University of Nigeria Research Publications

UGWU, Christopher C.

Aut

hor

PG/MBA/93/18020

Title

Corporate Planning and Organisational Viability: The Case Study of Some

Selected Companies

Facu

lty

Business Administration

Dep

artm

ent

Management

Dat

e

July,1995

Sign

atur

e

CORPORATE PLANNING AND ORGANIZATIONAL V I A B I L I T Y :

THE CASE STUDY OF SOME SELECTED COMPANIES

BEING

A T H E S I S

SUBMITTED TO THE DEPARTMENT OF MANAGEMENT

UNIVERSITY OF NIGERIA, ENUGU CAMPUS

I N PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF MASTER OF

BUSINESS ADMINISTRATION (M.B.A.) I N

MANAGEMLNT

UGWU CHRISTCPHEH C H I J I O K E

PG/MBA/93/18020

* ! SUPERVISOR: DR. U. J. F. EhURUM

JULY, 1995

CERTIFICATION

UGWU C.C., a P o s t g r a d u a t e S t u d e n t i n t h e Depar tment

o f Management and w i t h R e g i s t r a t i o n Number PG/MBA/93/18020

h a s s a t i s f a c t o r i l y comple t ed t h e r e q u i r e m e n t s f o r c o u r s e s

a n d r e s e a r c h work f o r t h e d e g r e e of Mas te r of B u s i n e s s

A d m i n i s t r a t i o n (M.B.A.) i n MANAGEMENT,

The work embodied i n t h i s p r o j e c t is o r i g i n a l and

h a s n o t been s u b m i t t e d i n p a r t o r f u l l f o r any o t h e r

d i p l o m a or d e g r e e of t h i s or any o t h e r U n i v e r s i t y ,

D R . E.u/. IMAGA HEAD OF DEPARTMENT

DR. /L.J.F. EWURUM SUPERVISOR

DATE..................

iii

DEDICATION

This work is d e d i c a t e d t o God A l m i g h t y who

is t h e u l t i m a t e P l a n n e r and A r c h i t e c t of

man ' s f u t u r e .

F o r a work o f t h i s n a t u r e t o be s u c c e s s f u l l y

c o m p l e t e d , some p e o p l e m u s t h a v e c o n t r i b u t e d immense ly b y

way of m a t e r i a l , moral or f i n a n c i a l a s s i s t a n c e , Hence, I

o w e them a p l e t h o r a o f g r a t i t u d e , I

I owe a w e a l t h o f a p p r e c i a t i o n t o t h e f o l l o w i n g f o r

t h e a f f a b l e a n d g e n i a l a s s i s t a n c e which t h e y r e n d e r e d t o m e

i n my b i d t o make t h i s work a r e a l i t y . They a r e : P r o f e s s o r

F.0, O k a f o r who is t h e Dean o f t h e F a c u l t y o f B u s i n e s s

A d m i n i s t r a t i o n , D r . L.U.L. Imaga , who i s t h e Head o f Depar-

t m e n t o f Management, t h e L i b r a r i a n o f t h i s U n i v e r s i t y a n d

t h a t of o t h e r U n i v e r s i t i e s , who g a v e m e access to m a t e r i a l s

i n t h e i r L i b r a r i e s .

I a m q r e a t l y i n d e k k e d t o Dr. U.J.F Ewurum u n d e r whose

s u p e r v i s i o n t h i s s t u d y was c a r r i e d o u t . H e d e s e r v e s my

commenda t ion m o r e s o f o r h i s u n t i r i n g a n d e n t h u s i a s t k c e f f o c t

w h i l e t h i s work was i n p r o q r e s s .

My s t u p e n d o u s t h a n k s g o e s t o t h e e n t i r e a c a d e m i c

s t a f f of f a c u l t y o f B u s i n e s s A d m i n i s t r a t i o n f o r m o t i v a t i n g

a n d m o u l d i n g m e i n t o a h a r d n u t t o c r a c k , T h i s is more

e s p e c i a l l y f o r t h e s v a l a n c h e of k n o w l e d g e i m p q r t e d i n m e

a n d f r o m w h i c h I d r a w i n s p i r a t i o n a n d a n c h o r my f u t u r e ,

I would a l s o a c k n o w l e d g e my i n d e t e d n e s s t o t h e e n t i r e

management and s t a f f o f L e v e r B r o t h e r s N i g e r i a P l c , Golden

G u i n e a B r c w e r i f t s P I C , Aluminium E x t r u s i o n I n d u s t r i e s , and

I S B I C M o r t g a g e F i n a n c e , T h i s i s i n view of t h e p e r m i s s i o n

t h a y g a v e t o m e t o c o n d u c t my f i e l d s t u d i e s i n t h e i r company,

Mere w o r d s a r e i n c o m p e t e n t t o e x p r e s s t h e d e g r e e o f

a p p r e c i a t i o n I o w e my b e l o v e d p a r e n t s , Mr, a n d Mrs, P a u l K.

a n d J a n e N, Ugwu f o r t h e i r m o r a l a n d f i n a n c i a l s u p p o r t as

w e l l a s a f f e c t i o n t o w a r d s m e . Also, my u n a l l y o e d g r a t i t u d e

goes t o my a f f e c t i o n a t e , g e n e r o u s a n d w o n d e r f u l B r o t h e r ,

C h i e f Benson Uqwu, who g a v e m e a n u n q u a n t i f i a b l e d e g r e e o f

a s s i s t a n c e i n t h e c o u r s e of my e d u c a t i o n . I am g r e a t l y

a p p r e c i a t i v e t o my s is ter F a i t h Ugwu f o r a l l t h e a s s i s t a n c e

s h e h a s b e e n g i v i n g t o m e . , T h e last b u t n o t t h e l e a s t who

deserve my a p p r e c i a t i o n a r e , my b r o t h e r I n n o c e n t Ugwu, my

s i s te r Mabel Anyiam a n d my a u n t i e s , Lady Chidimma Uqwu a n d

N r s C a l i s t a Ugwu.

I am a l s o q r s t e f u l to t h e t y p i s t who h a n d l e d t h i s work

a s f a r as human p e r f e c t i o n can g u a r a n t e e . And t o t h e v a r i o u s

s c h o l a r s w h o s e w o r k s I q u o t e d I owe s t u p e n d o u s t h a n k s .

ABSTRACT

The i n d i s p e n s a b i l i t y o f c o r p o r a t e p l a n n i n g t o p o l i c y

m a k e r s , a c a d e m i c s and manage r s i n e n s u r i n g o r g a n i z a t i o n a l

v i a b i l i t y c a n n o t be over -emphas ized , T h i s owes t o t h e

e v e r p e r v a s i v e b u s i n e s s e n v i r o n m e n t wh ich c a n be t u r b u -

l e n t , c o m p e t i t i v e , u n s t a b l e and d i v e r s e , Hence, t h e r e

i s t h e need f o r c o r p o r a t e e x e c u t i v e s t o a n t i c i p a t e and

p l a n i n o r d e r t o a d a p t more e a s i l y t o e n v i r o n m e n t a l

c h a n g e s , and t h e i r a t t e n d a n t i m p a c t on o p e r a t i o n s and

t o know how t o m a i n t a i n a c o n t i n u e d i n f l o w and o u t f l o w

o f r e s o u r c e s a n d s e r v i c e s ,

Low i n d u s t r i a l c a p a c i t y u t i l i z a t i o n , d e p r e s s e d

p r i v a t e and p u b l i c sectors, and b u s i n e s s f a i l u r e s are

c u r r e n t l y common f e a t u r e s o f N i g e r i a n economy. I t i s

o n t h i s basis t h a t w e s o u g h t f o r e x p l a n a t i o n s t o t h i s

p r o b l e m o n t h e n a t u r e and p r a c t i c e o f c o r p o r a t e p l ann -

i n g , C o r p o r a t e p l a n n i n g i s d e s i g n e d t o a n t i c i p a t e

c i r c u m v e n t and c i r c u m s p e c t some of t h e p r o b l e m s t h a t

a n o r g a n i z a t i o n may e n c o u n t e r i n i t s b i d t o r e m a i n

v i ab l e and r e a l i z e i t s o b j e c t i v e , V i a b i l i t y on t h e

o t h e r hand r e f e r s t o t h e c a p a c i t y o f a n o r g a n i z a t i o n

t o s u r v i v e and a d j u s t more f a v o u r a b l y t o i t s e n v i r o n -

m e n t a l c h a l l e n g e s and c h a n g e s , The u n d e r p i n n i n g

p h i l o s o p h y o f c o r p o r a t e p l a n n i n g i s t h a t it c a n h e l p

c o r p o r a t e e x e c u t i v e s t o a s c e r t a i n and v i s u a l i z e

f u t u r e t r e n d s i n b u s i n e s s t h a t makes f o r t h e accom-

p l i s h m e n t o f o r g a n i z a t i o n a l o b j e c t i v e s i n c l u d i n g

v i a b i l i t y , However, i t does o c c u r e o c c a s i o n a l l y ,

u n d e r c e r t a i n c i r c u m s t a n c e s and i n s p i t e o f a l l t h e

e f f o r t of management i n t h i s r e g a r d , t h e r e s u l t from

t h e a p p l i c a t i o n of c o r p o r a t e p l a n n i n g may be n e g a t i v e o r i t

may n o t n e c e s s a r i l y enhance t h e a t t a i n m e n t of o r g a n i z a t i o n a l

g o a l s and o b j e c t i v e s i n c l u d i n g v i a b i l i t y a s expected . It i s

b a s e d on t h i s p u z z l e t h a t o n e wonders a t what c o u l d have been

t h e r o o t c a u s e of t h e d i f f e r e n c e between t h e c o n c e p t i o n of

c o r p o r a t e p l a n n i n g towards b u s i n e s s v i a b i l i t y and t h e a c t u a l

r e s u l t s a c h i e v e d t h r o u g h i t s a p p l i c a t i o n .

I t i s t h i s d i s p a r i t y between t h e e x p e c t e d and obse rved

r e s u l t s of c o r p o r a t e p l a n n i n g on b u s i n e s s v i a b i l i t y t h a t

i n s p i r e d o u r d e s i r e t o e x p l o r e t h e r e a l i t i e s of t h i s

problem w i t h a view t o a s c e r t a i n what t h e c a u s e s a r e ,

Consequen t ly , t h i s s t u d y examines t h e p r a c t i c e of

c o r p o r a t e p l a n n i n g and t h e a p p l i c a t i o n of i ts t o o l s by

f i r m s i n d i f f e r e n t i n d u s t r i e s and i t s l i k e l y e f f e c t s

o n b u s i n e s s v i a b i l i t y . Such f a c t o r s a s management a t t j t u d e

towards c o r p o r a t e p l a n n i n g , u s e of f o r e c a s t i n g t e c h n i q u e ,

t h e a p p l i c a t i o n of b u d g e t i n g t e c h n i q u e , i n f o r m a t i o n moni-

t o r i n g and g a t h e r i n g t e c h n i q u e and t h e n a t u r e of t r e a t m e n t

g i v e n t o p l a n n i n g e x e c u t i v e s w e r e a l l examined w i t h t h e aim

t o e s t a b l i s h how e a c h a f f e c t s t h e c a p a c i t y of t h e f i r m s t o

r e a l i z e t h e i r o b j e c t i v e s .

It was a s c e r t a i n e d t h r o u g h t h i s r e s e a r c h work t h a t

management a t t i t u d e towards c o r p o r a t e p l a n n i n g h a s n o t been

f a v o u r a b l e and as s u c h a f f e c t s n e g a t i v e l y t h e l e v e l of

v i a b i l i t y achieved . The s t u d y e q u a l l y shows t h a t t h e

a d o p t i o n of f o r e c a s t i n g a s a c o r p o r a t e p l a n n i n g t e c h n i q u e

h a s had a p o s i t i v e e f f e c t on t h e market s h a r e of some of

t h e c a s e f i r m s t h a t a d o p t it, The s t u d y a l s o r e v e a l s t h a t

t h e u t i l i z a t i o n of i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g

t e c h n i q u e h a s n o t f o s t e r e d b u s i n e s s v i a b i l i t y d u e t o

problems a s s o c i a t e d w i t h d i f f i c u l t a c c e s s i b i l i t y t o

needed i n f o r m a t i o n . It w a s g a t h e r e d from t h e r e s e a r c h

t h a t t h e t r e a t m e n t g i v e n t o c o r p o r a t e p l a n n i n g e x e c u t i v e s

h a s n o t been f a v o u r a b l e eventhough t h e r e i s a p o s i t i v e

i n d i r e c t r e l a t i o n s h i p between t h i s and v i a b i l i t y . Budget-

i n g t e c h n i q u e was found t o have had no p o s i t i v e e f f e c t w i t h

i t s a d o p t i o n on b u s i n e s s v i a b i l i t y , O t h e r c o n s t r a i n s t h a t

a f f e c t a d v e r s e l y t h e c o r p o r a t e p l a n n i n g a c t i v i t y and

v i a b i l i t y a r e m u l t i p l i c i t y of b u s i n e s s o b j e c t i v e s ,

i n a d e q u a t e s k i l l and t h e t u r b u l e n t n a t u r e of o u r soc io -

economic and p o l i t i c a l envi ronment , However, a d i r e c t

r e l a t i o n s h i p was found t o e x i s t between t h e a p p l i c a t i o n

o f c o r p o r a t e p l a n n i n g by b u s i n e s s f i r m s and o r g a n i z a -

t i o n a l v i a b i l i t y , On t h i s p remise , n e c e s s a r y recommen-

d a t i o n s were made on how t o g u a r d a g a i n s t t h e s e problems.

TADLC OE' CONTCNTS - PAGE -

T I l L C priGL . . . . . . . . . . . . . . . . 0 . i

hPPi\CjVAL PAGI; , , . . . . . . . . . . . . 9 9 iii

~ C K ~ C J ~ . L C U G C I itlu'I . . . . - 0 v

ABSTllAC'l . . 0 . . . . . . . . v i CHAPTER U N L : Ii\llHOLIUC'lLON

1.4 C i 3 J L C 1 l I V L ~ OF ' l i l i STLJLIY . . . . . . . . . 13

1.5 bICRIi. ' ICAl\lCO Or' ' L ' M t s ' i U D Y . . . . . . .. 1 3

1.6 BHILE' HL4I'CIdY Ot.' 'i hL C / , ~ L > CONPl . ivICS . . 14

1 . 7 L L F l N l ' ~ l O I \ OF' Y L R l ~b .a 18

2 .1 O V t K V I t h OF' LCi.IPOHb~1'L PLAIWING . , . . 21 2 . #-I F 0 t \ r ~ C ~ i ' i ' 1 NG 0. 0 . 2 7

2 .3 BUbGtTING TLCHNIQUL .. 31

2.4 Ii\F'OHIWLIUN ' I ' C C H I U I ~ U ~ , . . 34

2 .5 HUMAN d I L L 0 1 4 COhi~Ct r r lT t PLANNING . . . . .. 36 2.6 'LHL t?i:OCt~aS Of CORPORATE PLltPiNING ,, 0 . 37

I 'ABLL OF' COhTLNTS CONTU '

CHtiPTLtl k OUk : PhELCN'l'A'f;ION wNU A N A L Y S T S Oh' DATA

CHfiP'l tK F I V E : 5UiviNAhY O t F I N L I N G ; ; , RLCOldIMLNDfiTIONS, - CONCLULIUN AND k k L A 3 OF' E 'UKr l ' t l tH RLSCAHCH

~ U I V ~ A K Y Or F I N U I N G S , . , , , , , , , , , . , , 95

1 CHAPTER ONE

1.1 INTRODUCTION

A b a s i c management f u n c t i o n i s t o d i r e c t t h e

u t i l i z a t i o n of p r e s e n t r e s o u r c e s t o accompl ish a s p e c i f i e d

o b j e c t i v e . Every manager, by f u l f i l l i n g t h i s f u n c t i o n ,

p l a n s . P lann ing i s an i n t e g r a l p a r t of b u s i n e s s and i s

a s o l d as t h e e n t e r p r i s e i t s e l f . But a c h a r a c t e r i s t i c

o f p l a n n i n g i n e a r l y t i m e s is t h a t i t was ad hoc and

i n f o r m a l i n n a t u r e . What is new i n p l a n n i n g i s t h e

i d e a of combining and c o - o r d i n a t i n g a l l t h e no rmal ly

i n f o r m a l p l a n s of t h e e n t e r p r i s e i n t o a s i n g l e ,

i n t e r n a l l y c o n s i s t e n t program o f a c t i o n : nThe Plan*'

(Chapman Dix et a l , 1968) .

Ro%lasberg and Schene, (1985 pp 54-63) o p i n e t h a t

many of todayS most s u c c e s s f u l b u s i n e s s o r g a n i z a t i o n s

c o n t i n u e t o s u r v i v e b e c a u s e many y e a r s ago t h e y o f f e r e d t h e

r i g h t p r o d u c t a t t h e r i g h t t i m e ; t h e same c a n be s a i d

f o r non-prof i t and government o r g a n i z a t i o n s . Many

c r i t i c a l d e c i s i o n s of t h e p a s t w e r e made w i t h o u t t h e

b e n e f i t of s t r a t e g i c t h i n k i n g or p lanning . However,

p resen t -day managers i n c r e a s i n g l y r e c o g n i s e t h a t

wisdom and i n t u i t i o n a l o n e a r e n o t s u f f i c i e n t t o g u i d e

t h e d e s t i n i e s of l a r g e o r g a n i z a t i o n s i n t o d a y ' s ever -

c h a n g i n g e n v i r o n m e n t , Thus , t h e s e manage r s are t u r n i n g

t o s t r a t e g i c p l a n n i n g . S i m i l a r l y , i n e a r l i e r less dynamic

p e r i o d s i n o u r s o c i e t y , t h e p l a n n i n g s y s t e m u t i l i z e d b y

most o r g a n i z a t i o n s e x t r a p o l a t e d c u r r e n t - y e a r s a l e s and

e n v i r o n m e n t a l t r e n d s f o r 5 and 1 0 y e a r s , Based on t h e s e ,

t h e y made p l a n k , p r o d u c t , and i n v e s t m e n t d e c i s i o n s . I n

most i n s t a n c e s , t h e d e c i s i o n s w e r e f a i r l y a c c u r a t e b e c a u s e

t h e f a c t o r s i n f l u e n c i n g sales were more p r e d i c t a b l e and

t h e e n v i r o n m e n t was more s t a b l e ( D o n e l l y e t a l , 1987: 1 2 0 ) .

However, i n t h e y e a r s a f t e r World War 11, many o f t h e

f a c t o r s o n wh ich earl ier p l a n n e r s c o u n t e d c o u l d n o l o n g e r

be t a k e n f o r g r a n t e d ( i b i d p. 121)- B e f o r e t h e s e c o n d w o r l d

w a r , b u s i n e s s f i r m s l a c k e d d e f i n i t e f o r m a l l o n g - r a n g e

b u s i n e s s p l a n s , A f t e r t h e s e c o n d w o r l d w a r , c o r p o r a t e

l o n g - r a n g e p l a n n i n g o f 3 - 7 y e a r s d u r a t i o n s t a r t e d

a s s u m i n g e v e r - i n c r e a s i n g impor t ance . Comprehens ive

b u s i n e s s p l a n n i n g h e n c e c o v e r s l ong - r ange d u r a t i o n i n

t h e f o r m o f c o r p o r a t e p l a n n i n g i n v o l v i n g t h e e n t i r e

fabr ic o f t h e o r g a n i z a t i o n and i s t h e r e s p o n s i b i l i t y o f

t h e t o p m o s t management f r o m w h e r e it g e t s t o t h e r a n k

and f i l e ( E z e , 1994 ; Rosenbe rg and Schene , 1 9 9 5 ) .

It is e x p e c t e d of companies t h a t engage i n l a r g e

s c a l e o p e r a t i o n t o h a v e fo rma l long-range p l a n n i n g u n i t ,

I n t h e i r b i d t o c a p t u r e t h e m a r k e t s and r e t a i l l e a d e r s h i p

from b i g b u s i n e s s e n t e r p r i s e s s m a l l and medium s c a l e f i r m s

a l s o engage i n c o r p o r a t e p l a n n i n g , They d e v e l o p wr i *n

o b j e c t i v e s and sets of p l a n s a l o n g w i t h o t h e r p l a n n i n g

tools and t e c h n i q u e s (Longenecker i n Eze, 1994) . Most

companies i n N i g e r i a s t a r t e d d e v e l o p i n g f o r m a l c o r p o r a t e

p l a n s from t h e 1970s. T h i s is i n a c c o r d a n c e w i t h t h e i r

c o u n t e r p a r t s i n t h e h i g h l y i n d u s t r i a l i z e d c o u n t r i e s where

c o r p o r a t e p l a n n i n g i s s e e n as i n d i s p e n s a b l e t o b u s i n e s s

s u c c e s s s i n c e t h e 1960s ( i b i d p, 24). Today, t h e t a s k

of c e n t r a l management e x t e n d s w e l l beyond f i n d i n g o r

c r e a t i n g new m a r k e t s , company managers must a d j u s t t o

a l l s o r t s of i n t e r n a l and e x t e r n a l env i ronmenta l

changes , p r e d i c t t h e changes , and t h e i r impac t on

o p e r a t i o n s so a s t o e n s u r e a s u s t a i n e d i n f l o w of

r e s o u r c e s and a c o n t i n u i n g outward f l o w of s e r v i c e s

(Newman and Logan, 1976) .

