The study investigated the effects of strategic
planning on organizational performance with First Bank of Nigeria Plc Ilorin
branch, as a case in hand; the aim is to know whether strategic planning has
effect on the overall performance of the organization. The methodology that was
used for the study is survey design and the target population was 100 members
of staff of First Bank of Nigeria Plc Ilorin while the sample size was 89 which
were determined using SPSS. The result of the analysis indicate that there is
relationship between effective strategic planning and organizational
performance and also that lack of accountability, lack of commitment and lack
of understanding of the role in the execution process are challenges in the
implementation of strategic planning and therefore recommend among others that
Nigerian firms should give more serious attention to strategic planning and
finally, employee welfare should also be given adequate attention for
efficiency and effectiveness in organization.
TABLE OF CONTENTS
OF THE STUDY:
OF THE PROBLEM
OF THE STUDY
OF THE STUDY
AND LIMITATION OF THE STUDY AND HISTORY OF FIRST BANK
DEFINITION OF TERMS
2.1 CONCEPT CLARIFICATION OF STRATEGIC MANAGEMENT POLICY IMPLEMENTATION AND ORGANIZATIONAL EFFECTIVENESS
2.2 RELEVANCE OF STRATEGIC MANAGEMENT AND POLICY
PLANNING ON ORGANIZATIONAL EFFECTIVENESS
FOR DATA COLLECTION
FOR DATA ANALYSIS
ANALYSIS AND DISCUSSION
4.1. Test of Hypothesis
OF THE STUDY:
is a purpose for existence of every organization whatever their type and composition.
As such, its relevance within an environment or a larger society is to
accomplish its goals, tasks, mission and function and reach its target. The
level at which organization enhances its performance can be determined by the
form of management tool adopted. This assertion was supported by the fact that
a well coordinated management theory as a tool will help in understanding
whether organization can enhance its effectiveness and productivity (Oyedijo,
1998). For enhancing organization performance, a strategic management and
policy implementation as one of the key management theories play a major role.
From this, the strategic management and policy implementation as tool is
important as any other relationship, process or resources within the organization.
An organization according to Hodge and Anthony, (1994) can b thought of as a
group of two or more people working co-operatively towards a common objective
or set of objectives. Schein (1993) also defined organization as the rational
coordination of the activities of a number of people for the achievement of
some common explicit purpose or goal through division of labour and function,
through a hierarchy of authority and responsibilities. The main characteristics
that are common to all types of organization are: objectives, task or activity,
division of labour, hierarchical structure of authority and responsibility and
The responsibility of improving
organization performance rests on the type of management. Therefore, strategic
management has the potential to drastically increase any organizations
competitive position. Strategic decision making significantly affects the
organization and often requires widespread changes, (Oyedijo, 1998). Strategic
management and policy implementation on organizational effectiveness according
to Cole (2000), focuses on the relationship of existing and emerging system and
technologies to the manufacturing strategy and function related to operations
planning and control. For organization to enhance high level performance,
strategic management must be involved with its attendant role of formulating, implementing
and evaluating cross functional decisions that enable organization to achieve its goals and
objective. Effective strategic decision making, therefore requires ability to
understand the dynamic interrelationship of concept and the non-linear nature
of complex system and an ability to see the long-term implication of decision
critical to enhance organization performance through strategic management. Commonly
employed strategy are those which employs a production plan that maintain stable inventory level and the level employs
varying the production rate to meet demand. Capacity utilization rates can be
optimized when company combines the two capacity strategies (Ansoff, 1988). Crucial
to the organization performance through the use of strategic management and
numbers of variables. These variables could range from broad range of strategic
issues, operational systems, the work force and organizational development.
However, there are variations of these challenges from one organization to
another. In pursuance to these performances, the organization and the
management are challenged by variety of situation in material and human
relations. These challenges are part of the variables related to enhancing
organization performance and effectiveness prevalent (Lomash and Mishra, 2003).
The impact of strategic management and policy implementing on organization
effectiveness are relevant to this study.
1.10 STATEMENT OF THE PROBLEM
lead role requiring strategic thinking, planning, decision-making and ultimate
implementation could also have much to contribute to the fortunes or otherwise
of the various organizations in their respective industries. Much as the
differences in the performance levels of various organizations are to be
expected, it is still strongly believed that the strategies pursued by each
organization are largely accountable for the outcome of their performances.
