TABLE OF CONTENTS
Title Page i Certification ii
Dedication iii
Acknowledgement iv
Table of Contents v
List of Tables viii
List of Figures x
Abstract xi
CHAPTER ONE: INTRODUCTION
- Background of The Study 1
- Statement of the Problem 3
- Rationale for the Study 4
- Research Questions 4
- Research Hypothesis 4
- Scope and Limitation of the Study 5
- Significance of the Study 5
- Brief History of Organization under Study; UBA Plc and
- Zenith Bank Plc 6
1.9 Strategic Planning in UBA Plc and Zenith Bank Plc 7
1.10 Definition of Terms 10
References 12
CHAPTER TWO: LITERATURE REVIEW
- Introduction 13
- The Concept Of Strategy and Strategic Planning 13
- Strategies and Policies 21
- The Process of Strategic Planning 23
2.5 Forms of Strategies 27
2.6 Factors affecting Strategic Planning 29
2.7 Dichotomy between Strategic Planning and Organisational Growth 31
2.8 Why Most Strategic Plans Fail 32
References 34
CHAPTER THREE: RESEARCH METHODOLOGY
- Preamble 36
- Limitation 36
3.3 Research Design 36
3.4 Area of Study 37
3.5 Population of Study 37
3.6 Sample Size 37
3.7 Description of Research Instrument 38
3.8 Reliability of the Instrument 38
3.9 Validation of Instrument 39
3.10 Administering the Questionnaire 39
3.11 Procedure for Data Analysis 39
References 40
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction 41
4.2 Analysis of Data Presentation 41
4.3 Analysis of Data 44
4.4 Test of Hypothesis 54
CHAPTER FIVE: SUMMARY OF MAJOR FINDINGS,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Major Findings 59
5.2 Recommendations 61
5.3 Conclusions 62
5.4 Suggestion for further studies 63
Bibliography 64
Appendix I 67
LIST OF TABLES
Table 4.1: Gender distribution of respondents 41
Table 4.2: Age distribution of respondents 42
Table 4.3: Marital status distribution of respondents 42
Table 4.4: Distribution by educational qualification of respondents 43
Table 4.5: Income of respondents 43
Table 4.6: Distribution based on years in service 44
Table 4.7: The Challenges of today’s banking sector demands that a
bank be strategic in its approach 44
Table 4.8: Banks feedback on competitors, about staff efficiency
and customer’s complaints is usually very crucial
in decision making 45
Table 4.9: All member of staff are carried along in formulation
and implementation of strategies 46
Table 4.10: Your bank evaluates and re-evaluates self based on
SWOT approach at intervals 47
Table 4.11: Staff’s productivity evaluation is a good yardstick
for measuring contribution to implementation of
strategic plans 47
Table 4.12: Although the bank has different departments with their
peculiar strategic planning; strategic planning process is
still all encompassing 48
Table 4.13: Separate strategic decisions are taken independently in
units such as human resource, marketing, finance etc 49
Table 4.14: Alignment of the bank’s vision and mission statements with
every strategic plan has tremendously impacted well on efficiency vis-a-vis growth indices 50
Table 4.15: Your organization collects regular feedback about its
operating environment 51
Table 4.16: Local and international partnership with financial and
non-financial organizations is highly explored by the
bank in strengthening competitiveness 52
Table 4.17: The bank’s decisions show flexibility based on changes
in its environment 53
Table 4.18: Strategic planning has enhanced the efficiency and
boosts profitability of the bank 54
Table 4.19: Contingency Table of observed value (O) 55
Table 4.20: Contingency table of expected value (E) 56
Table 4.21: Chi-square computation 56
Table 4.22: Contingency table of observed value (O) 57
Table 4.23: Contingency table of expected value (E) 58
Table 4.24: Chi-square computation 58
LIST OF FIGURES
Figure 1: The process of strategic planning 24
ABSTRACT
Every organization has its objectives and goals laid out. Specification of these objectives and goals is a major aspect of planning. Strategic planning is necessary to guide the decision making process in an organization with a view to acquiring superior performance. For companies to succeed, strategies adopted must fit into circumstances they face, their skills, resources as well as environment in which they operate. This research was designed to determine the impact of strategic planning as a tool for change in the dynamic business environment, a study of UBA group Nigeria Plc and Zenith Bank Nigeria Plc. The objectives were to ascertain that strategic planning affects business operations, to identify the common purpose of strategic planning process as well as to identify the dynamism of business environment and how managers swiftly respond to this considering the ever demanding and changing nature of the industry. The Headquarters and branches of UBA group Nigeria Plc as well as Zenith Bank Plc within Lagos, was the scope of study. Branches with four (4) years of existence with at least fifteen (15) staff were specifically considered for the study. In all about one thousand two hundred (1200) staff from both banks served as the research population. Sources of data included questionnaires and personal interviews administered on the participants directly by the researcher. The results were consistent with the hypotheses. Thus, strategic management planning has impact on effectiveness of the bank, other categories of staff apart from management staff should be involved in strategic planning process in an organization; inefficient strategic planning and implementation leads to failure of an organization. In conclusion strategic planning in an organization is very high and this has impacted well on the organization’s competitiveness in the dynamic environment, especially in the post consolidation era of the banking industry.