T h e o r e t i c a l l y , p l a n n i n g i s s e e n a s "an embodi-

ment of u n i v e r s a l norms made o u t of r a t i o n a l c h o i c e "

(Lindbloom, 1959:83), S i m i l a r l y , A r g e n t i (1989:23) ,

and S t e i n e r and Miner (1977) a r e i n a g r e e m e n t w i t h

Oshagbemigs (1983) t h e o r e t i c a l s t a n c e which s t a tes t h a t

p l a n n i n g i s a n i n t e l l e c t u a l p r o c e s s of l o o k i n g a h e a d ,

i t s basic a i m b e i n g t o p r o v i d e an a p p r o p r i a t e f ramework

now t h a t w i l l e n s u r e t h e r e a l i z a t i o n of some g o a l s later ,

a n d t h a t it i s "a way o f l i f e " , On a more p r a c t i c a l basis ,

" s t r a t e g i c p l a n n i n g is a p r o c e s s t h a t i n v o l v e s t h e r e v i e w

of m a r k e t c o n d i t i o n s , c u s t o m e r n e e d s , c o m p e t i t i v e s t r e n g t h s

a n d weakness , s o c i o - p o l i t i c a l , l e g a l and economic c o n d i t i o n s

t e c h n o l o g i c a l d e v e l o p m e n t s and t h e a v a i l a b i l i t y o f r e s o u r c e s

t h a t l e a d t o t h e s p e c i f i c o p p o r t u n i t i e s or t h r e a t s f a c i n g

t h e o r g a n i z a t i o n , The deve lopmen t of s t r a t e g i c p l a n s

a l so i n v o l v e t a k i n g i n f o r m a t i o n from t h e e n v i r o n m e n t and

d e c i d i n g upon a n o r g a n i z a t i o n a l m i s s i o n and upon object-

i v e s , s t r a t e g i e s and p o r t f o l i o p l a n , Because c h a n g e s are

o c c u r r i n g so r a p i d l y , t h e r e is i n c r e a s e d p r e s s u r e on t o p

management t o r e spond . I n o r d e r t o r e s p o n d more a c c u r a -

t e l y , o n a more t i m e l y s c h e d u l e , and w i t h a d i r e c t i o n or

c o u r s e of a c t i o n i n mind, managers a r e i n c r e a s i n g l y t u r n -

i n g t o t h e u s e of strategic p l a n n i n g ( D o n e l l y e t a l ,

1987:121). I

he c u r r e n t h i g h l y v o l a t i l e b u s i n e s s e n v i r o n m e n t i n

N i g e r i a makes i t i m p e r a t i v e t o x-ray t h e p r a c t i c e of

c o r p o r a t e p l a n n i n g by b u s i n e s s o r g a n i z a t i o n s t o a c h i e v e

t h e d e s i r e d v i a b i l i t y . F o r H i c k s and G u l l e t (1987),

v i a b i l i t y means t h e a b i l i t y of t h e f i r m t o a d a p t or

s u r v i v e c h a n g e s i n i t s env i ronmen t . To t h i s end , t h e y

b e l i e v e t h a t f o r c h a n g e to improve t h e a d a p t a t i o n of a n

o r g a n i z a t i o n t o i t s e n v i r o n m e n t i t h a s t o m a i n t a i n a

p r o p e r p e r m u t a t i o n of t e c h n o l o g i c a l c h a n g e s i n c l u d i n g

new p r o d u c t s and p r o c e s s e s , s t r u c t u r a l c h a n g e s i n c l u d i n g

new p o l i c i e s , and human c h a n g e s i n c l u d i n g new p r o m o t i o n a l

t e c h n i q u e s or new p e r s o n n e l . F o r an o r g a n i z a t i o n t s long-

t e r m v i a b i l i t y , t h e r e i s need fo r " p e r i o d i c r e p l a c e m e n t o f

d e c l i n i n g t e c h n o l o g i e s , c o n c e r n i n g t h e m a t e r i a l and human

r e s o u r c e s of an o r g a n i z a t i o n , t h e i d e n t i f i c a t i o n o f high-

g r o w t h , h igh-marke t - share b u s i n e s s , and m a i n t a i n i n g c a s h

g e n e r a t i n g l i n e s w h i l e e l i m i n a t i n g d e t e r i o r a t i n g u n i t s n

( i b i d p. 99). I n e s s e n c e , t h e management of b u s i n e s s

o r g a n i z a t i o n s need t o m o n i t o r t h e i r e n v i r o n m e n t s i n

view of t h e f a c t t h a t b o t h r e s o u r c e s and m a r k e t s f o r

t h e i r p r o d u c t s i s s u e from t h e env i ronmen t . The a p p l i -

c a t i o n of c o r p o r a t e p l a n n i n g i n i n d u s t r i e s f i n d s j u s t i - I

f i c a t i o n i n t h e f a c t t h a t , a t l ea s t , c o r p o r a t e e x e c u t i v e s

need t o seize o p p o r t u n i t i e s i n t h e i r e n v i r o n m e n t , d e f e n d

i t a g a i n s t t h r e a t s , manage, p r e d i c t and f o r e c a s t f u t u r e

o c c u r e n c e s so a t t o c o n t i n u e i n b u s i n e s s . S i n c e o r g a n i z a -

t i o n s e x i s t w i t h i n a n e x t e r n a l e n v i r o n m e n t , t h e a d a p t a -

t i o n o f t h e o r g a n i z a t i o n t h r o u g h c o n t i n u a l i n t e r a c t i o n

w i t h t h e e x t e r n a l e n v i r o n m e n t becomes a b s o l u t e l y n e c e s s a r y .

T h u s , o r g a n i z a t i o n a l v i a b i l i t y may be c o m p l e t e l y d e p e n d e n t

o n t h e o r g a n i z a t i o n ' s a b i l i t y t o a d a p t , c h a n g e a n d r e s p o n d

t o t h e e x t e r n a l e n v i r o n m e n t (Greenwood , 1 9 6 9 ; A n s o r f , 1 9 6 5 ;

T r e w a r t h a r a n d Newpor t , 1 9 7 6 ; H i c k s a n d G u l l e t , 1 9 7 5 ) .

T h e u n p r e c e d e n t e d b u s i n e s s f a i l u r e s i n N i g e r i a

t o d a y p r o m p t i n v e s t i g a t i o n i n t o t h e r e l a t i o n s h i p b e t w e e n

c o r p o r a t e p l a n n i n g o n t h e o n e h a n d a n d b u s i n e s s v i a b i l i t y ,

or f a i l u r e s o n t h e o t h e r . T h e c o r p o r a t e p l a n n i n g a c t i v i t y is

f r a u g h t w i t h some p r o b l e m s t h a t a o u l d a f f e c t t h e v i a b i l i t y

of o r g a n i z a t i o n s (Nwachukwu 1 9 8 8 ; A k p a l a , 1 3 9 0 ; C a i d e n a n d

W i l d a v s k y , 1 9 7 4 ) . T h e p r o b l e m s c o u l d be i n s u f f i c i e n t a t t e n -

t i o n p a i d t o s t r a t e g i c p l a n n i n g , l a c k o f c l e a r - c u t o b j e c t i v e s

a s i t r e l a t e s to p l a n n i n g or l a c k of i n v o l v e m e n t o f l i n e

p e r s o n n e l i n t h e p l a n n i n g p r o c e s s ( S t e i n c r a n d M i n e r 1 9 7 7 : I

1 1 5 . T h u s , t o w h a t e x t e n t t h e p l a n n i n g p r i n c i p l e s a n d

p r a c t i c e s a r e a d h e r e d t o hy o u r c o r p o r a t e e x e c u t i v e s r e m a i n

t o be u n r a v e l l e d .

C o r p o r a t e p l a n n i n g i s f u t u r e o r i e r h t d d h o u t l o o k

a n d i s d o n e a m i d s t s c a r c i t y o f r e s o u r c e s a n d over-

whe lming d e g r e e of u n c e r t a i n t i e s i n t h e b u s i n e s s

e n v i r o n m e n t ( H i c k s and G u l l e t o p c i t ) , T h e s e a s s e r t i o n s

make i t n e c e s s a r y t o i n v e s t i g a t e t h e r e l a t i o n s h i p be tween

t h e p r a c t i c e o f c o r p o r a t e p l a n n i n g and t h e ry~mber of

b u s i n e s s f a i l u r e s , a o w r e t u r n s on i n v e s t m e n t , and loss o f

human a n d m a t e r i a l r e s o u r c e s , I n t h e c o u r s e of t h i s , w e

w i l l t r y to e s t a b l i s h how t h e a p p l i c a t i o n of c o r p o r a t e

p l a n n i n g a t t h e h i g h e s t l e v e l s o f t h e o r g a n i z a t i o n c a n

h e l p management t o d e t e r m i n e t h e l ong - run d i r e c t i o n and

p e r f o r m a n c e of t h e o r g a n i z a t i o n t h r o u g h c a r e f u l f o r m u l a t i o n ,

p r o p e r i m p l e m e n t a t i o n , and c o n t i n o u s e v a l u a t i o n o f p l a n s

and s t r a t e g i e s ,

F o r c o r p o r a t e p l a n n i n g t o s u c c e e d a number o f t e c h -

n i q u e s are employed i n t h e p r o c e s s , F o r e c a s t i n g is o n e

o f s u c h t e c h n i q u e s M c f a r l a n d , (1979) and A s t o n and

S i n i s t e r , (1977), see f o r e c a s t i n g as estimates of prob-

a b i l i t y and a tool of c o r p o r a t e p l a n n i n g which management

u s e s t o p r o j e c t i n t o t h e f u t u r e t o e n a b l e a n o r g a n i z a t i o n

t o a d a p t t o c h a n g i n g c i r c u m s t a n c e s i n i t s env i ronmen t .

T h e f u t u r i t y o f f o r e c a s t i n g may i n v o l v e some c o n s t r a i n t s

t h a t c a n a d v e r s e l y a f f e c t t h e c o r p o r a t e p l a n , k g % e need

t o i d e n t i f y t h e p o s s i b l e i m p e d i m e n t s and how t h e y a f f e c t

b u s i n e s s v i a b i l i t y ,

B u d g e t i n g t e c h n i q u e s are u s e d i n c o r p o r a t e p l a n n i n g

t o g u i d e t h e a c t i o n o f management r e g a r d i n g t h e e f f e c t s

of d e c i s i o n s t a k e n i n t h e p a s t and a series of o t h e r

f a c t o r s which may a f f e c t t h e f u t u r e p e r f o r m a n c e o f t h e

b u s i n e s s as r e g a r d s i t s o b j e c t i v e s ( B i g g 1 9 7 2 ; 6 0 ) , T h i s

r e s e a r c h w i l l e n a b l e u s t o u n e a r t h how e f f e c t i v e l y t h i s

t e c h n i q u e i s u s e d t o a c h i e v e v i a b i l i t y / l o n g term p e r f o r -

mance of t h e f i r m ,

F o r c o r p o r a t e p l a n n i n g t o work t h e r e s h o u l d be

a d e q u a t e i n f o r m a t i o n t h r o u g h r e s e a r c h and deve lopmen t

o n m a r k e t i n g , p r o d u c t i o n , t e c h n o l o g y , f i n a n c e , human

r e s o u r c e s and e n v i r o n m e n t ( D i b i a e z u e , 1984 Dona ld ,

19861 , It i s i n r e c o g n i t i o n o f t h i s f a c t t h a t t h i s

r e s e a r c h w i l l t r y t o a s c e r t a i n how e f f e c t i v e o u r b u s i n e s s

firms h a v e been i n u s i n g t h i s tool.

S i n c e t h e f o r m u l a t i o n and i m p l e m e n t a t i o n of c o r p o r a t e

p l a n s m u s t be c a r r i e d o u t by human b e i n g s , t h e r e is need

t o examine t h e n a t u r e o f a t t e n t i o n g i v e n t o t h e e x e c u t i v e s

who a r e i n c h a r g e and how t h i s a f f e c t s t h e c o r p o r a t e

9

p l a n n i n g s u c c e s s and b u s i n e s s v i a b i l i t y , Ewing,

(1972:43), b e l i e v e s t h a t " i f t h e human s i d e o f c o r p o r a t e

p l a n n i n g i s n o t a t t e n d e d t o p r o p e r l y , t h e n t h e c h a n c e s

are t h a t p l a n n i n g w i l l n o t be s u c c e s s f u l w ~ ~ .

On t h e a b o v e p r e m i s e , t h i s s t u d y desires t o e m p i r i c a l l y

e x a m i n e how c o r p o r a t e p l a n n i n g i s u s e d by N i g e r i a n b u s i n e s s

f i r m s t o fos te r t h e i r i n t e r n a l c o h e s i o n f o r t h e r e a l i z a -

t i o n o f t h e i r o b j e c t i v e s and a d j u s t m e n t t o t h e dynamics

of t h e

1 , 2

m

STATEMENT OF PROBLEM

his r e s e a r c h work s e e k s t o assess t h e p r a c t i c e o

c o r p o r a t e p l a n n i n g by t o p management so a s t o d e t e r m i n e

i t s i m p a c t o n t h e p e r f o r m a n c e / v i a b i l i t y o f b u s i n e s s

f i r m s i n N i g e r i a . T h i s i s s u e s f r o m t h e c r u c i a l i m p o r t a n c e

of c o r p o r a t e p l a n n i n g b o t h a s a t h e o r y and a n a c t i v i t y ,

I t a l s o i n v o l v e s a l o t o f u n c e r t a i n t i e s a n d complex

d e c i s i o n s t h a t a re f u t u r e o r i e n t e d , and a m u l t i p l i c i t y o f

c o m p e t i n g o r g a n i z a t i o n a l o b j e c t i v e s / v a r i a b l e s t h a t c o u l d

make p l a n n i n g elaborate, i m p r e c i s e and c h a l l e n g i n g , By I

e x t e n s i o n , t h e s t u d y w i l l t r y t o c o r r e l a t e t o p manage-

ment a t t i t u d e t o w a r d s c o r p o r a t e p l a n n i n g and i ts cons-

t r a i n t s so as t o d e t e r m i n e i t s t r e n d s and e f f e c t s on

b u s i n e s s pe r fo rmance .

A n i a g o l u (1989) a t t r i b u t e s b u s i n e s s f a i l u r e s i n

N i g e r i a t o t h e g r u d g i n g l y s e c o n d a r y p o s i t i o n i n which

p l a n n i n g i s p l a c e d by p l a n n e r s . I t i s t h e r e f o r e

s u i t e d t o t h e a im o f t h i s r e s e a r c h work t o e s t a b l i s h

w h e t h e r t h i s i s d u e t o p o o r p e r f o r m a n c e o f p l a n n e r s , or

t h e i n a b i l i t y t o p l a n a t a l l , or w h e t h e r i t e m a n a t e s

f r o m a p o v e r t y o f c o n c e p t u a l f ramework i n p l a n n i n g b a s e d

o n management a t t i t u d e , i n a d e q u a t e s k i l l and knowledge

o f t h e e n v i r o n m e n t , or d u e t o a p r o b a b l e u n c o n t r o l l a b l e

e x t r a n e o u s v a r i a b l e s i n t h e soc io -economic and p o l i t i c a l

r e a l m s , and t o a s c e r t a i n how t h e s e are h a n d l e d by manage-

ment t o a c h & e v e t h e d e s i r e d o b j e c t i v e which i s a d u r a b l e

a n d v i a b l e o r g a n i z a t i o n .

U n c e r t a i n t i e s , c o m p e t i t i o n and t u r b u l e n t b u s i n e s s

e n v i r o n m e n t are some of t h e p r o b l e m s t h a t n e c e s s i t a t e f o r

s t r a t e g i c p l a n s . Hence, t h i s s t u d y sets o u t t o compare

t h e r e l a t i o n s h i p be tween t h e u s e of f o r e c a s t i n g as a

c o r p o r a t e p l a n n i n g t e c h n i q u e and t h e a b i l i t y o f t h e f i r m

t o p r o d u c e a s u c c e s s f u l b u s i n e s s p l a n ( f i n a n c i a l , t e c h -

n o l o g i c a l , p e r s o n n e l and m a r k e t i n g p l a n s / s h a r e ) so a s t o

d e t e r m i n e w h e t h e r i t h a s a n e g a t i v e or p o s i t i v e e f f e c t

o n t h e long- te rm v i a b i l i t y of t h e f i r m .

I n a d e q u a c y o f r e s o u r c e s , p o s s i b l e wantom e x t r a -

v a g a n c e and t h e n e e d t o u t i l i z e r e s o u r c e s e f f e c t i v e l y

are some o f t h e c a r d i n a l p r o b l e m s f a c i n g management.

Thus , t h i s r e s e a r c h i n t e n d s t o c o r r e l a t e t h e r e l a t i o n s h i p

b e t w e e n b u d g e t i n g a s a c o n t r o l t e c h n i q u e o f c o r p o r a t e

p l a n n i n g and t h e a b i l i t y o f management t o e v a l u a t e pe r -

f o rmance , c o - o r d i n a t e a c t i v i t i e s , imp lemen t p l a n s ,

m o t i v a t e a n d a u t h o r i s e a c t i o n s , C o r r e s p o n d i n g l y , t h i s w i l l

f u r t h e r e n a b l e u s t o d e t e r m i n e how it a f f e c t s t h e f i rm ' s

o b j e c t i v e s / p e r f o r m a n c e wh ich i n c l u d e s h i g h r a t e of r e t u r n

o n i n v e s t m e n t , g r e a t e r m a r k e t s h a r e , i n c r e a s e d e a r n i n g s

p e r s h a r e a n d improved l i q u i d i t y ,

T h i s s t u d y a l s o d e s i r e s t o i n v e s t i g a t e c r i t i c a l l y

t h e n a t u r e and u s e o f i n f o r m a t i o n m o n i t o r i n g a n d g a t h e r i n g

a n d i t s c o n t r i b u t i o n s i n t h e p r o c e s s of c o r p o r a t e p l a n n i n g

s o a s t o a s c e r t a i n how t h e y a f f e c t p l a n n i n g a c t i v i t y and

o r g a n i z a t i o n a l v i a b i l i t y ,

T h e p r e m i e r p o s i t i o n of t h e human e l e m e n t i~ t h e

o r g a n i z a t i o n a l p r o c e s s c a n n o t be over -emphas ized , I n t h i s

v e i n , t h i s r e s e a r c h w i l l e m p i r i c a l l y examine w h e t h e r

t h e r e is a r e l a t i o n s h i p be tween t h e ro le o f t h e human

f a c t o r i n c o r p o r a t e p l a n n i n g a n d t h e n a t u r e o f r e p o r t i n g

c o n t r o l l i n g and o p e r a t i n g p r o c e d u r e s a c h i e v e d so a s t o

e n a b l e u s d e t e r m i n e i t s e f f e c t s ( n e g a t i v e or p o s i t i v e )

o n t h e s u c c e s s or f a i l u r e o f a n y c o r p o r a t e p l a n s and

b y i m p l i c a t i o n o r g a n i z a t i o n a l v i a b i l i t y / p e r f o r m a n c e ,

1.3: FORMULATION OF HYPOTHESES

I n v i e w of t h e f o r e g o i n g expose 'on s t a t e m e n t o f

p r o b l e m , a number o f h y p o t h e s e s are f o r m u l a t e d t o g u i d e ,

t h e s t u d y .

1, A t t i t u d e of t o p management t o w a r d s c o r p o r a t e

p l a n n i n g e n h a n c e s o r g a n i z a t i o n a l v i a b i l i t y ,

2, F i r m s t h a t u s e f o r e c a s t i n g t e c h n i q u e i n c o r p o r a t e

p l a n n i n g a c h i e v e g r e a t e r m a r k e t s h a r e f o r t h e i r p r o d u c t s /

s e r v i c e s .

3 , U s e of b u d g e t i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g

e n h a n c e s a n o r g a n i z a t i o n s a b i l i t y t o u t i l i z e r e s o u r c e s

more p r o f i t a b l y ,

4, A p p l i c a t i o n of i n f o r m a t i o n m o n i t o r i n g a n d g a t h e -

r i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g f o s t e r s o r g a n i z a t -

i o n a l v i a b i l i t y ,

5, T r e a t m e n t g i v e n t o c o r p o r a t e p l a n n i n g e x e c u t i v e s

e n h a n c e o r g a n i z a t i o n a l v i a b i l i t y ,

1.4: OBJECTIVES 'OF THE STUDY

The o b j e c t i v e s o f t h i s s t u d y a r e :

1. To d e t e r m i n e t h e e x t e n t t o which c o r p o r a t e

p l a n n i n g i s u s e d t o a c h i e v e o r g a n i z a t i o n a l v i a b i l i t y ,

2 , To e s t a b l i s h w h e t h e r t h e s e c o m p a n i e s e n g a g e

i n s t r a t e g i c p l a n n i n g and t o know wha t t h e ou t come is.

3, To know w h e t h e r t o p l e v e l management e n g a g e s

i n c o r p o r a t e p l a n n i n g a c t i v i t y or w h e t h e r i t d e l e g a t e s

t h i s r e s p o n s i b i l i t y and i t s c o n s e q u e n c e s .

4. TO u n c o v e r t h e c o n s t r a i n t s f a c i n g p l a n n i n g i n

b u s i n e s s o r g a n i z a t i o n s .

5. T o make c o n t r i b u t i o n s on how c o r p o r a t e p l a n n i n g

c o u l d b e u sed t o make o r g a n i z a t i o r s v i a b l e ,

1.5: SIGNIFICANCE OF THE STUDY

I n v i e w o f t h e p r e p o n d e r a n t b u s i n e s s f a i l u r e s i n

t h e c o u n t r y , t h i s s t u d y is deemed s i g n i f i c a n t b e c a u s e i t

e m p i r i c a l l y examines c o r p o r a t e p l a n n i n g a s a tool f o r

o r g a n i z a t i o n a l v i a b i l i t y . A c c o r d i n g t o C h a r l e s w o r t h

(1967:53) " r e s e a r c h a r i s e s when t h e r e are p r o b l e m s to

s o l v e , p e c u l i a r i t i e s , or p u z z l e a b o u t a phenomenon or

t h e q u e s t i o n o f a t t a c h i n g mean ings t o them". Conseq-

u e n t l y , t h i s r e s e a r c h i s i n t e n d e d t o h e l p i n d u s t r i a l

o r g a n i z a t i o n s know ways o f h a r n e s s i n g t h e human a n d

mater ia l r e s o u r c e s as w e l l as o p p o r t u n i t i e s a n d

t h r e a t s i n t h e i r e n v i r o n m e n t t o a c h i e v e t h e d e s i r e d

o r g a n i z a t i o n a l o b j e c t i v e s .

T h e c u r r e n t t u r b u l e n t e c o n o m i c e n v i r o n m e n t h a s l e d

t o many b u s i n e s s f a i l u r e s w i t h t h e a t t e n d a n t loss o f

human a n d m a t e r i a l r e s o u r c e s . T h i s r e s e a r c h w i l l t h e r e -

f o r e g o a l o n g way i n e s t a b l i s h i n g t h e e f f e c t i v e n e s s or

o t h e r w i s e of u s i n g c o r p o r a t e p l a n n i n g t o m a i n t a i n a

v i a b l e a n d d u r a b l e o r g a n i z a t i o n .