Strategic planning increases the efficiency and effectiveness of organizations
by improving both current and future operations. Strategic planning provides a
framework for management’s vision of the future. The process determines how the
organization will change to take advantage of new opportunities that help meet
the needs of customers and clients. Strategic planning is a difficult process
which requires that people think and act creatively. The strategic planning
process is used by management to establish objectives, set goals, and schedule
activities for achieving those goals and includes a method for measuring
progress. These goals can be accomplished through the steps of the strategic
plan, beginning with an external and internal analysis, a clearly defined
mission statement, goals and objectives, formulation of specific strategies,
concluding with the implementation of the strategy and managed control process.
view of the many challenges that business organizations are exposed to, it is
imperative for them, both profit and nonprofit organizations, to anticipate
challenges, identify their strengths to meet anticipated challenges and take
control of available opportunities to obtain maximum productivity. The
evaluation of organizational effectiveness has so much centered upon what they can achieve term of profit and
competitive advantage. The critical of performance not only reflect a lack of
proper misunderstanding and appreciation of the impact of strategic management
and policy implementation on organization effectiveness but also suggest profit
as the determinant of organization performance. For organization to maintain
its steady growth, survival and consolidation, along range decisions and
planning has to be taken in all levels (corporate, business, functional and
The dynamism in
environment, consumers behavior, diversification concepts, and human cum
society perception, require strategic management approach. Unfortunately, in most organizations, strategic plans
are not carried out and implemented properly. Some organizations do not attach
any importance to strategic planning and therefore do not have strategic plans
for their organizations. This could be borne out of lack of appreciation and
knowledge of the relevance of strategic planning to organizational growth.
Despite the fact that strategic planning has brought far reaching revolution
which has tremendously transformed most business landscape, it is still plagued
with some constraints in so many organizations. Some of these constraints
include wrong application of strategic planning, unethical attitude, poor
organizational structure and Non conformity of the rules and standards by the
workers of the company towards actualization of the strategic goals. In an
attempt to address this unfortunate development, there is the need to
critically assess the relevance of strategic planning on organizational
productivity to enable management appreciate its worth in gaining competitive
advantage at the market place.
The problem of this study is to examine the impact of strategic management and
policy implementation on organizational effectiveness.
1.11 RESEARCH QUESTIONS
Is there proper awareness of strategic
management and policy in Nigerian Company?
Is there a positive attitude towards the
practice of strategic management and policy implementation in Nigerian Company?
Will there be any influence of
organization structure supporting the implementation of strategic management
for effective performance?
Is there any relationship between
strategic management and policy implementation on organizational effectiveness
in Nigerian Company?
Strategic planning ensures better decision
making in an organization?
Organizational goals is achieved through
1.12 OBJECTIVES OF THE STUDY
objectives of this study are the effects of strategic planning as an
indispensable tool for organization performance other objectives are:
To determine the important of effective
planning as an indispensable tool for better performance of an organization.
To determine appropriate strategic
planning the organization need to adopt or employ in implementing its decision
and how these will be affected positively on organization.
To review the reasons why organization
need to plan in order to achieve its aim and objectives.
To encourage the management on planning as
an indisposable tool organization need for their better performance.
To determine the reason why organization
need planning in guiding their activities towards pre-determine goals
1.13 RESEARCH HYPOTHESIS
There will be no significance proper
awareness of strategic management and policy implementation in the
There will be no significant positive
attitude towards the practice of strategic management and policy implementation
in the organization.
There will be no significant influence of
organization structure to support the implementation of strategic management
for effectiveness performance.
There will be no relationship between
strategic management and policy implementation on organizational effectiveness
in Nigerian Company?
There will be no significant influence
that Strategic planning will ensures better decision making in an organization.
There will be no significant influence
that through Strategic planning organization goals be achieved.
1.14 SIGNIFICANT OF THE STUDY
research in on the impact of strategic management and policy implementation on
organizational effectiveness with the following benefits:
The study is envisaged in contributing to
body of knowledge acquired through this thesis.
The study will also encourage the
management on adopting appropriate planning for the successful of the
The study will gear up the management
towards the enactment of policies and strategic planning that will improve the
performance of the organization and its standard.
