Project Materials




Need help with a related project topic or New topic? Send Us Your Topic 



Chapter one

1.0 Introduction

1.1 Background of the Study

Until recently, achieving organisational efficiency in a business organisation, defined as an organization’s ability to produce desired results with the least amount of time, money, personnel, and material, was dependent on the intuition of business owners or managers (Smith and Grimm 1987).

Such intuitions were typically based on the past experience or “hunch” of owners or top managers, which could result in a level of organisational efficiency.

Although some of these instinctive selections worked for a while. It has been noted that when the organisation grows in size, the business environment undergoes fast change due to the influence of different external forces. As a result, managers’ intuition is insufficient for achieving organisational efficiency.

Managers and business owners must now take a methodical approach to achieving organisational efficiency. There is a need to seek to align the organization’s resources with the continuously changing environment in which it operates. This methodical technique is referred to as strategic management.

Strategic management is the process of systematically analysing various opportunities and threats in relation to organisational strengths and weaknesses, formulating and arriving at strategic decisions through critical evaluation of alternatives, and implementing them to meet the organization’s set objectives (Lomash and Mishra 2003). The strategic management approach aids in optimally positioning a corporation in a dynamic environment.

This study is being conducted to examine the relationship between the implementation of strategic management and the efficiency of a business organisation, using empirical and measurable data obtained from organisations operating in today’s dynamic environment.

1.2 Statement of Research Problem

The need for this research stems from the fact that in today’s changing corporate environment, mere intuition and estimates have proven to be insufficient for achieving organisational efficiency.

The requirement for a more methodical and predictable strategy is critical. Such an approach can only be validated by research that demonstrates the existence and strength of the relationship between strategic management and organisational performance.

1.3 Scope of the Study

This study will look at strategic management, namely the Differentiation strategy, as a method for increasing organisational efficiency. A comparison will be conducted between organisations that operate in the same business environment and have achieved varying levels of organisational efficiency by implementing a differentiation strategy

which entails offering unique products or services in comparison to competitors. This comparison should demonstrate whether there is a difference in the level of organisational efficiency attained as a result of the degree of differentiation method used.


The following questions will be answered at the conclusion of this study:

i) Is there a substantial link between strategic management and organisational performance?

ii) How does differentiation strategy, in particular, affect an organization’s efficiency?

iii) Can the differentiation approach be accountable for market positioning?

iv) What impact does the implementation of a differentiation strategy have on employee performance?

v) Is the use of differentiation strategies a myth or a reality?

vi) Is differentiation strategy a useful instrument for raising profit levels?

1.5 Research Hypothesis

HYPOTHESIS 1: Organisational efficiency is directly proportional to the extent of differentiation strategy implementation in an organisation.

HYPOTHESIS 2: Organisational efficiency has a strong positive association with differentiation strategy in today’s changing environment.

HYPOTHESIS 3: A differentiation strategy is an effective instrument for enhancing profitability in a commercial organisation.

1.6 Objectives of the Study

The study’s aims are as follows:

i) To demonstrate that organisational efficiency is possible in today’s changing context.

ii) Prove that strategic management is critical to achieving organisational efficiency.

iii) Provide empirical proof of the relationship between differentiation strategy and the factors that influence an organization’s efficiency.

1.7 Significance of the Study

i) This study is crucial because it will demonstrate empirically the relationship between strategic management and organisational efficiency.

ii) It would also show managers the prospect of increasing organisational efficiency through a differentiation strategy.

iii) It would allow managers to better align their limited resources with the dynamic environment.

iv) This study will show how differentiation strategy can be used as a benchmark for improving organisational efficiency.

v) A source of information for future investigation.

1.8 Operational Definition of Terms

1. STRATEGY: A set of organisational moves and managerial practices utilised to attain organisational goals and pursue the organisational mission.

2. STRATEGIC MANAGEMENT: A collection of management decisions and behaviours that

determines the long-term performance of a firm.

3. ORGANISATIONAL EFFICIENCY: The ability of an organisation or corporation to achieve desired goals with a minimum of resources.

4. DIFFERENTIATION STRATEGY: the process of differentiating a product or offering from others in order to make it more appealing to the target market.

5. MARKET SHARE: This is the percentage of the total target market that the organisation has obtained.

6. PROFITABILITY: An organization’s ability to make profits.

7. ENVIRONMENT: Is a collection of internal and external factors that directly influence the organization’s actions.

8. CORPORATE STRATEGY: This is the overall strategy for the organisation.

9. INTUITIVE plan: A non-systematic plan that relies on the judgement of firm owners or management.

10. INDEPENDENT VARIABLE: the hypothesised cause, which in this case is strategic management.

11. DEPENDENT VARIABLE: The expected effect in this study is organisational efficiency.

Need help with a related project topic or New topic? Send Us Your Topic 


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.