T h i s s t u d y a l s o l o o k s a t f a c t o r s m i l i t a t i n g a g a i n s t

t h e a p p l i c a t i o n of c o r p o r a t e p l a n n i n g a n d how i t c o u l d

h e c u r b e d t o a c h i e v e t h e d e s i r e d g o a l . I t i s a l so

e x p e c t e d t h a t t h i s s t u d y would be i n v a l u a b l e t o f u t u r e

s t u d i e s a n d a l s o e n r i c h t h e o r y i n t h e area o f c o r p o r a t e

p l a n n i n g .

1.6: A BRIEF HISTORY OF THE CASE COMPANIES

T h e Golden G u i n e a Breweries P l c was i n c o r p o r a t e d o n

2 6 t h S e p t e m b e r , 'I962 u n d e r t h e n m e of I n d e p e n d e n c e

B r e w e r i e s L i m i t e d b y t h e E a s t e r n N i g e r i a D e v e l o p m e n t

C o r p o r a t i o n (E.N.D.C.), t h e i n v e s t m e n t arm of t h e

Government o f t h e f o r m e r E a s t e r n R e g i o n o f N i q e r i a ,

T h e company commenced p r o d u c t i o n on t h e 1 8 t h S e p t e m b e r ,

1 9 6 3 , On 6 t h May, 1 9 7 1 , t h e company c h a n g e d i t s name

t o G o l d e n G u i n e a Breweries L i m i t e d ,

Owing t o t h e r e c o n s t i t u t i o n o f t h e c o u n t r y i n t o

s ta tes , t h e o w n e r s h i p of t h e company p a s s e d on f r o m

E a s t C e n t r a l S t a t e Government t o Imo S t a t e Government

i n 1 9 7 6 , I n 1 9 7 8 , t h e s h a r e h o l d i n g of t h e Imo S t a t e

Government was 51% a s a g a i n s t 25,5% o f t h e c o m p a n y ' s

e q u i t y i n 1983 , I t came t o 13.26% i n 1 9 9 1 , f o l l o w i n g

t h e c r e a t i o n o f Abia f r o m Imo S t a t e , T h e company

h a s a b o u t 1 7 , 0 0 0 N i g e r i a n s h a r e h o l d e r s h o l d i n g 90%

of t h e c o m p a n y ' s e q u i t y ; t h e r e m a i n i n g 10% o f t h e

c o m p a n y ' s e q u i t y i s h e l d by C o u t i n h o , C a r o a n d Company

( c .C ,c. ) o f Hamburg, Germany.

T h e o r g a n i z a t i o n a l s t r u t u r e d e p i c t s a t y p i c a l

B u r e a u c r a t i c o r g a n i z a t i o n w i t h h i e r a r c h i c a l o f f i c e s

a n d c h a i n o f command r a n g i n g f r o m t h e Board of d i r e c t o r s

t o t h e o p e r a t i v e s , T h e Board of d i r e c t o r s a t t h e a p e x

are r e s p o n s i b l e f o r c e r t a i n k i n d s o f p o l i c y f o r m u l a t i o n z n d ,

i n i t i a t i o n , T h e G e n e r a l Manager a l o n g w i t h o t h e r

c a t e g o r i e s o f l i n e m a n a g e r s a r e r e s p o n s i b l e f o r c o r p o r a t e

p l a n s , s t r a t e g i c p o l i c y f o r m u l a t i o n a n d d e c i s i o n -

making . T h e l i n e m a n a q e r s a r e m a n a g e r s f o r t h e

d e p a r t m e n t s o f f i n a n c e , m a r k e t i n g , p e r s o n n e l , e n g i n e e r i n g ,

p r o d u c t i o n , a c c o u n t s , a n d a d m i n i s t r a t i . o n .

G o l d e n G u i n e a Breweries p r o d u c e s G o l d e n G u i n e a

L a r g e r Beer a n d malt d r i n k s .

L e v e r B r o t h e r s N i g e r i a P l c (HC113) i s t h e l o n g e s t

Brewing m a n u f a c t u r i n g o u t f i t i n N i g e r i a . I t was

i n c o r p o r a t e d a s a p r i v a t e company i n 1 9 2 3 t o m a n u f a c t u r e

s o a p s b a s e d o n local p a l m o i l . T h e company h a s s t r e n q h -

e n e d i t s f o o t h o l d i n t h e f o o d a n d d r i n k s b u s i n e s s by

m e r g i n g w i t h L i p t o n N i g e r i a L i m i t e d i n J u l y , 1985, a n d

a l s o m e r g e d w i t h C h e s e b r o u g h p r o d u c t s I n d u s t r i e s L i m i t e d

i n December, 1988 t o become a g a i n t i n p e r s o n a l p r o d u c t s

b u s i n e s s .

S i x t y p e r c e n t (60%) of t h e c o m p a n y ' s e q u i t y i s h e l d

b y N i g e r i a n c i t i z e n s a n d i n s t i t u t i o n s , w h i l e t h e r e m a i n -

n i n g 40% i s h e l d b y U n i l e v e r O v e r s e a s H o l d i n g s ~ i m i t e d ,

L i p t o n T e a Company L i m i t e d , a n d C h e s e b r o u g h - p o n d s

I n t e r n a t i o n a l L i m i t e d .

T h e company h a s a direct s t a f f s t r e n g h t o f 2 ,024

e m p l o y e e s i n i t s t h r e e f ac to r i e s a t Apapa, Aba, A q b a r a

a n d v a r i o u s d e s t r i b u t i o n p o i n t s t h o u g h o u t t h e c o u n t r y .

T h e Company ' s o r g a n i z a t i o n a l s t r u c t u r e i s t h e same a s

t h a t o f G o l d e n G u i n e a e x c e p t t h a t i t h a s b r a n c h m a n a g e r s

m a n a g e r s i n i t s t h r e e f a c t o r i e s w i t h a n o t h e r c h a i n

o f command, However, m a j o r c o r p o r a t e p l a n n i n g d e c i s i o n s ,

s t r a t e g i c p o l i c y f o r m u l a t i o n a n d i m p l e m e n t a t i o n a r e made

a t Apapa, t h e h e a d q u a r t e r s of t h e company,

T h e p r o d u c t s o f t h e company are, s o a p s l i k e Omo,

S u n l i q h t , k e y , Ox b a r , Lux, b r e e z , L i f e b u o y , Ox powder ,

a n d a s t r a l ; p e r s o n a l p r o d u c t s s u c h a s close up, p e p s o d e n t ,

v a s e l i n e a n d p a r d s , O t h e r s a r e b l u e b a n d , p l a n t a , tree

t o p e.t.c.

T h e Aluminium E x t r u s i o n I n d u s t r i e s , I n y i s h i Imo

S t a t e , was i n c o r p o r a t e d o n t h e 2 9 t h o f December, 1987 ,

I t w e n t i n o t f u l l o p e r a t i o n on t h e 4 t h J a n u a r y , 1988 ,

I t w a s owned by t h e Imo S t a t e Government b u t was l a t e r

p r i v a t i z e d i n 1991. I t i s p r e s e n t l y managed by t h e

I n d i a n s .

U n l i k e L e v e r B r o t h e r s P l c a n d G o l d e n G u i n e a

B r e w e r i e s , Aluminium E x t r u s i o n I n d u s t r i e s d o e s n o t h a v e

a n e l a b o r a t e o r g a n i z a t i o n a l s t r u c t u r e . However , t h e

c h a i n o f command a n d h i e r a r c h i c a l a r r a n g e m e n t are t h e

same,

Aluminium E x t r u s i o n I n d u s t r i e s p r o d u c e s a w i d e

r a n g e of Aluminium p r o d u c t s i n c l u d i n g f r a m e s for

windows a n d d o o r s ,

Imo S t a t e B u i l d i n g and I n v e s t m e n t Company is a

small o u t f i t p r e s e n t l y owned by t h e Imo S t a t e

Government , I t was e s t a b l i s h e d i n 1984 b u t was r e a c t i -

v a t e d i n 1 9 9 1 a f t e r c o l l a p s i n g i n 1988,

T h e company i s h i e r a r c h i c a l l y s t r u c t u r e d w i t h t h e

b o a r d o f d i r e c t o r s a t t h e a p e x f o l l o w e d by o t h e r

c a t e g o r i e s o f l i n e and s t a f f manage r s down t o t h e

o p e r a t i v e s , The G e n e r a l Manaqer /Chie f E x e c u t i v e a l o n g w i t h

t h e l i n e manage r s f o r t h e d e p a r t m e n t s of Bank ing , E s t a t e ,

T r e a s u r y , A d m i n i s t r a t i o n , Accoun t s , M a r k e t i n g and p e r s o n n e l

a r e r e s p o n s i b l e f o r t h e c o r p o r a t e $ p l a n s , , s t r a t e q i c p o l i c y

f o r m u l a t i o n and dec i s i on -mak ing ,

The B u i l d i n g and I n v e s t m e n t company d e a l s i n m o r t g a g e

b u s i n e s s and r e t a i l b a n k i n g , I t i s a l s o d e s i g n e d t o meet

t h e h o u s i n g / f i n a n c i a l n e e d s o f low and m i d d l e i ncome e a r n e r s

I t i s c u r r e n t l y w e a t h e r i n g t h r o u g h t h e t u r b u l e n t economic

s i t u a t i o n i n t h e c o u n t r y .

1 - 7 : DEFINITION OF TERMS

1, C o r p o r a t e p l a n n i n g , s t r a t e g i c p l a n n i n g , l ong - t e rm

p l a n n i n g - T h e s e are u s e d i n t e r c h a n g e a b l y t o mean t h o s e

b u s i n e s s p l a n s t h a t u s u a l l y s p a n f o r a p e r i o d o f 3 - 7

y e a r s o r sometimes 5 - 10 y e a r s ,

2. O r g a n i z a t i o n a l v i a b i l i t y : R e f e r s t o t h e a b i l i t y

o f a f i r m t o s u c c e e d / a d a p t t o c h a n g i n g c i r c u m s t a n c e s i n

i t s e n v i r o n m e n t w h i l e s a t i s f y i n g t h e i n t e r e s t o f i t s

members. I n t e r n a l v i a b i l i t y r e f e r s t o t h e a b i l i t y of t h e

f i r m t o i m p r o v e t e c h n o l o g i c a l l y , m o t i v a t e , s a t i s f y and

r e c r u i t h i g h ca l ibre p e r s o n n e l . E x t e r n a l v i a b i l i t y refers

t o i n c r e a s e d p r o f i t , g r e a t e r m a r k e t s h a r e , h i g h r e t u r n s on

i n v e s t m e n t and s u c c e s s f u l i n t r o d u c t i o n of new p r o d u c t s .

3. B u s i n e s s f i r m s , o r g a n i z a t i o n s , companies : These

a r e u s e d i n t e r c h a n g e a b l y t o r e f e r to f o r m a l o r q a n i z a t i o n s

t h a t a t e r e s p o n s i b l e f o r t h e p r o d u c t i o n of goods and

s e r v i c e s . 4. Management: T h e s e a r e emp loyees of t h e company

who r e p r e s e n t t h e p r o p e r t y i n t e r e s t o f t h e owners. They

a r e t h e s e n i o r s t a f f o f t h e company who a r e t h e c r u c i a l

d e c i s i o n makers.

5. O r g a n i z a t i o n a l r e s o u r c e s : T h e s e are t h e human

a n d m a t e r i a l r e s o u r c e s l i k e money, equ ipmen t , t i m e ,

s k i l l s , i d e a s and raw m a t e r i a l s n e c e s s a r y f o r e f f i c i e n t

and e f f e c t i v e work pe r fo rmance .

6. O r g a n i z a t i o n a l e f f e c t i v e n e s s : i s t h e e x t e n t t o

w h i c h an o r g a n i z a t i o n as a s o c i a l s y s t e m , q i v e n c e r t a i n

r e s o u r c e s and means, f u l f i l s i t s o b j e c t i v e s w i t h o u t

i n c a p a c i t a t i n g i t s means and r e s o u r c e s and w i t h o u t

p l a c i n g u n d u e h a r d s h i p upon i t s members.

7, I n d u s t r y : T h i s i s a g roup of f i r m s i n s imi la r /

r e l a t e d l i n e s of b u s i n e s s . An e x a m p l e i s t h e b a n k i n g

i n d u s t r y t h a t comprise a w i d e r a n g e of b a n k l i k e

commercial, m o r t g a g e , m e r c h a n t a n d d e v e l o p m e n t b a n k s

emtmc .

CHAPTER TWO

LITERATURE R E V I E W

2.1: OVERVIEW OF CORPORTE PLANNING

C o r p o r a t e p l a n n i n g i s a s y s t e m a t i c p r o c e s s f o r

d e c i d i n g w h a t are t h e h a l f - d o z e n d e c i s i o n s t h a t a n

o r g a n i z a t i o n m u s t make i n o r d e r t o p r o s p e r o v e r t h e

t h e n e x t f e w y e a r s ( A r g e n t i ; 1 9 8 6 pp, 22-3). C o r p o r a t e

p l a n n i n g i s n o t c o n c e r n e d w i t h how t o p r e s e r v e t h e f u t u r e

b e c a u s e n o o r g a n i z a t i o n is a s s u r e d o f t h e f u t u r e , b u t t o

e n r i c h t h e p r e s e n t (Rwing, 1 9 7 2 : 4 4 ) S i m i l a r t o t h i s

d e f i n i t i o n i s t h a t o f Oshagbemi ( 1 9 8 3 : 2 ) who o p i n e s t h a t

c o r p o r a t e p l a n n i n g is a n i n t e l l e c t u a l p r o c e s s o f l o o k i n g

ahead, i t s basic a i m b e i n g t o p r o v i d e a n a p p r o p r i a t e

f r a m e w o r k now t h a t w i l l e n s u r e t h e r e a l i z a t i o n of some

g o a l s l a t e r .

T h e above p o s t u l a t i o n s u n c o v e r t h e f u t u r i s t i c

p o s t u r e o f c o r p o r a t e p l a n n i n g , T h i s , o f c o u r s e is a

h a n d i c a p p a n d c o u l d e v e n f o r e s t a l l t h e g o o d i n t e n s i o n s

f o r w h i c h p l a n n i n g was meant . T h i s i s m o r e s o i n a n

u n s t a b l e , t u r b u l e n t a n d p e r p h e r a l economy s u c h a s t h a t

o f N i g e r i a w i t h n o s o l i d t e c h n o l o g i c a l a n d s c i e n t i f i c

base. A q a i n , A r g e n t i t s d e f i n i t i o n i s s l i g h t l y o u t o f

f o c u s b e c a u s e h e claims t h a t p l a n n i n g is i n t e n d e d t o

e n r i c h t h e p r e s e n t ,

B u t w e a l l know t h a t t h e o b j e c t i v ~ o f p l a n n i n g i s t o e n a b l ~ a

u s d e t e r m i n e w h a t t h e p r e s e n t s i t u a t i o n i s , w h a t i t s h o u l d

b e , a n d w h a t m u s t b e done . I n o t h e r w o r d s , s t r a t e g i c - p l a n n i n g i s s i m p l y d e c i d i n g i n a p v a n c e wha t w i l l b e a c h i e v e d ,

how i t w i l l b e a c h i e v e d a n d when i t w i l l b e a c h i e v e d d e s p i t e

t h e u n c e r t a i n t i e s of t h e f u t u r e .

C o r p o r a t e p l a n s may h e a d j u d q e d by t h e e x t e n t t o w h i c h

i t s i n t e n s i o n s h z v e b e e n a c h i e v e d t h a t i s , a series o f I p r e d i c t i o n s come t r u e . When s u c h i n t e n s i o n s a r e n o t r e a l i z e d

i t would be c l a s s i f i e d a s a f a i l u r e a n d h a v e t o b e r e a p p r a -

i s e d ( G i l m o r e a n d B r a n d e n b u r g , 1962 ). T h e i d e a s h e r e

s t n s i t i z e u s t o t h e f a c t t h a t s t r a t e g i c p l a n n i n g i s a

c o n t i n e o u s s y s t e m a t i c a p p r o a c h t o s t r a t e q i c d e c i s i o n w h i c h

i s a i m e d a t a b r o a d e r i n t e r n a l s p e c t r u m o f t h e o r g a n i z a t i o n

v i s - a - v i z i t s e x t e r n a l e n v i r o n m e n t .

T h e u l t i m a t e g o a l of c o r p o r a t e p l a n n i n q i s t o e n s u r e

t h e v i a b i 1 i i . y of t h e b u s i n e s s e n t e r p r i s e . T o a c h i e v e t h i s , I t h e r e s h o u l a b e a b a l a n c e i n t h e r e l a t i o n s h i p b e t w e e n t h e I

i n t e r n a l a n d e x t e r n 6 1 v a r i a b l e s of t h e o r g a n i z a t i o n . T h i s I

I I

s h o u l d dlsc i n c l u d e t h e c o n t r i b u t i o n s o f t h e s h a r e h o l d e r s I

of t h e e n t e r p r i s e . I

C a i d e n a n d W i l d a v s k y ( 1 9 7 4 : 2 7 6 ) c o r r o b o r a t e d t h i s v i e w b y

s a y i n g t h a t i n d e l i n e a t i n g t h e l imi t so f a p l a n t h e o p e n i o n

o f t h e i n t e r e s t g r o u p s o r o w n e r s o f t h e company m u s t be

g i v e n u t m o s t c o n s i d e r a t i o n as i n most cases p l a n n e r s a r e

mere t e c h n i c i a n s who a s s e m b l e s e v e r a l p r o c e d u r e s f o r t h e

p u r s u i t o f t h e h i d d e n a g e n d a s o f s u c h i n t e r e s t . E g b u c h e ,

( 1 9 9 0 : 2 3 ) , c l a i m s t h a t t h e e s s e n c e o f t h e a b o v e c a l l s f o r

a a l e a r u n d e r s t a n d i n g o f t h e r ea l p u r p o s e f o r w h i c h i t w a s m e a n t r a t h e r t h a n a p r i o r i j u d g e m e n t f r o m afar . H e I

e x t e n d e d t h e a n a l y s i s b y s a y i n g t h a t a p l a n m i q h t n o t

n e c e s s a r i l y be i n t e n d e d t o b e s o c i a l l y r e s p o n s i b l e

i n s t e a d , i t c o u l d be d e s i g n e d t o w a r d s t a k i n g a d v a n t a g e s

o f a d e c a d e n t a n d r e c a l c i t r a n t b u s i n e s s e t h i c s i n a s o c i e t y .

What m a t t e r s i n t h i s c a s e i s t h e q o a l a n d n o t t h e p r o c e s s .

T h e r e f o r e , t h e m e a s u r e of t h e s u c c e s s o f a p l a n d e p e n d s on

w h o s e p l a n w e h a v e i n mind.

T h e e s s e n c e o f e n s u r i n g t h a t t h e i n t e r e s t o f t h e

o w n e r s of t h e b u s i n e s s a r e t a k e n i n t o c o n s i d e r a t i o n is

t h a t i t w i l l h e l p t o g u a r d a g a i n s t u n r e a s o n a b l e a s s u m p t i o n s

t h a t w i l l l e a d t o f a u l t y s u b s t a n d a r d p l a n s .

S t e i n e r a n d M i n e r ( 1 9 7 7 : 92-3) f u r t h e r d e f i n e d c o r p o r a k e

p l a n n i n g as t h a t w h i c h d e a l s w i t h t h e f u t u r i t y o f c u r r e n t

d e c i s i o n s . T h i s means t h a t l o n g - r a n g e p l a n n i n g l o o k s a t

t h e c h a i n of cause -and-e f f ect c o n s e q u e n c e s over t i m e of

a n a c t u a l o r a n i n t e n d e d d e c i s i o n t h a t a m a n a g e r i s g o i n s

t o make. S e c o n d l y , t h e y dc . f ined c o r p o r a t e p l a n n i n g as a I

p r o c e s s t h a t b e o i n s w i t h t h e d e v e l o p m e n t o f o b j e c t i v e s , I I

d e f i n e s s t r a t e g i e s a n d p o l i c i e s t o a c h i e v e o b j e c t i v e s ,

and d e v e l o p s d e t a i l e d p l a n s t o make s u r e t h a t t h e

s t r a t e g i e s a r e c a r r i e d o u t t o a c h i e v e t h e o b j e c t i v e s ,

They a l so g a v e a t h i r d p h i l o s o p h i c a l d e f i n i t i o n of

c o r p o r a t e p l a n n i n g a s "a way o f l i f e t h a t c a l l s f o r a

p r o p e r c l i m a t e i n t h e e n t e r p r i s e t o e n h a n c e i t s f o r m u l a t i o n ,

The f o u r t h and f i n a l d e f i n i t i o n i s t h a t i t i s a s t r u c t u r e

o f p l a n s t h a t i n t e g r a t e s s t r a t e g i c w i t h s h o r t - r a n g e o p e r -

a t i o n a l p l a n s , T h i s s t r u c t u r e i n t e g r a t e s a t a l l l e v e l s

m a j o r o b j e c t i v e s , s t r a t e g i e s , p o l i c i e s , and f u n c t i o n s of

a n e n t e r p r i s e ,

The a b o v e d e f i n i t i o n s a p p e a r t o be a l l encompass ing .

They d o n o t d i f f e r much f rom t h a t o f many o t h e r s c h o l a r s

l i k e Hussey ( 2 9 7 1 : 6 ) ; C s a z e , ( 1991 :32 ) ; T a y l o r and

Macmi l l an , (1973:256) ; Knoontz et a l , ( 2987 :161 ) ;

T r e w a r t h a and Newport , (1976:90). W e may a g r e e t h a t e a c h

o f t h e d e f i n i t i o n s h a s i t s own s h o r t c o m i n g s , F o r i n s t a n c e ,

some a r e p a r o c h i a l , , o t h e r s s t a g a t i o n i s t o r . u n i n t e g r a t e d w h i l e

o t h e r s a r e tao academic , and y e t some are v e r y myopic.