The study will also enlighten the
management of the organization on the effective implementation of any plan
selected for the betterment of the organization.
This thesis work would give a better
understanding of the terms effective planning and highlight its benefits to
This thesis will serve as references to
future research involved in similar issue.
1.15 SCOPE AND LIMITATION OF THE STUDY AND
HISTORY OF FIRST BANK
SCOPE AND LIMITATION OF THE STUDY
scope of this thesis focus on the effective of strategic planning on
organization performance, with a particular reference to first bank of Nigeria
Plc, Ilorin, Kwara state, Nigeria.
thesis is to examine what extent effective planning have effect on
LIMITATIONS OF THE STUDY
limitations of the study are:
Reluctance of the participants in
completing the questionnaire due to some reasons
Insufficient resources (financial) on the
part of the researcher in carrying out a more elaborate study.
HISTORY OF THE BANK
First Bank of Nigeria Limited
(“FirstBank”), established in 1894, is the premier Bank in West Africa,
Nigeria’s number one bank brand and the leading financial services solutions
provider in Nigeria. The Bank was founded by Sir Alfred Jones, a shipping
magnate from Liverpool, England. With its head office originally in Liverpool,
the Bank commenced business on a modest scale in Lagos, Nigeria under the name,
Bank of British West Africa (BBWA). In 1912, the Bank acquired its first competitor,
the Bank of Nigeria (previously called Anglo-African Bank) which was
established in 1899 by the Royal Niger Company. In 1957, the Bank changed its
name from Bank of British West Africa (BBWA) to Bank of West Africa (BWA). In
1966, following its merger with Standard Bank, UK, the Bank adopted the name
Standard Bank of West Africa Limited and in 1969 it was incorporated locally as
the Standard Bank of Nigeria Limited in line with the Companies Decree of 1968.
Changes in the name of the Bank also occurred in 1979 and 1991 to First Bank of
Nigeria Limited and First Bank of Nigeria Plc, respectively. In 2012, the Bank
changed its name again to First Bank of Nigeria Limited as part of a
restructuring resulting in FBN Holdings Plc (“FBN Holdings”), having detached
its commercial business from other businesses in the FirstBank Group, in
compliance with new regulation by the Central Bank of Nigeria (CBN). First Bank got listed on
the Nigerian Stock Exchange (NSE) in March 1971 and has won the NSE’s Annual
President’s Merit Award for the best financial report in the banking industry
twelve times. First Bank was rated number one among Nigerian banks in Corporate
Governance practice in 2003 and 2005 by Johnston Lrving consulting, in
collaboration with ICRA pty Limited (an associate of Moody’s Investors, USA).
Additional, the bank was awarded the Best Bank in Nigeria’’, Best Trade Finance
Bank in Nigeria’’, and Best Foreign Exchange Bank in Nigeria’’ for three (3)
consecutive years 2004, 2005 and 2006 by the US-based Global Finance Magazine,
to mention a few of the awards won by the Bank. First
Bank had 1.3 million shareholders globally, was quoted on The Nigerian Stock
Exchange (NSE), where it was one of the most capitalized companies and also had
an unlisted Global Depository Receipt (GDR) programme, all of which were
transferred to its Holding Company, FBN Holdings, in December 2012. Building on
of its solid foundation, the Bank has consistently broken new ground in the
domestic financial sector for over a century and two decades. As the global
operating environment evolves, FirstBank has kept pace, responding to the
dynamic needs of its customers, investors, regulators, host communities,
employees and other stakeholders. Through a balanced approach to plan
execution, FirstBank has consolidated its industry leadership by maintaining
trans-generational appeal. Thus, the Bank has continuously boosted its customer-base,
which cuts across all segments in terms of size, structure and sectors.
Leveraging experience spanning over a century of dependable services, FirstBank
has continued to build relationships and alliances with key sectors of the
economy that have served as strategic building blocks for the wellbeing, growth
and development of the country. With its huge asset base and expansive branch
network, as well as continuous re-invention, FirstBank is Nigeria’s strongest
banking franchise, maintaining market leadership on all fronts in the nation’s
financial services industry. First Bank of Nigeria , sometimes referred to as
FirstBank, is Nigerian multinational bank and financial services company
headquartered in Lagos .
