Many studies have shown that the business organization that engage in strategic planning perform more better than those that do not but some doubt existed in the great of the relationship of the planning methodology and planning outcome. This study therefore sought primary to ascertain the methodology for strategic planning among modern business organization. This study employed the random sampling approach in carrying out this research. It operationslized by the use of questionnaire as the major instrument. Among the major findings of the study especially Nigerian breweries PLC.Finally, the study which recognized other contributory factors shows that a positive relationship existed between strategic planning and profitability. This study concluded that modern firms should adequately follow a proper methodology for corporate and strategic planning. I want to recommend that modern form should take pains to undertake corporate planning and not simply satisfy themselves with annual budgeting because corporate planning bring about achievement in any existing organization.
A strategic planning deals with how a firm positions itself in its environment and it’s important to every business organization. Many authors and scholars have showed that the success or failure of a business organization is known to have a relationship with the seriousness with which the management of the firm carries out strategic planning.
According to Boore & Kurtz(1982), planning is seen as the management function of anticipating the future and determining the best cause of action to achieve organizational objectives.
This therefore say that planning means deciding in the present what to do in the future and it comprises of both the determination of desired future and the steps necessary to bring it. It also the process were by an enterprise reconcile it resources competence with it’s objectives & opportunities. Formal planning ha tremendous benefit some of which include:
iii. It leads to the development of performance standard for control.
Long range planning is usually undertaken to establish the basic of direction of the future efforts and operation of an enterprises. It involves irrigating in order to determine long range capital, facility, growth plan & completive plan. It require forecasting and calculating opportunities indicating the likely profitability of new and existing products as well as market share so that decision may be taken to modify increase sales efforts or to drop the idea. Achieving the corporate goal requires well articled and co-ordinated strategic plans.
Therefore, in response to the growth in the dimension of firms environment and also the growth in the number of divisionalized firms, strategic becomes increasingly interpreted as the link between an organization an it’s environment policy problems used compared by a baffling set of external claim and also by the need imposed by product lines and business level activities.
According to Comerford/ Callagnram(1985), because of the inability of business policy to affectively address the above factor the business policy model under went several revolutionary changes and emerge and as what is now called strategic planning.
The business environment is dynamic and so such business organization must plan to adapt to the very changing business environment. Many studies have shown that companies that plan well perform better than those that do not plan.
In Nigeria, there is a problem of organization effectiveness and high rate of corporate collapse. One of the major causes of corporate collapse in Nigeria is the lack of strategic planning by our business organization.
A closer look at the problems will reveal improper planning method or lack of it.
Some business organization in Nigeria do not have planning department that is in charged with the responsibility of the strategic planning where it exists, it is normally manned or performed by people who do not have god knowledge on what strategic planning is all about. Environment scanning which is an imperative to strategic planning is hardly carried out. When it is done, all relevant factors are not taken into consideration. This is mainly as a result of lack of proper information gathering system.
Lastly, another problem of strategic planning in modern business organization is that management whose duty is to undertake strategic planning, devote so much attention to operation, thus relegating strategic planning is often discovered too late. This study sought to address the above stated problems with a view to highlighting the methodology of strategic planning as a way of solving the problem of corporate collapse and organizational ineffectiveness in Nigeria modern business organization
The objectives of the study are stated below:
iii. Lastly, to conduct a research on the impact f strategic planning on organizational performance.
The importance of this study is better appreciated witness an increase the number of business failure resulting from unstable and unpredictable business environment. The preventing situation strategic planning a must for every business organization that wants to keep a float. This study was favorable because of two main reasons.
Firstly, we want to find out the extent to which modern firms are affected by chance in their business environment and other environmental problems such as government laws regulating business, socio-cultural issues, competition, foreign exchange problems so as to achieve their corporate objectives.
Secondly, modern business organization are and integrate part of the larger society and they contributed a significance part of the nation revenue.
No nation can achieve full industrialization without a well developed business sector that is engaged in the manufacture of different types of goods and services for both domestic use and export. It is therefore important to contribute to the growth of this sector by way of researching into the planning problems with a view of developing an presenting a strategic planning model that will be most suitable or the modern business organization. This would have been a significant achievement.
In order to operationalized the general purpose stated above, it is necessary to reduce the research mission into specific major question. There are questions. Know as research questions which are hemi zed below:
The study is limited to the effectiveness of strategic planning and performance in modern business to set their objective in an organization. This study is carried out to study the Nigerian Breweries PLC. The reason for this is to know how strategic planning can actually lead to productivity f any firm.
Some of the problems encountered during this study include:
iii. Time problems
Thus, the extent to which generalization could be made was limited slightly by the restriction of the study to be effectiveness of strategic planning & organizational performance in modern business organization.
BUSINESS: This is the organization of mark purchasing, processing and selling of goods and services or raw material for the purpose of making profit.
ORGANIZATION: This is the combination of people or individual afford working in pursuit of contain common purpose called organizational goal.
PERFORMANCE: this is the process of carrying out a specific duty in an organization in order to achieve it organizational objectives.
PLANNING: It is the process of selecting objective strategic policies, programs, procedure and budget set for the organization to achieve.
STRATEGIC: These are methods which management hope of deploy in order to move the organization from its present position to arrived at its target goal.
OTHER SIMILAR BUSINESS ADMINISTRATION PROJECTS AND MATERIALS