with a more purposeful
strategic perspective (Rosenberg et al, 1985; Kiechel III, 1989). As
Drucker, (2004) noted in his book The Practice of Management, “we
cannot be content with plans for a future we can foresee. We must
prepare for all possible and a good many impossible contingencies. We
must have a workable solution for anything that may come up.” This
underscored the need for strategic planning in every organization;
diversified or one business unit, large or small.

2.2. THEORETICAL REVIEW

This study is anchored on the dynamic capacity theory. According to
Teece, Pisano, and Shuen (1997:516), the dynamic capability approach is
"a firm's capacity to integrate, create, and reconfigure internal and
external competencies to handle quickly changing surroundings." It is a
development of the notion of the resource-based perspective. DCA fills
14
the vacuum left by the resource-based approach, which solely considers
the efficacy and efficiency of internal resources [39,40,41]. It explains
how certain businesses are able to steadily gain a competitive edge in
fast-moving marketplaces [42]. According to this idea, in order to
develop responsive capabilities, intangible resources (knowledge and
skills) must be continually reconfigured and adjusted to the changing
business environment [42]. An organization's shifting external
environment and shifting portfolio of activities and skills should be
reconciled to some extent [41]. The dynamic capabilities approach
organization's internal asserts and that an external organizational
capabilities are crucial for improved performance and rising customer
value. In order to optimize the value provided for them, businesses
should concentrate on enhancing those skills that consider the customer
as their primary component [40]. According to the notion, when
environmental change is observed, structural adjustment is required for
improved performance. Strategic planning includes a significant amount
of environmental scanning to determine how best to adjust
organizational resources. Such environment dynamic necessitates
periodic strategy reviews. Strategic planning that is well developed and
maintained aids institutions in gaining a competitive edge, according to
the resource-based view and the dynamic capacities approach. This
study will concentrate on how strategic planning methods affect the
success of SMEs in Nigeria for this reason.

When strategy is used in the context of the organization as a whole, it is

used to define the way that organization will pursue its goals, give the
threats and opportunities in the environment and the resources and
capacities of the organization. Three factors have a significant influence
on strategy. They are the external environment, the internal resources
and the goals that are being pursued.
(Wheelen and Hunger, 1992), had the opinion that a strategy of a
corporation forms a comprehensive master plan stating how the
corporation will achieve its mission and objectives. It maximizes
competitive disadvantages. Strategy is defined by Webster’s new World
Dictionary as the science of planning and directing militating operations.
The planning the remains the important part of most management
definitions of strategy.
(Quinn, 1980), defined strategy as being the pattern that integrates
an organization major goals policies and action sequence into a cohesive
whole.
(Enudu, 1980) stated that the term strategy is a military term used
for describing the ground plan for wining a war. However, he further
15
stated that today’s business firms and other organizations have adopted
the term and it has become of formulation differ from one organization to
another.
(Enudu, 1990). He stated that strategy can be formulated using any
of the three modes defined by Henry Mint berg.
These are:
 The entrepreneur mode
 The adaptive mode
 The planning mode

 The Entrepreneurial Mode: This is mostly found in the small

scale or sole proprietorship. In this mode, strategy is formulated by a
single person who is most often the owner- manager of a small scale
enterprise. This manager does not consult anybody for or before arriving
at what his strategy should sole proprietors keep little or no records.
Strategy is therefore characterized by bold moves made instinctively by
the entrepreneur rather than by careful planning. The over riding
objectives are usually what can be done to achieve rapid growth.

 The Adaptive Mode: Strategy can also be formulated using the

adaptive mode. Government agencies and large firms facing relatives’
stable environments commonly use this method. In this mode, strategic
decision came about as a result of the combination and bargaining
among various powerful forces within and outside the government. In
other words, there is no central source of power here as in the
entrepreneurial firm. As a result, there is no clear strategy for the
organization.

 Planning Mode: Another method of strategy formulation is the

planning mode. This is a systematic and structured approach to strategy.
In this method, internal and external data related to the problems at
hand are collected, analyzed and alternative strategies identified and
evaluate in terms of their cost and benefits before one of the alternatives
is selected as organization’s strategy. It is commonly found in very large
firms where planning specialists are employed to perform this function of
which the operating executives make strategic decisions. However, in
small and medium scale firms, these planning activities may be,
undertaken by operating management, especially top executives.
Organizations of all sizes should embark in strategic planning despite the
difficulties associated with it because of time scale and uncertainties it is
an activity that needs constant attention. However, relatively little is
know about few organizations are willing to talk in public about the

