IMPACT OF PLANNING AND STRATEGIC MANAGEMENT ON THE GROWTH OF SMALL SCALE BUSINESS
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IMPACT OF PLANNING AND STRATEGIC MANAGEMENT ON THE GROWTH OF SMALL SCALE BUSINESS
Chapter one
INTRODUCTION
Background of the study
There is a widespread saying that if you don’t plan, you plan to fail. Many organisations have failed because of a lack of planning and strategic management. Planning entails deciding what will happen in the future; planning comes before all other administrative duties.
Strategy refers to a business organization’s aims and objectives. Strategic management provides overall direction to the enterprise and includes defining the organization’s objectives, formulating policies and plans to attain these objectives, and allocating resources.
It is concerned with the long-term sustainability and viability of the firm. This simply indicates that without strategic thinking and action, a corporation may fail to attain its goals.
Strategic planning is the managerial process of creating and maintaining a match between an organization’s resources and market prospects.
Milider’s (2000) study of strategic management on the growth of small and medium-sized businesses revealed that strategic management is not a set of procedures for top managers, nor is it a specialised function for high-level staff, but rather a set of skills and a way of thinking through a company’s overall mission that asks the question, “What is our business?”
This leads to decisions about tomorrow’s results. K. O. Donnel (2002) concluded that any company strategy must be preceded by planning. They stated that the primary need for planning in any corporate organisation is to predict future events while also preparing for unforeseen occurrences.
However, managers and business owners are generally aware of the determining nature and effect of the current society’s lack of planning and strategic management systems, and they devise strategies for manipulating planning and strategic management on their businesses in order to achieve the organization’s goals and objectives.
Planning is the process of predicting, defining policies, objectives, programming, scheduling, procedures, and budgeting for activities and events that will help management achieve the ultimate goal of an enterprise.
T. Lucey (2006) defines it as the development of objectives, as well as the formulation, evaluation, and selection of the policies, strategies, and actions required to attain these objectives. Long-term strategic planning and short-term operational planning are two types of planning.
Strategic management is essentially a continual process of strategic analysis and monitoring that organisations employ to channel the energy of firm functional areas into a single, focused effort to achieve superior performance. It is normally done in several steps. Essentially, it answers the following questions:
What is the present state of the organisation?
What would it want to do?
How does it get there?
Strategic management is not about predicting the future, but about preparing for it and knowing exactly what measures the organisation must take to accomplish its strategy and gain a competitive edge.
Statement of the Problem
The high rate of company failure in Nigeria among managers and business owners has become a severe problem, prompting most of them to think critically about how to enhance their enterprises while also surviving in the competitive world of business.
The majority of corporate failures are the result of inadequate planning and strategic management systems. Because planning and strategic management are regarded as a must-have for every organisation seeking to take the lion’s share of the market, their limitations must be acknowledged, as they are, ironically, the most criticised concepts.
The criticism stems from the organization’s failure to recognise or acknowledge the pivotal role of planning and strategic management in the success of small and medium-sized businesses in Akwa Ibom State. Most businesses that do not have a planning and strategic framework will struggle to survive in the business environment.
GOALS OF THE STUDY
The purpose of this study is to explore the impact of planning and strategic management on the growth of small and medium-sized businesses in Akwa Ibom State. Specifically, the study aims to achieve the following objectives:
To critically evaluate why planning and strategic management are essential for the growth of small and medium-sized businesses.
To assess managers’ attitudes towards planning and strategic management systems in an organisation.
To assess the requirement for a planning and strategic management system.
To determine managers’ roles in the development and implementation of strategic planning.
To investigate the impact of planning and strategic management on the growth of small and medium-sized businesses.
RESEARCH QUESTIONS:
To ensure a successful study, the following research questions were established as guides.
How does the failure to plan and strategize effect the growth of small and medium-sized businesses?
Is it true that planning and strategic management are vital for the growth of small and medium-sized businesses?
Do managers formulate and implement strategic plans?
Is strategic planning the best instrument for combating competitive emergencies?
To what extent do poor planning and strategic management harm the business?
Is the incapacity of managers to utilise this method affecting business objectives?
Research Hypothesis
The following are the research hypotheses developed to lead the investigation. The null hypothesis (Ho) and the alternative hypothesis (Hi) are presented as follows:
HO: There is no substantial correlation between planning and strategic management systems and the growth of small and medium-sized businesses.
Hello: There is a considerable impact of planning and strategic management systems on the success of small and medium-sized businesses.
HO: A lack of planning and strategies has no effect on the organization’s business backwardness.
Hello: There is an impact of lack of planning and strategy on the backwardness of the organization’s business.
Significance of the Study
This research will serve to motivate and liberate managers’ minds to undertake effective planning and strategies that will aid in the growth of small and medium-sized enterprises in Akwa Ibom State, hence helping to cure poor business management by their owners and managers.
This understanding has inspired the researcher to enter the sector in the expectation that her findings and recommendations will be valuable to company start-ups, management of existing businesses, the researcher, students, and society as a whole.
firm starters will be equipped with strong ideas, expertise, and methods that can be used to the firm to help it expand. They will also recognise that the subject is necessary for good planning and strategies for the growth of small and medium-sized businesses.
This research will be valuable to both the researcher and other students who may do research on a similar or related topic as a source of reference. The study will provide the vital solutions to anyone who is having difficulty with planning and strategy.
Finally, it is hoped that if the contributions and recommendations proposed in this study are effectively implemented, healthy managers would be developed for the benefit of society and the nation as a whole.
SCOPE OF THE STUDY:
The purpose of this research is to better understand how planning and strategic management affect the growth of small and medium-sized businesses in Akwa Ibom State.
The study is limited to Coca-Cola Bottling Company Uyo, Akwa Ibom State. The enterprise is located at No. 298 Abak Road, opposite the mechanic village in Uyo, with other depots outside of the city.
Limitations of the Study
The researcher encountered the following limitations when doing this research:
Time is a factor that can have a detrimental impact on an academic project, such as when the researcher has only a few months to perform, assemble, and complete the project.
Courses in the discipline’s curriculum must also be completed in order for the researcher to devote time and attention to them. This meant that the researcher had to work under difficult conditions, which may have had an impact on the report’s outcome.
Finance: The relative scarcity or lack of availability of funds for student researchers influences the breadth of their study to a greater extent. As a result, limited financial assistance for student researchers had a significant impact on the breadth of this study and the timeline for its submission.
Materials: The poor research conditions that exist in today’s Nigerian higher education institutions, as well as insufficient research materials such as textbooks, journals, and magazines, hampered the smooth conduct and completion of the original, affecting the researcher’s original vision before embarking on the research.
Definition of Terms
Planning is the process of predicting, setting policies, objectives, programming, scheduling, procedures, and budgeting for activities and events that will help management achieve the ultimate goal of the enterprise.
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