An evaluation of strategic management and how it impacts organizational performance (A CASE STUDY OF KRISORAL GROUP OF companies LIMITED ONITSHA)
1.1 BACKGROUND OF THE STUDY
Globalization, altering customer and investor expectations, and ever-increasing product-market competition are accelerating the evolution of the economic environment. Strategic management is an ongoing process that evaluates and controls the company's business and industries, assesses its competitors, and sets goals and strategies to meet all existing and potential competitors, and then annually or quarterly reassesses each strategy to determine how well it has been implemented and whether it needs to be replaced” (Lamb, 1984). Obtaining a competitive advantage position and enhancing firm performance relative to rivals are the primary objectives that business organizations should pursue. (2009) (Raduan, Jegak, Haslinda, and Alimin).
Strategic management may be affected by a company's size and its propensity for business environment change. Due to its size, scope of activity, and need to include the opinions and demands of stakeholders, a global transnational organization may employ a more formal strategic management style.
Important management theories, such as Chandler's (1962) and Child's (1972), cited by Meier, O'Toole, Boyd, and Walker (2012), emphasize the capacity of private enterprises to exercise strategic choice despite external constraints. The manner in which they tackle strategic issues might affect the organization's overall growth and development. The strategic framework must address fundamental issues such as resource base, infrastructure limits, acceptable level of technology, and raw materials input.
1.2 STATEMENT OF THE PROBLEM
In recent years, the performance of organizations has been the focus of extensive research. The degree to which an organization's policies and programs are implemented, as well as its strategic objective in terms of its goals and vision, is a significant issue. Managers in both private and public companies are becoming increasingly conscious that a system for acquiring and managing human resources is an essential source of competitive advantage. Important sources of competitive advantage include indigenous products and services, the best public relations strategy, cutting-edge technology, and a suitable structure for attracting and managing the organization's human resources.
According to the preceding and current trends, it is evident that the space of change in our corporate environment creates new issues daily. Consequently, a remedy must be devised if the industrial sector is to effectively deal with its problems. In order to build distinctive brands, consumer-friendly products/services, and competitive advantages in terms of brand preference and client confidence, many organizations must come up with innovative ideas.
Despite this, there has been no research conducted in Nigeria on the influence of strategic management on organizational growth and development. Numerous studies in Nigeria are aimed towards enhancing human resource development (eg Oladipo and Abdulkadir, 2010; Oladipo and Abdulkadir, 2011; Abdulkadir, 2012). Research on strategic planning (a subset of strategic management) was relevant to this one (see Ilesanmi, 2011 and Akinyele & Fasogbo, 2007). No research conducted in Nigeria has examined the impact of strategic planning management on the industrial sector. In light of this, the goal of this study is to analyze how manufacturing companies in the state of Anambra may apply strategic management to design effective growth and development strategies.
1.3 OBJECTIVE OF THE STUDY OBJECTIVE
The overall objective of the study is to:
Assess the impact of strategic management on the organization's performance.
Analyze the obstacles to strategic management within the Krisoral group of firms.
Analyze the effect of strategic management on the competitive market viability of businesses.
The following research questions guide the study's purpose.
What effect does strategic management have on the organization's performance?
What issues inhibit strategic management within the Krisoral group of companies?
Does strategic management have a good effect on the competitiveness of businesses?
1.5 significance OF THE STUDY
This research will also contribute to the existing body of literature on this topic and serve as a resource for academics, researchers, and students pursuing future research on this or a related topic.
1.6 SCOPE OF THE STUDY
The purpose of this study is to analyze the effect of strategic management on an organization's performance, the strategic approach used by the management of the Krisoral group of firms, and the effect of strategic management on the level of competition. The Krisoral company group is headquartered in Onitsha, Anambra state.
1.7 LIMITATION OF STUDY
The study was restricted to the Krisoral group of enterprises; hence, the results will be based solely on the responses from that group.
1.8 DEFINITION OF TERMS
Strategic management is the constant planning, monitoring, analysis, and evaluation of all the resources required by a company to achieve its goals and objectives.
ORGANIZATIONAL PERFORMANCE: Organizational performance is the comparison of an organization's actual production or results to its expected output.
An evaluation of strategic management and how it impacts organizational performance (A CASE STUDY OF KRISORAL GROUP OF COMPANIES LIMITED ONITSHA)