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- THE EFFECT OF SKILL MANAGEMENT ON EMPLOYEES’ EFFICIENCY (A STUDY OF NATIONAL DRUG LAW ENFORCEMENT AGENCY [NDLEA])
- THE IMPACT OF CREDIT RISK MANAGEMENT IN COMMERCIAL BANKS (A CASE STUDY OF UBA PLC)
- IMPACT OF INFORMATION TECHNOLOGY ON OPERATIONAL EFFICIENCY OF BANKS IN NIGERIA (A STUDY OF DIAMOND BANK NIGERIA PLC)
- IMPACT OF CORPORATE LEVEL MANAGEMENT ON THE EMPLOYEE’S PERFORMANCE (A Case Study of Fidelity Bank Plc.)
- THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PERFORMANCE (A Study of Nigeria Bottling Company Plc)
- IMPACT OF STRATEGIC MANAGEMENT ON ORGANISATIONAL GROWTH (A Case Study of Lawrenzo Cargo and Logistics Ltd.)
- STRATEGIC APPROACH TO THE MANAGEMENT OF SMALL BUSINESS ENTERPRISES IN NIGERIA (A Case Study of Evarmila Nigeria Enterprise, Lagos.)
- THE IMPACT OF STRATEGIC PLANNING TO THE DEVELOMENT OF SMALL SCALE AS A MEANS OF REDUCING UNEMPLOYMENT
THE IMPACT OF STRATEGIC MANAGEMENT ON ORGANIZATIONAL EFFICIENCY
This study is an empirical assessment of the impact of Strategic Management (particularly differentiation strategy) on Organizational Efficiency ,as supported by Glueck (1972) who affirmed that the application of strategic management will ultimately lead to the efficient allocation of scarce resources in an organization.
A total of 124 were administered to employees of First Inland Bank, Intercontinental Bank, Furniture Mart and Viju Industries Ltd. The data were analyzed using Pearsons Product Moment Correlation Coefficient, Chi-Square and Student Tail-Test. The research instrument was self-structured, closed ended and found to be reliable as the result of the split half reliability test gave a positive correlation of 0.51. three hypotheses and six research questions were analyzed. The result from the tested hypotheses proved that strategic management has a strong impact on organizational efficiency, as the level of organizational efficiency of the understudied companies have been positively impacted by the implementation of strategic management.
TABLE OF CONTENT
Table of Content iv
.1 Background of the study 1
.2 statement of the research problem 2
.3 scope of the study 2
.4 research questions 2
.5 research hypothesis 3
.6 objectives of the study 3
.7 significance of the study 3
.8 operational definition of terms 3
.9 references 5
2.0 Literature Review 6
2.1 Historical Background Of The Selected Organization 6
2.2 Meaning Of Strategy 7
2.3 Strategic Planning 8
2.4 The Hierarchy Of Strategy 10
2.5 Various Definitions Of Strategic Management 10
2.6 The Birth Of Strategic Management 11
2.7 The Strategic Management Process 13
2.8 Differentiation Strategy 14
2.9 Competitive Strategies And Differentiation 15
2.10 The Pitfalls Of Differentiation Strategy 16
2.11 The Benefits Of Strategic Management 16
2.12 Limitations Of Strategic Management 17
2.13 Reasons Why Strategies May Fail: 17
2.14 Organizational Efficiency 18
2.15 Differentiation Strategy And Organizational Efficiency 20
2.16 References 21
3.0 Research Methodology 24
3.1 Characteristics Of Study Population: 24
3.2 Sample Procedure 25
3.3 Research Design 25
3.4 Description Of Research Instrument 25
3.5 Standardization Of Research Instrument 26
3.6 Re-Statement Of Research Hypotheses 26
3.7 Data Analysis Technique 26
3.8 Limitations Of The Study 27
3.9 References 28
4.0 Data Presentation And Analysis 29
4.1 Introduction 29
4.2 Analysis Of Respondents Characteristics 29
4.2.1 Industry Distribution Of Respondents. 29
4.2.2 Location Distribution Of Respondents 29
4.2.3 Sex Distribution Of Respondents 30
4.2.4 Age Distribution Of Respondents 30
4.2.5 Marital Status Distribution Of Respondents 30
4.2.6 Educational Qualification Of Distribution 31
4.2.7 Designation Distribution Of Respondents 31
4.2.8 Length Of Service Distribution Of Respondents 32
4.3 Analysis Of Organizational Characteristics 32
4.4 Analysis Of Research Questions 33
4.4.1 Research Question 1 33
4.4.2 Research Question 2 33
4.4.3 Research Question 3 34
4.4.4 Research Question 4 35
4.4.5 Research Question 5 35
4.4.6 Research Question 6 36
4.5 Analysis Of Tested Hypothesis 36
4.5.1 Hypothesis I 37
4.5.2 Hypothesis II 37
4.5.3 Hypothesis III 37
5.0 Summary, Conclusion And Recommendations 38
5.1 Introduction 38
5.2 Summary Of Findings 38
5.3 Conclusion 39
5.4 Recommendations For Further Studies 39
5.5 References 40
Appendix I – Sample Of Administered Questionnaire
Appendix II – Spreadsheet of scored responses
Appendix III – Split-Half Reliability Test
Appendix IV – Analysis Of Research Hypotheses
Appendix V – Statistical Frequencies
1.1 BACKGROUND OF THE STUDY
Until recent times, the attainment of organizational efficiency in a business organization, that is, the capacity of an organization to produce desired results with minimum expenditure of time, money personnel and material, - (Smith and Grimm 1987) depended on the intuition of business owners or managers. Such intuitions were usually based on the past experience or “hunch” of owners or Top managers which could bring about a level of organizational efficiency.
