It is pertinent to find out the level of the effects of
strategic management has brought into the life of productivity, quite recently
strategic Management has attained an unprecedented recognition in the
management process of most modem organizations. The use of strategic business
units as entitles for the formulation of strategic plans gives strategic
business management a distinctive character of its own In relation to
particular organization like U.A.C. foods.
Questionnaires and review of relevant literature were
used to gather information about the effects of strategic management.
However, this research project investigate the effects of
strategic management on productivity through the use of a questionnaire
administered on sample size of 70 respondents of both married and single
employee using random sampling techniques, chi-square method was used to test
the effects of strategic management on productivity.
The findings of this research work identify the effects
of strategic planning, management and implementation on organizations. It
enables other business organizations particularly the manufacturing sector to
be steadfast and well equipped in strategic management.
It also help to understand the fundamental principles of
TABLE OF CONTENT
1.0 Background of
1.1 Statement of
1.2 Objectives of
1.3 Research Questions
1.6 Scope of Study
Limitations of Study
1.8 Definition of Terms
1.9 Historical Background
CHAPTER TWO: LITERATURE REVIEW
2.2 The Conceptual Clarification
2.2.1 Dimensions of Strategies
The Strategic Management Process
Strategic Management Process As an On-
Strategy-Making Hierarchy - By Whom and
2.5.1 Corporate Strategy
2.5.2 Line Business Strategies
2.5.3 Functional Strategies
2.5.4 Operating Strategies
Benefits of Strategic Management
2.7.1 Productivity Improvement
Measurement and Control of Productivity
Link between Strategic Management
CHAPTER THREE: METHODOLOGY
Restatement of Hypotheses
Sample and Sampling Procedures
Methods of Data Collection
Administration of Questionnaires
3.7 Limitations of the Methodology
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Analysis of Respondents Characteristics and
4.2 Analysis of Questions in Section B
4.3 Test for Hypotheses
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
5.1 Summary of Findings
5.4 Suggestion for Further Studies
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
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
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
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
Ø Poor interpretation of execution of strategic management.
Ø Problem of data collection, as most strategic management
information are considered secret and confidential.
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.
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
Ø To what extent does strategic management affect
Ø What are the moderating variables of management that
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
Ho: There are no significant relationships
between strategic management variables and organizational productivity.
are significant relationships between strategic management variables and
implementation of strategies has no effect on organizational
implementation of strategies has effect on organizational productivity .
H0: Adequate knowledge of strategic management
does not improve organizational productivity
knowledge of strategic management improves organizational productivity.
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
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.
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.
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
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
In 1886, the National African Company limited was chartered
and limited when the British government issued it as chartered after the Berlin
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 3rd 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 22nd 1931 as a wholly-owned
subsidiary of The United African Company limited which later became U.A.C
It became The United African Company of Nigeria Limited
on Feb 1st 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.
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