 It is the biggest bank in Nigeria by total deposits and gross
earnings. It operates a network of over 750 business locations across Africa,
the United Kingdom and representative offices in Abu Dhabi, Beijing and
Johannesburg set up to capture trade-related business between geographies. The bank
specialises in retail banking and has the largest retail client base in
Nigeria. In 2015, The Asian Banker awarded FirstBank the Best Retail Bank in
Nigeria award for the fifth consecutive year.
 The Nigerian banking business operates nationally, with an
active customer base of over 10 million, and employs over 7,000 staff.
FirstBank operates along four key Strategic Business Units (SBUs) – Retail
Banking, Corporate Banking, Commercial Banking and Public Sector Banking. It
was previously structured as an operating holding company before the
implementation of a non-operating Holding Company structure (FBN Holdings) in
2011/2012. As of December 2015, the
Bank had assets totalling NGN3.9 trillion ($12.2B according to 2017 exchange
 The Bank's profit before tax for the twelve months ending 31
December 2015 was approximately NGN10.2 billion 1`1111 Underpinning
this success in the bank’s strategy, with its focus on the two critical
imperatives of modernization and growth. The Bank has Nine (9) local
subsidiaries and a full-fledged subsidiary in the United Kingdom, as well as a
representative office in South Africa. First Bank’s growth strategy is hinged
on continued network expansion, product development, mergers and acquisitions,
and growth of its international footprint. The Bank in the 2005/2006 financial
year, acquired its investment banking subsidiary, FBN (Merchant Bank) Limited
and another bank – MBC International Bank Plc. Furthermore, the Bank is
currently exploring alliances with key prospects in the industry with a view to
creating the largest bank in West Africa and one of the largest on the
continent. The business of the Bank is operated along two main market
segments/strategic Business Units (SBUs): Corporate Banking, and Regional Directorates
(Lagos & West, North and South). FirstBank’s
ownership is diversified, with over 1.3 million shareholders. The bank was
founded in 1894 and is Nigeria’s oldest bank. It converted to a public company
in 1970 and was listed on the Nigerian Stock Exchange (NSE) in 1971. However,
as part of the implementation of the non-operating holding company structure,
it was delisted from the NSE and replaced with FBN Holdings Plc. in 2012.
FirstBank has been named "The Best Bank Brand in
Nigeria" for five years in a row – 2011, 2012, 2013, 2014 and 2015 – by
The Banker magazine of the Financial Times Group, and "Most Innovative
Bank in Africa" in the EMEA Finance African Banking Awards 2014.
 With over 400 business locations, bank has
one of the largest domestic sales network in Nigeria, all on-line real time. As
a market leader in the financial services sector, First Bank pioneered
initiatives in international money transfer, MasterCard, Inters witch and the
ATM consortium. It is the industry leader in terms of value and volume of ATM
transactions in the country. Consequently.
First Bank commenced business in 1894 in what was then the British
colony of Nigeria, as the Bank of British West Africa .
 The bank originally served British shipping and trading
agencies in Nigeria. The founder, Alfred Lewis Jones, was a shipping magnate
who originally had a monopoly on importing silver currency into West Africa
through his Elder Dempster shipping company. According to its founder, without
a bank economies were reduced to using barter and a wide variety of mediums of
exchange, leading to unsound practices. A bank could provide a secure home for
deposits and also a uniform medium of exchange. The bank primarily financed
foreign trade, but did little lending to indigenous Nigerians, who had little
to offer as collateral for loans.
After Nigeria's independence in 1960, the Bank began to extend
more credit to indigenous Nigerians. At the same time, citizens began to trust
British banks since there was an 'independent' financial control mechanism and
more citizens began to patronise the new Bank of West Africa.