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Strategy is about winning. The purpose of strategic planning is to guide management decisions towards superior performances in an establishment. Competitive advantage strategy acts as a vehicle for communication and coordination within an organization. Strategic planning and management has become more of a business word in the 21st century and in the new millennium than it ever was. Organizations have turned on to the strategic planning processes. For some, it meets stakeholders’ demands, for others, it was used to justify down-sizing and for an even smaller number, it was done because the organization truly understood the need for a strategic blueprint to guide the decision-making process towards superior performance in order to establish competitive edge.
All these are because of the way each of these organizations view and manage their strategic plans. Strategic planning is the key element to organizational success and effectiveness. This is because it is the pattern or theme that gives coherence to the decision of an organization. It helps to achieve consistency in decision-making. Nowadays, managers are faced with challenges posed by the competitive environment as a result of efficient and effective decision-making which demand a thorough and intelligent understanding of the various dimensions that impinges on corporate performance and success of the organization. These various dimensions concern question on how, what, where, when, who, whom, and why of those cognate issues, which if successfully managed, help in organizational success, growth and development. In addition to the relevant questions being asked, decisions have to be made in organizational units and functional units; since efficient integration of organizational and unit decisions ultimately determines corporate success, growth and development. Also important, are those variable which are not under the control of organizational executives, but, which substantially affect or determine organizational efficiency and effectiveness. Therefore there is need for corporate organization and executive to have adequate understanding of these relevant functions determined, applied, and monitored for organizational survival growth and development.
Finally, according to Stath and Grigshy (1997:8), strategic planning refers to managerial decisions that relate the organization to its environment, guide internal activities, and determine organizational long-term performance. The principal responsibility of the practising manager is to ensure that the organization keeps in touch with the external environment; it must also see the essence of management in terms of service to customers.
David (1991: 1) therefore defined strategic planning as the art and science of formulating, implementing and evaluating cross-section business decisions that enable an organization to achieve its objectives.
Armstrong (1982:10) suggests that the specification of objectives and goals is regarded as a major aspect of formal planning. Strategy is not only being efficient, it is critically concerned with enabling the organization to be effective.
According to Drucker (1974:55), the prime task of strategic management is mediating through the overall mission of a business, i.e. asking the question “what is our business?”. This leads to setting objectives, development of strategies and making of today’s decision for tomorrow’s result. This should be carried out by balancing the present objectives and needs against those of the future in the light of available resources of men and materials.
Thompson (1995:101), states that if companies are to succeed they must adopt strategies appropriate for the circumstance they face, feasible in their resources, skills, and capabilities that are desirable to their stakeholders.
The bank can only be effective if it has awareness of and is responsive to the environment in which it operates. However, it is worthwhile emphasizing that the concepts of strategy has a dynamic component. It implies effectiveness and efficiency and it also implies responsiveness, developing awareness of environmental changes and identifying appropriate and effective reaction to the changes.
1.2 STATEMENT OF THE PROBLEM