16
procedures they use. It is however, possible to identify they are as
follows, according to (Meggniso et al, 1986)
1. Establishing Organization Objectives: This is the first
step in strategic planning for the organization as a whole and then for
each subordinate unit this step involves deciding what the organization
want, and what it would like to be at some fixed points in the future.
These objectives set the direction in which the efforts and resources will
be applied, such as quality of products, market share, sales volume,
number of employees and rate of return on investment (ROI) for private
organization.
2. Developing Planning Premises. According to them these
are the future settings in which planning is to take place and the total
environment in which the plans are to operate. To do these planners
need to do realistic forecasting. They must also analyze both internal
external environments to use what factors are readily present or may be
found in the future. This planning, possibly take in account all the events
in the future, but these premises provide management with orderly path
to follow and they can changed as changing conditions might warrant.
Strategic planners must therefore monitor these changes and modify the
planning premises as conditions dictate.
3. Evaluating Alternatives: This mean rising statistical or
quantitative analysis of factors involved in each alternative, if possible
and then after considering the behavioral implications, reaching a
decision about what course of action to take. In strategic planning, this
feature is especially important because it permits analysis of the impact
of manipulating the different variables affecting the activity being
planned.
4. Generating Alternatives: This step includes noting the
various ways in which management can reach its goals, taking into
consideration planning premise and other factors; it also involves
creative and innovative ways of solving the problems or achieving the
objectives.
5. Selecting the Most Appropriate Alternative: They claim
that the focal print of al the steps is that of selecting the appropriate
alternative. This involves choosing the plan with the most promise of
leading management to the achievement of its objectives. This selection
decision results from evaluating the alternative decision premises
including assumption about he organizations internal and external
environment and possible future situations.
6. Developing Plans For Units And Sub-Units: Here after
major plan for the total organization is accepted, other plans for the sub-
units must be established to back it up. These plans attempt to co-

17
ordinate the different phases of the organization so that they will work
along with the major plan to reach the same objectives.
7. Implementation and Monitoring The Plan: The plan only
becomes reality when it is put into operation. This involves a transaction
from planning from planning to actions. It also requires the use of other
management functions such as organizing, staffing, leadership and
controlling. It is quite important that the plan be monitored carefully in
order to determine whether it is effectively accomplish the desired
results.

THE PROTAGONIST THEORIES

(Hunger, 1992), defined strategic management as that set of
managerial decision and action that determine the long run performance
of a corporation. Hunger writes that strategic management include
environmental scanning, strategic formulation and management which
emphasizes opportunities and constraints in the light of a corporation’s
strengths and weaknesses. It is the formulation and application of
strategies that determine the success or failure of an organization
(Gilligam, 1986), stated that strategic planning and management
involves the development of corporation objective and strategies for the
total enterprise. A major input to this is the strategic audit, which is
concerned with analyzing what has been achieved in the future. In turn,
this involves analysis of the environment and the company resources
base. They also asserted that the long term success of any business is
determine to a very large extent by the degree to which management
maintains a balance between resources and opportunities
Strategic planning is also the process whereby the top management of
the organization determines the overall objectives, goals of the
organization and provide a possible means of achieving them.
THE ANTAGONIST THEORIES
Most strategies outline in detail the steps that an organization must
take to avoid potholes that might get in the way of their well laid plans.
These act as restraining forces to strategy implementation and
development.
(Nilson, 1989), postulated three major reasons for strategy failure
and they are as follows:
 The effectiveness of strategy itself
 Implementation, effectiveness and factors of internal environment
to the firm.
 The external environment of the firm.
Nilson queries the need for expending huge resources of the firm on
strategic planning when, it can fail. Good strategies can fail due to poor
implementation, insurmountable economic or other environmental
18
problems moreover, one can never really know whether a strategy is
good until it has either succeeded or failed. The reasons for the failure of
strategy has to with the fact that people in the organization may not
have the knowledge and skills to implement the strategy.
Leadership and Framework
According to Nilson, leaders in an organization must be able to
articulate the vision where the team is leading for. He must also
motivate the team to show commitment and enthusiasm necessary for
achieving team and company goal. He concludes on these factors
internal to the firm which hinder the effective implementation of strategy
by saying that lack of vision, commitment or enthusiasm are significant
strategic issues for any organization.

2.3. EMPIRICAL REVIEW

There have been several studies on the connection between

performance and strategic planning, but the findings have been mixed.
St Hilaire and McIlquham-Schmidt (2010) categorized these findings into
three categories. First, they found that there is a positive relationship
with performance a strategic planning directional causality (Andersen,
2000). Second, the link is negative, with planners outperforming non
planners on some criteria, indicating a poor relationship (e.g. (Sheehan,
1975; Fredrikson and Mitchell, 1984; Whitehead and Gup, 1985). Third,
there is no quantified advantage, making the association inconclusive
(Kudla, 1980) . According to Alaka, Tijani, and Abass, strategic planning
and service delivery are positively correlated in Nigerian insurance
companies. The findings of Efendioglu and Karabult demonstrated the
significance of top management in the process of strategic planning. The
researchers also found that only profitability is positively connected with
strategic planning, but average export growth and sales growth for
businesses that don't use strategic planning were both high. In their
study, Okwachi, Gakure, and Ragui found a strong correlation between
managing practices and the execution of strategic plans, decisively
demonstrating how managerial practices have a significant impact on
the execution of strategic plans in SMEs in Nigeria. Studies on the link
between strategic planning and performance have been conflicting in
that some writers have found a significant positive association, while
others have found a weak negative relationship or none at all.

