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1、THE IMPACT OF STRATEGIC MANAGEMENT ON ORGANIZATIONAL EFFICIENCY IN NIGERIA: A STUDY OF MAY AND BAKER NIGERIA PLCBYAZUBUIKE VERA MARY UCHE.THE DEPARTMENT OF BUSINESS ADMINISTRATION,UNIVERSITY OF ABUJA,ABUJA-NIGERIATel- +2348036780815Email- veraiswaiting4uABSTRACTThe rising threat of sustainability an
2、d growth of local organizations in Nigeria is worrisome and has become more pronounced in this era of globalization. This study was designed to determine the Impact of Strategic Management on Organizational Efficiency and the major cause of business failures in Nigeria. The study attempted to x-ray
3、the operating business environment of Nigeria and identify the need for effective strategy in Nigeria for companies to be competitive on global basis. The population of the study was 332 senior staff of May and Baker plc and the sample size of 181 was determined using Bowelys formula. Four methods o
4、f data collection were used and three research instruments were used in the study to test the hypotheses formulated on the basis of the objectives of the study. In-depth interviews were conducted in order to explore and have a greater understanding of the views of the staff of May and Baker plc. The
5、 study found a strong relationship, between the scores of strategy and scores efficiency. The same applies to the relationship between scores of Nigerian business environment and organizational efficiency scores. The study concluded that effective strategy leads to organizational efficiency, Nigeria
6、n business environment affects organizational efficiency and that business failure is caused by combined factors. THE IMPACT OF STRATEGIC MANAGEMENT ON ORGANIZATIONAL EFFICIENCY IN NIGERIA: A STUDY OF MAY AND BAKER NIGERIA PLCINTRODUCTIONStrategic management, which can be used to determine mission,
7、vision, values, objectives, roles and responsibilities etc, has been identified as the major tool for organizations efficiency. According to Banjoko S. (2009:2), the countrys manufacturing sector is fast crumbling. There has been lack of focus and direction. Exportation has been the major source of
8、budget financing in Nigeria. According to the Central Bank of Nigeria (CBN 2009), about 95% of the products are in their crude nature of which petroleum products constitute about 85%,and 10% is made up of Agricultural raw materials and solid minerals. The manufactured consumer and capital products a
9、re being imported. The productive sector which has been proved to be the major source of national growth and development of nations has been facing downward trend. While some are experiencing continuous shrinking market share, a lot are facing extinction. Akande T.(2009) argued that if Nigeria was t
10、o join the league of developed nations world wide, the nation cannot continue to depend on the external sector. To him, emphasis should be placed on the industrial sector, harnessing Nigerias sizeable domestic market and abundant resources to ensure a steady supply of products that are vital to the
11、nation and economy as a whole. He argued that manufacturing is the driver, mover and core of industrialization of the fully industrialized , leading economies of the world (Momoh 2009:1)Therefore, the researcher thinks it is worthwhile to analyze and see the strategic issues that need to be addresse
12、d for Nigerian manufacturers to record success, in order that the country meets its vision 20:20:20 target and become one of the worlds key economic players. Statement of the ProblemIt is a known fact that today, only a few Companies in Nigeria prosper, many barely get by while most are failing. Man
13、y organizations in Nigeria are currently facing many challenges, which are resulting in re-structuring, re-engineering and downsizing. Work environments have become more complex (Ozigbo et al 2009:3). The performance of the Nigerian manufacturing sector over the past years, is woeful. This is a prob
14、lem that can mean to say that foreign producers strategize better than Nigerian manufacturers, and, or that Nigerian managers dont manage well. Against the backdrop of her abundant natural and human resources, it is believed that Nigerian situation should not be so. Thus, the problem focused in this
15、 study, probes the identification of the reasons behind the recorded downward trend in the growth of manufacturing firms in Nigeria whether it is due to lack of strategic management or the Nigerian environment. Research ObjectivesThe specific objectives of this study are :v To show the impact of str
16、ategic management on organizational efficiency.v To X-ray the operating business environments of Nigeria.v To identify strategic issues that Nigeria firms must focus on to be competitive on a global basis. Research Questions This study attempted to answer the following questions:- Does strategic man