Although some of these intuitive decisions worked for sometime. It has been observed that as the organization increases in size and the business environment starts to experience rapid change as a result of the influence of various external factors. Hence, managers intuition is simply not suitable enough to attain organizational efficiency.
It has therefore become imperative for managers and business owners to utilize a systematic approach towards the attainment of organizational efficiency. There is need to attempt to match the resources of the organization to the rapidly changing environment within which its operates. This systematic approach is what is referred to as STRATEGIC MANAGEMENT.
Strategic management is the process of systematically analyzing various opportunities and threats vis-à-vis organizational strengths and weaknesses, formulating and arriving at strategic choices through critical evaluation of alternatives and implementing them to meet the set objectives of the organization – (Lomash and Mishra 2003). The strategic management process facilitate to optimally position a firm in a given dynamic environment.
This study is being carried out to analyze the relationship between the application of strategic management and the efficiency of a business organization, through the use of empirical and measurable data, collected from organizations which operate in today’s dynamic environment.
1.2 STATEMENT OF RESEARCH PROBLEM
What necessitated this research is the fact that in todays’ dynamic business environment, mere intuition and guesses have become highly inadequate to match the purpose of attaining organizational efficiency. The need for a better systematic and more predictable approach is required. Such approach can only be verified by a study which proves the existence and strength of the relationship between strategic management and organizational efficiency.
1.3 SCOPE OF THE STUDY
This research will examine strategic management focusing on Differentiation strategy in particular as a tool for organizational efficiency. A comparison will be made between organizations which operate in a common business environment who have attained various levels of organizational efficiency through the application of Differentiation strategy i.e., offering unique products or services to that of the competitors. This comparison should reveal if there is variance in the level of organizational efficiency achievable as a result of the degree of differentiation strategy adopted.
1.4 RESEARCH QUESTION
The following questions will be answered at the end of this study:-
i) Is there a strong relationship between strategic management and organizational efficiency?
ii) What effect does Differentiation strategy in particular have on the efficiency of an organization?
iii) Can Differentiation strategy be responsible for market positioning?
iv) What kind of effect does the application of differentiation strategy have on employee performance?
v) Is the application of differentiation strategy a myth or a reality?
vi) Is differentiation strategy an applicable tool for increasing profitability level?
1.5 RESEARCH HYPOTHESIS
HYPOTHESIS 1: The level of organizational efficiency is in direct proportion with the level of implementation of differentiation strategy in an organization.
HYPOTHESIS 2: Organizational efficiency maintains a strong positive relationship with Differentiation strategy in todays dynamic environment.
HYPOTHESIS 3: Differentiation strategy is an applicable tool for increasing profitability level in a business organization.
1.6 OBJECTIVES OF THE STUDY
The various objectives of the study are:-
i) To reveal that organizational efficiency is attainable in todays dynamic environment.
ii) To prove that strategic management plays a crucial role in the attainment of organizational efficiency.
iii) To show empirical evidence of the relationship between differentiation strategy and the factors that determine the efficiency of an organization.
1.7 SIGNIFICANCE OF THE STUDY
i) This study is significant because it would reveal empirically, the relationship between strategic management and organizational efficiency.
ii) It would also reveal to managers, the possibility of attaining organizational efficiency through differentiation strategy.
iii) It would enable managers to adequately match their limited resources to the dynamic environment.
iv) This study will reveal how differentiation strategy can serve as a bench mark for the attainment of organizational efficiency.
v) Source of information for further research.
1.8 OPERATIONAL DEFINITION OF TERMS
1. STRATEGY: A pattern of organizational moves an managerial approaches used to achieve organizational objectives band pursue organizational mission.
2. STRATEGIC MANAGEMENT: A set of managerial decisions and actions that
determines the long-run performance of a corporation.
4. DIFFERENTIATION STRATEGY: the process of distinguishing the differences of a product or offering from others, to make it more attractive to the target market.
5. MARKET SHARE: Is the percentage of the entire target market that the organization has secured.
6. PROFITABILITY: The ability of an organization to generate profit.
7. ENVIRONMENT: Is the combination of factors, both internal and external to the organization, which influence the activities of the organization directly.
8. CORPORATE STRATEGY: Is the major strategy for the entire organization.
9. INTUITIVE STRATEGY: A non-systematic strategy that is based on the judgment of business owners or managers.
10. INDEPENDENT VARIABLE: the presumed cause, which in this study is Strategic Management.
11. DEPENDENT VARIABLE: The presumed effect, which in this study is Organizational Efficiency
1. Lomash, Suresh. and Mishra Paul. (2003), Business Policy and Strategic
Management, New Delhi: Vikas Publishing.
2. Smith, Gordon and Grimm, Charles (1991). “Management and Organizational
Change”, Strategic Management Journal,, Vol. 12, pp 557-562.