2.4. GAP IN IN REVIEW LITERATURE

The literature on the effect of strategic planning on the growth of small

and medium enterprises (SMEs) in Nigeria highlights several gaps that
could be explored further:
19
1.Limited Context-Specific Studies: While strategic planning is widely
studied, there is a lack of research tailored to the unique socio-economic
and cultural context of Nigeria. For instance, how do local market
dynamics, regulatory environments, and cultural factors influence the
effectiveness of strategic planning for SMEs?

2.Focus on Quantitative Metrics: Many studies emphasize financial

outcomes like profitability and market share but neglect qualitative
aspects such as employee satisfaction, innovation, and customer loyalty.
Exploring these softer metrics could provide a more holistic
understanding of growth.

3.Sector-Specific Analysis: The impact of strategic planning may vary

across different industries within the SME sector. However, there is
limited research that dissects these differences, such as comparing the
manufacturing sector to the service sector.

4.Longitudinal Studies: Most existing research relies on cross-sectional

data, which captures a snapshot in time. Longitudinal studies could
provide insights into how strategic planning impacts SME growth over
the long term.

5.Integration of Technology: With the rise of digital tools and platforms,

there is a need to explore how technology influences strategic planning
and its outcomes for SMEs in Nigeria.

6.Challenges and Barriers: While the benefits of strategic planning are

often discussed, there is limited focus on the challenges SMEs face in
implementing these strategies, such as resource constraints, lack of
expertise, or resistance to change.

7. Comparative Studies: Few studies compare the effectiveness of

strategic planning in Nigeria with other countries, particularly in Africa.
Such comparisons could highlight unique challenges or advantages faced
by Nigerian SMEs.

These gaps present opportunities for future research to deepen our

understanding of how strategic planning can drive the growth of SMEs
in Nigeria. Would you like help developing a research proposal or
exploring any of these areas further?

2.5. SUMMARY OF REVIEWED LITERATURE

Literature review and survey results reveal strategic planning is an

important key
20
element of the management of any business. As a result, the company's
sustainability is increased in a constantly changing environment and
conditions are created for increasing competitiveness and long-term
successful business management. Strategic planning is especially
necessary for small businesses because of the benefits and efficiencies it
provides. Based on the results of the survey, the following main
conclusions can be made: The assessments of the respondents reveal
that the development and implementation of strategies and strategic
plans are essential for the financial and economic condition of
enterprises that implement strategic planning, which is expressed in the
improvement of performance indicators. The implementation of strategic
plans for particular business activities (marketing, production, finance,
innovation and investment) also has a positive impact on,financial and
economic results.

It could be concluded that strategic planning and control play an

immense role in the growth and survival of SMEs. Thus, strategic
planning should be applied in every business organization that hopes to
achieve it set goals and objectives. SMEs play significant role in
enhancing the Nigeria’s’ ailing economy. The right policy should be made
to enhance their existence. There is no gain saying that the most
multinational businesses in outside the country today started as a small-
scale business.

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

The researcher in this chapter listed out the procedure that enabled
or prompted to the completion of the researchers write up or research.
21
Research methodology is a set by step approach on how the researcher
carried out the work / study and is made up of research design, which
states the kind of research being carried out. The population is
constituted of the total number of staff in Enugu plant. In data collecting,
data from primary source, (interview, questionnaire) etc.

The research design used in this study is survey research

techniques. This was because survey research technique study large
populations and also small populations, usually as samples that are
representative of such populations being studied enables the researcher
to draw correct conclusions.

The researcher also in this chapter also laid down how the designs
and methodology were used in collecting and analyzing data for this
work. The researcher explained the following methods and procedures
used for data collection, which include: research design, population
characteristics, sample and sampling procedure, sources of data,
methods of data collection, validity and reliability of measuring
instruments.

3.1. RESEARCH DESIGN / METHODS

Due to the type of information needed for the study, this study was
designed such that it made use of survey method because of the
information needed for this research, the survey research has to do with
the opinions attitudes and behaviour of the management and staff of the
Nigerian Bottling Company in the impact of strategic planning on the
growth of a business organization.

3.2 POPULATON OF STUDY

The population of the study comprised of the total number of staff

in the Enugu plant. The number of staff of Enugu plant presently is 475,
either senior and junior workers or staff. They have seven departments,
each headed by only one manager plus the plant manager making the
total number of managers to be eight.