17、agement has any impact on organizational efficiency? Are there specific strategic issues that Nigerian manufacturers must focus on to be competitive?How conducive is the business environment in Nigeria? Statement of HypothesesOn the basis of the objectives of the study, the following hypotheses were
18、 formulated1. HO: Effective Strategies does not lead to organizational efficiency. 2. HO: Nigerian Business Environment has no effect on organizational efficiency. 3. Ho: Business failure is not caused by different factors . .1.6 Significance of the Study.This study is expected to encourage the manu
19、facturing organizations in Nigeria, to have a second look at strategies and their applicability so as to appreciate the tremendous advantages and opportunities, which they offer.Managers, consultants and policy makers might gain insights into the impact which national policy can have on corporate st
20、rategy especially when conducting business in a global environment.More specifically, readers will gain a better understanding of how Nigeria firms are presently implementing operation strategies.This work also remains as a reference academic material for those in tertiary institutions and research
21、institutions who are interested in this area of study. Invariably, it forms basis for further studies.REVIEW OF RELATED LITERATUREIt is obvious, according to Porter (2001) that macro economic reforms and stimulus packages are not going to be the answer. (Porter et al 2009). Rather, effective busines
22、s strategy is the foundation of successful business strategies, it affects the ability of an organization to compete or, to serve its intended purpose. (Stevenson 1999: 45).This study attempted to ascertain the need for additional research on the strategic performance relationship by examining the i
23、mpact of strategic management on organizational performance. This is an important topic for empirical examination for two reasons. First, recent research has explored macroeconomic conditions (Latham and Braun, 2008) and the role of innovation (Herold et al., 2006) on the performance, while suggesti
24、ng that environmental factors may play an important role in how strategy is employed among direct competitors (Ferrier and Lee, 2002). Second, the business strategy literature has suggested that managerial decisions on the deployment of key organizational resources is linked to firm performance when
25、 also considering the industry in which the firm competes (Porter, 1985),and its external environment at large.According to Stevenson (1999:45) strategies are plans for achieving goals. They provide focus for decision making. The glossary of Education and Accountability terms (March 2001) says strat
26、egy is a plan or method employed in order to achieve a goal or objective. Strategy is the plan you develop to help you achieve your vision. It requires an evaluation of your organization internally, but also of the external environmental factors especially competitors that can impact you. (Ace the c
27、ase e-book Glossary February 2010.) Ituwe (2005:189) sees strategy as the selection of means to solve the problems and take advantage of opportunities to achieve the long and short term objectives and goals of the organization as a whole, based on the outcome of the surveillance and interpretation o
28、f the threats and opportunities in the external environment by top management. According to the united States Department of Agriculture Glossary (March 2007), strategy is the general plan or direction selected to accomplish incident objectives. It is a long term planning and maneuverings. In Wikiped
29、ia. Orgs (4/2010) Strategy refers to a plan of action designed to achieve particular goal. The word is of Military origin, deriving from the Greek word Strategos, which roughly translates as general. The military definition of the term strategy according to Ozigbo (2002:159) is the action of the pla
30、nning and directing operations, the maneuvering of forces into the most advantageous positions prior to the actual engagement with the enemy. He believes that the development and implementation of a strategy and tactics deals with developing the answers to the basic question: How do we get to where
31、we want to be? Developing the answer to this all important question does not require magic, but rather a pragmatic approach, using creative thinking, expertise in evaluating tradeoffs, good judgment, intuition and a little bit of luck. According to Alvin Toffler(1928-), A corporation without a strat
32、egy is like an airplane weaving through stormy skies, hurled up and down, slammed by the wind, lost in the thunderheads. If lightning or crushing winds dont destroy it, it will simply run out of gas.(Microsoft Encarta 2009). The vision of May and Baker Plc is “to be among the top 10 conglomerates in
33、 Nigeria by the year 2020” Firms develop strategies to take advantage of strengths and opportunities or overcome weaknesses or threats. They arise as organizations conduct resource analysis, analyze organizational processes, and analyze and partner with external stakeholders.The strategic management
