researchClue.com

EFFECTS OF STRATEGIC MANAGEMENT ON PRODUCTIVITY (A case study of U.A.C Foods, Nigeria)

 

 

 

CHAPTER ONE

INTRODUCTION

 

1.0    BACKGROUND OF STUDY

Quite recently, strategic management has attained an unprecedented recognition in the management process of most modem organizations. This new practice in business management is most evident in advanced countries as opposed to the poor attitude towards strategic planning in the third world countries. The use of strategic business units as entities for the formulation of strategic plans gives strategic business management a distinctive character of its own in relation to particular organizations, like the U.A.C. foods.

 

It is a recognized fact that productivity is a crucial factor in economic and social development, for it determines the standard of living of the citizens. If the country must enjoy a high standard of living, her productivity must show an appreciable increase. The three major components necessary to improve productivity are: efficiency of technology, efficient labour, as well as the effectiveness and efficiency of management must improve.

 

Strategic management is a dynamic, life giving element in every organization. Without efforts, the resources of production remain resources and never becomes production. No matter how efficient and sophisticated your machines, tools and equipment are, no matter how vast your financial and material resources may be, somebody who is the human element will have to put them to use.

 

In essence, to manage is to make decisions, to plan and organize, to co­ordinate and control production. The top management of an organization carries all these out Strategic management plan is the responsibility of all managers especially the Chief Executive, Board of Directors.

 

Strategic management involves an organization's long term directions, specific performance objectives, and strategies to achieve these objectives in the light of all the internal and external circumstances.

 

It is well-known and acceptable, that the main motive of going into business is to be productive and make profits. Many factors, internal and external, can be attributed to productivity and profitability of an enterprise and companies like the U.A.C. Among these are availability of the adequate resources, and suitable political, economic, social and technological environment.

 

Having highlighted the vital roles and importance of strategic management in the life of an organization, it is essential for an organization to depend largely on the quality of its top management. This group is required for good performance and productivity.

 

It is worthy of note that strategic management is widely applied by the most successful and best managed organizations throughout the world. Various scholars like Robert Grant (2001), Pearce and Robinson (2002), have attributed the popularity of strategic management to the following benefit; facilitation of company growth, helping a company to capitalize on opportunities and coping with the threats, leading a company to act rather than read, providing early indication of financial needs, ensuring the setting and acceptance of common goals, providing a basis for measuring performance, and training managers to think ahead.

 

 

 

 

 

1.1    STATEMENT OF RESEARCH PROBLEM

Social Scientists have written extensively on effect of strategic management on productivity but there tends to be no proper utilization of these theories in most organizations in Nigeria.

 

Also, management in its endeavour tries to avert all obstacles or hindrances to profit maximization and a lot of others. Since, some previous studies have not absolutely achieved the desired result in Nigerian Industries, hence the need for further study to bring about a high level of productivity.

 

Moreover, this study proffers solutions to the following perceived problems in U.A.C. foods Nigeria

• Ø Poor adaptation of management theories to suit the Nigerian style of management
• Ø Lack of adequate fund to pursue management strategies to achieve a high level of productivity.
• Ø Inability to devote enough time for effective management strategies
• Ø Poor interpretation of execution of strategic management.
• Ø Problem of data collection, as most strategic management information are considered secret and confidential.

 

1.2   OBJECTIVES OF STUDY.

The main objective of this study is to examine the effects of strategic management on productivity in an organization. The specific objectives of the research are:

• Ø To appraise the effect of strategic management and its overall effect on productivity.
• Ø To identify well implemented strategies m relation to increased productivity in U.A.C. Foods.
• Ø To assess the moderating variables In the effects of strategic management on productivity.
• Ø To identify the factors that serve as pointers to the need for strategic management in U.A.C. Foods.

 

1.3   RESEARCH QUESTIONS

This study is further designed to look at the Issues relating to the effectiveness of strategic management. This research will be used to determine if strategic management has any influence on the efficiency and productivity of food focused conglomerates.

• Ø What is the relevance of strategic management in an organization?
• Ø To what extent does strategic management affect productivity?
• Ø What are the moderating variables of management that affects productivity?
• Ø To what extent does strategic management influence the survival of an organization?

 

1.4    RESEARCH HYPOTHESES

Research hypotheses are statements of assumptions relating to a study. A research hypothesis basically helps in explaining and predicting various occurrences or events. They are tentative statement of assumption of expected relationship between two or more variables. The research hypotheses are stated using.

H I as the Null hypothesis and H2 as the alternative hypothesis.

