CORPORATE PLANNING AND ORGANIZATIONAL GROWTH

CHAPTER ONEINTRODUCTION

    1. Background of the study

Around 1999, empirical researchers began to examine the performance and consequences of formal corporate planning (Thune and House, 1999; Ansoff et al., 2000; Herold, 2001) and over 40 planning performance studies have appeared since that time. However, in recent years this line of research has slowed to a trickle and with good reason. Previous studies lacked theoretical ground, produced a bewildering array of contradictory findings, drew heavy criticism for inadequate methodologies and had little or impact on corporate management research or practice (Shrader et al., 1984; Pearce et al., 1987a, b). Nonetheless, it seems evident that the corporate planning-organizational growth relationship bears significantly on strategic management research and practice and that scholars should not abandon this line of enquiry altogether. This study re-evaluates the planning-performance research; the critical assessment of strategic planning and its impact on organizational performance which has effect on its survival.

Corporate planning can be defined as the process of using systematic criteria and rigorous investigation to formulate, implement and control strategy and formally document organizational expectations (Higgins and Vincze, 1993; Mintzberg, 1994; Pearce and Robinson, 1994). Corporate Planning is a process by which we can envision the future and develop the necessary procedures and operations to influence and achieve that future. As in many other fields, corporate planning professionals often cloak their work in pseudo-scientific jargon designed to glorify their work and create client dependence. In reality, corporate planning processes are neither scientific nor complex. With modest, front-end assistance and the occasional services of an outside facilitator, organizations can develop and manage an on-going and effective planning program. Corporate planning consists of a set of underlying processes that are intended to create or manipulate a situation to create a more favorable outcome for a company. This is quite different from traditional tactical planning that is more defensive based and depends on the move of competition to drive the company's move. In business, corporate planning provides overall direction for specific units such as financial focuses, projects, human resources and marketing.

Corporate planning may be conducive to productivity improvement when there is consensus about mission and when most work procedures depend on technical or technological considerations. This study goes beyond the observation of some research that questioned the existence of direct casual relationships between the use of corporate planning and organizational growth. This study draws from some of the many publications on the use of corporate planning in the private sector and from the growing number of those that deal with its uses and potential for the public sector. One of the major purposes of corporate planning is to promote the process of adaptive thinking or thinking about how to attain and maintain firm environment alignment. (Ansoff, 1991). Commercial banks however, appear to gain more because they can derive considerable benefits not only from adaptive thinking, but also from integration and control. Small firms can derive considerable benefits from adaptive thinking but probably gain less than large firms from the integration and control aspects of corporate planning. Evered (2000), suggested that the different uses of the term corporate planning vary from broad ones (which include the purposes of defining purpose, objectives and goals) to very narrow ones (namely, those that deal with the means for achieving given objectives). Given Evered's differentiation between broader and narrower definitions of strategy, Bozeman's definition is a narrow one; one that assumes an ultimate mission of the organization. Bozeman's definition assumes that the corporate planning/management process is triggered by changes in policies and priorities (Bozeman, 2003). Hence, according to (Eadie, 2004), corporate planning may be defined broadly or narrowly. However, this formulation still does not help managers in the public sector, for now they need to decide not only whether they want to develop corporate plans but also whether they should approach such plans with a global perspective or with a narrower one. Thus, what seems to be a problem of semantics masks a fundamental question about the inclusion or exclusion of goal definition from the corporate planning process.

According to Berry (1997), corporate planning is a tool for finding the best future for your organization and the best path to reach that destination. Quite often, an organization's strategic planners already know much of what will go into a strategic plan. However, development of the strategic plan greatly helps to clarify the organization's plans and ensure that key leaders are all on the same script but far more important than the corporate plan document is the corporate planning process itself. The corporate planning process begins with an assessment of the current economic situation. First, examining factors outside of the company that can affect the company's growth. In most cases, it makes sense to focus on the national, local or regional and industry economic forecasts. This part of the analysis should begin early, at least a quarter or so before the formal planning process begins. Hence, it's been concluded that, corporate planning positively affects organizations' growth or more specifically, the amount of corporate planning an organization conducts positively affects it's financial growth.