T h e s e s h o r t c o m i n g s n o t w i t h s t a n d i n g some common e l e m e n t s

c u t a c r e s s a l l o f them. T h e s e i n c l u d e o b j e c t i v e s and

p r i o r i t i e s t o be p u r s u e d , u s i n g a n a c c e p t a b l e a p p r o a c h

t o p l a n , d e f i n i n g t h e t i m e s p a n o f t h e p l a n , f o r e c a s t i n g

t h e f u r t u r e , t h e c o l l e c t i o n and a n a l y s i s o f d a t a , making

o f d e c i s i o n s , t h e d e t e r m i n a t i o n of r e s o u r c e s needed and

t h e c o - o r d i n a t i o n o f p l a n s ,

An e x a m i n a t i o n of t h e v a r i o u s e l e m e n t s or s t e p s g i v e n

by wri ters r e v e a l s t h a t some f a c t o r s are r e c u r r e n t , They ' I

i n c l u d e t h e i d e n t i f i c a t i o n and s p e l l i n g o u t o f t h e

prob l ems which p l a n n i n g aims t o s o l v e , and t h e

c o l l e c t i o n and a n a l y s i s o f t h e i n f o r m a t i o n as w e l l as

d a t a r e l a t e d t o t h e problems. Under t h i s comes t h e

a c t i o n of f o r e c a s t i n g , w e i g h i n g of a l t e r n a t i v e s o l u -

t i o n s t o t h e p rob l ems and a c h o i c e of t h e s o l u t i o n ,

o t h e r w i s e known a s d e c i s i o n by wh ich o r g a n i z a k i o n a l g o a l s

o r o b j e c t i v e s a r e d e t e r m i n e d ( A k p a l a 1990:42) ,

R e g a r d l e s s o f t h e t h e o r e t i c a l , a n a l y t i c a l o r c o n c e p t u a l

s t a n c e f rom which p l a n n i n g i s v iewed , t h e o v e r r i d i n q I

p h i l o s o p h y and p i v o t upon which c o r p o r a t e p l a n n i n g s h o u l d

be h i n g e d i s t h a t o f e n s u r i n g t h c o r g a n i z a t i o n a l v i a b i l i t y

o r e f f e c t i v e n e s s . C a i d e n and Wi ldavsky (1974:273) a t t e s t e d

t o t h e f a c t t h a t a good p l a n s h o u l d be s y s t e m a t i C r a t h e r

t h a n random, e f f i c i e n t r a t h e r t h a n w a s t e f u l , c o - o r d i n a t e d

r a t h e r t h a n h e 1 t e r - s k e l t e r , c o n s i s t e n t r a t h e r t h a n c o n t r a -

d i c t o r y and a b o v e a l l r a t i o n a l r a t h e r t h a n u n r e a s o n a b l e ,

L indbloom (1959:83) i s a l s o o f t h e same v i e w t h a t p lann-

i n g is "an embodiment o f universal norms made o u t o f

r a t i o n a l cho i ce t ' , T h i s shows t h a t c o r p o r a t e p l a n n i n g is

n e i t h e r s e l f - g e n e r a t i n g n o r s e l f - p r o p e l l i n g . Thus , t h e

r a t i o n a l p r o c e s s r e q u i r e s t h a t e a c h of t h e v a r i a b l e s

i n v o l v e d b e g i v e n i t s d e s i r e d a t t e n t i o n .

No m a t t e r how w e l l i n t e n t i o n e d or r a t i o n a l a

p l a n m i g h t t r y t o be, some m e a s u r e o f i r r a t i o n a l i * ~

m u s t c r e e p i n t o it. F o r i n s t a n c e , t h e a c t i v i t y of

p l a n n i n g m i g h t b e c o l o u r e d by t h e p l a n n e r s v a l u e judge- , I I

m c n t s , s e n t i m e n t s , i n d i v i d u a l i d i o s y n c r a c i e s , p e r s o n a l I

i n t e r e s t s o r o v e r - a m b i t i o n w i t h t h e i r a t t e n d a n t conseq-

uenc es .

S i n c e t h e i m p o r t a n c e of p l a n n i n g l i es i n h e l p i n g

t h e manager t o r e d u c e t h e u n c e r t a i n t y and r i s k a s s o c i -

a t e d w i t h t h e f u t u r e , and t h e e f f e c t i v e p e r f o r m a n c e o f

t h e o t h e r management f u n c t i o n s , o n e c o u l d l o g i c a l l y a r g u e

t h a t t h i s e f f o r t i s c o - t e r m i n o u s w i t h e f f i c i e n c y or v i a b i l i t y , I n t h i s r e g a r d , C a i d e n and Wi ldavsky ( o p c i t

p. 2 7 ) s t a t e d t h a t W i e w i n g p l a n n i n g as e f f i c i e n c y would

mean a v o i d i n g d u p l i c a t i o n , o v e r l a p p i n g and r edundancy

wh ich u s u a l l y c u l m i n a t e i n t h e w a s t a g e of e f f o r t s and

r e s o u r c e s which o t h e r w i s e would be u s e d more e f f e c t i v e l y

f o r o t h e r p u r p o s e s , E f f i c i e n c y i n t h i s c a s e would be

measu red i n terms of t h e ou tcome of t h e r a t i o o f i n p u t

t o o u t p u t v a r i a b l e , and as t h e y re la te to t h e o b j e c t i v e

which t h e y a r e meant fo r ,

F o r Koontz et a1 (19871, a good c o r p o r a t e p l a n n i n g

s h o u l d be p r e m i s e d o n t h e p e r c e i v e d b e n e f i t t h a t a c c r u e

from it. Thus t h e costs s h o u l d be measured i n b o t h

r e l a t i v e and a b s o l u t e terms, The r e l a t i v e a s p e c t c a n

e a s i l y be e x p r e s s e d i n q u a n t i t a t i v e terms w h i l e t h e

a b s o l u t e term r e q u i r e s a more c a r e f u l q u a l i t a t i v e and

l o g i c a l a n a l y s i s o f i s s u e s . They f u r t h e r e x t e n d e d t h e

a n a l y s i s b y s a y i n g t h a t a b s o l u t e term s e e k s t o d e t e r m i n e

w h e t h e r t h e cost o f c u r r e n t p r o c e d u r e s and p r o c e s s e s c a n

b e r educed . On t h e o t h e r hand , t h e r e l a t i v e p e r s p e c t i v e

s t r i v e s f o r t h e f o r m u l a t i o n o f a p l a n t h a t c o u l d raise

t h e morale and o v e r a l l p r o d u c t i v i t y of t h e work. F o r I

i n s t a n c e , Egbuche (1990:27) is of t h e v i e w t h a t t h e 1 r e l a t i v e p e r s p e c t i v e c o u l d a d d r e s s i s s u e s l i k e : would

a s u d d e n c o m p u t e r i z a t i o n of a d e p a r t m e n t a n d t h e sub-

s e q u e n t l a y - o f f o f l o n g s e r v i n g p e r s o n n e l n o t c r e a t e

a s e n s e o f i n s e c u r i t y among w o r k e r s ? Could t h i s deve lopment

n o t r e s u l t i n h i g h employee t u r n o v e r , s a b o t a g e of t h e newly

i n s t i t u t e d i n f o r m a t i o n sys t em, l o w m o r a l e and o t h e r n e g a t i v e

i n f l u e n c e s which c o u l d r e d u c e p r o d u c t i v i t y ? Could s u c h a

f a l l o u t n o t d e f e a t t h e o r i g i n a l g o a l of c o m p u t e r i z a t i o n ?

Egbuche ' s r e s e a r c h c o n c l u d e d t h a t t h e r e l a t i v e terms a r e

c o n c e r n e d w i t h t h e q u a l i t a t i v e i m p l i c a t i o n s o f p l a n n i n g .

I n s i g h t f u l as Koontz e t a 1 and Egbuche ' s a n a l y s i s a r e ,

t h e y a r e more i n t h e r e a l m of i n t e l l e c t u a l c o n s t r u c t and

a l s o u n i d i r e c t i o n a l . The v i e w s a r e r e g a r d e d a s i n t e l l e c -

t u a l c o n s t r u c t b e c a u s e i n r e a l l i f e t h e r e i s n o s u c h t h i n g

a s measurement o f t h i n g s i n a b s o l u t e terms. I t i s a l s o

u n i d i r e c t i o n a l i n t h e s e n s e t h a t i f t h e i s s u e o f r e l a t i v i t y

comes i n t o p l a y , i t means t h a t c e r t a i n f a c t s wh ich c o u l d be

i n t e r n a l o r e n v i r o n m e n t a l a r e l e f t o u t .

2.2: FORECASTING

F o r e c a s t i n g is t h e hub o f e v e r y p l a n n i n g a c t i v i t y

w h e t h e r i t i s l o n g , s h o r t or medium ranged . I t is t h e

estimate of p r o b a b i l i t y , e s s e n t i a l l y estimates of t h e way

i n which l a r g e numbers of human b e i n g s , e a c h o f whom i s

endowed w i t h f r e e w i l l a r e l i k e l y t o b e h a v e i n t h e f u t u r e .

They r e l y o n t h e l aw o f l a r g e numbers i n so f a r as t h e y

a s sume t h a t i f some p e o p l e c h a n g e t h e i r minds i n o n e

d i r e c t i o n , o t h e r p e o p l e w i l l c h a n g e t h e i r s i n a n o t h e r

d i r e c t i o n ( A s t o n and S i n i s t e r , 1970: 19) . S i n c e d e c i s i o n s

b y management o f t e n h a v e long- te rm e f f e c t s i t is i m p o r t a n t

t h a t t h e y s h o u l d be b a s e d upon a t r u e u n d e r s t a n d i n g of t h e

p a s t w i t h a l o g i c a l estimate of t h e f u t u r e b o r d e r i n g on

p rob lems or o p p o r t u n i t i e s t o b e e x p l o i t e d . T y p i c a l

q u e s t i o n s t h a t t h e management must c o n s i d e r i n f o r e c a s t i n g

a r e : wha t c h a n g e s i n t h e b u s i n e s s e n v i r o n m e n t w i l l be

e x p e r i e n c e d from now u n t i l t h e c o r p o r a t e p l a n i s a c h i e v e d ,

a n d what p r o b l e m s a n d / o r o p p o r t u n i t i e s w i l l t h e s e b r i n g ?

What c h a n g e s i n t h e a b i l i t i e s and s t r u c t u r e o f t h e company

w i l l h a v e t a k e n p l a c e o v e r t h i s same t ime-span? A r e t h e s e

e x t e r n a l and i n t e r n a l c h a n g e s f u l l y t a k e n i n t o a c c o u n t i n

t h e company 's l ong - t e rm o b j e c t i v e s ? ( B i g g , 1972:263) ,

One is c o n s t r a i n e d t o s h a r e t h e a b o v e views i n t h e

s e n s e t h a t any o r g a n i z a t i o n t h a t f o r e c a s t s o n some of t h e s e

v a r i a b l e s is a t l eas t s u r e t o r e m a i n af loat up to a r e a s o n -

a b l e d e g r e e , T h i s i s i n v i e w o f t h e f a c t t h a t f o r e c a s t i n g

i n v o l v e s a p r o j e c t i o n and t h e making o f d e c i s i o n s t h a t a r e

f u t u r e o r i e n t e d and a l s o t h a t g u i d e s managements ' a c t i o n on

t h e e f f e c t s o f p a s t d e c i s i o n s and o t h e r i s s u e s t h a t c a n

a f f e c t t h e o b j e c t i v e s and f u t u r e p e r f o r m a n c e o f t h e b u s i n e s s

( A s t o n and S i n i s t e r op , c i t ) ,

S t a n t o n (1981 : 5 l 2 ) , i s o f t h e v i e w t h a t " t h e c o r n e r -

s t o n e o f a s u c c e s s f u l m a r k e t i n g p l a n n i n g (o r b u s i n e s s

p l a n n i n g a s t h e case may be) i n a f i r m i s t h e measurement

a n d f o r e c a s t i n g of m a r k e t d e m a n d n , ( f o r a company's p r o d u c t ) .

I n d i s p u t a b l y , i t i s r a t i o n a l t o b e l i e v e t h a t a f i r m c a n

g u i d e a g a i n s t t h e mismanagement o f human and material

r e s o u r c e s i f i t c a n d e t e r m i n e ahead of t i m e t h e n a t u r e and

l e v e l o f demand f o r i t s p r o d u c t s and s e r v i c e s . I n t h i s

v e i n a lso , T a y l o r and M a c M i l l a n 1 s , ( 1 9 7 3 ) f i n d i n g s show

t h a t c o r p o r a t e p l a n n e r s f o r e c a s t t h e soc io-economic ,

p o l i t i c a l and t e c h n o l o g i c a l e n v i r o n m e n t so t h a t t h e y c a n

d e c i d e wha t t o p r o d u c e , when to p r o d u c e it, how much t o I

I be p roduced , wha t to i n v e s t and how much l a b o u r t h a t i s I

r e q u i r e d ,

Commenting on market forecasts and whether strategic

objectives should be based first of all on marketing,

Ewing(1972:46) argues that this is an "unpopular" question

these days, One of the best established ideas in modern

planning is that businessmen should look first and foremost

to trends in the marketplace when they decide what goals

and objectives to achieve. Ewing believes that this idea

has come to be so fervently believed and supported, in

fact, that questioning it is like questioning motherhood

or virtue; the air at planning meeting is full of clear,

unqualified commandments and creeds such as these (each

from a leading authority):

"Business planning starts with marketing planning..,.

Planning.,.depends on our ability to predict the

shape of things to come...

Planning (must) begin with...an analysis of

potential customers for the organization's output.,,.

Ewing(ibid) however claims that in corporate planning a

company's strengths and resources must also be taken into

account - but as a kind of check or constraint on what market analyses suggest, not as a guiding consideration, The

emphasis is on finding a market that is exceptionally good,

and then seeing if the company's abilities qualify it for

that market,

Ewingls submission implies the indispensable role that

marketing forecasts can play in ensuring the viability of 1

a firm despite its shortcomings that can hamper the reali- I I 1

zation of the aims and objectives of corporate plans, I

A number of other scholars like McFarland,(l979);

Longnecker,(l969:131-3); Lorange and Vanci1,(1977:40);

Hutchison,(1971); Imaga,(1994); and Bigg,(1972) in their

various works/researches inferred that forecasting is a

- -

cr i t ica l e l e m e n t i n t h e p l a n n i n g p r o c e s s a n d t h a t i t

h e l p s t o p r e d i c t t r e n d s i n t h e g e n e r a l e c o n o m i c

c o n d i t i o n s a n d e n s u r e s t h a t t h e o r g a n i z a t i o n r e m a i n s

a f l o a t i n t h e face o f t u r b u l e n c e . Some o t h e r s c h o l a r s l i k e

Greenwood, (1969:17); M o c k l e r (1972:-11-12) ; a n d Ackof f

i n M o c k l e r ( i b i d p , 5 5 ) , a l so b e l i e v e t h a t t h e r e is a n

i n t e r t w i n i n g r e l a t i o n s h i p b e t w e e n f o r e c a s t i n g , d e c i s i o n

making a n d p l a n n i n g . F o r i n s t a n c e , p l a n n i n g a n d f o r e -

c a s t i n g d e p e n d on t h e n e e d t a c h o o s e o u t o f a number o f

d e c i s i o n s t h e best c o u r s e of a c t i o n t o t a k e i n t h e f u t u r e .

W h a t e v e r d e c i s i o n s t h a t a r e t o be t a k e n p e r t a i n i n g

t o c o r p o r a t e p l a n n i n g , v i s - a - v i z f o r e c a s t i n g , w i l l owe

much t o f a c t s t h a t a r e c o n t a i n e d i n t h e d a t a base on t h e

p a s t p e r f o r m a n c e o f t h e company, i t s c u r r e n t s i t u a t i o n

a n d f u t u r e p r o s p e c t s . Data a b o u t t h e past p e r f o r m a n c e

o f t h e company c o v e r t h i n g s l i k e sales, p r o d u c t i v i t y ,

p r o f i t , r e t u r n on i n v e s t m e n t a n d m a r k e t i n g s y s t e m s among

o t h e r t h i n g s . Data o n t h e c u r r e n t s i t u a t i o n w o u l d

c o v e r i s s u e s l i k e g o v e r n m e n t r e g u l a t i o n s , c o m n e t i t i o n ,

f i n a n c i a l p o s i t i o n b f t h e company, c o n s t i t u e n t demands ,

m a r k e t s h a r e , e v a l u a t i o n s of m a n a g e r i a l a n d e m p l o y e e

s k i l l s a n d v a r i o u s m e a s u r e s of e f f i c i e n c y l i k e sales

p e r e m p l o y e e , p l a n t u t i l i z a t i o n a n d i n v e s t m e n t per

employee . D a t a or f o r e c a s t f o r t h e f u t u r e c o v e r s

matters l i k e m a r k e t , s a l e s a n d o t h e r e c o n o m i c cond-

t i o n s , S u r v e y - r e s e a r c h t y p e f o r e c a s t s c o v e r t h i n g s

l i k e p o s s i b l e c h a n g e s i n s o c i a l v a l u e s , t e c h n o l o g y ,

p o l i t i c s and p o l l u t i o n s t a n d a r d s . A n o t h e r t y p e of

f o r e c a s t i s t h e economic t y p e f o r e c a s t which c o v e r

m a i n l y s a l e s . Techno logy f o r e c a s t s d e a l w i t h c h a n g e s

i n t e c h n o l o g y and a s i t i s l i k e l y t o be a d o p t e d by

c o m p e t i t o r s . F o r e c a s t s on s o c i a l v a l u e s p r o j e c t s

how i t is l i k e l y t o a f f e c t t h e company i n t h e f u t u r e

( M o c k l e r op. c i t ) . O ' T o o l e et a1 (19731 , and T e r k c k y j

( 1 9 7 0 ) d e f i n e s o c i a l i n d i c a t o r s f o r e c a s t s as 9 n e a s u r e s

o f phenomena a s s o c i a t e d w i t h q u a l i t y o f l i f e s u c h a s

p e r s o n a l s a f e t y , m e d i c a l c a r e and d i f f e r e n t p o l l u t i o n s .

Knowledge and a p p l i c a t i o n o f t h e a b o v e i s s u e s

c a n be i n d i s p u t a b l y i n d i s p e n s a b l e i n e n h a n c i n g t h e

v i a b i l i t y and o b j e c t i v e s o f b u s i n e s s f i r m s . T h i s is

t o g a i n c o n t r o l o f i n t e r n a l and o t h e r e n v i r o n m e n t a l

i s s u e s .

2.3: BUDGETING

A b u d g e t i s s i m p l y a n e s t i m a t e o f p r o b a b l e f u t u r e

i ncome and e x p e n d i t u r e made by a p r i v a t e p e r s o n g o v e r -

nment or a n o r g a n i z a t i o n . H i c k s and G u l l e t ( 19751 ,

o p i n e t h a t I t c o r p o r a t e p l a n n i n g p r o c e s s makes u s e of

b u d g e t i n g t e c h n i q u e s t o p r o t e c t and g u i d e manage r s

f r o m wantorn e x t r a v a g a n c e i n t h e f a c e of e x t r e m e g r o s s

i n a d e q u a c y of r e s o u r c e s . I t i s a c o n t r o l d e v i c e and

t h e key t o p l a n n i n g T t .

Being a c o n t r o l d e v i c e , a b u d g e t s e r v e s t h e f u n c t i o n

of e v a l u a t i n g p e r f o r m a n c e , c o - o r d i n a t i n g a c t i v i t i e s ,

i m p l e m e n t i n g p l a n s , commun ica t i ng , m o t i v a t i n g and

a u t h o r i z i n g a c t i o n s ( H o r n g r e e n and F o s t e r , 1988 :139 ) ,

T h e i m p o r t a n c e o f b u d g e t i n g wh ich c o v e r s s a l e s

b u d g e t , c a p i t a l e x p e n d i t u r e b u d q e t , e x p e n s e s b u d g e t a n d

p h y s i c a l b u d q e t i s t h a t i t c o u l d i n f u s e i n management

a c o n s c i o u s a t t i t u d e towards g r o w t h , e f f e c t i v e c o n t r o l

o v e r c e r t a i n f u n c t i o n s , e c o n o m i c a l u s e o f r e s o u r c e s and

e f f e c t i v e c o n t r o l and c o - o p e r a t i o n o f p e r s o n n e l , Thus ,

t h e e f f e c t i v e u s e of b u d g e t i n g t e c h n i q u e s m i g h t g o a

l o n g way i n f a c i l i t a t i n g t h e e f f o r t o f management a t

a c h i e v e i n g a v i a b l e o r g a n i z a t i o n .

T h e r e i s sometimes a t e n d e n c y f o r b u d g e t i n q

c o n t r o l t o o p e r a t e whe re t h e r e i s l i t t l e or n o a t t e m p t

t o s p e c i f y l ong - t e rm a ims , I n t h i s s i t u a t i o n t h e

b u d g e t may be n o more t h a n a n a n t i c i p a t i o n o f t h e e f f e c t s o f

d e c i s i o n s made i n t h e p a s t and v a r i o u s o t h e r f a c t o r s

w h i c h are l i k e l y t o i n f l u e n c e t h e p e r f o r m a n c e o f t h e

h u s i n e s s , The d e c i s i o n s t h e m s e l v e s may w e l l havr b e e n

made on a piecemeal b a s i s w i t h o u t s e e k i n g t o c o - o r d i n a t e

a l l a c t i v i t i e s t o a c h i e v e a g i v e n o b j e c t i v e . C o r p o r a t e

p l a n n i n g s e e k s t o ove rcome t h i s weaknes s by d e t e r m i n i n g

t h e o b j e c t i v e s o f t h e b u s i n e s s and d e v e l o p i n g p l a n s

d e s i g n e d t o a c h i e v e t h o s e o b j e c t i v e s , The p r i n c i p a l

o b j e c t i v e w i l l b e t o i n c r e a s e p r o f i t s a s measured f o r

i n s t a n c e by r e t u r n on c a p i t a l employed, o r e a r n i n g s p e r

o r d i n a r y s h a r e , b u t t h e r e w i l l b e s u b s i d i a r y o b j e c t i v e s

s u c h a s m a i n t a i n i n g and i m p r o v i n g p r o d u c t q u a l i t y , o b t a -

i n i n g a d o r m i n a n c e i n t h e m a r k c t f o r t h e company ' s p r o d u c t s ,

making better u s e o f r e s o u r c e s o f c a p i t a l , management and

w o r k e r s ( B i g g , 1972:261).

