ABSTRACT
In an unpredictable world nothing remains static for a long time. This is true for business environments. Business organizations are constantly confronted with challenges emanating from the dynamic nature of their operating environments. And, to ensure continued relevance and survival, strategic positioning (planning) is of utmost importance. This, of course is achieved through strategic management.
However, strategic management cannot exist in isolation. It is corporate planning that form the basic framework upon which strategic management is developed. These two concepts complement each other. That is, one cannot be successfully practiced without the other. Where both are operated effectively, there is a harmonious working environment/ relationship, which depict a common sense of purpose, direction and focus. This characteristic clearly distinguishes an organization from its contemporaries. It places an organization at a comparatively advantageous position.
This study is aimed at examining the practice of corporate planning and strategic management in Small and Medium Enterprises (SMEs) with particular reference to a segment of the telecommunications industry. Two Companies- De Piudentcom and Multicom concepts Limited will be understudied for comparison purposes.
In this work, a number of research tools and procedures were used to gather data and information. Due to the relatively small nature of the organizations, the entire population will be studied. Questionnaires are designed to suit the various information needs required from the categories of staff to be encountered in the course of the study. Direct interviews will be employed where necessary.
The chi-square method and tables will be used in the analysis, presentation and testing of the data generated from primary sources. The study discovered thus:
-there are duplications of duties and lack of accountability or transparency in some areas.
-that most of the staff has no formal orientation concerning the goals aims and objectives or mission statements of their organizations.
And the study recommends that: there should be emphasis on the importance of information as a critical input for business decisions
The organizations should strive to update themselves with the global developments in the telecommunication business
Management consultants should be engaged in order to assist in the formulation of long term goals and strategies.
There should be a periodic review of plans and strategies according to the dictates of the operating environment at any point in time.
Finally, corporate planning and strategic management are veritable tools for
organization development.
CHAPTER ONE: Introduction
1.1 BACKGROUND OF THE STUDY
Planning is an inescapable part of all rational human activity. Since business is one of those rational human activities, planning is of great importance to ensure efficiency in the discharge of business responsibilities. Apart from being one of the basic elements of management, planning has an aspect, which involves charting a sense of direction and purpose in the life of a business organization. This aspect is called. Corporate Planning. Planning as it sounds is a process in which a document known as “Plan” is produced. To implement that plan, the art of management comes into focus. And to achieve this at the corporate level, the issue of strategic management is addressed.
Corporate Planning and Strategic management are two managerial practices that ensure the continue existence and relevance of business organizations. According to John Thompson (1982), Corporate Planning was popular in the 1960s. This is due to the fact that the said period enjoyed economic stability and planners were able to convince both themselves and their directors that they could predict the future, several years ahead. Though, right by this assertion, they were however, proved wrong by the oil crisis of
1973. This led to a sharp criticism of corporate planning, which was of little use in a period of turbulent change. It is this phenomenon that then brought into perspective, the issue of Strategic Management.
1.2 STATEMENT OF THE PROBLEM
Many small and medium enterprises go under, due to lack of good corporate planning and Strategic management. Absence of this means that many small business have no clear-cut business objective or reason why they are in business. This unfortunate posture therefore, makes them to sail adrift with the obvious consequence of being tossed around by the harsh and rough terrain of the unpredictable business environment.
This situation somehow explains the reason why most small medium enterprises are seen as organizations with no proper sense of direction or purpose.
1.3 OBJECTIVES OF THE STUDY
This study is to critically examine the way small businesses carry out their management responsibilities in relation to their growth and survival. The major area of doing this is in Corporate planning activities and the implementation of these plans through the practice of Strategic management. The study will widen the scope and horizon of knowledge in the areas of planning and management. Specifically, the study is meant to do the following.
1. Highlight the impact of corporate planning and strategic management on business.
2. Determine the effects of the concepts (mentioned above) on the growth and survival of small and medium enterprises
3. Ascertain if the small and medium enterprises being studied, practice the concepts
4. Determine how plans are developed and implemented in those companies.
1.4 RESEARCH QUESTIONS
Pertinent questions to be answered in this research include
1. Is the growth of businesses dependent on corporate planning and strategic management?
2. Do these concepts assure the continuous relevance and survival of business organizations, especially in turbulent periods?
In providing answers to these questions, the study will juxtapose two business organization in the same industry (telecommunications) for comparison purpose.
1.5 HYPOTHESES FORMULATION
H0 Corporate Planning and Strategic management are not important to business success.
H1 Corporate Planning and Strategic management are important to Business success.
H0 Small and Medium Enterprises do not practice corporate strategic
Management
H1 Small and Medium Enterprises adopt a systematic approach incorporate planning
Ho Small and Medium Enterprises do not adopt a systematic approach in
Corporate planning.
H1 Small and Medium Enterprises adopt a systematic approach in Corporate planning.
1.6 SIGNIFICANCE OF THE STUDY
This study will provide a practical pointer to certain managerial activities in some small and medium enterprises. This will enable the production of documented evidence in this particular area of management, which is being understudied in this work. The evidence will serve as reference material for further academic work. Through this study we will also be able to understand very well how small business overcome the challenges to an ever-changing business environment.
1.7 LIMITATIONS OF THE STUDY
Time as is usual is a constraint in this study. This is due to the fact that this research is to be completed within a compressed semester period of three months. Secondly, the scarcity of good management textbooks will surely affect the quality of information required from an exercise of this nature. Lastly, the skeptical attitude of respondents will also pose a limitation in the exercise.
1.8 SCOPE OF STUDY
The scope of this work is spread around the local telecommunications outfits located within Enugu metropolis.
1.9 BACKGROUND OF THE STUDY AREAS
The Nigerian telecommunication industry, especially the Global System for Mobile communication segment has witnessed tremendous change. This has greatly improve the socio-economic life of the citizenry. It has also opened up immense opportunities to those who are daring and enterprising. Within a short period of time, so many small and medium scale business have sprung up to take advantage of this phenomenon.
Modern communication as we know is technology driven. And technology is one thing that changes rapidly. This sort of change is so swift that within a six-month period, certain forms (s) of technology may fall into obsolescence. This therefore makes the telecommunication environment to be volatile for unplanned businesses to thrive.
It is against this background that the study seeks to examine how the small and medium enterprises tackle such challenge. This, it will carry out under the platform of Corporate planning and Strategic management. The focus for this study shall be the small and medium telecommunication business within Enugu metropolis.
This material content is developed to serve as a GUIDE for students to conduct academic research
CORPORATE PLANNING AND STRATEGIC MANAGEMENT IN SMALL AND MEDIUM SCALE ENTERPRISES (SMES) (A STUDY OF DE-PIUDENTCOM AND MULTICOM CONCEPTS NIGERIA LIMITED ENUGU)>
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