Since the case study used for this research study is a bank, there is a need to understand corporate planning and financial growth relationships in banks. The result from past researches suggested that the intensity with which banks engage in the corporate planning process has a direct positive effect on banks' financial growth and mediates the effect of managerial and organizational factors on bank's growth. Results also indicated a reciprocal relationship between corporate planning intensity and organizational growth. That is, corporate planning intensity causes organizational growth and in turn, organizational growth causes greater corporate planning intensity (Hopkins and Hopkins, 1997). There is a constant need for organizations, especially financial institutions like banks to think strategically about what is going on (Sclnnellller, 1995). This appears to be precisely what banks, in particular have begun to do in recent years. In response to increasing complexity and change in the financial services industry, banks have turned to corporate planning. The relatively new trend towards corporate planning in banks is viewed as a move designed not only to help them negotiate their environment more effectively, but to improve their organizational growth as well (Bettinger, 1996; Bird, 1991; Prasad, 1999). In consistent results of bank-related research, however, have not fully resolved the issue of whether corporate planning leads to improvements in banks organizational growth. The intensity with which managers engage in corporate planning depends on Managerial (e.g., strategic planning expertise and beliefs about planning-performance relationships), Environmental (e.g., complexity and change) and Organizational (e.g., size and structural complexity) factors. The effects of these factors on corporate planning intensity have been suggested by several studies (Kallman and Shapiro, 1990; Unni, 1990; Robinson and Pearce, 1998; Robinsonet al., 1998; Watts and Ormsby, 1990b).

Studies that have analyzed the relationship between corporate planning and organizational growth proved that the intensity with which banks engage in the corporate planning process intervene-that is cause an indirectness and lack of one-to-one correspondence-between factors such as corporate planning expertise and beliefs about planning growth relationships (managerial factors), environmental complexity and change (environmental factors), bank size and structural complexity (organizational factors) and bank's financial growth. As suggested by the inconsistent research findings, past studies have miss-specified the relationship between corporate planning and organizational growth in banks. Misspecification of this relationship might be attributed to past studies' lack of attention to the relationship among these managerial, environmental, organizational factors and their potential impact on planning intensity and performance (Hopkins and Hopkins, 1997). Subsequently, the consideration of such factors in the present study is viewed as a significant issue that holds implications for future research as well as for planning practices.

    1. Statement of the problem

Past and recent research studies have made it clear that there is an increased internal and external uncertainty due to emerging opportunities and threats, lack of the awareness of needs and of the facilities related issues and environment and lack of direction. Many organizations spend most of their time realizing and reacting to unexpected changes and problems instead of anticipating and preparing for them. This is called crisis management. Organizations caught off guard may spend a great deal of time and energy playing catch up. They use up their energy coping with inundate problems with little energy left to anticipate and prepare for the next challenges. This vicious cycle locks many organizations into a reactive posture. This research study is to assess the impact of corporate planning on organizational growth, which at the long, enhances organizational survival.

    1. Significance of the study

The study will aid commercial banks in Nigeria to understand the importance of corporate planning for organizational growth. Revelations from the study will highlight the various benefits of corporate planning and how these measures if properly taken can increase organizational growth. The study will also enlighten managers of commercial banks on how to effectively implement corporate planning for substantial growth of the organization.

    1. Objective of the study

This study was undertaken majorly to investigate corporate planning as a catalyst for organizational growth of commercial banks in Nigeria, using Diamond Banks Plc as a case study. Specific objectives of the study are:

  1. To examine the relationship between corporate planning and organizational growth.
  2. To determine the corporate planning strategies used by commercial banks for effective organizational growth.
  3. To ascertain whether corporate planning will improve the growth of an organization.
    1. Research questions

In-order to achieve the stated objectives for the study the following research questions will be asked:

  1. What relationship exists between corporate planning and organizational growth of Diamond Bank?
  2. Does corporate planning improve the organizational growth of Diamond Bank?
  3. What better ways can the organizational growth of commercial banks in Nigeria be improved?
    1. Research hypotheses

Ho: There is no significant relationship between corporate planning and commercial banks’ organizational growth.Hi: There is significant relationship between corporate planning and commercial banks’ organizational growth.Ho: Corporate planning does not improve the organizational growth of commercial banks.Hi: Corporate planning does not improve the organizational growth of commercial banks.