H_o:     There are no significant relationships between strategic management variables and organizational productivity.

H₁:     There are significant relationships between strategic management variables and organizational productivity.

H_o: Good implementation of strategies has no effect on organizational

productivity.

H₁:     Good implementation of strategies has effect on organizational productivity .

H₀:     Adequate knowledge of strategic management does not improve organizational productivity

H₁:     Adequate knowledge of strategic management improves organizational productivity.

 

1.5    SIGNIFANCE OF STUDY:

The significance of this study lies in identifying the effects of strategic planning, management and implementation on organizations, using the U.A.C. Foods Nigeria as a case study. The solutions proffered will enable other business organizations, particularly the manufacturing sector to be steadfast and well equipped in strategic management.

 

Another significance of this study is that it stands to be a useful contribution to the existing literature on strategic management process. Finally, this study is significant, in that it will help to understand the fundamental principles of strategic management

 

1.6   SCOPE OF THE STUDY

This research covers the effects of strategic management on productivity with a major focus on the Head office of the U.A.C. Foods Nigeria in Lagos. The participants in this study involves staff of the U.A.C. Foods. Emphasis is laid more on the production department of the organization. The sample size is limited to convenient sampling.

 

 

1.7   LIMITATIONS OF STUDY

The limitations encountered are time, fund, and administrative problems. Issues of divulging of information due to management policy, limited the number of copies of the questionnaire retrieved back. However, these constraints limited the depth of this research work.

 

1.8    DEFINITION OF TERMS

PRODUCTIVITY: Relative measure of efficiency of a person, machine, factory, system, e. g. in converting inputs into useful outputs.

STRATEGIC MANAGEMENT: The art, science and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives in the long run.

GROWTH:  The process of development or increase in size or quantity.

MOTIVATION: Is that which directs or channels behaviour through goals.

EFFECTIVENESS: Ability to achieve organizational objectives by using appropriate methods or styles.

RESEARCH: Systematic investigative process employed to increase or revise current knowledge by discovering new facts.

 

1.9    HISTOROICAL BACKGROUND

U.A.C. foods Nigeria Plc has a rich and varied history of successful enterprise that pr-dates the geographical entity called Nigeria. The rumps of the company's early days can be traced to the activities of European traders and commercial activities.

 

In 1879, the United African Company was formed following the merger of four companies, trading up the River Niger. Alex Miller brothers and company, Central Africa trading company ltd, West African company Ltd and James Pinnock.

In 1886, the National African Company limited was chartered and limited when the British government issued it as chartered after the Berlin conference.

 

In 1889, the African association was incorporated by the merger of eight firms they were operating in the oil rivers area In 1892, The Royal Niger Company brought in captain Lugard (later to be known as Lord Lugard) to help protect its interest in Nigeria.

 

Following the revocation of the charter, Royal Niger Company changed its company name to the Niger Company Limited in 1900 and was later bought by Lever Brothers Limited in 1919.

 

On March 3^rd 1929, The United African Company was formed by the joint agreement of the African and Easter Trade Corporation and Lever Brother Limited.

U.A.C was first incorporated in Lagos, Nigeria under the name Nigerian Motors Limited, on April 22^nd 1931 as a wholly-owned subsidiary of The United African Company limited which later became U.A.C International.

 

It became The United African Company of Nigeria Limited on Feb 1^st 1955, and started acquiring over a period of five years, a large part of the business of U.A.C.I.

 

In compliance with the Nigerian Enterprise Promotion Act 1972, 40 percent of the company share capital was acquired in 1974 by Nigerian citizens and was later adopted in 1991.

 

In 1994 following the divestment of 40 percent interest in the company by Unilever Plc, the company became A wholly-owned Nigerian Company. The transformation of U.A.C from trading into a leading manufacturing concern even though it took a root in the 1980s, was given serious impetus in 1990s following the exit of the company from its trading business.

 

In early 2000, U.A.C further embarked on series of business restructuring with the thorough portfolio review and switch of focus to value - adding operations. This has led to an era of focused growth on the foods, real estate, logistics and automobile sector. U.AC has an active foreign investor, Actis, which holds 20 percent of the company's equity.

 

Today, U.A.C has become a food-focused conglomerate with leading brands such as Mr. Biggs, Gala, Grand oils, Supreme, SWAN Natural spring water and GOSSY spring water. The company's brand portfolio also includes franchised international food brands such as Nando's, Creamy Inn, Chicken Inn, Pizza Inn and Dial- for Delivery.

 

Get the Complete Project