The departments and their size are as follows:

1. Work department 90

2. Engineering department 40

3. Management department 60

4. Warehouse department 70
22
5. Personnel department 45

6. Accounts department 50

7. Sales / Marketing department 120

Total 475

3.4 SAMPLE SIZE DETERMINATION

The researcher used billeting in selecting the respondents form the

population. Number was allocated to the population, such as the various
departments where given numbers showed in the population of the
study, which was written as their names as contained in the nominal roll.
This number and their names were written on a paper which the
researcher mixed together and selects the 213 respondents.

To determine the procedure (technique and sample size of the

Nigeria Bottling Company Plc Enugu, the formula given by Yaro Yamen
formula:

1+N(e)2

Where:

Ss = Sampling size

N = Population of the study = 475

E = Tolerable error = 5% or 0.95 perfectly

Ss = 475

1+475(0.05)2

475

1+475(0.0025)

475

1+1.1425

475
23
 2.1425 = 213

The number of questionnaire to be administered. The sample procedure

is that the researcher used a sample size of 213 staff of the organization.

The sample technique used in this work is biolatting method. This

was because I want to give equal chances of selection to the number of
the population chosen. This method was preferred because of its
suitability for te nature of the population used its simpler and easier to
understood.

3.5 METHODS OF DATA COLLECTION

In collecting data relevant for the research work, primary and

secondary source instrument data collecting were used. The primary
source data collection instruments are:

I Questionnaire

II Oral interviews

The secondary data collection instruments are:

I Text books

II Journal

III Unpublished works.

The researcher distributed the questionnaires to the respondent. The

categories of staff that responded to the questionnaire were both the
senior and junior staff of the Nigerian Bottling Company.

The researcher sourced data through desk research, survey and

also questionnaires.

The desk research intends to gather information that has already

been recoded from the past pertaining to the operation or methods of
the business operation of the Nigerian Bottling Company, Enugu.

This researcher also used survey which includes asking questions to

be staff and management of Nigerian Bottling Company.

3.6 ADMINISTRATION OF DATA COLLECTION INSTRUMENT

The researcher visited the plant and Enugu and distributed the
questionnaire to the respondent (a total of 213 questionnaire). The
24
researcher collected 200 questionnaires form the plant. The
questionnaire was designed to provide cheap and easy understanding to
the respondents.

Also, the researcher made use of oral interview, which was

instructed (as the line manager speak of time consumption). Other
stakeholders in the industries were also interviewed to gain a wider view
of the subject matter.

3.7 VALIDITY AND RELIABILITY OF MEASURING INSTRUMENTS

The instrument used by the researcher is collecting the data were

questionnaires and personal interviews, this was because the researcher
saw them as an instrument for obtaining and recording specified and
relevant information with tolerance, accuracy and completeness.

The questionnaire was used to measure:

I Behaviour – past, present or intended.

II Demographic characteristics eg. age, sex, wages.

III Level of knowledge

IV Attitude and opinions

3.8 METHODS OF DATA / STATISTICAL ANALYSIS

This refers to the various methods which were used in analyzing the
data collected for this work in order to draw conclusions used chi-square
(X2) Statistic.

∑ (Fo-Fe)2

Fe

Where Fo = Observed frequency

Fe = Expected frequency

DECISION RULE

Reject the Ho if the calculated value (X 2) is greater than the table value
(t) (2) (X2 >, X2) if other wise accept.

The researcher also used percentage methods in critically analyzing

the data collected through the used of questionnaire.
25
 % = F X 100

N 1

Where F = Observed frequency

N = Sample population

100/1 = Constant

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

26
 In this chapter, the researcher presented, analyze and interpreted
the data collected, which provided the necessary solution to the research
problems as stated earlier in the last chapter, statistical table were used
in the analysis and presentation of data for clear and reliable results.

4.2 PRESENTATION OF DATA

The formulated hypotheses were subjected to statistical test at 5%

level of significant. In testing the hypothesis, the calculate value of the
test statistics was usually compared with table of value. The critical
values of the test statistics served as criterion value. It afforded the basis
for rejecting or not rejecting the null hypothesis is a function of the value
of the tested statistic.

Reject null hypothesis if th e calculated value of the test statistic

was greater than the critical value.

Accept the null if the calculated value of the test statistic was less than
the critical value.

The testing of hypothesis in this work involves the use of the

statistical technique, chi-square (X2) to decide which to accept or reject.

Formula for chi-square (X2)

X2 = ∑ (Fo-Fe)2

Fe

Where Fo = Observed frequency

Fe = Expected frequency

∑ = Summation sign

Formula for calculating degree of freedom

= (R-1) (C-1)

Where R = Row

C = Column

4.3 ANALYSIS OF DATA

27
 In analyzing the data, the information shows that there were
different opinions or observations from the workers of Nigerian Bottling
Company Enugu.

Some believed that external environment affected strategic

planning to a small extent and also some to a large extent

On the other hand, 100 workers or 66.67% said that business

environment affected strategic planning to a large extent in Nigeria
Bottling Company Enugu.