    1. Limitations of the study

The study was carried out to investigate the impact of corporate planning on the organizational growth of commercial banks in Nigeria. The study is limited to Diamond banks in Lagos State. This is because of her representative nature of all commercial banks in Lagos State, proximity to the researcher, time and financial constraints.

    1. Scope of the study

This research work is on corporate planning and organizational growth of commercial banks in Lagos state, using Diamond bank as a case study. The study could not cover other banks due to in-adequate disclosures in the corporate planning strategies from these banks.

    1. Definition of terms

Corporate Planning: This is a process used by businesses to map out a course of action that will result in revenue growth and increased profits.Organization: This is an organized group of people with a particular purpose, such as a business or government department.Growth: This is the process of increasing in size.Organizational Growth: This means different things to different organizations. There are many parameters a company may use to measure its growth. Since the ultimate goal of most companies is profitability, most companies will measure their growth in terms of net profit, revenue, and other financial data.

REFERENCES Aborisade, F., 1997. Research Methodology, A Student Handbook, Multi-Firm Limited Publisher. Akinyele, S.T., 2007. A comparative analysis of strategic marketing management of downstream oil industry in Nigeria. An Extract from Doctoral Dissertation, Covenant University, Ota-Nigeria. Allison, M. and J. Kaye, 2005. Strategic Planning for Non-profit Organizations. A Practical Guide and Work Book, Wiley Publishers. Ansoff, H.I., 1991. Critique of Henry Mintzberg's. The design school: Reconsidering the basic premises of strategic management. Strategic Manage. J., 12: 449-461. Ansoff, H.I., D. Miller and P.H. Friesen, 2000. Strategy-making and the enviromnent: The third link. Strategic Manage. J., 4: 221-235. Beamish, P.W., 2000. Strategic Management. Ivey Publishers. Berry, B.W., 1997. Strategic Planning Work Book for Nonprofit Organizations. Amherst, H. (Ed.), Publishers, Wilder Folllldation.

.

Click Here To Get The Complete Project »

How To Write Chapter Three Of Your Research Project (Research Methodology)

  • Methodology In Research Paper


    Chapter three of the research project or the research methodology is another significant part of the research project writing. In developing the chapter three of the research project, you state the purpose of research, research method you wish to adopt, the instruments to be used, where you will collect your data, types of data collection, and how you collected it.

    This chapter explains the different methods to be used in the research project. Here you mention the procedures and strategies you will employ in the study such as research design, study design in research, research area (area of the study), the population of the study, etc. You also tell the reader your research design methods, why you chose a particular method, method of analysis, how you planned to analyze your data.

    Your methodology should be written in a simple language such that other researchers can follow the method and arrive at the same conclusion or findings.

    You can choose a survey design when you want to survey a particular location or behavior by administering instruments such as structured questionnaires, interviews, or experimental; if you intend manipulating some variables.

    The purpose of chapter three (research methodology) is to give an experienced investigator enough information to replicate the study. Some supervisors do not understand this and require students to write what is in effect, a textbook.

    A research design is used to structure the research and to show how all of the major parts of the research project, including the sample, measures, and methods of assignment, work together to address the central research questions in the study. The chapter three should begin with a paragraph reiterating the purpose of research. It is very important that before choosing design methods try and ask yourself the following questions: Will I generate enough information that will help me to solve the research problem by adopting this method?

    Method vs Methodology

    I think the most appropriate in methods versus methodology is to think in terms of their inter-connectedness and relationship between both. You should not beging thinking so much about research methods without thinking of developing a research methodology.

    Metodologia or methodology is the consideration of your research objectives and the most effective method and approach to meet those objectives. That is to say that methodology in research paper is the first step in planning a research project work.

    Design Methodology: Methodological Approach

    Example of methodology in research paper, you are attempting to identify the influence of personality on a road accident, you may wish to look at different personality types, you may also look at accident records from the FRSC, you may also wish to look at the personality of drivers that are accident victims, once you adopt this method, you are already doing a survey, and that becomes your metodologia or methodology.

    Your methodology should aim to provide you with the information to allow you to come to some conclusions about the personalities that are susceptible to a road accident or those personality types that are likely to have a road accident.

    The following subjects may or may not be in the order required by a particular institution of higher education, but all of the subjects constitute a defensible in metodologia or methodology chapter.

    Click here to complete this article - How To Write Chapter Three Of Your Research Project (Research Methodology)

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.