I n a r e s e a r c h c a r r i e d o u t by Egbuche ( 1 9 9 0 ) on

w h e t h e r t h e u s e o f b u d g e t i n g t e c h n i q u e i n c r e a s e s t h e

d e q r e e o f m a r k e t comprehens ion and m a r k e t s u c c e s s an

o r g a n i z a t i o n e n j o y s , h e i n f e r r e d t h a t t h e r e i s n o

r e l a t i o n s h i p b e t w e e n t h e two. H e r a t h e r c o n c l u d e d t h a t t h e

e x t e r n a l v i a b i l i t y o f t h e beer i n d u s t r y depended s i g n -

i f i c a n t l y on e x t e r n a l v a r i a b l e s o u t s i d e t h e c o n t r o l o f

t h e f i r m .

A l though E g b u c h e ' s f i n d i n g s a re i n s i g h t f u l , b u t

m e t h o d o l o g i c a l l y i t i s w l i s h l y d e f i c i e n t . T h i s i s

b e c a u s e o f t h i s l o p s i d e d t r e a t m e n t o f b u d g e t i n g o n l y

a s a tool f o r s h o r t - t e r m p l a n n i n g . A l s o , t h e u s e t o f

b u d g e t i n g t o m e a s u r e t h e d e g r e e o f m a r k e t comprehens ion

i s n o t o n l y i n a p p r o p r i a t e b u t a l s o i n s u f f i c i e n t . R a t h e r ,

f o r e c a s t i n g s h o u l d h a v e b e e n more i n c l u s i v e . To f u r t h e r

e l u c i d a t e , b u d g e t i n g t e c h n i q u e s a r e u s e d i n corporate

p l a n n i n g t o g u i d e t h e a c t i o n o f management r e g a r d i n g t h e

e f f e c t s of d e c i s i o n s t a k e n i n t h e p a s t and a seris o f o t h e r

f a c t o r s which may a f f e c t t h e f u t u r e p e r f o r m a n c e of t h e

b u s i n e s s a n d a s i t a f f e c t s i t s o b j e c t i v e s ( B i g g , 1 9 7 2 :

6 0 ) .

2.4 INFORMATION - S i n c e t h e o r q a n i z a t i o n i s i n c o n s t a n t i n t e r a c t i o n w i t h

I

i t s e n v i r o n m e n t fo r r e s o u r c e s a n d m a r k e t f o r i t s p r o d u c t s ,

i t is t h e r e f o r e i m p e r a t i v e t o s t u d y a n d m o n i t o r t h e

e n v i r o n m e n t fo r p o s s i b l e c h a n g e s , D o n a l d (19861, a d d u c e d

t h a t " f o r a n o r g a n i z a t i o n a l c o r p o r a t e p l a n n i n g t o be

e f f e c t i v e a n d a c h i e v e i t s d e s i r e d objectives m a n a g e r s

m u s t h a v e c o n s t a n t access t o i n f o r m a t i o n c o n c e r n i n g t h e

o r g a n i z a t i o n ' s o p e r a t i o n s on t h e p r o g r e s s b e i n g made

t o w a r d s g o a l s , how many p e o p l e t h a t a r e r e q u i r e d , amoun t

o f money i n v o l v e d , a n d t h e r e s u l t s a c h i e v e d ; t h e r e s h o u l d

a l s o b e i n f o r m a t i o n c o n c e r n i n g t h e o r g a n i z a t i o n t s

e n v i r o n m e n t " , I n f o r m a t i o n r e q u i r e d f o r t h e e n v i r o n m e n t

w i l l p e r t a i n t o t h e s t a t e of t h e economy, t e c h n o l o g y ,

p o l i t i c s a n d l a w , a v a i l a b l e r e s o u r c e s a n d c u s t o m s o r c l i e n t s .

C o r r e s p o n d i n g l y , H i c k s a n d G u l l e t ( 1 9 7 5 ) r e c o g n i s e d t h e I

i m p o r t a n c e of e f f e c t i v e i n f o r m a t i o n g a t h e r i n g from t h e

e n v i r o n m e n t a s c a p a b l e of h e l p i n g t h e o r g a n i z a t i o n t o p l a n

e f f e c t i v e l y a n d meet t h e demands o f c h a n q i n g c i r c u m s t a n c e s , I

T h e c i r c u m s t a n c e s i n v o l v e d h a v e t o b e a n a l y s e d i n r e l a t i o n I I i

t o t h e o r g a n i z a t i o n t s m i s s i o n , o b j e c t i v e s , s t r a t e g i e s a n d

p o r t f o l i o p l a n s w i t h t h e u l t i m a t e a i m of e n s u r i n g t h e

o r g a n i z a t i o n 's v i a b i l i t y ,

Nwachukwu (1988), p o i n t s t o t h e f a c t t h a t there i s

d e a r t h o f i n f o r m a t i o n a v a i l a b i l i t y i n N i g e r i a w h i c h i n t u r n

a f f e c t s p l a n n i n g a c t i v i t y , I t i s a l so p o s s i b l e t h a t t h i s

a f f e c t s b u s i n e s s v i a b i l i t y . However f o r c o r p o r a t e

p l a n n i n g t o work , t h e r e s h o u l d be a d e q u a t e i n f o r m a t i o n

t h r o u g h r e s e a r c h a n d d e v e l o p m e n t o n m a r k e t i n g , p r o d u c t i o n ,

t e c h n o l o g y , f i n a n c e a n d human r e s o u r c e s ( D i b i a e z u e , 1 9 8 4 ) .

H i c k s a n d G u l l e t (1987) stressed t h a t " s i n c e o r g a n i z a t i o n s

d o n o t h a v e n a t u r a l m e m o r y o t h e r t h a n t h e mcrnory of i n d i v i d u a l s

w i t h i n i t a n d b e a r i n q i n mind t h a t i n d i v i d u a l s come a n d q o

i n t h e o r q a n i z a t i o n , i t becomes i m p e r a t i v e t o h a v e a w e l l

d e s i q n e d i n f o r m a t i o n * ' .

Embeded i n t h e a b o v e a s s e r t i o n i s t h e i d e a t h a t t h e

n a t u r e o f s t r a t e q i c p l a n n i n g i s s u c h t h a t management h a s

t o p l a n o r g a n i z a t i c m a l r e s o u r c e s a n d select c o u r s e s of

a c t i o n f o r t h e f u t u r e w h i l e c o l l a t i n g a n d c o l l e c t i n g

i n f o r m a t i o n o n t h e i n t e r n a l a n d e x t e r n a l o p p o r t u n i t i e s

a n d c o n s t r a i n t s t o e n s u r e t h e v i a b i l i t y o f t h e o r g a n i z a -

t i o n . T h u s f o r a p l a n t o be e f f e c t i v e , t h e r e h a s t o be

a n e f f e c t i v e i n f o r m a t i o n s y s t e m o n t h e i n t e r n a l a n d

e x t e r n a l e n v i r o n m e n t t h a t c a n e n a b l e manaqernent t o p l a n

w e l l . I n h i s r e s e a r c h f i n d i n g s , E q b u c h e , ( 1 9 9 0 ) r e c o q -

n i s e d t h e ro le a n i n f o r m a t i m s y s t e m c a n p l a y i n assis-

t i n g t h e b u s i n e s s t o c o p e w i t h t h e v a g a r i e s i n t h e

e n v i r o n m e n t . H e t h u s e m p h a s i z e d t h e n e e d t o m o n i t o r

a n d c o l l a t e i n f o r m a t i o n c o n c e r n i n g t h e b u s i n e s s .

2.5: THE HUMAN aIuk, ur Lunrv,,,.,, . - .

Accord ing t o W r a p p t s ( i n Ewing, 1972:43) r e s e a r c h

f i n d i n q s , " t h most s e r i o u s o b s t a c l e t o long - r anqe

p l a n n i n g i s n o t so much t h e d r a i n on manaqement t i m e , t h e

a c t u a l p r o b l e m s of d o i n g qood p l a n n i n g , or t h e d a n g e r o f

r e v e a l i n g company s t r a t e g y , as i t i s t h e s u b t l e , b u t

o c c a s i o n a l l y open o p p o s i t i o n o f some e x e c u t i v e s which

a p p e a r s i n t h e e a r l y s t a g e s of t h e deve lopmen t@.

Wrapp ' s f i n d i n g s a r e by i m p o r t i n d i c a t i v e o f t h e i n v a -

l u a b l e ro l e t h e human f a c t o r c a n p l a y t o w a r d s t h e r e a l i z -

a t i o n of c o r p o r a t e p l a n n i n g o b j e c t i v e s however , e m p h a s i s

a p p e a r s t o be less i n t h i s d i r e c t i o n . I n t h i s r e g a r d ,

Ewing ( o p c i t ) , q u e r i e s "on ly do w e o v e r l o o k t h e human

s i d e i n p l a n n i n g when w e d o n o t i n o t h e r a s p e c t s o f

manaqement? I n m a r k e t i n g , o v e r t h e y e a r s , c o n s i d e r a b l e

a t t e n t i o n h a s been g i v e n t o s u c h t o p i c s a s s a l e s m a n ,

m o t i v a t i o n ; i n p r o d u c t i o n w e h a v e a r i c h f u n d o f know-

l e d g e of g r o u p dynamic ; i n t h e l i t e r a t u r e on c o n t r o l t h e r e

h a s l o n q been q e n e r o u s r e c o g n i l i o n of t h e human r e l a t i o n s

d imens ion , Y e t i n p l a n n i n g , which a l s o is p e r m e a t e d by

q u e s t i o n s o f o r g a n i z a t i o n a l b e h a v i o u r t h e * 'people p rob lems"

a re omi t t ed" .

I n v i ew of t h e f a c t t h a t t h e formulation and impleme-

n t a t i o n o f c o r p o r a t e p l a n s must be c a r r i e d o u t by human

b e i n g s t h e r e i s need t o x- ray how t h e p l a n n i n g e x e c u t i v e s

a r e t r e a t e d and i t s e f f e c t s on t h e c o r p o r a t e p l a n n i n g

s u c c e s s and b u s i n e s s v i a b i l i t y , One i s a l so c o n s t r a i n e d

d .

t o s u b s c r i b e t o E w i n g t s v i e w s t h a t i f b u s i n e s s p l a n n e r s

c o u l d a n t i c i p a t e how d i f f e r e n t k i n d s o f r e p o r t i n g ,

b u d q e t i n g , c o n t r o l l i n g , and o p e r a t i n g p r o c e d u r e s would

a f f e c t b e h a v i o u r , t h e y would t h e n be a b l e to p l a n w i t h

g r e a t e r s k i l l and s o p h i s t i c a t i o n . I n o t h e r words ,

p l a n n i n g is a two-s ided a f f a i r , P l a n n e r s may o n l y be

c o n c e r n e d w i t h t h e f o r m a l , economic , p h y s i c a l r e s o u r c e s

s i d e when t h e y d e v e l o p a p rogram, b u t t h e o t h e r s i d e - I

t h e human s i d e - is p r e s e n t j u s t t h e same, If t h e human

s i d e i s n o t a t t e n d e d t o p r o p e r l y , t h e n t h e c h a n c e s a r e

t h s t p l a n n i n g w i l l n o t be s u c c e s s f u l ( i b i d p 4 4 ) .

2.6 THE PkOCLSS OF CORPORATE PLANNING

The p r o c e s s of c o r p o r a t e p l a n n i n g h a s much r o l e t o

p l a y i n d e t e r m i n i n g t h e s u c c e s s or o t h e r w i s e o f any

o r g a n i z a t i o n , T h e r e i s n o u n i f o r m f o r m a t f o r c o r p o r a t e

p l a n s f o r a l l compan ie s , T h a t o f a s m a l l company i s

l i k e l y t o d i f f e r f r o m t h a t of a l a r q e company. Some

a l s o a p p l y t o a c e n t r a l i z e d , d e c e n t r a l i z e d , and

d i v i s i o n a l i z e d companies .

S t e i n e r and Miner (1977) a r e o f t h e v i ew t h a t

p l a n n i n g i s much less f o r m a l i n small compan ie s t h a n i n

l a r g e ones . They f u r t h e r c l a i m t h a t smaller compan ie s

d o n o t h a v e t h e r e s o u r c e s t o be a s t h o r o u g h a s l a r g e r

compan ie s , Amonq a l l companies , however , t h e t h o u q h t

p r o c e s s o f l o n g - r a n g e p l a n n i n g a r e s i m i l a r , I n t h e

same v e i n , P a t z (1975) i s of t h e v i ew t h a t t h e

30

p r o c e d u r e s f o l l o w e d i n f o r m a l p l a n n i n g are t h e same a s

t h o s e p r e s c r i b e d i n t h e s c i e n t i f i c method. T h e s t r a t e q i c

p l a n n i n q p r o c e s s h a s f o u r c h a r a c t e r i s t i c s . I n t h e f i r s t

i n s t a n c e , i t i s t h e p l a c e w h e r e d e c i s i o n s o f t h e h i g h e s t

s i q n i f i c a n c e c o n c e r n i n g t h e b a s i c t h r u s t a n d d i r e c t i o n

o f t h e company a r e d e t e r m i n e d a n d t h e m a j o r a p p r o a c h e s t o

p r o c e e d i n g a l o n g t h e l i n e s set a re d e c i d e d . S e c o n d l y ,

t h e t i m e s p e c t r u m c o v e r e d r a n g e s f r o m t h e v e r y s h o r t r a n g e

t o i n f i n i t y . T h i r d l y , i n s n i t e o f t h e f a c t t h a t t h e

p r o c e s s may p r o d u c e a w r i t t e n document on a p e r i o d i c

b a s i s , s u c h a s o n c e a y e a r , t h e p r o c e s s i s a c o n t i n o u s

a c t i v i t y o f t o p management. I n o t h e r w o r d s , t o p manaqement

c a n n o t d e v e l o p a s t r a t e g i c p l a n o n c e a y e a r a n d f o r q e t

s t r a t e g y i n t h e mean t i m e , F o u r t h l y , t h e r e s u l t s o f

s t r a t e g i c p l a n n i n g , as c o m p a r e d w i t h medium-range a n d

s h o r t - r a n q e p l a n n i n g , a r e n o t n e a t l y i n c o r p o r a t e d i n a

p r e s c r i b e d fo rm, S t r a t e g i c p l a n n i n g c o v e r s a n y e l e m e n t

o f t h e b u s i n e s s t h a t i s i m p o r t a n t a t t h e t i m e o f a n a l y s i s

a n d e m b o d i e s d e t a i l s t h a t a r e o f s u f f i c i e n t s c o p e a n d

d e ~ t h t o p r o v i d e t h e n e c e s s a r y b a s i s f o r i m p l e m e n t a t i o n

( S t e i n e r and Miner op. c i t . p a 941,

we c o u l d d e d u c e f r o m t h e f o r e g o i n g t h a t s t r a t e g i c

p l a n n i n q i s t h e e x c l u s i v e p r e s e r v e o f t o p manaqement t o

d e c i d e on how t o move t h e o r g a n i z : t : i o n f o r w a r d , A l s o f o r

i t t o work t h e t i m e d i m e n s i o n t h a t i t c o v e r s s h o u l d be

s p e c i f i e d w h i l e t o p management s h o u l d e n g a q e i n o c c a s . i o n a 1

r e v i e w o f t h e p l a n s t o e n s u r e t h a t i t i s i n t u n e w i t h t h e

demands o f c h a n q i n g b u s i n e s s e n v i r o n m e n t . F o r t h i s t o

w o r k , t h e s t r a t e g i c p l a n n i n g p r o c e d u r e s h o u l d be f l e x i b l e

a n d a m e n a b l e i n c o n t e n t t o s u i t a n y e x i g e n c y . I

L t r a t e g i c p l a n n i n g a s p e c t o f t h e company-wide

p l a n n i n g p r o c e s s i n c l u d e s matters l i k e t h e s i t u a t i o n a u d i t ,

e x p e c t a t i o n s o f t h e m a j o r o u t s i d e i n t e r e s t s , e x p e c t a t i o n s

o f major i n s i d e i n t e r e s t s a n d t h e d a t a b a s e ( i b i d p. 9 5 ) .

T h e s i t u a t i o n a u d i t t a k e s c a r e of t h e e v a l u a t i o n a n d I

i d e n t i f i c a t i o n o f i n f o r m a t i o n t h a t c o u l d be u s e d i n d e c i s i o n

making. I t i s a l so i m p o r t a n t t o n o t e t h a t f o r a company to b e

v i a b l e i t h a s t o c o n s i d e r t h e i n t e r e s t e x p e c t a t i o n s of

t h e major i n s i d e a n d o u t s i d e i n t e r e s t s o r g r o u p s t h a t are

i n t e r e s t e d i n t h e o r g a n i z a t i o n i n a d d i t i o n t o i t s s h o r t -

r a n g e p r o f i t m a x i m i z a t i o n o b j e c t i v e , E q u a l l y , a g o o d

c o r p o r a t e p l a n n i n g s h o u l d be a b l e t o d r a w from t h e d a t a

b a s e a n d make t h e n e c e s s a r y e v a l u a t i o n s r e q a r d i n g t h e

c o m p a n y ' s o p p o r t u n i t i e s a n d t h r e a t s , s t r e n g t h s a n d weak-

n e s s ,

T h e p r o c e s s o f c o r p o r a t e p l a n n i n g c a n a l so t a k e a n y

o f t h e f o l l o w i n g f o u r f o r m s . I t c o u l d t a k e t h e top-down

a p p r o a c h , T h i s is u s u a l l y a d o p t e d b y c e n t r a l i z e d c o m p a n i e s .

I t c o u l d a l s o t a k e t h e bo t tom-up a p p r o a c h i n w h i c h t h e

t o p management r e q u i r e s t h e d i v i s i o n a l m a n a g e r s t o

s u b m i t t t h e i r p l a n s f o r c o n s i d e r a t i o n . T h e r e i s a l s o a

form t h a t i s a m i x t u r e of top-down a n d bo t tom-up w h i c h i s

$

u s u a l l y a d o p t e d by most l a r g e d e c e n t r a l i z e d companies .

The t eam-approach a d o p t e d i n t h e c o r p o r a t e p l a n n i n g p r o c e s s

i n v o l v e s t h e u s e o f main l i n e m a n a g e r s a s s t a f f i n deve-

1 o p i n g f o r m a l p l a n s .

I t i s s a i d t h a t o n e o f t h e most d i f f i c u l t p r o b l e m s

i n i n d u s t r y t o d a y w i t h r e s p e c t t o f o r m a l p l a n n i n g c o n c e r n s

how t h e p r o c e s s is o r g a n i z e d and n u r s u e d ( S t e i n e r , 1 9 6 9 ) .

W h a t e v e r be t h e casF r e g a r d i n g t h e modus o n e r a n d i o f t h e

p l a n n i n g p r o c e s s t h e i m p o r t a n t t h i n g i s t h a t e a c h o f t h e

a c t o r s i n t h e p l a n n i n g a c t i v i t y s h o u l d a d h e r e t o t h e

p r i n c i p l e s .

F o r f u r t h e r e l u c i d a t i o n , A r g e n t i ( l 9 8 9 : 2 7 ) d i v i d e d

c o r p o r a t e p l a n n i n g i n t o t e n s t a q e s v i z ,

( i ) Forming t h e p l a n n i n g t eam t o t a k e c a r e o f c o r p o r a t e

p l a n n i n g .

( i i) D e t e r m i n i n g c o r p o r a t e o b j e c t i v e s a n d t a r g e t s .

( iii) F o r e c a s t i n g l i k e l y p e r f o r m a n c e o f t h e company i n

o r d e r t o c o m p a r e t h e t a r g e t w i t h t h e f o r e c a s t t o

r e v e a l a n y gap.

( i v ) A p p r a i s a l of t h e s t r e n g t h s a n d w e a k n e s s o f t h e

company i n terms o f w h a t o b t a i n s i n t h e

i n d u s t r y a n d i n v i r o n m e n t .

( v ) D e t e r m i n e t h r e a t s and o p p o r t u n i t i e s .

( v i ) I d e n t i f y a l t e r n a t i v e s t r a t e q i e s .

( v i i ) S e l e c t s t r a t e g i e s .

( v i i i ) E v a l u a t e s e l e c t e d s t r a t e g i e s .

(ix) L e v e l o p s a c t i o n p l a n s t o know who w i l l d o w h a t ,

how, w h e r e , when and why.

( x M o n i t o r a n d c o n t r o l t h e p l a n ,

I n t r y i n g t o d e v e l o p c o r p o r a t e p l a n n i n g f o l l o w i n g

t h e a b o v e s e q u e n c e , t h r e c t y p e s o f d a t a a re n e e d e d t o

d e v e l o p i t s main t h r u s t w h i c h a r e t h e c o r p o r a t e o b j e c t i v e

o f t h e f i r m , i t s i n t e r n a l s t r e n g t h s a n d w e a k n e s s e s , a n d

i t s t h r e a t s a n d o p p o r t u n i t i e s . F u r t h e r m o r e , t h e u n i q u e -

n e s s of e a c h o r g a n i z a t i o n d e t e r m i n e s w h i c h c o r p o r a t e

p l a n n i n g p r o c e s s f i t s i t better. S u c h u n i q u e f a c t o r s

t h a t c o u l d i n f l u e n c e t h i s p r o c e s s are t h e o r g a n i z a t i o n ' s

management s t y l e a n d p h i l o s o p h y , i t s s c o p e o f o p e r a t i o n ;

t h e n a t u r e o f i t s b u s i n e s s e n v i r o n m e n t w h i c h c o u l d be

h o s t i l e o r f a v o u r a b l e , t h e s i z e a n d o r g a n i z a t i o n a l

p a t t e r n o f t h e company.

2.7: CORPORATE PLANNING AND ORGANIZATIONAL VIABILITY

A b u s i n e s s o r g a n i z a t i o n d o e s n o t e x i s t i n a vacuum.