From the above analysis, it could be concluded that environment

affect strategic planning.

Question 1 : Is there a relationship between strategic planning and

the growth of the business?

Responses Frequency Percentage

Yes 115 76.67

No 35 23.33

Total 150 100

Based on the above analysis, (76.67%) of the population were of

the opinion that there were positive relationship between strategic
planning and the growth of the business where as 35 (23.22%) were of
contrary view. The implication is that strategic planning is necessity to
Nigerian Bottling Company Enugu in its quest to grow in the Nigerian
market.

Question 2 : IS strategic planning vital for effectiveness and

efficiency in the organization?

Responses Frequency Percentage

Yes 120 80

No 30 20

Total 150 100

28
 Based on the above analysis, 120 (80%) were of the opinion that
strategic planning is vital for effectiveness and efficiency in the
organization, whereas 30 (20%) were of the contrary view.

Question 3 : To what extent does your company place adequate

emphasis on efficiency and effectiveness of operations?
TABLE 4.3 ABILITY TO WORK EFFECTIVELY AND EFFICIENTLY

Responses Frequency Percentage

No - -

Rarely 25 16.67

Often 85 56.67

Very often 40 26.67

Total 150 100

The above analysis indicated none of the respondents said an outright no

to the question. However, 25 (16.67%) said that rarely does the firm
place emphasis on efficiency and effectiveness in their company. 85
(56.67%) of the respondents were of the opinion that the firm often place
adequate emphasis on efficiency and effectiveness. Another group of 40
(26.67%) of the respondents said that the firm very often successfully
place adequate emphasis on efficiency and effectiveness.

TABLE 4.4
What is your company’s strategic planning time horizon?

Responses Frequency Percentage

0-2 years 25 16.67

3-4 years 45 30.00

5-6 years 30 20.00

7-8 years 20 13.33

8 years and above 30 20.00

29
Total 150 100

Based on the above analysis, 25 (16.67%) were of the opinion that the
firm plan strategically in the short-run (from 0-2years) whereas 45 (30%)
of the respondents stated that strategic planning by the firm is between
3 through 4 years duration. 30 respondents (20%) are of the opinion that
strategic planning (sp) is a 5 through 6 year duration, 20 respondents
(13.33%) stated that strategic planning was a 7 through 8 strategic
affair. The number that were of the opinion that strategic planning is a
long term affair 8 years duration and above were 30 (20%)

Question 3 : To what extent does your company place adequate

emphasis on efficiency and effectiveness of operations?

TABLE 4.5

At what level of your organization is long range plans carried out?

Responses Frequency Percentage

Top management 100 67

Middle level management 50 33

Total 150 100

Based on the above analysis 100 (67%) of the respondents were of

the opinion that long range plans were carried at the top management
level. But 50 of the respondents making 33% were of the view that long
range plans were carried out at the middle level management. None of
the respondents opinioned that long range, plans were carried out by
junior workers.

30
Question 6: Does your company have a flexible method of operation
to deal with change?
TABLE 4.6 FLEXIBLE METHOD OF STRATEGIC PLANNING

Responses Frequency Percentage

Inadequate 15 10

To a small extent 65 43.33

To a large extent 70 46.67

Total 150 100

The above question posed to 150 of the respondents elicited mixed

opinions 15 (100%) of them were of the view that the strategic planning
of a company is inadequate. On the other hand, 65 (43.33%) of the
population under review of the opinion that the flexible nature of
strategic planning was moderately adequate (to a small extent) but the
majority of the respondents 70 (46.67) were of the opinion that strategic
planning flexibility being used by the Nigeria Bottling Company Ngwo
was adequate to a large extent

Question 7: Does method of operation covers the operation of the

whole department?
TABLE 4.7 STRATEGIC OPERATION IN THE DEPARTMENT

Responses Frequency Percentage

None - -

To small extent 15 10

To a large extent 135 90

Total 150 100

The analysis of the above in response to question 7 indicated 15

(100%) of the respondents taking the positive that small emphasis was
placed on the areas covered by the strategic planning. But over
whelming 135 (90%) of the respondents were of the view that large
emphasis were placed on the areas (departments covered by strategic
planning in the firm.)
31
Question 8: Are there room for questions and suggestions from the
junior staff?
TABLE 4.8 ROOM FOR SUGGESTIONS FROM JUNIOR STAFF

Responses Frequency Percentage

None 4 2.67

Rarely 16 10.67

Often 90 60

Very often 40 26.67

Total 150 100

The above table of analysis show that a small number of

respondents 4 (2.67%) were of the view that questions and suggestions
are not accommodated from the junior staff. Whereas 16 (10.67%) of the
respondents express the opinion the suggestion from junior staff were
rarely taken. But a large number 90 (60%) held the view that suggestion
and questions are often considered. Furthermore, another grouped of
respondents, 40 (26.67%) were of the view that suggestions were very
often approved by the Nigeria Bottling Company Plc Ngwo, Enugu

Question 9: Are the junior staff made to know and follow any change
in operation. The answer to the question is collected and analysis in 4.3.9
?

