CORPORATE PLANNING AS A GROWTH STRATEGY IN THE PRIVATE SECTOR A CASE STUDY OF LIFE FLOUR MILL LIFE SAPELE

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ABSTRACT

The main purpose of this study was to consider the effect of corporate planning as a growth strategy to private sector, particularly Life Flour Mill, Sapele
In practice the development of corporate planning involves taking information from the environment and deciding upon on organization’s mission and upon goals and objectives. The organization now know where it want to go. But in order to get there, the organization develops different strategy planning techniques, which constitute the strategy for growth or development. The role of strategy in corporate planning is to identify the general approaches that the organization will uses to achieve its organizational goals it also involves (lie planning process to the organization will take to pulse ii objectives.

Various works done by various researchers were consulted in writing Literature review. It worked at the concept if planning and its process, the need for corporate planning and other related for materials on corporate planning.
Set of’ questionnaire of twenty— seven (27) question were administered to thirty (30) personnel of the top management cadre, senior staff and junior staff of Life flour Mill Limited, Sapele and thirty questionnaire were retrieved duly completed and this is the sample size for the study. the chi—square(x2) test of’ 0.05 level of significance was used to test the hypothesis formulated. From the data analysis and hypothesis formulated. It was observed that there is obvious growth in companies that undertook Corporate planning and no growth in who did not. Also it was discovered that corporate planning influences employees’ performance positively.
Sequel to these findings the following recommendations were proffered. Decision makers and corporate should be well trained So as to play their roles effectively and creditably.
Management should pay attention to its employee so that they will have that sensed belonging so as to enable them put in their best to the growth and success of the firm. Management should look into the possibility of having their own raw materials so that they will not run out raw materials during scarcity. Corporate organization should ensure that its policies maker embark on continuous training and education so that cm tent trend in management of’ such organization globally would acquired.
Plan and strategy of corporate organization should be made to accommodate the bug term need of such organizations so that their existence would not be short lived. Plans should he reviewed always as government policies change.
In view of all these, it was finally recommended that Companies should practice Corporate planning.

TABLE OF CONTENTS
Title i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
Chapter One
1.1 Background of the study 1
1.2 Statement of Research Problem 3
1.3 Research Questions 4
1.4 Objective of the study 5
1.5 Scope of study 5
1.6 Significance of study 6
1.7 Statement of Research Hypothesis 7
1.8 Limitation of the study 7
1.9 Background information of Life Flour Mill Limited 8
1.10 Definition of Relevant Terms 11
References 13
Chapter Two – Literature Review
2.1 Concept of Planning 14
2.2 Concept of corporate Planning 15
2.3 Concept pf private sector 18
2.4 Concepts of Growth Strategies 19
2.5 Nature of Private Planning 21
2.6 Types of Operative Plans 22
2.7 Corporate Planning and Growth Strategy 24
2.8 Corporate Planning and Growth in a Private Firm 27
2.9 Problems of corporate planning and growth
strategy in a private sector 30
References 32
Chapter Three
3.1 Research Design 34
3.2 Population of the Study 34
3.3 Sampling Procedure and Size 35
3.4 Data a Collection 35
3.5 Data Analysis 35
References 38
Chapter Four – PRESENTATION AND ANALYSIS
4.1 Data Presentation and Analysis 39
Chapter Five
5.1 Findings 60
5.2 Recommendations 62
5.3 Conclusion 63
References 65
Appendix 68

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND

Corporate planning particularly important in a developing country where resource are relatively scare. In Nigeria where many of the business are inexperienced and the academic preparation is by no means very impressive, planning is a blue print for action. A firm that wishes to enter into any business has to engage in any sort of production has engage in detail planning in order to identify the source of raw materials, equipment, determines delivery dates, sources of manpower supply and in some instance sources of working capital. Many projects have failed in the country because adequate plans were not made to identify all the important variables likely to bear on the project that would determine the failure or sources.

Many indigenous businessmen are often too preoccupied by the day-today operation of their business with the result that they have a narrow concept o their business and consider it ideal to plan because they believe they cannot control most of the variables. To this group of persons planning is not a necessity. They fail it realize that failure to plan will give rise to inefficiency and lack of direction. It makes them constantly fire instead of preventing it occurrence.
In capitalist Nation like Nigeria that is characterized by unpredictable environment changes, the need for the application of corporate planning as a managerial technique for company’s growth’ cannot be over emphasized. If cooperate planning is overlooked, the dynamic environment and continuing uncertainties will continue to impede the survival the growth of Nigeria’s companies.
In Nigeria, the environment realities include global economic recession, the escalating cost capital, political instability, the depreciating rate of out currency, stiff industry competition and the threats posed by the multinational corporations. Therefore, to carry out productive venture, which could lead to growth of firms in the country, the life of its internal strength and weaknesses? This is essence of corporate planning, which is to decide what is to be done in the feature.
The importance of corporate planning to organization should be seen in the light of its benefits include its ability to infuse new life in a weak management system, to plan for diversification in a vulnerable single product of a company and to improve communication within the organization. This will promote growth and profitability.

1.2 STATEMENT OF RESEARCH PROBLEMS

The down turn on word economy since 1983 which followed the Nigeria economic boom at oil wealth precipitated the fall in oil prices, huge external debts and hyper inflation. The government responses to revamp the economy came in 1986in the form of Structural Adjustment Programme (SAP) one of the major measures by the federal government the implementation of the Structural Adjustment Programme was the local sourcing of law materials as input production processes. This led to the banning of wheat importation, which serves as the major raw materials for the Flour Mill Industry. Therefore, firms in this industry are faced with the problem of sourcing for local raw material. Cost efficient means of production and production means to process local raw materials.
This research study therefore, focuses at investigating how corporate planning acts as a strategy resolving the problems militating against the growth Life Flour Mill Limited, Sapele.

1.3 RESEARCH QUESTIONS

The following questions will however be examined in this study;

What relevance is corporate planning to the growth and success of the firms?

How does corporate planning influence the performance of employees?

How does the firm cope with turbulent environment emanating from the requirement of 1oeaLsourcin of-raw material in this thriving period?

What facilities are in place to absorb the shock in the external environment?

What technological change do they have to effect with respect to production processes?

What personal changes are needed to suit the current firm’s requirement in actualizing their growth goals and objectives?

CORPORATE PLANNING AS A GROWTH STRATEGY IN THE PRIVATE SECTOR A CASE STUDY OF LIFE FLOUR MILL LIFE SAPELE