I t e x i s t s i n a n e n v i r o n m e n t w h e r e i t i s i n a s t a t e of

c o n t i n u o u s i n t e r a c t i o n w i t h p e o p l e and o t h e r o r g a n i z a -

t i o n s . T h e e x t e r n a l e n v i r o n m e n t c o u l d be t u r b u l e n t ,

h o s t i l e , d i v e r * r e s t r i c t i v e , s t a b l e o r t e c h n i c a l l y

complex . Also t h e i n t e r n a l s t a t e of t h e o r g a n i z a t i o n a l l

h a v e much r o l e t o p l a y i n r e l a t i o n t o t h e o p p o r t u n i t i e s

a n d t h r e a t s t h a t a r e o p e n t o t h e b u s i n e s s f i r m . I t a l s o

d e t e r m i n e s t h e n a t u r e o f q o o d s a n d s e r v i c e s t h a t t h e

@ r g a n i z a t i o n w i l l p r o v i d e t o t h e e n v i r o n m e n t a n d how

v i a b l e t h e o r g a n i z a t i o n w i l l be. T h e s e c e n t r i f u g a l a n d

c e n t r i p e t a l forces t h a t t e n d t o p u s h a n d p u l l t h e o r g a n i -

z a t i o n c o n c u r r e n t l y make i t i m p e r a t i v e f o r manaaement

t o u s e c o r p o r a t e p l a n n i n g , a s c o u l d be s e e n from t h e

f o r e q o i n g , t o a d d r e s s some i s s u e s ,

I t c o u l d a l s o be i n f e r r e d f r o m t h e f o r e g o i n g l i te ra-

t u r e t h a t c o r n o r a t e p l a n n i n g h e l p s t o p manaqernent t o

d i s c h a r g e i t s r e s p o n s i b i l i t i e s e f f i c i e n t l y . F o r e x a m p l e

b y t r y i n g t o r e m a i n i n b u s i n e s s a n d s t i l l be a b l e t o

meet t h e demands o f i t s i n t e r n a l a n d e x t e r n a l env i ronm-

e n t , c o r p o r a t e p l a n n i n g e n a b l e s management t o a s k i t s e l f

s u c h q ~ e ~ i ~ ~ a s : w h a t i s t h e o r c j a n i z a t i o n ' s basic m i s s i o n

a n d p u r p o s e ? who are o u r c o m p e t i t o r s a n d w h a t a re t h e i r

s t r a t e g i e s l i k e ? w h a t new p r o d u c t l i n e s d o we n e e d a n d w h e r e

c a n we f i n d m a r k e t f o r them7 w h a t a re t h e l i k e l y o p p o r -

t u n i t i e s a n d t h r e a t s t h a t w i l l face o u r b u s i n e s s ? w h a t

a r e o u r o b j e c t i v e s a n d s t r a t e a i e s t h a t c a n be u s e d t o

a c h i e v e them? However, t h e r a p i d c h a n q i n g c i r c u m s t a n c e s

o f t h e e n v i r o n m e n t c a n r e n d e r n u q a t o r y a n i n i t i a l l y

v a l i d a n s w e r s t o t h ~ s e q u e s t i o n s . It i s t h u s a t t h i s

j u n c t u r e t h a t i t becomes i m p e r a t i v e t o e x a m i n e t h e e f f e c t

o f c o r p o r a t e p l a n n i n g on o r q a n i z a t i o n a l v i a b i l i t y .

H i c k s a n d G u l l e t ( 1975 ) , assert t h a t o r g a n i z a t i o n a l

v i a b i l i t y c o u l d be i n t e r n a l w h i c h h a s t o d o w i t h t h e

s a t i s f a c t i o n of m a j o r i n s i d e i n t e r e s t s : i m p r o v e d t e c h n o -

l o q y , job m o t i v a t i o n , q o o d i n t e r p e r s o n a l r e l a t i o n s h i p ,

j o b s a t i s f a c t i o n a n d t h e r e c r u i t m e n t of h i q h c a l i b r e

$ e r s o n n e l , T h e e x t e r n a l v i a b i l i t y c o u l d c o m p r i s e

i n c r e a s e d p r o f i t , g r e a t e r m a r k e t s h a r e , i n c r e a s e d g r o w t h

r a t e of s c l e s , h i q h r e t u r n s on i n v e s t m e n t a n d a s u c c e s s f u l

i n t r o d u c t i o n o f new p r o d u c t s . I n o t h e r w o r d s , H i c k s a n d

G u l l e t a r e o f t h e v i e w t h a t a v i a b l e o r g a n i z a t i o n i s

o n e w h i c h s u c c e e d s i n i t s e n v i r o n m e n t w h i l e s a t i s f y i n g

i t s members. They a l s o c l a i m t h a t c h a n g e c a n i m p r o v e

t h e a d a p t a t i o n of a n o r g a n i z a t i o n i f i t c a n h a v e a p r o p e r

mix o f t h e f o l l o w i n g : t e c h n o l o g i c a l c h a n g e s i n c l u d i n g

new p r o d u c t s a n d p r o c e s s e s ; s t r u c t u r a l c h a n g e s i n c l u d i n g

new p o l i c i e s a n d p r o c e d u r e s ; a n d human c h a n g e s i n c l u d i n g

new p r o m o t i o n a l t e c h n i a u e s or new p e r s o n n e l , To them, a n

o r g a n i z a t i o n s l o n g t e r m v i a b i l i t y r e q u i r e s t h e r e p l a c e -

men t o f d e c l i n i n g t e c h n o l o q i e s a n d t h e m a t e r i a l a n d

human r e s o u r c e s of t h e o r q a n i z a t i o n , i d e n t i f y i n g h i q h

q r o w t h , h i g h - m a r k e t - s h a r e b u s i n e s s ; m a i n t a i n i n g c a s h

g e n e r a t i n g l i n e s w h i l e e l i m i n a t i n g A e t e r i o r c i t i n q u n i t s ( H i c k s a n d

G u l l e t , l 9 8 7 : 9 9 ) .

I m p l i e d i n t h e a b o v e p a r a d i g m i s t h a t t h e

v i a b i l i t y o f a n o r g a n i z a t i o n i s d e p e n d e n t o n i t s a b i l i t y

t o m a i n t a i n a c o n d u c i v e , s t a b l e , i n t e g r a t e d a n d s y n e r q i s -

t i c r e l a t i o n s h i p b o t h i n t e r n a l l y a n d e x t e r n a l l y , I m p l i e d

a l s o i s t h a t s i n c e c o r p o r a t e p l a n n i n g i n v o l v e s some

f u n d a m e n t a l p r e c e p t s t h a t a r e b a s e d o n r a t i o n a l c a l c u l a -

t i o n , t h e c h a n c e s a r e t h a t a n o r q a n i z a t i o n m i g h t

c o - o r d i n a t e t h e a b o v e factors better 2nd a s s u c h t h r i v e

w e l l , S i m i l a r l y , H i c k s a n d G u l l e t ( 1 9 7 5 ) p o s i t t h a t

c o r p o r a t e p l a n n i n g is e f f i c a c i o u s f o r o r q a n i z a t i o n a l

v i a b i l i t y . C o r p o r a t e p l a n n i n g does t h i s b y s e t t i n q

g o a l s , o b j e c t i v e s , s t r a t e g i e s , p r o c e d u r e s , m e t h o d s , p r o -

grammes a n d r u l e s r e q u i r e d i n g u i d i n g t h e c o m b i n a t i o n a n d

u t i l i z a t i o n of o r g a n i z a t i o n ' s human, money a n d m a t e r i a l

r e s o u r c e s f o r f u t u r e t i m e s p a n s ( A k p a l a 1 9 9 0 : 3 ) .

Commenting o n t h e strategic f a c t o r s i n v o l v e d i n

b u s i n e s s s u c c e s s , Cohn a n d L i n d b e r g ( 1 9 7 4 : 5 ) c l a i m t h a t t h e

f o l l o w i n q fac tors bear c r i t i c a l l y o n t h e s u r v i v a l a n d g r o w t h

o f small b u s i n e s s e s : "a c a u t i o u s a t t i t u d e t o w a r d s g r o w t h ,

a c o n c e r n for l i q u i d i t y , a f o c u s f o r p r o v i d i n g w a n t e d

p r o d u c t s or s e r v i c e s a n d s a t i s f y i n g work w h i l e k e ~ p i n q

costs l e a n , e s t a b l i s h m e n t a n d m a i n t e n a n c e o f a n o p e n

s y s t e m o f c o m m u n i c a t i o n a n d d i c i s i o n mak ing ; c r e a t i o n of

a r a t i o n a l o r g a n i z a t i o n , c o n t r o l over c e r t a i n f u n c t i o n s ,

e c o n o m i c a l u s e of t i m e , a n d c o n t r o l of owner-rnanaqer

s u b i e c t i v i t y l ' . T h i s c o n t r i b u t i o n i s n o t o n l y s u c c i n t

b u t a l so s u b s e r v e s i n e l u c i d a t i n g more o n t h e i n t r i c a c i e s

a n d u s e f u l n e s s of c o r p o r a t e p l a n n i n g t o w a r d s a c h i e v e i n q

a n e f f i c i e h t and v i a b l e o r q a n i z a t i o n .

T h e e f f e c t i v e n e s s or v i a b i l i t y o f e v e r y b u s i n e s s i s a

p r o d u c t of t h e i d e o l o g i c a l p o s t u r e o f t h e o r g a n i z a t i o n .

S u c h a n i d e o l o g i c a l p o s t u r e i s more t h a n a se t o f

p r e s c r i p t i o n s a n d p r o h i b i t i o n s , I t e s t a b l i s h e s t h e

r a t i o n a l e f o r t h e "dos" a n d " d o n t t s t t , T h i s a r r a n g e -

m e n t a l so w i l l b e s t e x p l a i n t h e b e h a v i o u r o f a n o r g a n i -

z a t i o n ' s m e m b e r a s w e l l a s a i d i n g easier c o m p r e h e n s i o n

o f t h e e x t e r n a l e n v i r o n m e n t ( H a r r i s o n , 1 9 7 2 ) .

H a r r i s o n ' s t h e s i s s h o w s t h a t t h e v i a b i l i t y 01 o t h e r -

w i s e o f a n o r g a n i z a t i o n i s d e t e r m i n e d by t h e i d e o l o q i c a l

s t a n c e o f t h e o w n e r s , T h i s , i n e f f e c t p e r m e a t s i n t o t h e

e n t i r e f a c e t of t h e o r g a n i z a t i o n a l a c t i v i t i e s s u c h a s t h e

u t i l i z a t i o n o f human a n d m a t e r i a l r e s o u r c e s , d e c i s i o n -

m a k i n q p r o c e d u r e s a n d t h e r e s p o n s e t o a n d / o r managemen t

of t h e d y n a m i c s a n d v a g a r i e s o f t h e e x t e r n a l e n v i r o n m e n t

T h i s , o f c o u r s e , h a s much t o d o w i t h a n o r g a n i z a t i o n ' s

s t r u c t u r e , C o r r o b o r a t i n g t h i s p o i n t i s t h a t o f L o d q e

(19741, o n o r g a n i z a t i o n a l b e h a v i o u r a p p r o a c h , w h i c h p o s i t s

t h a t t h e i n t e r n a l v i a b i l i t y of a n o r g a n i z a t i o n d e p e n d s

g r e a t l y o n t h e t y p e a n d d y n a m i c s of t h e o r g a n i z a t i o n ' s

s t r u c t u r e . However, H a r r i s o n ( o p c i t ) sees o r g a n i z a t i o n a l

i d e o l o g y o n b e i n g i n t e r n a l l y v i a b l e when t h e p e o p l e w i t h i n

t h e s y s t e m w a n t a n d n e e d t h e p r e s c r i b e d i n c e n t i v e s a n @ sat is-

f a c t i o n t h a t r e w a r d g o o d p e r f o r m a n c e a n d t h i s c a n o n l y be

p o s s i b l e w i t h i n a n o r g a n i z a t i o n a l s t r u c t u r e t h a t r e c o n c i l e s

t h e c o n f l i c t i n g i n t e r e s t s w i t h i n it, T h u s , h i s v i e w s a r e

f r o m t h e p o i n t o f s t r u c t u r e a n d c o h e s i o n a n d ~ g e n o u s i n

o r i e n t a t i o n , A n o t h e r d i m e n t i o n o f i t i s t h a t t h e v i a b i l i t y

o r o t h e r w i s e o f a n o r g a n i z a t i o n depend a l o t on t h e

s a t i s f a c t i o n o f i t s personne l ,A1So t h e exoqenous factors

t h a t h e l p t o d e t e r m i n e v i a b i l i t y s h o u l d h a v e b e e n g i v e n

e q u a l t r e a t m e n t i n o r d e r t o m a k e h i s s t u d y h o l i s t i c ,

Egbuche, ( 1990 :15 ) , b e l i e v e s t h a t t h e r e are p o i n t s

o f d e p a r t u r e and a l s o p o i n t s of a g r e e m e n t be tween t h e

c o n t m b u t i o n s o f H i c k s and G u l l e t and t h a t o f H a r r i s o n ,

F o r H i c k s and G u l l e t , o r g a n i z a t i o n a l v i a b i l i t y i s a

p r o d u c t o f management e n d e a v o u r i n c a r r y i n g o u t i t s own

n i c h e by c r e a t i n g s o m e t h i n g new which c o u l d be i n f o r m

o f a p r o d u c t , p r o c e d u r e or s e r v i c e s , W h i l e H a r r i s o n

a s c r i b e d a f i r m ' s v i a b i l i t y t o i t s i d e o l o g y and s t r u c -

t u r e , But t h e t h r e e c o n t r i b u t o r s a l l a g r e e t h a t a

s a t i s f a c t o r y and s u c c e s s f u l r e l a t i o n s h i p be tween t h e

b u s i n e s s and t h e e x t e r n a l e n v i r o n m e n t w h i l e s a t i s f y i n g

i t s members is t h e h a l l m a r k o f a n o r g a n i z a t i o n ( s viabi-

l i t y , However, w e c a n h a s t e n t o add t h a t s u c c e s s , s

s t r u c t u r e and s a t i s f a c t i o n a l o n e a re n o t enough t o

q u a l i f y a n o r g a n i z a t i o n a s v i a b l e , An o r g a n i z a t i o n c a n

be s u c c e s s f u l , s a t i s f a c t o r y and a l s o h a v e a good s t r u c t u r e

t o d a y b u t c a n g o mor ibund t h e n e x t day , Hence, wha t

m a t t e r s is o u r a b i l i t y t o i d e n t i f y t h o s e f a c t o r s t h a t

c a n g u a r a n t e e t h e s u s t a i n a b i l i t y of t h e o r g a n i z a t i o n a l

v i a b i l i t y ,

C l i f f , ( 1 9 7 6 : 3 4 0 - 9 ) , would r a t h e r p o s i t t h a t " o r g a n i z a -

t i o n a l v i a b i l i t y is a p r o d u c t of p o s i t i v e s y n e r g y from w i t h i n

t h e o r g a n i z a t i o n and from t h e e x t e r n a l environment" . F o r him,

o r g a n i z a t i o n a l p o s i t i v e i n t e r n a l s y n e r g y is c h a r a c t e r i s e d by

h i g h c a p a c i t y u t i l i z a t i o n , improved i n t e r p e r s o n a l r e l a t i o n -

s h i p , r e d u c e d p e t t y g r i e v a n c e s , f r e q u e n t a d d i t i o n o f key

p e r s o n n e l , d e c l i n i n g m a r g i n a l cost of p r o d u c t i o n , improved I

employee job s a t i s f a c t i o n , improved o r g a n i z a t i o n a l s t r u c t u r e ,

i n t r i n s i c a l l y m o t i v a t i n g job c o n t e n t , and p r o c e s s i n n o v a t i o n

o r t h e i n t r o d u c t i o n of new t e c h n o l o g y . The v a r i a b l e s t h a t

c h a r a c t e r i s e e x t e r n a l s y n e r g y a r e : r a t e o f r e t u r n on i n v e s t -

ment , g r o w t h rate o f s a l e s , g rowing p r o f i t r a t e and t h e

s u c c e s s f u l i n t r o d u c t i o n o f a new p r o d u c t or p r o d u c t

i n n o v a t i o n .

S t e i n e r and Miner (1977:93) see c o m p r e h e n s i v e c o r p o r a t e

p l a n n i n g as a p r o c e s s t h a t b e g i n s w i t h t h e deve lopmen t o f

o b j e c t i v e s , d e f i n e s s t r a t e g i e s and p o l i c i e s t o a c h i e v e

o b j e c t i v e s , a n d d e v e l o p s d e t a i l e d p l a n s t o make s u r e t h a t

t h e s t r a t e g i e s a r e c a r r i e d o u t t o a c h i e v e t h e o b j e c t i v e s .

I t is a p r o c e s s of d e c i d i n g i n a d v a n c e what i s t o be done ,

when i t i s t o be done , how i t is t o be d o n e and who i s t o

do it. O b v i o u s l y , c o r p o r a t e p l a n n i n g i s a l l a b o u t f o r e s e e i n g

o u r d e s i r e d o b j e c t i v e s , a n t i c i p a t i n g p rob l ems and d e v e l o p i n g

s o l u t i o n s t o them. I t i s t h e p r a c t i c a l t h i n k i n g , d reaminq

a n d scheming t h a t i t t a k e s t o i s o l a t e , d e t e r m i n e and

s c h e d u l e t h e a c t i o n s and a c h i e v e m e n t s r e q u i r e d i n o r d e r t o

a t t a i n o u r o b j e c t i v e . It i s a l s o t h e f o r m u l a t i o n and deve-

l opmen t o f b l u e p r i n t s we e x p e c t t o f o l l o w . It h a s t o d o

( w i t h p l o t t i n g t h e u s e of o u r t i m e , r e s o u r c e s and e f f o r t s I

t o w a r d s t h e r e a l i z a t i o n of what we want t o accompl i sh . W e

c a n see t h a t t h e h u b o f c o r p o r a t e p l a n n i n g is f o r t h e accompl i -

shmen t of a d e s i r e d o b j e c t i v e wh ich c o u l d be t o m a i n t a i n a

p o s i t i v e i n t e r n a l and e x t e r n a l s y n e r g y f o r a n e f f e c t i v e and

v i a b l e o r g a n i z a t i o n .

H i c k s and G u l l e t ( 1 9 8 7 ) c l a s s i f i e d o b j e c t i v e s i n t o t h r e e

a s immedia te , a t t a i n a b l e and v i s i o n a r y o b j e c t i v e s . Immediate

o b j e c t i v e s w e r e d e f i n e d a s t h o s e t h a t c a n be a c c o m p l i s h e d w i t h

t h e p r e v a i l i n g t e c h n o l o g y . A t t a i n a b l e o b j e c t i v e s are t h o s e

t h a t c a n be a t t a i n e d w i t h i n a n e s t i m a t e d t i m e f r a m e , w h i l e

v i s i o n a r y o b j e c t i v e s h a v e t o d o w i t h t h e f u t u r e a n d d e f y

a n e s t i m a t e d time-table. Wicks and G u l l e t ( i b i d p. 101-10)

e l u c i d a t e d f u r t h e r by s a y i n g t h a t b u s i n e s s e s t h a t a r e

c o n c e r n e d p r i m a r i l y w i t h p r o c e d u r e s , programmes, methods

a n d p o l i c i e s f o r a c c o m p l i s h i n g i m m e d i a t e o b j e c t i v e s a r e

e f f e c t i v e o r g a n i z a t i o n s . T h e i r s u c c e s s is momentary and

t r a n s i e n t , t h e r e a l i s a t i o n o f wh ich would o n l y e n h a n c e

t h e g r o w t h of t h e f i r m . Such a b u s i n e s s i s s h o r t - l i v e d

a n d c a n n o t be c o n s i d e r e d v i a b l e . But a t t a i n a b l e and

v i s i o n a r y o b j e c t i v e s p romote l o n g e v i t y and t h e v i a b i l i t y

o f t h e o r g a n i z a t i o n . The d r i v e t o w a r d s t h e a t t a i n m e n t

of t h e v i s i o n a r y o b j e c t i v e i s a s y s t e m a t i c , l i n e a r

e v o l u t i o n a r y p r o c e s s which t h e r e a l i z a t i o n i s more of a

mirage. A s an o r g a n i z a t i o n s t r i v e s t o a t t a i n t h i s o b j e c t i v e

i t r e c e d e s t h e more. A t best i t s e r v e s a s a m i r r o w image

f o r t h e f u t u r e of t h e f i rm. F o r t h e s e s c h o l a r s , t h e p u r s u i t

of v i s i o n a r y and a t t a i n a b l e o b j e c t i v e s enhance t h e growth

and development of a b u s i n e s s , and s u c h o r g a n i z a t i o n s can

be c l a s s i f i e d as v i a b l e ,

The above t h e s i s is ambiva len t i n t h e s e n s e t h a t i t

c o n t a i n s some p r a g m a t i c a s p e c t s on t h e o n e hand w h i l e on

t h e o t h e r it l o o k s more l i k e an i n t e l l e c t u a l c o n s t r u c t .

T h e a t t a i n a b l e o b j e c t i v e s a r e more p r a g m a t i c i n o u t l o o k

and c o u l d s e r v e a s a better criteria i n d e t e r m i n i n g t h e

p r e s e n t s t a t e and f u t u r e of t h e f i r m . v i s i o n a r y objec-

t i v e s are u t o p i a n o r i d e a l i s t i c i n p o s t u r e and a s s u c h

c a n n o t s e r v e a s good p a r a m e t e r s f o r decision-making.