TABLE 4.9 STAFF AWARENESS OF CHANGE IN OPERATION

Responses Frequency Percentage

None 5 3.33

To small extent 47 31.33

To a large extent 98 65.33

Total 150 100

32
 From the above analysis, 5 (3.33%) of the workers were on the
opinion that the junior staff are not made to know when there is any
change in operation. However, 47 (31.33%) of the respondents held the
view that the company manage to made the changes to be known to the
junior staff for a small extent. But 98 (65.33%) of the workers highly
believed that the management of the company to a large extent made
the changes to be known.

Question 10: Are materials regularly supplied for the production of

goods in your organization or do you experience stock out of product as
a result of irregular supply of materials?

The answer to the question above is collected and analyzed in the table
4.3.10

TABLE 4.10 SUPPLY OF RAW MATERIALS

Responses Frequency Percentage

None - -

To small extent 60 40

To a large extent 90 60

Total 150 100

The analysis of the question indicate that 60 (40%) of the

respondents were of the opinion that the company does not experience
stoppage in material supply. Where are 60% held the opinion that the
company to a small extent meet up with material supply to a large
extent.

Question 11: What is the effect of not having a flexible strategy in your
company in?

To answer the question above, it is analyzed and collected in table 4.11

TABLE 4.11 THE LEVEL OF EFFECT OF FLEXIBLE STRATEGY

Responses Frequency Percentage

None 7 4.7

To small extent 43 28.7

To a large extent 100 66.7

33
Total 150 100

From the above tabulated analysis, a small number 7(4.7%) of the

respondents held the view that the company is not effected by not
observing flexible strategy. Another group, 43 (28.7%) respondents are
of the opinion that the flexible strategy affect the firm to a small extent.
However a large number, 100 (66.7%) of the respondents held the
opinion that the flexible strategy has a large effect on the company.

4.4 TEST OF HYPOTHESIS

Test of hypothesis I

Ho: There is no relationship between strategic planning and the growth

of the business

Hi: There is relationship between strategic planning and the growth of

the business.

Calculation of expected frequency

RT X CT

GT

Where RT = Row total

CT = Column total

GT = Grand total

Break down of responses

Responses Junior Senior staff Total

Yes 90 34 124

No 26 - 26

Total 116 34 150

Junior staff (yes)

124 x 116 = 95.9

34
 150

Junior staff (No)

124 x 34 = 28.1

150

Senior staff (yes)

26 x 116 = 20.1

150

Senior staff (No)

26x 34 = 5.9

150
TABLE 4 CHI-SQUARE CALCULATION

oi ei (oi-ei) (oi-ei)2 (oi-ei)2 ei

90 95.9 -5.9 34.81 0.3641

34 28.1 5.9 34.81 1.2388

26 20.1 5.9 34.81 1.7318

- 5.9 -5.9 34.81 5.9

X2 9.2339

X2 x, DF

DF = (R-1) (C-1)

Where

R = Row

C = Column

(2-1) (2-1)

1x1 =1

X2 0.05, I = 3.9
35
DECISION

Since calculated value > critical value, that is = 9.2339 is greater

than 3.9, reject Ho that states that there is no relationship between
strategic planning and the growth of the business.

Test of hypothesis II

Ho: Strategic planning is not vital for effectiveness and efficiency in the
organization.

Hi: Strategic planning is vital for effectiveness and efficiency in the

organization.
Break down of responses

Responses Junior Senior staff Total

Rarely CII 10 C12 25 35

Often C21 70 C22 5 85

Very often C31 36 C32 4 30

Total 1160 34 150

Calculated of expected frequency

RT X CT

GT

CII = 35 X 116 = 27.1

150

CI2 = 35 X 34 = 7.9

150

C2I = 85 X 116 = 65.7

150

C22 = 85 X 34 = 19.3

150
36
C3I = 45 X 116 = 34.8

150

C32 = 45 X 34 = 10.2

150

TABLE 4 CHI-SQUARE CALCULATION

oi ei (oi-ei) (oi-ei)2 (oi-ei)2 ei

10 27.1 -17.1 292.41 10.79

25 7.9 17.1 292.41 37.013

70 65.7 4.3 18.49 0.2814

- 19.3 -19.3 372.49 19.3

36 34.8 1.2 1.44 0.0414

9 10.2 -1.2 1.44 0.1412

X2 67.567

Critical value

X2 x, DF

DF = (R-1) (C-1)

Where

R = Row

C = Column

(2-1) (3-1)

1x2 =2
37
X2 0.05, 2 = 5.99

DECISION

Since calculated value > critical value, that is = 67.567 is greater

than 5.99, reject Ho that states that strategic planning is not vital for
effectiveness and efficiency in the organization.

