CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND INFORMATION
OF THE STUDY
In as much company have conducted business, some
have been experiencing outstanding
Successes while other
person dismal failure.
Some organizations act
with purpose and sense of direction, other draft, some companies are adopt at
seizing new opportunities, other watch passively or let the ship through
cracks. Management is a set of function i.e. planning, controlling, directing
etc and the best way to predict a future is by planning ahead.
Business
organizations, both small and big in Nigeria are presently going through a
revolutionary trend which is affecting their performance behavior survival
growth in industry. The relevance and realization of the natural desires of
survival and growth in a turbulent business environment therefore call for a
fundamental approach i.e. a long term perspective has to be adopted for the
understanding of the factors of the economy. It is often that planning decision
making. The making of tomorrow’s decision today or deciding presently where
they are intends to be at a future term and how to get there.
It
is the responsibility of the top management to engage in strategic plan. A
strategy in plan that is unified (I.e. it ties all the part of enterprises
together – strategies are both plan for the future and pattern from the
past) (minzberg 1987). Strategic
planning is therefore concerned with policy formulation and implementation
development of plans leading to the allocation of resources in such a way as to
achieve the set objective of the business.
Usually,
it is the study of management to anticipate the future to attempt, to mould it
and to balance short range and long range goal. (Drucker, 1979). Strategies
planning when adopted and implemented in organization result into strategic
management and its encourage a systematic management of chance and enable the
organization resources toward a desire future. It is mostly in the range of 5
years, but may be as long as 15 years. This study will focus on the performance
of the organization and the case study, is on PZ industry which engage in
different production such as soap and detergents, tooth paste, powder etc but
emphasis will be lay on the soap and detergent of the organization.
1.2
STATEMENT
OF THE RESEARCH PROBLEM
Organization
in Nigeria faces a lot of problem which has prompted the researcher into
writing on them also profound a way in which strategy planning can enhance
performance of an organization. One of the major problems of strategic planning
in an organization is that plans are not property implemented.
This research will contributes to the solution of a problem
of improper evaluation to the planning in an organization which can lead to
inefficient and in effectiveness hindering the attainment if organization
performances and objectives.
1.3
JUSTIFICATION
FOR THE STUDY
This study examines the reason why evaluation of
strategy planning is necessary in organization performance.
Also, but will recommend ways of improving and enriching
the management skill of existing and prospective Nigeria entrepreneurs in the
art and science of strategy planning.
1.4
OBJECTIVES
OF THE STUDY
The main objectives of
the research are:-
(1)
To examine the extent
at which strategy planning influence organization performance.
(2)
To examine overall mission of the organization
and focuses on the objectives.
(3)
To contribute to how
the organization is preparing for the challenges of tomorrow, since many
organization spend most of their time reacting to unexpected changes instead of
anticipating and preparing for them.
1.5
SCOPE
OF THE STUDY
There are many organizations in Nigeria as a whole
but PZ industry (i.e. the one producing soap and detergent) was chosen
particularly because of its significance as a successful organization with a
record of growth in terms of time scope. The research work will cover the part
life span of the company which is between 2007 to 2012 which is a time period
of 5 years.
Emphasis
will be laid on strategy planning and its process will be examined with the aim
of seeing how organization performs or behave within this context and weakness,
opportunities and threats (SWOT) of the soap and detergents.
1.6
LIMITATION
OF THE STUDY
Strategy
planning is the key to helping us collectively and cooperatively gain control
of the future and the destiny of our organization. Its helps to identify and
answer the question on whether the organization knows that the threats are to
achieving company objectives? Did strategy planning has effect on the
organization in terms of productivity? Etc.
Limitation
to this research could be in term of personal basis of the management which can
influence response to the question that will be ask during interviews (which is
a major instrument of this research) and objectivity of the results.
HISTORICAL BACKGROUND
OF PZ CUSSONS NIGERIA LIMITED AND STRATEGY PLANNING
PZ Cussons
Nigeria limited is a branch of PZ Cussons international with it’s
headquartering in Manchester, UK. It is a successful international business
which employs more than 10,000 people around the world. The operating
subsidiaries which span 14 countries are supported from the centre by PZ Cussons
(international) Ltd which also provides central support services.
PZ Cussons has growth into one of the most
successful, respected and trusted groups in the consumer products industry. The
group is moving forward with a strategy which aims at achieving continued
growth and success, centering on the development and expansion of the brand in
its major markets in Europe, Asia, and Africa.
PZ Cussons Nigeria plc, the largest subsidiary of PZ
Cussons for over a century. No other consumers’ goods company posses the
company heritage in Nigeria or understand its customers better than they do.
The approach to Nigeria, their customers and to their business is designed to
sustain them for into the future.
They meets the need of Nigerian in, many was ever
since they have come into existence in Nigeria 37years ago, they engage in
production of soaps and detergent (case study), and other goods such as tooth
paste, beverages objectives in Nigeria is sustainable and profitable growth and
the drive to be world class in every aspect of their life will be restless. In
achieving this they have adopted Strategic Business Unit (SBU) structure in
which each SBU has clear focus on its markets developing a deep understanding
of the needs aspiration of its consumers and the market place which it can
exploit to deliver its objectives. The business policies, systems and actions (procedures
and processes, corporate in age, employee development equality of opportunity
enumeration, service provided to distribute etc) are harmonized between all the
SBUs, ensuring the sharing of the best practice and operational synergies.
Also, they adopted the strategy which is built on
four core principles name.
1.
Operating in selected
markets that have the potential for future growth, both on nature and emerging
markets.
2.
Develop reading brands
for the markets in which they operate.
3. Operate
in world class supply chain networks that enable them to deliver their brands
quickly and efficiency to the local consumers.
4. Recruit,
develop and remain a great team of people who are aligned with value and can
drive their plans for growths.
DEFINITION OF TERMS
§
Planning-:
planning is a management function that involves
setting goals and or objectives and deciding how best to achieve them.
§
Strategic
planning-: strategic planning is a plan made
by top management in an organization. It is a long range plan which takes time
before it can be achieved.
§
Organization-:
organization is am entity that deals with business activities.
§
Performance-:
performance is an activity or task that
is been carried out in an organization.
§
Management-:
management is an act of getting things
done through other people on order to achieve organization goals and
objectives.
§
Entrepreneur-:
entrepreneur is the person who initiates
the idea of doing something.
§
Production-:
production is achieved by combining land, labor and capital in the creation of
utilities and it is the economic activity which serves to satisfy human needs
by creation materials good or by providing a service.
§
Top
management-: top management is the person in the
top hierarchy in an organization.