Egbuche ( 1 9 9 0 ) , s h a r e s t h e same view w i t h H i c k s and

G u l l e t (1987:96), by s t a t i n g t h a t i n s e t t i n g v i a b l e objec-

t i v e s which a r e immedia te and a t t a i n a b l e , p r o v i s i o n must

be made f o r p o s s i b l e f u t u r e m o d i f i c a t i o n s . On t h e i r own

p a r t , H i c k s and G u l l e t l i k e n e d a v i a b l e o r g a n i z a t i o n to

a b i o l o g i c a l e n t i t y t h a t l i v e s and grows t h r o u g h t h e

p r o c e s s of muta t ion . F i rms a r e s a i d t o g r a p p l e w i t h

t h e s e problems t h r o u g h t h e p r o c e s s of p l a n n i n g or

r e - a p p r a i s a l of t h e master-plan. I n t h i s c a s e , t h e y

c l a i m t h a t p l a n n i n g r e i n f o r c e s a n o r g a n i z a t i o n ' s

v i a b i l i t y ,

G i l m o r e and Brandenburg (1962) v i e w t h e c h a n g e s

r e q u i r e d for t h e a t t a i n m e n t o f a n o r g a n i z a t i o n l s set

o b j e c t i v e s as t h e p roduc t -marke t p l a n s . They adduced t h a t

for m u l t i - p r o d u c t f i r m s , c o m b i n a t i o n o f p l a n s f o r t h e more

a t t r a c t i v e p roduc t -marke t o p p o r t u n i t i e s w i t h o n e a n o t h e r ,

o r w i t h t h e e x i s t i n g p l a n w i l l s e r v e t o d e v e l o p a l t e r n a t i v e

s t r a t e g i e s for t h e f i r m ,

Aga in , we c a n i n f e r t h a t t h e a b o v e idea h e l p s to g i v e

u s a n i n s i g h t i n t o t h e d i r e c t i o n a n d wha t programme o f

a c t i o n s h o u l d be p u r s u e d i n t h e b i d t o rea l ize t h e o r g a n i -

z a t i o n a l g o a l s and objectives,

Weine r (1948) a r g u e s t h a t f o r a n o r g a n i z a t i o n t o

s u r v i v e t h e dynamics and c o m p l e x i t i e s of t h e e n v i r o n m e n t

i t mus t be a n a d a p t i v e sy s t em, F o r it t o c o n t i n u e t o

l i v e and r e m a i n v i a b l e , i t becomes manda to ry to m a i n t a i n

a w e l l p l a n n e d s y s t e m of measurement a n d f e e d b a c k f o r

c o r r e c t i o n of r e p o r t e d d e v i a t i o n s , H e p o s i t s t h a t t h e

f e e d b a c k s y s t e m mus t be a u t o m a t i c i n terms o f min imal

t i m e l a g , and i t mus t a lso be a r o u t i n e p r o c e s s .

2.8: SUMMARY OF L I T E R A T U R E REVIEW

T h i s r e s e a r c h e x t e n s i v e l y r e v i e w e d t h e work,

i n c l u d i n g t h e o r i e s , of some renowned e x p e r t s i n t h e a r e a

o f c o r p o r a t e p l a n n i n g and how i t c o u l d be used t o enhance

t h e v i a b i l i t y of o r g a n i z a t i o n s . The r e s e a r c h e r however

l i f t e d t h e work of t h o s e t h a t are s p e c i f i c a l l y r e l a t e d t o

t h e s u b j e c t of s t u d y . I n t h e p r o c e s s , e f f o r t was made t o

examine t h e c o n t r i b u t i o n s of t h e s e s c h o l a r s w i t h r e s p e c t

t o t h e adequacy of t h e me thodo log ies used, t h e h o l i s t i c

o r d e f i c i e n t n a t u r e of t h e s u b m i s s i o n s made and a l s o t h e

r e l e v a n c e of t h e s t a t i s t i c a l i n s t r u m e n t s used i n c a r r y i n g

o u t t h e test. The r e s e a r c h e r s u b s e q u e n t l y added h i s own

v iews where necessa ry .

I n t h e c o u r s e of t h e r ev iew, i t was d i s c o v e r e d t h a t

c o r p o r a t e p l a n n i n g c o u l d enhance t h e v i a b i l i t y of an

o r g a n i z a t i o n i f p r o p e r l y a p p l i e d . However, i t was

d i s c o v e r e d i n t h e p r o c e s s of t h e r e v i e w t h a t t h e r e a r e

some c o n s t r a i n i n g f a c t o r s f a c i n g c o r p o r a t e p l a n n i n g and

t h a t t h e s e might hamper t h e b i d t o a c h i e v e a v i a b l e

o r g a n i z a t i o n . Consequent ly , t h i s r e s e a r c h d e s i r e s t o

f o r g e ahead t o a s c e r t a i n whether such c o n s t r a i n t s r e a l l y

e x i s t , and t o d e t e r m i n e whether t h e y a r e r e s p o n s i b l e f o r

t h e h i g h s p a t e of b u s i n e s s f a i l u r e s i n N i g e r i a , and t o

p r o f e r s o l u t i o n s .

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

The d a t a used i n t h i s s t u d y w e r e g a t h e r e d from t w o

d i f f e r e n t sources . These a r e t h e pr imary and secondary

d a t a .

The secondary d a t a w e r e g a t h e r e d from t e x t b o o k s ,

magazines, company f i l e s and j o u r n a l s , The pr imary d a t a

w e r e based on f i r s t - h a n d i n f o r m a t i o n which w e r e o b t a i n e d

f rom t h e s e l e c t e d i n d u s t r y , I n view of t h e f a c t t h a t t h e

r e s p o n s i b i l i t y f o r c o r p o r a t e p l a n n i n g is t h e e x c l u s i v e

p r e s e r v e of t h e management c a d r e , w e a c c o r d i n g l y used

them as t h e t a r q e t g r o u p f o r t h i s r e s e a r c h .

Due t o t h e n a t u r e of t h i s r e s e a r c h , t h r e e i n s t r u m e n t s

w e r e u sed i n t h e c o l l e c t i o n of da ta . These a r e t h e ques-

t i o n n a i r e , or s u r v e y method, t h e i n t e r v i e w method and t h e

documenta t ion method,

The s u r v e y method w i l l compr i se a q u e s t i o n n a i r e

c o n t a i n i n g b o t h open ended and s t r u c t u r e d q u e s t i o n s t o b e

a d m i n i s t e r e d to a r e p r e s e n t a t i v e sample of r e s p o n d e n t s , I

One t y p e of q u e s t i o n n a i r e w i l l be a d m i n i s t e r e d t o t h e

management s t a f f o f a l l t h e c a s e companies,

The u s e of u n s t r u c t u r e d i n t e r v i e w s c h e d u l e i s t o

h e l p i n f u r t h e r i n d e p t h e x p l o r a t i o n of t h o s e a s p e c t s of

t h e s t u d y n o t a d e q u a t e l y c o v e r e d by t h e q u e s t i o n n a i r e

s c h e d u l e and d o c u m e n t a t i o n method. The t a r g e t g r o u p

h e r e w i l l a lso be t h e management.

The d o c u m e n t a t i o n method w i l l c o n s i s t of a n a n a l y s i s

o f p a s t r e c o r d s on t h e u s e of c o r p o r a t e p l a n n i n g and i t s

i m p a c t o n t h e p e r f o r m a n c e / v i a b i l i t y of t h e o r g a n i z a t i o n s .

~ e s c r i p t i v e statistics s u c h as p e r c e n t a g e s and mean

w i l l be u s e d f i r s t i n t u r n i n g d a t a from t h e q u e s t i o n n a i r e

i n t o p u r e l y q u a n t i t a t i v e c a t e g o r i e s . I n a d d i t i o n t o t h i s

2 t h e c h i - s q u a r e s ta t is t ics ( X ) w i l l be u s e d i n a n a l y s i s

i n order to b r i n g o u t t h e i n t e r a c t i o n and r e l a t i o n s h i p

be tween variables i n t h e s t u d y .

Adequa te tables a n d g r a p h s w i l l a lso be u s e d i n

h i g h l i g h t i n g t h e p o s i t i o n o f e a c h of t h e r e s p o n d e n t s .

D a t a f r o m t h e u n s t r u c t u r e d i n t e r v i e w would be q u a l i t a -

t i v e l y employed i n t h e a n a l y s i s and d i s c u s s i o n of i s s u e s

r a i s e d i n t h i s r e s e a r c h work.

3.2: SAMPLE S I Z E DETERMINATION AND SAMPLING PLAN

The p o p u l a t i o n of s t u d y i s t h e e n t i r e management

c a d r e of Golden Gu inea B r e w e r i e s , Umuahia; L e v e r B r o t h e r s

N i g e r i a P l c , Lagos; Aluminium E x t r u s i o n I n d u s t r i e s ,

I n y i s h i ; and Imo S t a t e B u i l d i n g and I n v e s t m e n t Company,

O w e r r i .

54

T h e s t u d y w i l l i n c l u d e a l l c a t e g o r i e s of managers who a r e

i n v o l v e d i n t h e f o r m u l a t i o n of d i v i s i o n a l a n d / o r d e p a r t -

men ta l a s w e l l as company-wide c o r p o r a t e p l ann ing . T h i s

w i l l i n c l u d e Managers, A s s i s t a n t G e n e r a l Managers, Genera l

Managers, Ch ie f E x e c u t i v e s or Directors a s t h e case may b e

f o r e a c h of t h e depa r tmen t s .

The number o f managers t h a t a r e i n v o l v e d i n t h e

f o r m u l a t i o n of c o r p o r a t e p l a n n i n g i n t h e c a s e companies

a r e : Golden Guinea Brewer ie s , 1 2 ; Lever B r o t h e r s N i g e r i a

P l c , 18; Aluminium E x t r u s i o n I n d u s t r i e s , 9; and Imo S t a t e

B u i l d i n g and I n v e s t m e n t Company, 7.

C o n s i d e r i n g t h e s m a l l number of t h i s c a t e g o r y of

t h e s t u d y p o p u l a t i o n , t h e p u r p o s i v e sampl ing method w i l l

b e used i n s e l e c t i n g t h e r e s p o n d e n t s . A l l t h e managers

t h a t a r e s a d d l e d w i t h t h i s r e s p o n s i b i l i t y a r e chosen ,

3.3: SCOPE OF THE STUDY

The s t u d y w i l l b e f o c u s e d a t t h e t o p management o f

f o u r s e l e c t e d companies i n N i g e r i a , The companies a r e :

Golden Guinea B r e w e r i e s , Umuahia; Lever B r o t h e r s N i g e r i a

P l c , Lagos; Imo S t a t e B u i l d i n g and I n v e s t m e n t Company, I

O w e r r i ; and Aluminium E x t r u s i o n I n d u s t r i e s , ~ n y i s h i ,

Imo S t a t e .

To achieve the objectives of this study, its scope

will cover how corporate planning is used to determine

major outside interests focused on the organization, the

expectations of the dorminant inside interests, how

budgeting, forecasting and information from the environ-

ment is used to project performance in the future, and

the appraisal of environmental opportunities and threats,

and the companies' strengths and weaknesses.

The companies choosen for this study are large and

medium scale limited liability companies that have been in

existence for some years. As such, they have witnessed

various socio-economic and political conditions that must

have affected them positively or negatively. Hence, they

are seen as typical of Nigerian enterprises and were

choosen for this work accordingly.

3.4: LIMITATIONS OF THE STUDY

Corporate planning is such a vast and complex

aspect of study in management. It is vast and complex

in the sense that it involves a lot of technicalities

and a jungle of issues that are both qualitative and

quantitative. However, we are only concerned here with

how corporate planning, using some of its techniques,

can be used to attain organizational viability.

T h e r e f l e c t i q n o n t h e u s e of f o r e c a s t i n q a s a

c o r p o r a t e p l a n n i n a t e c h n i q u e w a s d e s i g n e d t o x - r a y

w h e t h e r t h i s tool is a c t u a l l y u s ~ d i n t h e c o r p o r a t e

p l a n n i n g p r o c e s s a n d t o know w h a t t h e n e t r e s u l t is.

T h e s t u d y a v o i d e d g o i n g i n t o a q u a n t i t a t i v e a n a l y s i s

of a l l t h e t e c h n i c a l t i e s t h a t a r e i n v o l v e d i n f o r e -

c d s t i n q .

R u d q e t i n g as a tool o f c o r p o r a t e p l a n n i n q i s

e x a m i n e d h e r e o n l y w i t h r e s p e c t t o t h e a b i l i t y o f t h e

m a n a g e r s t o u s e i t i n e n s u r i n g t h a t t h e o r g a n i z a t i o n

a d a p t s t o c h a n g i n g c i r c u m s t a n c e s . T h e s t u d y a v o i d e d

t h e t e c h n i q u e s o f b u d q e t i n g w h i c h i s more of t h e work

o f management a c c o u n t a n t s .

o n i n f o r m a t i o n , t h e s t u d y i s a i m e d a t a s c e r t a i n i n g

t h e a p p l i c a t i o n a n d u t i l i z a t i o n o f i n f o r m a t i o n f r o m

w i t h i n a n d o u t s i d e t h e o r q a n i z a t i o n i n t h e c o u r s e o f

c o r p o r a t e p l a n n i n g . T h i s i s t o e n a b l e u s t o u n d e r s t a n d

w h e t h e r i t e n h a n c e s c o r p o r a t e p l a n n i n g f o r m u l a t i o n a n d

by e x t e n s i o n o r q a n i z a t i o n v i a b i l i t y . T h e s t u d y i s n o t

as s u c h h i n g e d o n t h e o v e r a l l m a n a g e m m t i n f o r m a t i o n

s y s t e m o f t h e o r g a n i z a t i o n .

R e f e r e n c e s were made o f t h e human e l e m e n t i n

c o r p o r a t e p l a n n i n g a n d t h e n a t u r e of t r e a t m e n t t h a t i s

q i v e n t o it. T h i s i s a i m e d a t knowing how t h i s a f f e c t s

c o r p o r a t e p l a n n i n g p r a c t i c e a n d by e x t e n s i o n o r g a n i -

z a t i o n a l v i a b i l i t y . T h e s t u d y i s n o t a i m e d a t exam-

i n i n g t h e o v e r a l l human r e s o u r c e s o f t h e s e case

c o m p a n i e s i n terms of m o t i v a t i o n or s a t i s f a c t i o n w i t h

t h c i r job .

T h e f i r m s c h o s e n f o r t h i s r e s e a r c h work a r e n o t i n

t h e same i n d u s t r y . T h i s , 2 s s u c h , m a k e s t h e bas is f o r

c o m p a r i s o n more complex , However, t h i s w a s d e l i b e r a t e l y

d o n e t o e n a b l e u s g e t a v i e w of w h a t h a p p e n s i n f i r m s

t h a t a r e i n d i f f e r e n t i n d u s t r i e s , a n d a l s o f i r m s w h i c h

f a c e t h c e f f e c t of d i f f e r e n t s c c i o - e c o n o m i c a n d e n v i r o n -

m e n t a l c i r c u m s t a n c e s . Also, t h e s i z e of t h e f i r m s v a r y .

Some a re l a r g e c o n c e r n s , o t h e r s are medium s c a l e w h i l e

o t h e r s a r e smal l o u t f i t s , T h e i s s u e o f t h e d i f f e r e n c e s

i n s i z e i s i n t e n d e d t o e n a b l e u s know how e a c h r e s p o n d s

t o t h e a p p p l i c z q t i o n of c o r p o r a t e p l a n n i n g a n d i t s i m p a c t

o n v i a b i l i t y / p e r f ormance .

F i n a l l y , m2n~;qement c a d r e o f t h e s e f i r m s were

p u r p o s e l y c h o s e n t o t h e e x c l u s i o n o f o t h e r c a t e q o r i e s

o f w o r k e r s b e c a u s e t h e y a r e t h e o n e s t h a t make c o r p o r a t e 1

p l a n s ,

CHAPTER k'OUH

PRESENTATION AND ANALYSIS OF' DATA

I n t h e b i d t o meet t h e o b j e c t i v e s of t h i s s t u d y

nd t e s t t h e h y p o t h e s e s , t h e q u e s t i o n n a i r e w h i c h is made

p of 40 q u e s t i o n s i s d e s i g n e d t o e l i c i t t h e d e s i r e d

n f o r m a t i o n f r o m t h e r e s p o n d e n t s . T h e q u e s t i o n n a i r e a s

a p r i m a r y s o u r c e o f d a t a c o n t a i n s s t r u c t u r e d a n d u n s t r u c - 4

t u r e d q u e s t i o n s as c o u l d b e s e e n i n A p p e n d i x ( I ) o f t h i s

p r o j e c t .

4 .1 RtSPONSL RATE

F o r c o n v e n i e n c e p u r p o s e s , t h e c o m p a n i e s h a v e b e e n

r e p r e s e n t e d w i t h t h e a l p h a b e t s A , B , C , D , , T h e q u e s t i o n -

n a i r e was a d m i n i s t e r e d t o t h e t o p management of e a c h of

t h e c o m p a n i e s a c c o r d i n g t o t h e i r s t a f f s t r e n g t h . Ou t

o f 18 q u e s t i o n n a i r e s a d m i n i s t e r e d to t o p management i n

company A , o n l y 1 3 were r e t u r n e d . I n company R , 9

o u t of 1 2 q u e s t i o n n a i r e s w c r e p r o p e r l y f i l l e d a n d r e t u r n e d

Company C h a s 7 o u t o f 9 q u e s t i o n n a i r e s a d m i n i s t e r e d

r e t u r n e d , w h i l e company D h a s 3 o u t o f 7 q u e s t i o n n a i r e s

r e t u r n e d .

4.2: P R E S L N T ~ T ~ O N AND ANALYSIS - OF' D A T A

I n t h i s c h a p t e r we s h a l l o r g a n i s e a n d p r e s e n t

I o u r r e s e a r c h f i n d i n g s u s i n g s t a t i s c a l t a b l e s .

However , t h e f i r n l s b e i n g stcciied a re r e p r e s e n t e d w i t h

a l p h a b e t s f o r c o n v e n i e n c e s a k e , T h e a l p h a b e t A r e p r e s e n t s

L e v e r B r o t h e r s N i g e r i a P l c ; B r e p r e s e n t s G o l d e n G u i n e a

B r e w e r i e s ; C r e p r e s e n t s Aluminium E x t r u s i o n I n d u s t r i e s ,

I n y i s h i , w h i l e U r e p r e s e n t s I J 2 I C M o r t g a g e F i n a n c e

L i m i t e d .

I n t h e d a t a r e p r e s e n t a t i o n , w e u s e d p e r c e n t a g e s i n

t a b u l a r f o r m , A l s o , i n o r d e r t o a n a l y s e t h e h y p o t h e s e s

m e a n i n g f u l l y , t h e same method was a d o p t e d i n t h e p r o c e s s .

L a c h d a t a / r e s e a r c h h y p o t h e s e s h a s a t e b l e . 'The t a b l e s

were a r r a n g e d i n i' c o l u m n s w i t h t w o , t h r e e or f o u r rows

a s t h e c a s e may be.

T h e f i r s t co lumn r e p r e s e n t s t h e r e s p o n s e s , i n o t h c r

w o r d s , t h e m e a s u r e m e n t s e t o u t f o r t h e i n d i v i d u a l v a r i a b l e .

The s e c o n d , t h i r d , f o u r t h a n d f i f t h c o l u m n s r e p r e s e n t s

i n d i v i d u a l r e s p o n s e f o r e a c h o f t h e f i r m s . T h i s i n e f f e c t

g i v e s us t h e t o t a l number o f r e s p o n d e n t s t o e a c h of t h e

q u e s t i o n or v a r i a b l e b e i n g c o n s i d e r e d , T h e r e s p o n s t : s f o r t h e

f i r m t h e r e f o r e h a v e a c o r r e s p o n d i n g f r e q u e n c y .

T h e l a s t c o l u m n r e p r e s e n t s t h e p e r c e n t a g e score o f

t h e f r e q u e n c i e s o v e r t h e tot-a1 number o f f r e q u e n c i e s , I n

each t a b l e , t h e r e i s a t o t a l f o r t h e f r e q u e n c y , p e r c e n t a q e

a n d c o l u m n s , T h e r e i s n o t o t a l or s u m m a t i o n f o r t h e rows.

I n t e s t i n g t h e h y p o t h e s e s , w e u s e d t h e t a b u l a r

2 f o r m and X .

The r e s p o n s e s g o t f r om t o p management u s i n g t h e

i n t e r v i e w method w e r e a n a l y s e d q u a l i t a t i v e l y ,

T a b l e 4 , l : P e r c e n t a g e Response on w h e t h e r t h e r e i s

f a v o u r a b l e Env i ronmen t f o r c o r p o r a t e

P l a n n i n g 2

The a b o v e q u e s t i o n i s d e s i q n e d t o e s t a b l i s h w h e t h e r

a f a v o u r a b l e e n v i r o n m e n t e x i s t s f o r t h e f o r m u l a t i o n o f

c o r p o r a t e p l a n s . T h e r e a s o n i n g i s t h a t i f a f a v o u r a b l e

e n v f r o p m e n t e x i s g s , t h e r e may be t h e t e n d e n c y f o r

c o r p o r a t e p l a n s t o work.

From t h e d a t a i n t a b l e 4.1, w e c a n see t h a t g r e a t e r

p e r c e n t a g e o f t h e manage r s (50%) f r o m t h e f i r m s a g r e e

t h a t t h e r e i s f a v o u r a b l e e n v i r o n m e n t f o r t h e f o r m u l a t i o n

a n d i m p l e m e n t a t i o n o f c o r p o r a t e p l a n s , W h i l e 32% s a i d

N o , 18% made no r e s p o n s e . However, a breakdown o f t h e

p e r c e n t a g e r e s p o n s e s s h o w s t h a t f i r m s A a n d R h a v e

54% a n d 56% p o s i t i v e r e s p o n s e r i > s p ? c i i v e l y w h i l e f i r m s

C a n d D h a v e 56% a n d 40% p o s i t i v e r e s p o n s e e a c h . On

t h z n a q a t i v e r e s p o n s e s , f i r m s A a n d B h a v e 3 1 a n d 33

p e r c r ~ n t each w h i l e firns C a n d D h a v e 2 9 a n d 40% e a c h .

T a b l e 4 .1 s h o w s t h c i n d i v 1 d : r a l c i r c u m s t a n c e s o f

ei!c!: of t.hr:. f i r i n s , t h e i r r e a c t i o n s a n d how t h e y p e r -

c e i v e f a v o u r a b l e e n v i r o n : n e n t .

I t vs:; a l s o g a t h e r e d from t h o s e t h a t c l a i m t h a t

f a v o u r a b l e e n v i r o n m e n t d o n o t e x i s t t h a t t h c a t t i t u d e

of a-mt-,sr;ernent i n t h i s r e q a r d i s d i s c o u r a g i n g .

Table 4.2: R e s p o n s e on w h e t h e r t o p Maniqement E n c o u r a g e

C r e a t i v i t y .