4.5 INTERPRETATION OF RESULT

The data collected in the course of this study having been analyzed,
have brought to the surface certain facts about strategic planning on the
growth of business organization with special reference to Nigeria Bottling
company Plc Enugu. In the first research question and findings indicated
that there was a relationship between strategic planning and growth of
the business. Given the Nigerian business situation where other drink
manufacturers were struggling to make an in road into the Nigeria
market, strategic planning becomes imperative if Nigeria Bottling
Company was to maintain its market share.

Furthermore, in the second test of the hypothesis, it was found that

the firm had been able to rise successfully to the challenges of their
internal and external business environment.

The internal environmental factors that influenced its strategic

planning ability were its organization structure, communication system
and product quality and customer satisfaction. Others include teamwork,
proper motivation and then leadership. On the other hand, the external
environmental factors which include threats of competitors, that could
upset the company’s market strategy by product innovation and price
cutting, political instability, the economy which could slow down thereby
resulting to inflation which might dampen customers demand.

The factors were recognize by the Nigerian Bottling Company Plc

while planning, hence the company was able to marginally utilize some
of its environmental opportunities in making long-range planning, some
of these opportunities include expansion of delivery into the hinter-land
by the large number of deports scattered all over the federation, as well
as the large array of dealers and so any means of diversification of their
products.

38
CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

In this chapter, the researcher summarized the entire work on the

role of strategic planning on the growth of Nigerian Bottling Company
Plc, conclusions, limitations of the study and suggestions for further
researchers.

5.1 SUMMARY OF FINDINGS

It was found that the Nigerian Bottling Company Plc Enugu engaged
in regular formulation and implementation of strategic plans, which
serves as a road map in its operations yearly. This has enabled the
company to weather the jungle called the market place.

In the first test of hypothesis – “is there a relationship between

strategic planning and the growth of the business”, majority of the
respondents answered affirmative which led to the rejection of the null
hypothesis.

In the second test of hypothesis- “has the company been able

to rise successfully to the challenges of its internal and external business
environment”? Respondents whose views were that the company often
rises successfully to the challenges of its internal and external
environment were more than those whose opinions were that it is rare
and very often.

Based on the above findings, one can rightly say that there is a
liner relationship between strategic planning and the growth of Nigerian
Bottling Company Plc Enugu.

5.2 CONCLUSION
39
 After a critical approach of the impact of strategic planning in the
literature reviewed, coupled with the findings, one could without
equivocation conclude that strategic planning was needed as the key to
increase organizational productivity. This was because the impact of
environmental forces on the strategic planning ability of The Nigerian
Bottling Company Plc. Had been critically ascertained.

In the same vein, the study afforded the opportunity of assessing

the relationship between strategic planning and the growth of the
business. This enables the company not to relent. This can be done by
continuously spying the business environment and change of strategies
in line with changes in the market place. This is to avoid stagnation and
possible retrogression and incurring of losses.

5.3 RECOMMENDATIONS

From the findings so far, it is no longer in doubt that for our national
economy to prosper, steps should be taken improve the performances of
corporate organizations in this country. The enormous wealth is derived
form corporate entities could increase when they are run efficiently.

Consequently upon these, the following recommendations are made

for improvement. Company owners and managers should notify their
management styles to accommodate strategic planning. Further more,
there is a fundamental need for all corporate management units to
develop a corporate mission, which should be fashioned in a manner that
will be devoid of ambiguity, setting out perceivable targets with clearly
defined wider objectives.

In addition, whatever mission to develop should be communicated

to other managers down the line to keep them informed.

The ensures corporate missions should be hatched by the top

management levels of the companies. But such development must form
the embryo, which accommodate the views of operatives down the line.

A good management structure is another indispensable pedestal for

the nurturing of strategic plans. This should be erected in all companies.
It provides the basis from which rudimentary facts and ideas could be
nurtured for adoption by top management.

No management structure or style ever succeeded without proper

and adequate information system. companies wishing to enjoy well
40
planned strategies must be necessity entrench good information network
in their systems. That is the line wire of management.

Strategic work plans do not crystallize from hunches and guess

work. They are normally groomed using various relevant scientific
techniques. Therefore top management should ensure that skilled
personnel are engaged, who should adopt those relevant scientific
planning techniques in assisting to plan strategically. These techniques
are what enables management make sound and viable plans.

5.4 SUGGESTIONS FOR FURTHER RESEARCHERS

I humbly suggest that at least one month or even three months be

dedicated to research and writing of projects. This must / should be after
final paper (exam) have been written. One can hurry the students, but
the students cannot hurry the respondents without the right data
retrieved questionnaire, any outcome of project writing will be in doubt.

BIBLIOGRAPHY

(Agwu, A. 1990) An Introduction of management and the

Nigerian perspective. Enugu: Precision
Printers and Printers

(Alfred, A. 1967) Strategic and structure chapter in the

History of the American Enterprises New
York M.I.T Press Inc.