In 1965, Standard Bank acquired the Bank of West Africa and changed its acquisition's name to Standard
Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its
Nigerian operations under the name Standard Bank of Nigeria. In 1971, Standard
Bank of Nigeria listed its shares on the
Nigerian Stock Exchange and placed 13% of its share capital with
Nigerian investors. After the end of the Nigerian civil war, Nigeria's military
government sought to increase local control of the retail-banking sector. In
response, now Standard Chartered Bank reduced its stake in Standard Bank
Nigeria to 38%. Once it had lost majority control, Standard Chartered wished to
signal that it was no longer responsible for the bank and the bank changed its
name to First Bank of Nigeria Limited in 1979. By then, the bank had
re-organized and had more Nigerian directors than ever. In 1991 the Bank changed
its name to First Bank of Nigeria Plc following listing on The Nigerian Stock
Exchange. In 2012, the Bank changed its name again to First Bank of Nigeria
Limited as part of a restructuring resulting in FBN Holdings Plc (“FBN Holdings”),
having detached its commercial business from other businesses in the First Bank
Group, in line with the requirements of the Central
Bank of Nigeria . First Bank had 1.3 million shareholders globally, was quoted
on The Nigerian Stock Exchange (NSE), where it was one of the most capitalized
companies and also had an unlisted Global Depository Receipt (GDR) programme,
all of which were transferred to its Holding Company, FBN Holdings in December
2012. In 1982 First Bank opened a branch in
London, which it converted into a subsidiary, FBN
Bank (UK), in 2002. Its most recent international expansion was the opening in
2004 of a representative office in Johannesburg, South Africa. In 2005 it acquired FBN (Merchant Bankers) Ltd. Paribas
and MBC International Bank Ltd, a group of Nigerian investors, had founded MBC
in 1982 as a merchant bank, and it became a commercial bank in 2002. In June 2009, Stephen Olabisi Onasanya was appointed Group
Managing Director/ Chief Executive Officer , replacing Sanusi Lamido Sanusi ,
who had been appointed Governor of the Central Bank of Nigeria . Onasanya was
formerly Executive Director of Banking Operations & Services. He retired on
31 December 2015 and Dr. Adesola Adeduntan took over as Managing Director/Chief
Executive Officer, First Bank of Nigeria Ltd and Subsidiaries effective 1
January 2016, with Gbenga Shobo as Deputy Managing Director.
1894 – Incorporated and headquartered in Marina, the heart of
Lagos, Nigeria, West Africa's commercial nerve centre (and still there today).
1912 – Calabar branch, the second branch in Nigeria, was opened by
King Jaja of Opobo; Zaria branch was also opened as the first branch in
1947 – FirstBank advanced the first long-term loan to the then
colonial government, followed in 1955 by a partnership with the government to
expand the railway lines.
1971 – First listing on the Nigerian Stock Exchange (NSE).
1991 – First Automated Teller Machine (ATM) introduced at 35
Marina as part of ease of convenience, online real time banking.
1994 – Launched first university endowment programme in Nigeria.
2004 – Launched a new brand identity which introduced substantial
changes in the look and feel of the FirstBank brand.
2007 – Introduced the innovative Finnone credit administration
software as the first bank in Africa to pioneer the service.
2011 – Launched the first biometric ATM and cash deposit ATM in
2012 – Became a subsidiary group of FBN Holdings Plc.
2014 – Initiated, at 120 years, the launch of a new corporate
Chairman – Ibukun Awosika
Managing Director/CEO – Adesola Adeduntan
Deputy Managing Director – Olugbenga Francis Shobo
Executive Director/Public Sector Group – Abdullahi Ibrahim
Executive Director, Corporate Banking – Remi Oni
line with the Bank’s vision to be the
clear leader and Nigeria’s bank of first choice’, its mission to remain true to our name by providing the
best financial services possible’’, and its brand essence, dependably dynamic’’, the Bank has
continued to transform itself as it forges ahead in its second century of
providing qualitative banking services to the nation, maintaining leadership in
a consolidated and more dynamic industry.
1.16 OPERATIONAL DEFINITION OF TERMS
the purpose of clarity, the following definitions were used for these in the
course of the study.
Devices of economic strategy
Effectiveness: Having the desired effect,
producing the intended result. Making a strong or pleasing impression.
Impact: A strong impression or effect on
Implementation: To put into effect or
Management: The making and control of
decisions in a business or similar organization. The process of dealing with or
controlling people or things (resources).
Organization: The condition or state of
being organized especially in a tidy or efficient way.
Policy: A plan of action, statement of
ideas, guidelines proposed or adopted by a government, political party or
Strategy: A plan designed for a particular
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