34、 process includes (1) analysis of the external environment and the organization, (2) establishment of a strategic direction, (3) formulation of a strategy, and (4) implementation of the strategy and development of a system of controls. Organizations seldom begin with a thorough strategic management
35、process. Instead, they usually begin with basic nancial planning or forecasting. Over time, they develop methods that are more closely associated with what we refer to as strategic management. There are different approaches to strategy, according to Scribner(2009),The traditional approach to strateg
36、y development is that rms should adapt to their environments. According to this deterministic view, good management is associated with determining which strategy will best t environmental, technical, and human forces at a particular point in time, and then working to carry out that strategy. The pri
37、nciple of enactment assumes that organizations need not submit to existing forces in the environment; they can, in part, create their environments through strategic alliances with stakeholders, investments in leading technologies, advertising, political lobbying, and a variety of other activities. T
38、he traditional strategy formulation model supports the view that managers create strategies deliberately; however, a more reasonable approach may be to suggest that, through trial and error, managers can also learn as they go.The resource - based view of the rm explains that an organization is a bun
39、dle of resources, which means that the most important role of a manager is that of acquiring, developing, managing, and discarding resources. According to this view, rms can gain competitive advantage through possessing superior resources. Most of the resources that a rm can acquire or develop are d
40、irectly linked to an organizations stakeholders, which are groups and individuals who can signicantly affect or are signicantly affected by an organizations activities. A stakeholder approach depicts the complicated nature of the management task. Many trends and forces are leading rms into global ma
41、rkets at increasing rates, which have led to a high level of global economic interconnectedness. While the tools, techniques, and models of strategic management apply well to a global environment, there are differences between managing in domestic and international arenas. Industry leadership is oft
42、en associated with breaking out of tradition. For many firms periodic, or even continual, strategic repositioning must become a way of life, Ansoff(1918-2002).Mao Zedong(1893-1976) states that You must despise your enemy strategically, but respect him tactically.According to Kenichi Ohmae, The final
43、 technique for coming up with new business ideas is to maximize ones strategic degrees of freedom, and To break out of a market-share stalemate, the strategic thinker must sometimes have the courage to burst these shackles. What we need today.is not a new theory, concept, or framework, but people wh
44、o can think strategically. In line with these developments, the company adopted a new vision statement in 2008, To Be Among The Top 10 conglomerates in Nigeria By 2020. “This vision is premised on a very ambitious but ordered quantum leap which removes all forms of restriction on growth and investme
45、nts. It is a vision that allows the company to invest in all areas of human life that promotes its mission. “To improve the Quality of Life, Throughout Life, For All Lives” with this, May & Baker can explore investment opportunities in various aspects of the economy.(Report 2009)Gary Hamel(1954-) st
46、ates that Challenging the status quo has to be the starting point for anything that goes under the label of strategy.Types of StrategiesFor a company to remain aligned with the customers, it has to continually test and probe with new ideas, seeing which work and which dont, adjust investment as nece
47、ssary, spin off new ventures, work with and invest in the competition, refine and adjust processes and continually ask stupid questions of itself. (enquires). May and Baker Nigeria Plc which started as a trading outpost, began local manufacturing of pharmaceuticals in 1976 and was listed on the Nige
48、rian Stock Exchange in 1994. (Report 2009:2)As at year 2000, the companys business involves the manufacture sales and distribution of pharmaceuticals, human vaccines, consumer products and diagnostics. May & Baker is also moving swiftly in products development and ownership. In this direction, it br
49、anded generic segment, having introduced 15 new products in 2005. Between 2007 and 2008 over 20 new products were registered and in 2009, over 30 new products were registered.The organization strategy provides the overall direction for the organization. It is broad in scope, covering the entire organization (Stevenson 1999:
