CORPORATE PLANNING CHALLENGES AND PROSPECTS
(A CASE STUDY OF DANGOTE GROUP OF COMPANY)
BY
OKECHUKWU REBECCA OBIAGELI
PG/MBA/09/53940
DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
MARCH, 2011
v
CORPORATE PLANNING CHALLENGES AND PROSPECTS
(A CASE STUDY OF DANGOTE GROUP OF COMPANY)
BY
OKECHUKWU REBECCA OBIAGELI
PG/MBA/09/53940
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE AWARD OF MASTER’S DEGREE IN BUSINESS
ADMINISTRATION (MBA MANAGEMENT)
DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
SUPERVISOR: DR. E. K. AGBAEZE
MARCH, 2011
v
CERTIFICATION
Okechukwu Rebecca Oby, a postgraduate student in the Department of
Management with
Registration Number PG/MBA/09/53940 has
satisfactorily completed the requirements for the award of masters
degree in management (MBA).
This work embodied in this project is original and has not been
submitted in part or full for any other Diploma or degree of this or any
other University.
________________________
_______________________
Prof. UJF Ewurum
Dr. EK Agbaeze
Head of Department
supervisor
______________________
Okechukwu Rebecca O.
Student
v
DEDICATION
This work is dedicated to almighty God. To my husband Mr. Arugruor
Kenneth and to my Son Chigaemezu Victory Arugmon.
v
ABSTRACT
The research is on corporate planning; problems and Benefits, A case
study of Dangote group of company Lagos. The main objective of the
research is to determine the problems managers encounter in corporate
planning and thus suggest possible solutions. The researcher analyzed
the data collected based on the responses from the questionnaire. Chisquare was used to test the hypothesis formulated. The major findings of
the research shows that lack of reliable and adequate information, poor
structural policy frame work and lack of adequate managerial skills
and technical know how are some of the problems managers
encountered in corporate planning. Based on the above findings,
the
study concluded that corporate planning covers every aspects of the
organization as it sets long term goals for the organization and it is vital
for the growth of the organization. On the basis of the above finding, the
study recommends that there is the need for managers to always reassess
the set goals in the light of the performance of the corporate plan overtime ascertain if their target is been achieved, and thus set their
goals in the light of the prevailing circumstances, which is the essence
of emergent approach in corporate planning.
v
LIST OF TABLES
Table 1: What are the Role of Effective and Efficient Corporate
Planning an Organisation?
35
Table 2: What are the Problems managers’ Encounters in
Corporate Planning
36
Table 3: Do you Think the objective of Long-range Planning?
37
Table 4: What Strategies does the Management of your Organization
Adopt in Corporate Planning?
38
Table 5: How Effective has these Strategies Been?
39
Table 6: What are the Strategic Planning Approaches used by
Organization?
40
Table 7: What corporate planning approach does your organization
adopt? -
41
Table 8: Which of the following include the forecasting method
used by organizations?
42
Table 9: Do you think that for any organization to succeed and
compete favorably, the organization must plan well?
43
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TABLE OF CONTENTS
Title Page
i
Certification
ii
Dedication
iii
Acknowledgement
iv
Abstract
v
List of Tables
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1
1.2 Statement of Problem
3
1.3 Objectives of the Study
4
1.4 Research Questions
4
1.5 Research hypotheses
5
1.6 Scope and Limitation of the Study
6
1.7 Significance of the Study
7
1.8 Brief History of Dangote Group of Company
8
1.9 Definition of Terms
10
References
12
CHAPTER TWO: REVIEW OF THE RELATED LITERATURE
2.1 Meaning of Corporate Planning
13
2.2 Core Areas of Corporate Planning
15
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2.3 Approaches to Corporate Planning
17
2.3.1 Prescriptive Approach
17
2.3.2Emergent Approach
18
2.4 Corporate Planning and Strategic Management -
20
2.5 Objectives of Corporate Planning
21
2.6 Steps in Long-Range or Corporate Planning
24
2.7 Benefits of Corporate Planning
27
2.8 Problems of Corporate Planning
30
References
33
CHAPTER THREE: RESEARCH METHODOLOGY
3.1
Introduction
3.2 Sources of Data
34
34
3.3 Primary Sources of Date
3.4 Secondary Sources Date
35
3.5 Population of the Study
3.6 Sample Size Determination
35
3.7 Instrument for Data Collection -
37
3.5 Method of Data Analysis
38
3.6 Validity and Reliability of Data
39
References
40
CHAPTER FOUR: DATA PRESENTATION
4.1
Introduction
v
4.2 The Chi- square Test(X2)
4.3 Decision Rule
4.4 Analysis of Questionnaires Distributed and Returned
4,5 Hypothesis Testing
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
5.1 Summary of Major Findings
65
5.2 Suggestion for Further Research
66
5.3 Conclusion
67
5.4 Recommendations
67
Bibliography Appendix
v
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The development of corporate planning in business is a post World War
II Phenomenon. Before the period of the World War II, almost all
business enterprises were carrying on their business affairs without
stating any formal objectives or formal long range business plans.
Usually business planning was confined to the lower organizational
levels, mainly the functional or the departmental levels and they had
only short-term plans which focused mainly on manufacturing product
planning, materials ordering and receiving, and hiring of labor. Most
companies used to have annual budgets or yearly financial plans to
ensure their liquidity Imaga, (2000:1).
Since that period of World War II, higher level that is at the core body
of the company level long-range, usually of 3 to 7 years period planning
has assumed ever increasing importance. The development of business
planning has been a revolutionary movement or as the technological
revolution or even the revolution in life-styles due to income
demonstration effects from time to time. According to Hberts, (1950),
comprehensive business planning now covers long-range in the form of
v
strategic planning involving the entire fabric of the organization and is
the concern of the top-most management from where it descends to all.
The scope of corporate planning covers not only the whole organization
but every functional aspect of the organization. It takes into account the
full environments in which the business operates and is a systematic
assessment of a most comprehensive nature, leading to the realistic
mapping out of long term objectives, strategic and operational plans
Akpala (1990).
In corporate planning, top management is concerned with the future
direction of the business as a whole, such decisions taken are long-term
in nature and are bound to have far reaching implications on
employment, the financing of the business and the types of products
manufactured.
Thus, corporate planning involves major strategic decisions. It is against
this background that this study is set to examine corporate planning with
a view to determining its benefits and identifying its problems in
Dangote Group of Company Nigeria Limited.
1.2 STATEMENT OF PROBLEM
Corporate planning often fails to achieve it's objectives in many
organizations due to some Militating factors. The problem of poor
v
planning which are usually defective due to lack of skills and expertise
and reliable and accurate information on the sides of the managers,
which will often leads to poor forecast and formulation of vague goals
and objectives. Also poor policies and implementation strategies is yet
another problem which in most cases leads to deviation of results from
the sets goals, and poor feedback.
Finally, the very dynamic nature of the business environment which
makes forecasting practically impossible, some times Jeopardizes the
organizational
policy.
Lack
of
effective
monitoring
of
plan
implementation and review of results usually undermine even the most
articulated corporate plan.
1.3
OBJECTIVES OF THE STUDY
The
specific objectives of the
1.
To determine the problem manager encounter in cooperate
study include the following:
planning and suggest solution.
2.
To determine the strategic planning approach used by
organizations and assesses its appropriateness.
3.
To evaluate forecasting methods used by corporate organizations.
4.
To determine the corporate planning approach use by organization.
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1.4
RESEARCH QUESTIONS
The following researcher questions were asked to elicit useful
information to be able to deal with the subject matter.
1.
What are the problems managers' encounters in
corporate planning?
2.
What are the strategic planning approaches used by organizations
and how appropriate are they?
3.
What are the forecasting methods used by corporate
organizations?
4.
What are the corporate planning approach uses by
organization?
1.5 RESEARCH HYPOTHESES
H0: The problems managers encounters in corporate planning does not
include lack of adequate and reliable information, poor structural
policy framework, lack of adequate managerial skill and technical
know-how.
H1: The problems managers' encounter in corporate planning does
include lack of adequate and reliable information, poor structural
policy framework, lack of adequate managerial skills and technical
know-how.
v
H0: The strategic planning approach used by organization does not
include analyzing the current status, examining the prospects of the
future, setting the future course of strategy, putting a strategy to
work, and evaluating and controlling strategy.
H1: The strategic planning approach used by organizations includes
analyzing the current status, examining the prospects of the future,
setting the future course of strategy, putting a strategy to work,
evaluating and controlling the strategy.
H0: Historical trend analysis, quantitative methods, Brain storming,
etc are not forecasting methods used by corporate organizations.
Hi:
Historical
trend
analysis,
Quantitative
methods,
Brainstorming, etc are forecasting method used by corporate
organizations.
H0: The corporate planning approach used by organizations does not
include prescriptive and emergent approach.
Hi: The corporate planning approaches used by organizations
include
prescriptive and emergent approach.
1.6 SCOPE AND LIMITATION OF THE STUDY
The study is on corporate planning: Problems and benefits. A study of
Dangote Group of Company. The major constraints of this study
include;
v
1.
Time Constraints: Due to limited time given for the study, the
researcher could not visits places where relevant information
necessary for the study could be obtained.
2.
Financial Constraints: The researcher has not enough money to
embark on an in depth study of this magnitude. Because of
financial constrain the researcher could not visit places where
necessary information needed for the study could be obtained.
3.
Attitude of the Respondents: Some of the respondents were not
interested in the questionnaire given to them because they feel they
have nothing to benefit from the study.
1.7 SIGNIFICANT OF THE STUDY
This research derives its significance from it's usefulness to
management of small and big organization, governments and students.
This work will be of great importance to the following group of people.
The potential and prospective managers might find this work useful as a
guide to better business initiative and management towards ensuring
proficiency, efficiency and effectiveness.
1.
The policy making arms of the government could also appreciate
this work and thus make good policies in favor of corporate
planning development in Nigeria considering the role it plays in
Nigeria economic development.
v
2.
Other researcher could as well find this work very useful for
further research work as a reference material.
1.8 BRIEF HISTORY OF DANGOTE GROUP OF COMPANY
Dangote group of company was founded in 1977 with the formation of
Alco International Limited. Subsequently Dangote Nigeria Limited was
incorporated during the 1980s and 1990s, the group ventured into the
importation of sugar, milk, flour, fish, rice, cement and iron rods, later,
the group embarked on the haulage business, which started with 60
struck under Dangote transport.
Dangote industries limited was incorporated in-order to sustain the
groups market leadership in trading commodities and to expand into
manufacturing of food, clothing and build materials,
Focus was placed on the following; sugar refining, flour milling, pasta
production, salt processing, bulk cement bagging, oil and gas
exportation, real estate, propylene bag manufacturing, haulage, textiles,
maritime operations and telecommunications. The Dangote Group
includes the following subsidiaries:
1.
Alco International Limited
2.
Dangote flour mills Plc
3.
Dangote Cement Plc
v
4.
Dangote Transport Limited
5.
Dangote Sugar Plc
6.
Dangote Oil and gas industries international
7.
Dangote Textiles Limited
8.
Blue Star Limited
9.
Dangote Holding Limited
10.
Dansa Food Limited
1.9 DEFINITION OF TERMS
1.
Corporate Planning: This is decision support systems that holds
and derives knowledge relevant to planning decisions that cut
across organizational units and involve the entire fabric of the
organization and is the concern of the top most management from
where it descends to all, Karl (1998:14).
2.
Management: This is defined as the process by which
organizations resources of men, material and money are
combined in such a way that goals and objectives of the
organization are realized in an effective and efficient manner,
Akpala (1990:44).
3.
Corporation: This is a mechanism by which different parties
contribute capital, expertise, and labuor to achieve mutual benefit.
4.
Corporate Culture: This is the totality of the shared beliefs,
v
values, norms and expectations by organizations members which
are transmitted from generation to generation.
5.
Planning: This is the act of determining in advance possible
future work of actions.
6.
Strategic Management: This is the process by which top
management determine the long run performance of the
organization
by
ensuring
careful
formulation,
proper
implementation and continuous evaluation of the strategy.
v
REFERENCES
Akpala. A. (1990:49): Management: An Introduction and the Nigeria
Perspective: Enugu, Prevision Publishers.
Ewurum, U.J.F (2001): Total Quality Management Unpublished Paper
Presented at Workshop Organized by Health System Fund,
Enugu.
Hammer, M. and Champy, J. (1993): Reengineering the Corporation. A
Manifestation for Business Revolution, London Nicholas Brealy
Publishers.
Imaga, E.U.L. (1996): A Manual of Corporate Planning and Strategic
Business Policy, Raye Kere Publishers, Enugu.
Onodugo, V. A. and Ezeh J. A. (2002): Business Policy and Strategic
Management, Issues and Trends, Kinsman Publisher Limited
Enugu.
v
CHAPTER TWO
REVIEW OF RELATED LITERATURE
In this chapter, the research reviews some relevant literature on the
subject matter.
2.1 MEANING OF CORPORATE PLANNING
Corporate planning can be defined as an organization's sense of purpose
and is concerned with an organizations basic direction future. Its
purpose, ambitions, resources and how it interacts within the world in
which it operates.
According to Keith Andrews in Lynch (1997; 8) corporate planning is
the pattern of major objectives. Purposes or goals and essential policies
or plans for achieving those goals, stated in such a way as to define what
business the company is in or is to be in and the kind of company it is or
is to be.
It should be pointed out that there is no universal definitions of
corporate planning some writers include the purpose of the organization
as part of strategy, while others make clear distinction between the
purpose and the actions that then carry out this purpose.
Corporate planning is the planning activity at the top management level
v
which covers the whole organization. Akpala (1990:49). It is a longterm programmed of actions selected by the top management in order to
achieve long-term objectives of the organization. Thus, according to
Harvey (1994:6) corporate planning is concerned with the scope of
organizations activities.
The issue of scope of activity is fundamental to corporate planning
because it concerns the way in which those responsible for managing the
organization conceive its boundaries.
It has to do with what they want the organization to be like and to be
about.
In his own work, Sisk (1993:96) states that corporate planning involves
decisions that affect the long-term direction of the whole organization. It
therefore has long-term horizon and/or long-term implications.
According to him, corporate planning is concerned with what typed of
business the organization, as a whole, should operate, and is therefore
concerned with decision of scope.
This includes extent of manufacturing, vertical integration and types of
business and market it should be involved. Others may be which
businesses to acquire or divest, or what resources should be allocated to
v
which businesses by the corporate headquarters.
Corporate planning is therefore also likely to involve questions about
the financial structure and organizational structure of the firm as a
whole.
2.2 CORE AREAS OF CORPORATE PLANNING
The three core areas of corporate planning are strategic analysis,
strategy development and strategies implementation.
According to Lynch (1997:17) with respect to strategic analysis, the
organization, its mission and objectives have to be examined and
analyzed.
Corporate planning provides value for the people involved in the
organization; its stakeholders but it is often the senior manager who
develops the view of the organization's overall objectives in the
broadest possible terms. They conduct an examination of the objectives
and also analyze the resources of the organization.
Thus, strategic analysis involves an examination and analysis of
organization's objectives and resources.
On the other hand, in strategy development, the strategy options have to
be developed and then selected. To be successful, the strategy has to be
built on the particular skills of the organization and the special
v
relationships that it has or can develop with those outside suppliers,
customers, distributors and government.
For many organizations, this will mean developing advantages over
competitors that are sustainable over time. There are usually many
options available and one or more will have to be selected.
According to Lynch (1997:17) in strategy implementation the selected
options now have to be implemented. There may be major difficulties in
terms of motivation, power relationships, government negotiations,
company acquisitions and many other matters.
If a viable corporate plan is to be developed each of these three areas
should be explored carefully. In practice, the three core areas are
interlocking and overlapping. For example, an objective may prove
unrealistic once implemented and may therefore need to be modified.
2.3 APPROACHES TO CORPORATE PLANNING
There are two approaches to corporate planning prescriptive and
emergent approaches.
2.3.1 Prescriptive Approach
According to Lynch (1997:44) a prescriptive corporate planning is one
where the objective has been defined in advance and the main elements
have been developed before the plan commences.
v
Prescriptive corporate planning starts with the search for an agreed
objective, then the environment in which the organization operates is
then analyzed and projections made for the future. Based on this work,
forecasts then form the background for the organization strategic plan.
At this point the objectives may be reviewed. If the forecasts are
particularly positive or negative, then the objectives may be changed.
Lynch states that after making a forecast of the expected environment,
various option are identified to enable the business to achieve the
agreed objectives, there is usually more than one way of achieving
objectives. One options is then selected which has the ability to meet
the objective. The chosen option is implemented by the organization's
managers.
The prescriptive corporate planning process is claimed to be logical,
rational and capable of real insight into the problems of an organization.
It focuses on the major issues that each company needs to address.
2.3.2 Emergent Approach
Emergent corporate planning is a strategy whose final objective is
unclear and whose elements are developed during the course of its life,
v
as the strategy proceeds.
Lynch (1997:52) deriving from the observation that human beings are
not always the rational and logical creatures assumed by prescriptive
approach,
various
commentators
have
rejected
the
long-term
prescriptive approach.
They argue that strategy emerges, adapting to human need and
continuing to develop overtime. Given this, they argue that there can be
only limited meaningful prescriptive strategies and limited value from
long-term planning.
According to Gayle (1002:136) the advantages of emergent corporate
approach are that which takes account of people issues such as
motivation, allows the strategy to develop as more is learnt about the
strategic situation and provides the opportunity for the culture and
politics of an organization to be included in the process.
2.4 CORPORATE
PLANNING AND STRATEGIC
MANAGEMENT
Donald (1994:31) stresses the importance of clarity of the role of
corporate planning in an organization. According to him, there is little
v
evidence to support the idea that corporate planning is an activity of
corporate planners as managers in organization are actually responsible
for strategic decision being taken. Strategic management and corporate
planning are the same in the sense that both study the strategic analysis
in my own perspective. Rather, the role of corporate planning appears to
be, to contribute to the strategic management in three main ways;
1. Assisting in the adaptation of the organization to its environment, by
means of monitoring changes in the environment formulating
environmental and strategic scenarios and acting in a consultancy
capacity to parts of the organization that wish to examine the
implications of environmental change. In this sense corporate
planning is carrying out a strategic analysis function.
2.
Providing an integration role in an organization in the sense of
acting as a communication channel between, for example, a
corporate head office and its divisions.
3.
Providing
a
control
mechanism
to
monitor
the
performance of parts of the organization (e.g. divisions) against
strategic priorities. Here corporate planning has a role in the
implementation of strategy. The picture emerges of corporate
planning as an aid to, rather than as the means of strategic decision
making.
v
2.5 OBJECTIVES OF CORPORATE PLANNING
According to Ola (1995:83) the purposes of corporate planning are;
(i) To assess the tread of the international, national industry and
company environment (political, social, economic, institutional and
technological),
(ii) To identify what the business is in.
(iii) To set corporate objectives for so many years ahead, and
(iv) To determine suitable strategies to achieve these
objectives;
a.
Profitability
b.
Return on capital employed
c.
Avoidance of loss
In respect of assessment of the international, national and industry
environment, Ola (1995:85) explains that this objective is aimed in
analyzing the internal and external environments in which the business
will operate for long time.
Thorough analysis will enable corporate planners' match the activities of
the organization to the environment in which it operates. Accordingly,
through corporate planning top management aims at making the
organization compete effectively in the foreign and home markets given
v
the existing institutional and technological arrangements. Corporate
planning is also aimed at identifying what the business is in. According
to Ola (1995:86) corporate planning also aims at providing the
framework for long-term decisions on the nature of the business that is,
what activities the business will engage in for a longtime. In other
words, corporate planning aims at defining the scope of the
organization's activities which among other decides whether the
organization will concentrate in one area of activity or enter other
production line.
In respect of setting long-time objectives for the organization, he
explains that this objective defines the goal of the organization and how
this goal will be achieved in the long run. An important aspect of
corporate planning in respect of this objective is that corporate planner
now sees the organization as a "complex whole" made up of component
units which activities must be co-ordinate effectively to achieve the
long-run objectives of the organization.
Finally, Ola (1995:87) states that the objective of determining suitable
strategies to achieve profitability, returns on capital employed and avoid
loss aims at achieving long-term growth for the organization. Gluck
(1998:61) in his work, states that the objectives of corporate planning
v
are;
1.
To help the organization achieve efficient use of
resources.
2.
To help the organization adapt to internal and external changes so
that it is organized to achieved its long-term goals.
3.
To prevent excessive or poorly planned organization change and
4.
To help in linking the organization to national and international
markets.
2.6 STEPS IN LONG-RANGE OR CORPORATE PLANNING
In his book titled "Top Management Planning" Boyles (1990:72)
outlines what he describes as eight phases of the long range planning
cycle. These are:
Step 1: Determine where the organizations stand today: According
to him, the initial starting point for any planning effort is to first
determine the current status of the organization. Sound forecasts and
plans cannot be made for the future without an accurate assessment of
an organizations current strength and weaknesses.
Step 2: Develop Planning premises based on current trends and
probable future conditions: According to him, this step involves a
forecast of political, economic, social and technological trends in the
v
specific markets the firm competes in, as well as national and world
conditions. Projected threats and opportunities needs to be identified
with the future lay out before it; the firm can then decide what actions it
wants to take.
Steps 3: Develop and Reassess Objectives: Sequel to an assessment of
the organization's strength and weaknesses and a forecast of market
trends, the firm needs to evaluate its current objectives and establish
new ones.
Step 4: Establish Strategies to Achieve the Objectives: According to
him, strategies are to major courses of action a firm needs to pursue if it
is to achieve its objective. If a firm has a goal to increase its sales by 20
percent, strategies are the methods it will undertake to attain this
objective. Among these strategies are use of more advertising, introduce
new product, engage in price-cutting war and redesign its current
product.
Step 5: Program Activities to Gain Desired Results: According to
him, programming is detailed determination of the activities each subunit must pursue if the strategies are to be implemented. Programming is
tedious and time-consuming, but in it lies the rewards of planning.
v
Step 6: Determine the Support Resources needed to conduct
the Activities of step 5: According to him, once all the activities are
enumerated these are then 'priced out' to determine the resources that
will be required to support them. This includes estimating the materials,
machinery, facilities,
labour and other resources necessary to conduct the activities
specified in step 5.
Step 7: Execute the Plan: Once the plans are completed, they are then
executed (or implemented) in accordance with the established time
schedule.
Step 8: Control to the Plan: As the plan is executed, measurements are
obtained on how operations are progressing. This feedback is provided
to management so that they can take appropriate action.
2.7 BENEFITS OF CORPORATE PLANNING
Sisk (1993:121) enumerates some of the benefits of corporate planning
to organization. First, it enables management to assess and determine
the company's real position in respect of its human and material
resources. A thorough understanding of the organization's strength and
weaknesses will provide the basis for effective forecast and plan of a
long-term nature.
v
Second, it enable management to set realistic objectives, which given
the available resources, will not only lead to immediate achievement of
the set goals but also in the long-run.
According to him, such objectives will exploit strengths of the firm, put
it in the right market niche and achieve the desired growth rate. Thirdly,
corporate planning enables management to design effective strategies
for achieving the set: objectives.
According to him, among other things, it will enable assumption to be
made about the reaction of competitors and a follow-up action. In his
own work, Akpala (1990:49) states that an advantage of corporate
planning is that it takes into account the full environment in which the
business operate and leads to the realistic mapping-out of long-term
objectives, strategic and operational plans.
This implies that in corporate planning strategic and operational plans
are also designed for the achievement of the overall aim of the company
or organization.
In his contribution to desirability of corporate planning for mediumscale enterprises, kwakwanso (1999:3) argues that corporate planning, if
v
effectively designed and implemented, surely leads to efficient
utilization of productive resources in the long-run.
He also states that effectively implanted corporate plan leads to
optimization of returns on capital employed and maximization of
profitability over the long-run. Ultimately, it leads to enhanced
performance and overall growth in the long-run.
Kwakwanso (1999:5) also states that corporate planning also has
additional benefit of achieving effective manpower development policy
over the years. According to him, it enables the organization to forecast
its manpower, needs over the years and develop recruitment, selection
and training programmers to achieve these needs.
Furthermore, it enables the management to develop and effective
compensation scheme for workers based on current business trend and
projected future trend.
A second factor is deteriorating economic conditions.
According to Harvey (1994:96) corporate planners cannot realistically
set goals if the political, economic social and technological trends in the
market in which it operates as well as national and international
environments are unstable and unpredictable. The result is that
v
unrealistic goals are set.
Thirdly, corporate planners sometimes do not reassess set objectives.
According to him, reassessing established goals helps in determining
their feasibility and failure to do this makes it difficult for planners to
determine what future results the organization plans to achieve. In his
own work Boyles (1990:89) identifies inability to establish strategies to
achieve the objectives and programmed activities to gain desired result
as factor militating against effective corporate planning. Other problems
include lack of support resources needed to conduct activities to gain
desired results, inability to implement the plan judicially as well as
control the plan.
Similarly Gayle (1992:12) outlines the problems of corporate planning
as inadequate information during planning on the strengths and
weakness of the organization, faulty definitions of organizational goals,
poor plan implementation, control and review.
v
REFERENCES
Akpala, A. (1990:44): Management: An Introduction and the Nigeria
Perspective. Enugu Precision Printers.
Boyles, A. (1990:72): Policy Strategy and Decision-Making. New
York: McGraw Hill Books Inc.
Dale B, (1992:29): Long-Term Planning in American Industry. New
York: AMA Inc.
Donald, H. (1994:31): Principles of Scientific Management. New
Jersey: Harper and Brothers Ltd.
Grayle, J. (1992:121): Basic Element of Management London:
McDonald and Evan Ltd.
Harvey, V. (1994:6): Management London: Evan Brothers.
Kwakwanso, M. (1999:3): "Corporate Planning in Organization; The
case for Medium-Scale Industry" A workshop paper presented in
Jos.
Lynch, R. (1997:42): Corporate Strategy. London: Pitman Publishing
Co.
Ola, A. (1995:83): Strategic Decision-Making in Practice Ibadan:
v
Onibonoje Press.
Sisk, M. (1993:96): Corporate Strategy: An Introduction New York:
McGraw-Hill Books Inc.
Trewartha, R. and Newport, M. (1991:90): Quoted in Gluck, E.
(1998:72) op cit.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
The aim of this chapter is to discuss the method adopted by the
researcher in carrying out this research investigation. The chapter
contains source of data, population and sample size determination,
instrument used for data collection, Techniques for data analysis and
validity and reliability of data.
3.2 SOURCES OF DATA
The sources of data for the study include primary and secondary data.
3.2.1
Primary Sources of Data
This refers to data generated at first hand level specifically for the study.
To generate this type of data. The researcher employed two research
instrument, the questionnaire and oral interview.
3.2.2
Secondary Sources of Data
v
Secondary data are facts that the researcher collected from already
published sources. The secondary sources from which data were
generated include text books, Journals, magazine, article and the
internet.
3.3
POPULATION OF THE STUDY
Dangote group of company has strength of about 10,000 and they are
made of 95% Nigerian and 5% expatriates who are either on contract
bases or core staff.
3.4
SAMPLE SIZE DETERMINATION
The target populations of the study are the senior and management staff
of Dangote group of company in the Lagos head office. They include
the managing directors, sales, Advert, production manager and all the
supervisor of various units.
The target population is 162 representing 1.62% of the staff strength
nation wide. Based on the target population, the researcher used a
normal confidence level of 95% and error
tolerance
of
5%.
Therefore the sample size was determined using Yamen formular.
Sample size determination
v
Where:
n
=
sample size
N
=
Population of workers (162)
e
=
Margin of errors (5% or 0.05).
I
=
Constraint value
The result is presented thus,
n
=
n
=
n
=
n
=
n
=
n
=
115.
3.5 INSTRUMENT FOR DATA COLLECTION
The various instruments used in collecting data for this study include
the following;
a.
Questionnaire
b.
Personal interview
v
c.
Observation
Questionnaire
A total of 115 questionnaires were distributed to the staff of Dangote
group of company. It comprises a total of 17 questions which is made up
of multiple choice questions and dichotomous questions.
1.
Multiple
Choice
Questions:
This
requires
the
respondents to choose from a set of alternative (options provided)
some of the multiple choice question requires a choice of more
than one alternative option.
2.
Dichotomous
Question:
These
are
close
ended
questions that requires respondents to answer Yes or No.
3.
Personal Interview: The interview conducted by the researcher
on the staff of Dangote group of company gave the researcher
quick response which provides a complementary data to the
questionnaire.
4.
Observation: Observation was made 011 the activities taxing
v
place in the lead of Dangote group of company Lagos.
3.6 METHOD OF DATA ANALYSIS
The data collected were analyzed using tables and percentage. They
hypothesis formulated were tested using chi-square(X2)
X2
=
Where:
X2
=
Chi-square
fo
=
Observed frequency
Fe

=
=
Expected frequency
Summation
3.7 VALIDITY AND RELIABILITY OF DATA
The questionnaires were made simple and easy so as to be clearly
understood by the respondents. The researcher was available to make
necessary explanation on the questions where there is need.
A lest retest was milled out. The questionnaire were distributed on a
second occasion, it was observed that the degree of consistency was
quite high. This shows that the questionnaire is reliable.
v
REFERENCES
Goode, W. J. and Hank P. K. (1952), Methods in Social Research;
New York, McGraw Hill Publisher.
Nwabuoke,
P.
O.
(1986), Fundamentals
of Statistics; Onitsha,
Korurna Books.
Osuala, E. C. (1982), Introduction to Research Methodology; Onitsha,
Africa Feb-Publishers Limited.
Ozongwu, O. M. (1992), Guide to Proposal writing social
and Behavioural Sciences, Snaap Press Ltd.
v
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0
INTRODUCTION
This chapter is designed and aimed at the presentation, analysis and
interpretation of various response obtained from the administered
questionnaires, using chi-square (X2) as the appropriate statistics tool.
4.2
THE CHI SQUARE TEST (X2)
The chi-square (X2) test provides the basis for testing whether more than
one population may be considered equal. It provides a means of
comparing a set of observed frequencies. The calculated X 2 difference
will form the basis for accepting or rejecting the null hypothesis.
4.3
DECISION RULE
The rule is to reject Ho (null hypothesis) if the calculated X 2 is greater
than the critical value of X2. This means that if the Ho (Null)
hypothesis) is rejected the alternative hypothesis (H 1) will be accepted.
v
4.4. ANALYSIS OF QUESTIONNAIRES
AND RETURNED
DISTRIBUTED
From the table below, it is necessary to recall that out of 115
questionnaires distributed, 100 copies representing 87 percent were
returned and used, while 15 copies representing 13 percent were not
returned.
QUESTIONNAIRES DISTRIBUTED AND RETURNED
Level
%
No Given
%
No Returned
No not Returned
% not Returned
Senior staff
40
35
30
26
10
9
Executive
75
65
70
61
5
4
Total
115
100
100
87
15
13
v
Table 1 Question 9
What are the Role of Effective and Efficient Corporate Planning to an
Organization?
Options
Respondents
Percentage
Enlargement of productivities
5
5%
Creation of new technology,
7
7%
Creation of employment
15
15%
All of the above
73
73%
Total
100
100%
product and service
Source: Field Survey, 2010
The above table shows that 5 respondents representing 5% indicated
enlargement of productivities. 7 respondents representing 7%
indicated creation of new technology, product and services.
15 respondents representing 15% indicated creation of employment.
While 73 respondents representing 73% indicated all of the above.
Therefore this shows that the role of an effective and efficient corporate
planning to an organization include;
v
(a)
Enlargement of productivities
(b)
Creation of new technology, product and service
(c)
Creation of employment
Table 2 Question 10
What are the problems managers' encounters in corporate planning?
Options
Respondents
Percentage
15
15%
5
5%
5
5%
technical know how
All of the above
75
75%
Total
100
100%
Lack of adequate and reliable
information
Poor structural policy frame work
Lack of adequate managerial skills and
Source: Field Survey, 2010.
The above table shows that 15 respondents representing 15% indicated
lack of adequate and reliable information. 5 respondents representing
5% indicated poor structural policy frame work. 5 respondents
representing 5% indicated lack of managerial skills and technical know
how. While 75 respondents representing 75% indicated all of the above.
Therefore this shows that the problems managers encounters in
v
corporate planning include.
(a)
Lack of adequate and reliable information
(b)
Poor structural policy frame work
(c)
Lack of adequate managerial skills and technical
know how.
Table 3, Question 11
Do you think that the objectives of long-range planning includes, to
define the scope of the organizations activities, set corporate goals for
so many years ahead, determine suitable strategies for achieving the
set goals and assess the trend
of the
business
environment
for
the purpose of forecasting?
Options
Respondents
Yes
100
No
-
Total
100
Percentage
100%
—
100%
Source: Field Survey, 2010.
The above table shows that 100 respondents representing 100%
indicated yes while none of the respondents indicated No. Therefore,
this shows that defining the scope of the organizations activities, setting
corporate goals for so many years ahead, determining suitable strategies
v
for achieving the set goals and assessing (lie I rend of business
environment for
UK;
purpose of forecasting are the objective of long -
range planning.
Table 4 Question 12
What strategies does the management of your organization adopt in
corporate planning?
Options
Respondents
Percentage
Resources strategies
20
20%
Environmental strategies
10
10%
Adding value
15
15%
All of the above
55
55%
Total
100
100%
Source: Field Survey, 2010.
The above table shows that 55 respondents representing 55% indicated
very effective. 40% respondents representing 40% indicated effective
while the remaining 5 respondents representing 5% indicated not
effective. Therefore this shows that the strategy the management of
Dangote group of company adopts in corporate planning is very
effective.
v
The above table shows that 20 respondents representing 20%
indicated resources strategies. 10 respondents representing
10%
indicated
environmental
strategies.
15
respondents
representing 15% indicated adding value while 55 respondents
representing 55% indicated all of the above. Therefore this shows
that the strategies adopted by the organization in corporate
planning include.
(a)
Resources strategies
(b)
Environment strategies
(c)
Adding value
Table 5 Question 13
How effective has these strategies been?
Options
Respondents
Percentage
Very effective
55
55%
Effective
40
40%
Not effective
5
5%
Total
100
100%
Source: Field Survey, 2010.
v
Table 6 Question 14
What are the strategic planning approaches used by organization?
Options
Respondents
Percentage
12
12%
23
23%
15
15%
strategy
All of the above
50%
50%
Total
100
100%
Analyzing the current status and
examining the prospects of the
future.
Setting the future course of
strategy and putting and putting a
strategy to work.
Evaluating and controlling
Source: Field Survey, 2010.
The above table shows that 12 respondents representing 12% indicated
analyzing the current status and examining the prospects of the future.
23 respondents representing 23% indicated setting the future course of
strategy and putting a strategy to work. 15 respondents representing
15% indicate evaluating and controlling strategy, while 50 respondents
representing 50% indicated all of the above. Therefore this shows that
the strategic planning approach used, by organization include;
v
(a)
Analyzing the current status and examining the
prospects of the future.
(b)
Setting the future course of strategy and putting a
strategy to work.
(c)
Evaluating and controlling strategy.
Table 7 Question 15
What corporate planning approach does your organization adopt?
Options
Respondents
Percentage
Prescriptive approach
48
48%
Emergent approach
32
32%
All of the above
20
20%
Total
100
100%
Source: Field Survey, 2010
The above table shows that 48 respondents representing 48% indicated
prescriptive approach. 32 respondents representing 32% indicated
emergent approach. While 20 respondents representing 20% indicated,
all of the above. Therefore, this shows that the corporate planning
approach which the organization adopts include, a) Prescriptive
approach,
v
b) Emergent approach.
Table 8 Question 16
Which of the following include the forecasting method used by
organizations?
Options
Respondents
Percentage
Historical trend analysis
17
17%
Qualitative method
23
23%
Brain storming
15
15%
All of the above
45
45%
Total
100
100%
Source: Field Survey, 2010.
The above table shows that 17 respondents representing 17% indicated
historical trend analysis. 23 respondents representing 23% indicated
quantitative method. 15 respondents representing 15% indicated Brainstorming. While 45 respondents representing 45% indicate all of the
above. Therefore this shows that the forecasting methods used by
organization include
v
(a)
Historical trend analysis
(b) Quantitative method
(c) Brain-storming
Table 9 Question 17
Do you think that for any organization to succeed and compete
favorably, the organization must plan well?
Options
Respondents
Percentage
Yes
100
100%
No
-
-
Total
100
1OO%
Source: Field Survey, 2010.
The above table shows that 100 respondents representing 100%
indicated yes while none of the yes while none respondents
indicated no. Therefore, this shows that for any organization to
succeed and compete favorably, the organization must plan well.
4.5 HYPOTHESES TESTING
In this section, the hypotheses associated with the study will be tested.
The data already presented in this chapter will be uses in testing the
hypothesis. This will give the researcher the opportunity to determine
whether a change has occurred or whether a real difference exists with a
given observed phenomenon.
v
Hypotheses 1
H0: The problems managers encounters in corporate planning does not
include lack of adequate and reliable information, poor structural
policy frame work, and lack of adequate manage skill and
technical know-how.
H I:
The problems managers encounter in corporate planning does
include lack of adequate and reliable information for structural
policy frame work and lack of adequate managerial skills and
technical know-how.
Tools for computation
Using chi-square (x2)
Formula X2
£ (Foi-Fei)2
Fei
Where Fo =
Observed frequency
Fe
=
expected frequency
£
=
Summation
Level of significance
= 5% or 0.05
Degree of freedom
=
(R-1) (C-1)
=
(4-1) (2-1)
=
7.815
Critical value X2 0.05
v
Decision Rule
The null hypotheses will be rejected if the computed X 2 is greater than
the critical value. Accept (Ho) the null hypotheses if the computed
value of X2 is less than the critical value.
Test of Hypotheses
Using X2 =
Fe
=
FOi
7, (Foi-Fei)2
Fei
15 + 5 + 5 + 75=
FCl
100 =
Foj-Fe!
25
(Fo^FeJ2
(FoirlSii!
FCl
4
15
25
-10
100
5
25
-20
400
16
5
25
-20
400
16
75
25
50
2500
100
X2
136
Since the calculated X2(136) is greater than the critical value of
(7.815), we reject Ho and accept (Hi) the alternate hypotheses which
states that the problems managers encounters in corporate planning
include lack of adequate and reliable information, poor structural
policy frame work and lack of adequate managerial skills and
technical know-how.
v
Hypotheses II
H0: The strategic planning approach used by organizations does not
include analyzing the current status and examining the
prospects of the future, setting the future course of strategy and
putting the strategy to work, evaluation and controlling strategy.
Hx: The strategy planning approach used by organization include
analyzing the current status and examining the prospects of the
future; setting the future course of strategy and putting a
strategy to work and evaluating and controlling strategy.
What are the strategic planning approaches used by
organization?
v
Options
Respondents
Analyzing the current status and
Percentages
12
12%
23
23%
Evaluating and controlling strategy
15
15%
All of the above
50
50%
Total
100
100%
examining the prospects of the
future
Setting
the
future
course
of
strategy and putting a strategy to
work
Tool for computation
Using chi-square(x2) =
What are the problems managers' encounters in corporate planning?
Options
Respondents
Percentages
15
15%
frame
5
5%
managerial
5
5%
75
75%
10O
10O%
Lack of adequate and reliable
information
Poor
structural
policy
work
Lack
of adequate
skills and technical know how
All of the above
Total
v
Where Foi=
Observed frequency Fei=
Expected frequency X =
summation
sign Level of significance 5% or 0.05
Degree of freedom = (R-l) (c-1)
H L)(2 L)
=3
Critical value X2 0.05
= 7.815
DECISION RULE
The null hypothesis (Ho) will be rejected if the computed X 2 is
greater than the critical value. Accept (Ho) the null hypotheses if the
computed value X2 is less than the critical value.
Hypothesis III
H0: Historical trend analysis, quantitative methods and brain
storming are not forecasting method used by corporate
organizations.
Hi: Historical trend analysis, quantitative methods and brains
storming are forecasting method used by
corporate organization.
Which of the following include the forecasting methods used by
corporate organizations?
v
Options
Respondents
Percentages
Historical trend analysis
17
17%
Quantitative method
23
23%
Brain storming
15
15%
All of the above
45
45%
Total
100
100%
Total for computation Using chi-square (x2)
Formula X2 = X (ForFei)2
IV
TEST OF HYPOTHESE
Using X2 =
y.(Foi-Fei)2
Fei
Fe = 12 + 23 + 15 + 50 = 100 = 25
F0l
Fex
Fo1-Fe1
(Fo1-Fe1)2
(Fot-Fe)2
Fe,
6.75
12
25
-13
169
23
25
-2
4
0.16
15
25
-5
25
1
50
25
25
625
25
X2
32.91
Since the calculated X2 (32.91) is greater than the critical value of
(7.185) we reject (Ho) the null hypotheses and accept (Hi) the
alternate hypotheses which state that the strategic planning
v
approach used by organization include analyzing the current status
and examine the prospects of the future, setting the future course of
strategy and putting a strategy to work and evaluating and
controlling strategy.
Where Fo
=
=
observed frequency Fe
Expected frequency
Summation sign
Level of significance = 5% or 0.05 Degree of freedom (R-l) (C-l)
(4-1) (2-1)
Critical value X2 0.05 = 7.815.
Decision Rule
The null hypotheses (Ho)than c^cal value. Accept (Ho) null hypotheses
if the critical value.
TEST FOR HYPOTHESE
Using X2 = y.
Fei
Fe = 17 + 23 + 15 + 45 = 100
= 25
17
25
-8
64
(Fo,-Fe)2
FCl
2.56
23
25
-2
4
0.16
15
25
-10
100
4
45
25
20
400
16
F0l
Fe,
X2
FOi-Fe!
(FcvFeJ2
22.72
v
Since the calculated (X2) 22.72 is greater than the critical value of
(7.815), we reject Ho and accept (Hi) the alternate hypotheses which
state that historical trend analysis, Quantitative method and
Brainstorm
are
the
forecasting
method
used
by
corporate
organizations.
Hypotheses IV
H0 :
The
corporate
organizations
does
planning
not
approach
include
prescriptive
used
by
and emergent
approach.
Hx: The
corporate
organizations
include
planning
approaches
prescriptive
and
used
by
emergent approach.
Corporate planning approach does your organization adopt?
Options
Respondents
Percentages
Prescriptive approach
48
48%
Emergent approach
32
32%
All of the above
20
20%
Total
100
100%
Tool for computation
Using chi-square (X2)
Using X2 =
Fei
v
Where Fo =
observed frequency
Fe
Expected frequency
Summation sign Level
of significance = 5% 0.05 Degree of
freedom = (R-l) (C-l)
(4-1) (2-1)
Critical value X2 0.5 = 7.815
Decision Rule
The null hypothesis (Ho) will be rejected if the computed X 2 is greater
than the critical value. Accept (Ho) the null hypotheses if the computed
value of X2 is less than the critical value.
TEST OF HYPOTHESE
Where Fo =
observed frequency
Fe
Expected frequency
Summation sign
2
Using X = y.
Fei
Fei = 48 + 32 + 20 = 100 = 25
4
F0l
Fex
Foj-Fe!
(FcvFeJ2
(FoT-Fel2
FCl
v
48
25
23
529
21.16
32
25
7
49
1.96
20
25
-5
25
1.25
X2
24.37
Since the calculated X2(24.37) is greater than the critical value of
(7.815) we reject (Ho) the null hypotheses and accept (Hi) the alternate
hypotheses which state that the corporate planning approach use by
organization include both prescriptive and emergent approach.
CHAPTER FIVE
v
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION
5.1
SUMMARY OF MAJOR FINDINGS
The major findings at the ends of this investigation are
(1)
The problems managers encounter in corporate planning include
the following.
a)
Lack of adequate and reliable information
b)
Poor structural policy frame work
c)
Lack of adequate managerial skills and technical
know-how
(2)
The strategic planning approach used by organizations include
a)
Analyzing the current status and examining the prospects of
the future
b)
Setting the future course of strategy and putting strategy to
work
c)
Evaluating and controlling strategy The forecasting methods used
by corporate organization include
(4)
a)
Historical trend analysis
b)
Quantitative methods
c)
Brain storming methods
The corporate planning approach used by
v
organizations include
a)
Prescriptive approach
b)
Emergent approach
5.2 SUGGESTION FOR FURTHER RESEARCH
For the purpose of further research, the researchers should investigate on
the role of a manager in corporate planning for business growth and
survival in a constrained economy or corporate social responsibility; the
unavoidable issue in corporate sustainability in Nigeria with reference to
a particular corporate organization.
CONCLUSION
Based on the research findings, the researcher conclude that corporate
planning covers every aspect of the organization as it sets long- terms
goals for the organization. It plays a vital role in assessing the trend of
business which enables management to make effective business forecast
and thus ensures survival and growth of the business if it is well
developed and implemented.
v
5.4 RECOMMENDATIONS
The following are recommended to make corporate
planning very effective.
(1) Management should always ensure that it evaluate and determine
the actual strengths and weaknesses of the organization in relation
to its available resources (money and human) and the environment.
This will enable it to set the goals that can be achieved within the
constraints imposed by the available resources and the unpredictable
environment.
(2)
Management should always ensure that the trend in business is
always studied overtime. A comprehensive analysis of the trend
will provide a solid basis for forecasting long-run trend in the
future. This is the essence of corporate planning.
(3)
It is one thing to develop a good corporate plan but another thing
to implement it.
A good plan is only effective when it is
effectively implemented. To this end, management should ensure
that appropriate strategies are adopted in implementing the
corporate plan. If this is
done,
then long-run targets
of the
organization should always be achieved through corporate
planning.
(4)
There is the need for management to always re-assess the set goals
v
in the light of the performance of the corporate plan over-time. If
it is found that the targets are not being achieved over time, then
management should set the goals in the light of the prevailing
circumstance.
This
is
the
essence
of
emergent
approach in corporate planning.
(5)
Those who carry out the planning should have
foresight and skill or expertise knowledge in corporate planning.
This
will
enable
them
to
set
achievable targets
and
adopt appropriate strategies to achieve them.
(6)
Finally since the environment affects the result of
corporate planning in an unpredictable way, there is the need to
take this factor into consideration when corporate planning is
being done. One way to do this is examine
the past trend in
order to make effective forecast.
v
BIBLIOGRAPHY
Akpala. A. (1990:49): Management: An Introduction and the Nigeria
Perspective: Enugu, Prevision Publishers.
Boyles, A. (1990:72): Policy Strategy and Decision-Making. New York:
McGraw Hill Books Inc.
Dale B, (1992:29): Long-Term Planning in American Industry. New
York: AMA Inc.
Donald, H. (1994:31): Principles of Scientific Management. New
Jersey: Harper and Brothers Ltd.
Ewurum, U.J.F (2001): Total Quality Management Unpublished Paper
Presented at workshop Organized by Health System Fund,
Enugu.
Goode, W. J. and Hank P. K. (1952), Methods in Social Research; New
York, MC Graw Hill Publisher.
Grayle, J. (1992:121): Basic Element of Management London:
McDonald and Evan Ltd.
Hammer, M. and Champy, J. (1993): Reengineering the Corporation. A
Manifestation for Business Revolution, London Nicholas
Brealy Publishers.
Harvey, V. (1994:6): Management London: Evan Brothers.
Imaga, E.U.L. (1996): A Manual of Corporate Planning and Strategic
Business Policy, Raye Kere Publishers, Enugu.
v
Kwakwanso, M. (1999:3): "Corporate Planning in Organization; The
case for Medium-Scale Industry" A workshop paper
presented in Jos.
v
QUESTIONNAIRES
Please kindly follow the instructioncarefully and tick ( V ) where
appropriates.
SECTION A
1.
2.
3.
4.
Sex
(a)
Male
[
]
(b)
Female
[
]
Marital Status
(a)
Single
[
]
(b)
Married
[
]
(a)
21-30
[
]
(b)
31-40
[
]
(c)
41-49
[
]
(d)
50 years and above
[
]
Age
What is your academic qualification?
(a)
SSCE
[
]
(b)
OND/NCE
[
]
(c)
HND/BSC
[
]
(d)
MBA/MSc/Phd
[
]
What is your salary grade level?
v
6.
7.
8.
9.
(a)
01-04
[
]
(b)
05-08
[
]
(c)
09.12
[
]
(d)
13 and above
[
]
How long have you been working in this organization?
(a)
0-5 years
[
]
(b)
6-15 years
[
]
(c)
16-30 years
[
]
(d)
37 years and above
[
]
What categories of staff are you?
(a)
Junior staff
[
(b)
Senior staff
[
]
(c) Executive
[
]
What is your department in this company?
(a) Production department
[ ]
(b)
Finance department
[
(c)
Marketing department
[
]
(d)
Sales Department
[
]
What is the role of an effective and efficient corporate
planning to an organization
[
(a)
Enlargement of productivity [
]
(b)
Creation of new technology, product and services [
(c)
Creation of employment
[
]
]
]
v
(d)
10.
All of to above
[
]
What are the problems managers' encounters in corporate
planning?
(a)
(b)
Lack of adequate reliable information
Poor structural policy framework
(c)
Lack of adequate managerial skills and technical"
know how?
11.
[
[
[
Do you think that the objectives of long-range planning?
Includes the following?
(a)
To define the scope of the organizations activities [
(b)
To set corporate goals for so many years ahead
(c)
To determine suitable strategies for achieving the
Set goods
(d)
[
[
To assess the trend of the business environment for
the purpose of forecasting.
(a) Yes [
(b)
No
]
[
]
What strategies does the management of your organization
adopt in corporate planning?
13.
(a)
Resources strategy
[
(b)
Environmental strategy
(c)
Adding value
[
(d)
All of the above
[
[
]
]
How effective have these strategies been?
v
14.
(a)
Very effective
[
(b)
Effective
[
]
(c)
Not effective
[
]
What are the strategic
planning approaches used by
organization?
(a)
Analyzing the current status and examining the
prospects of the future
(b)
Setting the future course of strategy and putting a
strategy to work.
15.
[
[
(c)
Evaluating and controlling strategy [
(d)
All of the above
[
]
What corporate planning approach does your organization
adopt?
16.
(a)
Prescriptive approach
(b)
Emergent approach
[
]
(c)
All of the above
[
]
Which of the following include the forecasting method used
by organization?
(a)
Historical trend analysis
[
]
(b)
Quantitative method
[
]
(c)
Brain storming
[
]
(d)
All of the above
[
]
v
17.
Do you think that for any organization to succeed and
compete favorably the organization must plan well
(a)
Yes
[
]
(b)
No
[
]
v