(Barnelt, H.et al, 1988) Strategic management and cases Boston:

PWS – Publishing Company

(Enudu, T. 1999) Business Policy – and introductory Analysis

Enugu: Precision Printers

(Gray, E, et all 1989) Management for Competitive edge New

York Macmillan Publishing company

(Griffin, R. 1990) Management Boston: Houghton Mullin

Company.

41
(Hampton, P. 1986) Management Tasks Responsibilities and
Practice New York: Harper and Row Inc.

(Holland, R.et al 1989), Strategic management concepts and

Experience New York: Megrow Hill.

(Kallman, A. 1981), The Practice of Planning. New York:

Harper and Row Inc.

(Kinard, J. 1988), Management. Toronto DC heat and

Company Lexington Massachusetts.

(Kopelman, R. 1989) Management Productivity in Organizations

A practical perple oriented Perspective.
Singapore Mcgraw Hill Inc.

(Moseley J., 1986) Management Concepts and applications.

New York: Harper and Row Inc.

(Nwabuko, P. 1986) Fundamentals of Statistics. Enugu Koruna

Books.

(Quinn, B.1980), Strategic planning in a Rapidly Changing

Environment. Toronto: Lexington Books.

(Stoner, J. et al 1989,

Jet al 1989) Management New Jersey Prentice hall

Eaglewood.

(Taylor, B. 1972) “Handbook Strategic Planning”. Cox and

Wyman Ltd.

(Trewartha, R. et al 1976) General management functions and

behaviour London: Dallas business
publications. Inc

(Unamak, P. et al 1995), Business Administration. Enugu: Precision

Printers and Publishers.

(Whihaker, J. 1978), Strategic planning in a rapidly changing

environment Toronto: Lexington Books.

Department of Business Administration and

Management
42
 Federal Polytechnic Nekede

P.M.B 1036, Owerri

29th June 2010

The Manager,

Nigerian Bottling Company Plc

Ngwo 9th mile

Enugu,

Dear Sir / Madam,

I am a final year student of the Federal Polytechnic Nekede Owerri

majoring in Business Administration and Management, and researching
on the topic, “The impact of Strategic Planning on the growth of Business
Organization, a case study of Nigeria Bottling Company Plc. Ngwo 9 th
mile Enugu.

The research is in the partial fulfillment of award of HND in Business

Administration and Management. It is to this effect that this
questionnaire is designed to assist the researcher in arriving at a rational
conclusion on the above topic. I therefore solicit your cooperation in
supplying answers to the questionnaires dispassionately.

You are hereby reassured that, all information supplied therein will
held strictly in confidence for the avoidance of doubt, the exercise is
purely for academic purpose and will not apply non-academic pursuit.

Yours faithfully,

Chewendu, Florence N.

QUESTIONNAIRE

SECTION A

Sample of Questionnaire

Please tick (√) at the appropriate place.

(a) What is your department -------------------------------

43
(b) Which level are you in the organization?

(i) Senior level (ii) Middle level

(iii) Lower level

(c) How long have you worked with company?

(i) Not more than one year

(ii) One three years

(iii) Three years and above

(d) What is your qualification?

(i) SSCE/WAEC (ii) OND/NCE

(iii) Bsc/HND

(e) What level of salary earning are you?

(i) Level 3 (ii) Level 5

(iii) Level 12

SECTION B

Please tick (√) at the appropriate place.

1. Is there relationship between strategic and the growth of the

business?

(i) Yes (ii) No

2. Is strategic planning vital for effectiveness and efficiency in the

organization?
44
 (i) Yes (ii) No

3. To what extent does your company adequate emphasis on

efficiency and effectiveness of operations?

(i) No (ii) Rarely (iii) Very often

4. What is your company’s strategic time horizon?

(i) 0-2 yrs (ii) 3-4 yrs (iii) 5-6 yrs

(iv) 7-8 yrs (v) 8 yrs and above

5. At what level of your organization is long range plans carried out?

(i) Top management

(ii) Middle management

6. Does your company have a flexible method of operation to deal

with change?

(i) Inadequate (ii) To small extent

(iii) To a large extent

7. Does the method of operation covers the operation of the whole

department?

(i) None (ii) To small extent

(iii) To a large extent

8. Are there room for questions and suggestions from the junior staff?

(i) None (ii) Rarely (iii) very often

9. Are the junior staff made to know and follow any change in
operation?

(i) None (ii) To small extent

(iii) To a large extent

45
10. Are materials regularly supplied for the production of goods in your
organization or do you experience stock out of product as a result of
irregular supply of materials?

(i) None (ii) To small extent

(iii) To a large extent

11. What is the effect of not having a flexible strategy in your company?

(i) None (ii) To small extent

(iii) To a large extent

46