From the a b o v e t cb l e meant t o e s t a i - ) l l s h whet!.!er

management e n c o u r a q c c r e a t i v i t y by d c s i q n i n g roles w h e r e

p c o p l c c a n c r e s t e a n d be i n m o v a t i v e , i t c o u l d be s e e n

t h a t 447A o f th- r e s p o n d e n t s assert t h i s p o s s i b i l i t y

w h i l e 38% n e g a t i v e r e s p o n s e a n d 2? n o n - r e s p o n s e . F i r m

B h a s 56% p o s i t i v e r e s p o n s e , 33% n e g a t i v e r e s p o n s e a n d 11%

n o n - r e s p o n s e . F i r m C h a s 29% p o s i t i v e r e s p o n s e , 43% n e g a t i v e

r e s p o n s e a n d 2 9 w i t h n o r e s p o n s e . F i r m D h a s 40% a f f i r m -

a t i v e r e s p o n s e a n d 50% n e g a t i v e r e s p o n s e .

I t c o u l d be s e e n from t h e above d a t a t h a t t o p management

m o d e r a t e l y e n c o u r a g e s c r e a t i v i t y f o r i n n o v a t i o n w h i c h i s a n

i n d e x of v i a b i l i t y .

T a b l e 4 0 3 : R e s p o n d e n t o p i n i o n on w h e t h e r R e s e a r c h f i n d i n g s

a r e U t i l i z e d i n c o r p o r a t e p l a n n i n g .

T h e t a b l e a b o v e i n d i c a t e ' 6 4 % c o n f i r m a t i o n of

u t i l i z a t i o n of r e s e a r c h f i n d i n q s , 24% n o n - c o n f i r m a t i o n a n d

12% who claim n o k n o w l e d g e , T h i s q u e s t i o n i s u s e d t o deter-

m i n e w h e t h e r t h e a t t i t u d e of management t o w a r d s c o r p o r a t e

p l a n n i n g i s f a v o u r a b l e . A l t h o u g h t h e g e n e r a l f i n d i n g i s

f a v o u r a b l e , t h e same d o e s n o t a p p e a r t o a p p l y t o all t h e

f i r m s s t u d i e d , F o r i n s t a n c e , t h e i n d i v i d u a l

63

r e s p o n s e f o r f i r m s A, B and C a r e more f a v o u r a b l e t h a n

f i r m D.

he f a v o u r a b l e p e r c e n t a g e r e s p o n s e f o r f i r m A

shows 77% acknowledgement , and a n i n s i g n i f i c a n t 23%

s a y i n g no. F o r f i r m B, t h e r e is 78% p o s i t i v e r e s p o n s e

a n d 22% t h a t d i d n o t respond . F i r m C h a s 42% p o s i t i v e ,

29% n e g a t i v e and a n o t h e r 29% non-response. 1

T a b l e 4.4: Responden t Op in ion o n t h e e f f e c t of t h e

U t i l i z a t i o n of R e s e a r c h f i n d i n g s o n o r g a n i -

z a t i o n a l v i a b i l i t y .

The i m p l i c a t i o n o f t h e r e s p o n s e s a s c o n t a i n e d i n

t a b l e 4.4 a r e t h a t : 53% acknowledged a p o s i t i v e e f f e c t

o f t h e u t i l i z a t i o n o f r e s e a r c h f i n d i n g s on o r g a n i z a -

t i o n a l v i a b i l i t y ; 23% i n d i c a t e d a n e g a t i v e e f f e c t , and

21% i n d i c a t e d no knowledge. However, t h e b u l k of t h e

p o s i t i v e r e s p o n s e s came f rom compan ie s A and B b u t

m o d e r a t e l y f rom compan ie s C and D.

T h e i n f e r e n c e from t h e d a t a i s t h a t u t i l i z a t i o n of

r e s e a r c h f i n d i n g s i n c o r p o r a t e p l a n n i n g c o u l d h a v e a

p o s i t i v e e f f e c t o n t h e v i a b i l i t y of a f i r m .

T a b l e 4.5: R e s p o n s e on w h e t h e r t o p management

a t t i t u d e t o w a r d s c o r p o r a t e p l a n n i n g

e n h a n c e b u s i n e s s v i a b i l i t y .

T h e q u e s t i o n t h a t b r o u g h t a b o u t t h e a b o v e d a t a

i s d e s i g n e d t o e n a b l e u s d e t e r m i n e w h e t h e r t o p manage-

m e n t a t t i t u d e t o w a r d s c o r p o r a t e p l h n n i n q e n h a n c e b u s i n e s s

v i a b i l i t y . T h e r e s p o n s e q o t ahows a 47% acknowledge-

men t w h i l e 53% d i a g r e e s .

T h e d e t a i l s of i n d i v i d u a l f i r m r e s p o n s e s

shows t h n t f i r m s A a n d R p e r f o r m e d better w i t h 54%

a n d 46% p o s i t i v e r e s p o n s e , 46% a n d 44% n e g a t i v e r e s p o n s e s .

J

P e r c e n t a q e R e s p o n s e

F i r m s C a n d D p e r f o r m e d p o o r l y w i t h 29% a n d 40% p o s i t i v e

r e s p o n s e s e a c h a n d 71% a n d 60% n e g a t i v e r e s p o n s e s res-

p e c t i v e l y .

- yes

No

- .

F i r m s

A B C D F r e q u e n c y

I T o t a l 1 3 9 7 1 5 3 4 If30 +

7 5 2 2 . 16 I 47

18 53

T h e d e d u c t i o n f r o m t h i s d a t a is t h a t t h e f i r m s

h a v e p e r f o r m e d f a i r l y w e l l e v e n t h o u q h i t is b e l o w p a r .

Tn:-,lc? , ? . G : R e s p o n s e o n w h e t h e r c o r p o r a t e p l a n n i n g

i s d e l e g a t e d to t h e f i r m s ' s t a f f o t h e r

t h a n t h e l i n c p c r s o n ~ c l .

T h e q u e s t i o n t h a t e l i c i t e d t h e d a t a i n t ab le

w a s i n t e n d e d t o f i n d o u t i n d i r e c t l y t h e a t t i t u d e a n d

d e q r e e o f a t t e n t i o n g i v e n to c o r p o r a t e p l a n n i n g b y t o p

management. T h i s i s t o f u r t h e r e n a b l e u s know how i t

c a n a f f e c t a firm's v i a b i l i t y .

T h e r e s p o n s e we g o t i n d i c a t e s a n i n s i g n -

i f i c a n t 21% who c l a i m t h a t i t d e l e g a t e d a n d a n o t h e r

73% r e s p o n s e who s a y s t h a t it is n o t . T h e r e m a i n i n g

61% made n o r e s p o n s e i n t h i s r e g a r d .

T a b l e 4,7: R e s p o n s e s o n employee s a t i s f a c t i o n /

i n t e r p e r s o n a l r e l a t i o n s h i p ,

A s an i n d e x o f a f i r m ' s v i a b i l i t y , t h e q u e s t i o n t h a t

p rompted t h e a b o v e d a t a w a s a s k e d t o know how v i a b l e t h e

f i rms a r e , The d a t a shows 41% o f r e s p o n d e n t s f r o m a l l

t h e f i r m s acknowledg ing improved employee s a t i s f a c t i o n /

i n t e r p e r s o n a l r e l a t i o n s h i p , 47% d i s a g r e e d t h a t t h e r e

i s improved i n t e r p e r s o n a l r e l a t i o n s h i p w h i l e 12% d i d n o t

comment, On i n d i v i d u a l f i r m pe r fo rmance , i t i s o n l y f i r m

f i r m A t h a t d i d f a i r l y w e l l w h i l e t h e rest were be low

p a r ,

T a b l e .2.8 R f s p o n s e s on w h e t h e r t h e r e i s i n t r i n s i c a -

l l y m o t i v a t i n g job c o n t e n t / p r o c e s s i n n o v a -

t i o n .

T h e a b o v e q u e s t i o n i s i n t e n d e d t o f i n d o u t t h e d e q r e e

of v i a b i l i t y i n e a c h o f t h e f i r m s b e i n g s t u d i e d . T h e

e s s e n c e i s t o f u r t h e r h e l p u s u s e t h e a b o v e i n d e x o f

i n t e r n a l v i a b i l i t y t o tes t o u r h y p o t h e s e s . T h e a b o v e d a t a

g e n e r a l l y show a t o t a l o f 47% r e s p o n d e n t s who b e l i e v e t h a t

t h e r e is i n t r i n s i c a l l y m o t i v a t i n g j o b c o n t e n t / p r o c e s s

i n n o v a t i o n i n t h e i r f i rms. 32% a r e of t h e o p e n i o n t h a t

there i s n o n e , w h i l e 21% made n o comment o n t h i s i s s u e .

I t c o u l d be u n d e r s t o o d f r o m t h e d a t a t h a t e a c h o f

t h e r e s p o n s e s i s b e l o w 50% w h i c h i s a p o i n t e r t o t h e

f a c t t h a t t h e s i t u a t i o n i s n o t h e a l t h y enough ,

----

R e s p o n s e

Yes

No

--- - -----

F i r m s

2 1

-

.

. ̂

7 ,

2

A

7

32

F r e a u e n c v

16

3 3 3 2

1 2 1 fYbcornment

P e r c e n t a a e

47

3 4 I 100

11

T o t a l

B

5

-. 7 3

1 3 9 7 5

C

2

T a b l e 4.9: R e s p o n s e o n w h e t h e r t h e r e i s t h e f e c r u i t -

men t of k e y p e r s o n n e l i n t h e p a s t f i v e y e a r s ?

A n o t h e r i n d e x u s e d h e r e t o m e a s u r e t h e l e v e l of

i n t e r n a l v i a b i l i t y s h o w s a 53% f a v o u r a b l e r e s p o n s e f o r a l l

t h e f i r m s , a 38% i n f a v o u r a b l e r c s p o n s e and 9% t h a t d i d n o t

r e s p o n d . T h e f i r m s t h a t h a v e h i g h e r r a t e of i n d i v i d u a l

f a v o u r a b l e r e s p o n s e a r e f i r m s A a n d B w h i l e f i r m s C a n d

D d i d p o o r l y .

~ & l e 4.10: R e s p o n s e o n w h e t h e r t h e o r g a n i z a t i o n s are

c o n s i d e r r d v i a b l ~ .

R e s p o n s e

Yes

No

Tota l

F i r m s

F r e q u e n c y

19

A

10

P e r c e n t a g e

.- 56

3

B - 5

7 I

A 4

C

3

D

1

56% of t h e r e s p o n d e n t s f r o m a l l t h e f i r m s a q r e e

t h a t t h e i r f i r m s a re v i a b l e w h i l e 44% be l i eve t h e

c o n t r a r y . F i r m s A a n d B c o u l d be s e e n a s more v i a b l e t h a n

f i r m C a n d D m

A f o l l o w - u p n u e s t i o n o n w h a t t h e r e s p o n d c n t s t h i n k

a re r e s p o n s i b l e f o r u n v i a b i l i t y i n d i c a t e s t h a t 57% o f

t h e m from f i r m C a t t r i b u t e d i t t o p o o r e c o n o m i c e n v i r o -

n m e n t a n d p o o r p l a n n i n g . F o r f i r m D, t h e c a u s e s a r e

t r aced t o l a c k o f p r o p e r p l a n n i n g a n d p o o r socio-

e c o n o m i c e n v i r o n m e n t . F o r f i r m D , 50% c la im l a c k of

p r o p e r p l a n n i n g w h i l e 30% a t t r i b u t e i t t o p o o r socio-

e c o n o m i c e n v i r o n m e n t .

T a b l e 4.11: R e s p o n s e o n w h e t h e r t h e r e i s t h e a d o p t i o n

of f o r e c a s t i n g t e c h n i q u e i n c o r p o r a t e

p l a n n i n g b y f i r m s t o foresee problems/

e x p l o i t o p p o r t u n i t i k s i n t h e e n v i r o n -

ment .

t F i r m s

A B C D

7 4 3 2

,,

,

Res~onse

Yes

No -- C a n ' t say

+ Total

I

I

2 3 2 2 --- 9

4 2 2 1 9

1 3 9 7 5 34

F r e a u e n c v .

16 - 2 6

26

1 0 0

1

P e r c e n t a s e

48

T a b l e 4.11 a b o v e shows t h a t g r e a t e r p e r c e n t a g e (62%)

of t h e r e s p o n d e n t s acknowledged t h a t t h e y a d o p t f o r e c a s t i n g

t e c h n i q u e i n c o r p o r a t e p l a n n i n g t o e n a b l e them foresee

p r o b l e m s / e x p l o i t o p p o r t u n i t i e s i n t h e env i ronmen t , The

e s s e n c e o f t h i s e n q u i r y i s t o e s t a b l i s h how t h i s a f f e c t s

t h e c h a n c e s of a f i r m b e i n g v i a b l e or o t h e r w i s e . 26% o f

t h e r e s p o n d e n t s d i d n o t acknowledge t h e u s e of f o r e c a s t i n g

w h i l e 12% s u p p l i e d n o i n f o r m a t i o n ,

T a b l e 4-12: Response on w h e t h e r t h e use of f o r e c a s t i n g

h a s i n c r e a s e d t h e p r o f i t t h a t a c c r u e d t o

t h e f i r m .

I t c o u l d be s e e n f r o m t h e d a t a i n t ab le 4.12 t h a t

48% of t h e r e s p o n d e n t s f rom a l l t h e f i r m s acknowledged

t h a t f o r e c a s t i n g i n c r e a s e s t h e p r o f i t t h a t a c c r u e s t o

t h e f i r m s , 26% a r e of a c o n t r a r y o p i n i o n w h i l e a n o t h e r

26% d i d n o t r e spond , A breakdown o f e a c h f i r m t s p e r f o r -

mance i n d i c a t e s t h a t f i r m s A , B , C , and D h a v e 54%, 44%,

43% and 40% p o s i t i v e r e s p o n s e s r e s p e c t i v e l y . S t c o u l d

be s e e n f rom t h e d a t a t h a t t h e pe r fo rmance i s ave rage . I

T a b l e 4.23 Response on whe the r t h e a p p l i c a t i o n of

f o r e c a s t i n g i n c o r p o r a t e p l ann inq enhances

t h e marke t s h a r e f o r a f i r m l s p r o d u c t /

s e r v i c e s .

The d a t a on t a b l e 4.13 p r o v i d e s answer t o t h e

q u e s t i o n o f w h e t h e r f o r e c a s t i n g i n c r e a s e s a f i r m t s marke t

s h a r e f o r p r o d u c t s / s e r v i c e s . T h i s is t o e n a b l e u s know

t h e e f f e c t o f t h i s t e c h n i q u e o n f i r m s t h a t a d o p t i t a s

compared w i t h t h e o n e s t h a t d o n ' t , T h e r e i s a f a v o u r a b l e 1 r e s p o n s e r a t e o f 68% for a l l t h e f i r m s and 32% n e g a t i v e

r e s p o n s e , ~ i r m s A and B were more f a v o u r e d w i t h 62% and

78% p o s i t i v e r e s p o n s e e a c h w h i l e f i r m s C and D had 86%

and 40% p o s i t i v e r e s p o n s e each , The n e g a t i v e r e s p o n s e f o r

f i r m s A , B, c and D a r e 38%, 22%, 14% and 60% each.

7 2

T a b l e 4.14: Response on t h e e f f e c t of f o r e c a s t i n g on

t h e s u c c e s s f u l i n t r o d u c t i o n o f new p r o d u c t s

i n t h e l a s t s e v e n y e a r s .

The d a t a on t a b l e 4.14 i s d e s i g n e d t o e n a b l e u s

d e t e r m i n e t h e e x t e r n a l v i a b i l i t y o f f i r m s t h a t u s e f o r e -

c a s t i n g i n c o r p o r a t e p l a n n i n g . The i n d e x we u s e d h e r e

i s t h a t o f t h e s u c c e s s f u l i n t r o d u c t i o n of new p r o d u c t s /

s e r v i c e s . T h e r e i s 53% p o s i t i v e r e s p o n s e r a t e f o r a l l

t h e f i r m s , 32% u n f a v o u r a b l e r e s p o n s e and 15% who d i d

n o t r e s p o n d a t a l l t o t h e q u e s t i o n a sked , The i m p l i c a -

t i o n o f t h i s r e s u l t i s t h a t f o r e c a s t i n g h a s been o f

h e l p even though t h e r e s u l t h a s been ave rage .

Response

Y e s

T a b l e 4-15: Response on w h e t h e r b u d g e t i n g c a n be

r e g a r d e d as a n e f f e c t i v e c o n t r o l

t e c h n i q u e .

P e r c e n t a g e

5 3

F i r m s

A B C

6 7 3 2

No

N o comment

T o t a l

D Frequency

18

3 2 3 3

4

1 3

11 32

- 9

1 5

7 3 4

1 5

100 4

T a b l e 4.15

A g l a n c e a t t a b l e 4.15 shows t h a t r e s p o n d e n t s who

b e l i e v e t h a t b u d g e t i n g t e c h n i q u e a d o p t e d i n c o r p o r a t e

p l a n n i n g i n t h e i r f i r m s h a v e b e e n a n e f f e c t i v e c o n t r o l

t e c h n i q u e . T h i s g r o u p r e p r e s e n t s 50% w h i l e t h o s e t h a t

b e l i e v e t h e c o n t r a r y a r e a l s o 50%.

T a b l e 4.16: Response on w h e t h e r t h e a d o p t i o n of

b u d g e t i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g

e n h a n c e a f i rm ' s a b i l i t y t o u t i l i z e re

r e s o u r c e s more p r o f i t a b l y .

T a b l e 4-16 a b o v e meant t o h e l p u s a s c e r t a i n w h e t h e r

t h e a d o p t i o n o f b u d g e t i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g

7 4

e n h a n c e s i ts a b i l i t y to u t i l i z e r e s o u r c e s more p r o f i t a b l y ,

From t h e t a b l e 56% o f t h e r e s p o n s e s a r e i n t h e a f f i r m a t i v e

w h i l e 44% i n d i c a t e t h a t i t d o e s no t . However, e a c h f i r m ' s

a b i l i t y t o i n c r e a s e c a p a c i t y u t i l i z a t i o n v a r i e s f rom o n e

f i r m t o a n o t h e r . ~ i r m s A , B, C , and D h a v e 69%, 56%,43%

and 40% p o s i t i v e r e s p o n s e s each . On n e g a t i v e r e s p o n s e s ,

t h e r e s u l t s f o r f i r m s A, B, C, and D a r e 31%, 44%, 57%

a n d 60% I t c o u l d b e s e e n f rom t h e d a t a t h a t f i r m s C and

D pe r fo rmed be low pa r .

T a b l e 4.17: Response on t h e e f f e c t o f b u d g e t i n g on

t h e g r o w t h r a t e o f s a l e s / s e r v i c e s .

As a n i n d e x f o r measu r ing e x t e r n a l v i a b i l i t y , t h e

q u e s t i o n o n t a b l e 4.17 i s meant t o d e t e r m i n e how budge t - I

i n g a f f e c t s t h e g r o w t h r a t e o f s a l e s i n t h e c a s e I

companies . T h e r e i s 47% who suppor t ed t h a t i t h e l p s , 38%

who b e l i e v e t h a t i t h a s had u n f a v o u r a b l e e f f e c t t o t h e i r

f i r m s and 15% who d e c l i n e d t o comment,

On i n d i v i d u a l b a s i s , f i r m A performed more favour-

a b l y w i t h 62% p o s i t i v e response , B h a s 44%, C h a s 29%

and D h a s 40% f a v o u r a b l e r e sponses . Regard les of f i r m A

t h a t has a h i g h performance r a t e , t h e rest were average .

T a b l e 4.18: Response o n whether budge t ing t e c h n i q u e h a s

been e f f e c t i v e i n t h e e v a l u a t i o n of p e r f o r -

mance, c o - o r d i n a t i o n of a c t i v i t i e s and

implementa t ion of p l a n s .

- - -- -- - - - -

From t h e r a t i n g s on t a b l e 4.18 above, it c o u l d be

s e e n t h a t 62% of t h e r e s p o n d e n t s b e l i e v e t h a t budge t ing

i s e f f e c t i v e i n t h i s r e g a r d w h i l e 38% have an opposing

view. However, i t c o u l d b e s e e n from t h e d a t a t h a t

t

Response

Y e s

No

f i r m s A and B performed more f a v o u r a b l y w i t h 85% and

67% p o s i t i v e r e s p o n s e s w h i l e f i r m s C and D performed

p o o r l y w i t h 43% and 20% each.

I T o t a l 1 1 3 1 9 1 7 1 5 ( 34 1 100 I

F i r m s ,

Frequency

2 1

1 3

A P e r c e n t a g e

62

3 8 3 4 4

B

1 1 6 3 1

C D

76

T a b l e 4.19: Response on w h e t h e r f i rms make u s e of

i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g

t e c h n i q u e i n c o r p o r a t e p l a n n i n g .

With r e s p e c t t o w h e t h e r t h e f i r m s make u s e of

i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g i n c o r p o r a t e p l a n n i n g ,

t h e a b o v e d a t a p r o v i d e s t h e n e c e s s a r y answer. T a b l e 4.19

a b o v e i n d i c a t e t h a t 76% o f t h e r e s p o n s e s acknowledge t h i s

f a c t w h i l e 24% s a i d no. The u n d e r s t a n d i n g f rom t h e d a t a

i s t h a t a s i g n i f i c a n t p e r c e n t a g e of t h e r e s p o n d e n t s

a f f i r m e d t h i s f a c t .

T a b l e 4.20: Response on w h e t h e r t h e companies have

e a s y access t o i n f o r m a t i o n r e q u i r e d i n

c o r p o r a t e p l a n n i n g .

Response

Yes

No T o t a l

F requency

14

20

34

P e r c e n t a g e

41

59 1 0 0

1

F i r m s

A

5

B

3 8 6 3

1 3 9 7 5

C

4

D

2

3

The e s s e n c e o f t h e above d a t a is t o e n a b l e u s u n e a r t h

t h e a b i l i t y o f t h e f i r m s t o g e t t h e i n f o r m a t i o n t h e y r e q u i r e

fo r c o r p o r a t e p l a n n i n g , The d a t a a b o v e shows t h a t 41% o f

t h e r e s p o n s e s claim e a s y access w h i l e 59% e x p r e s s d i f f i c u l t y

i n g e t t i n g t h e r e q u i r e d i n f o r m a t i o n , The d e d u c t i o n f rom t h e

a b o v e d a t a i s t h a t f i r m s d o n o t f i n d i t e a s y t o g e t t h e

i n f o r m a t i o n t h e y need t o f o r m u l a t e c o r p o r a t e p l a n s ,

T a b l e 4.21: Response o n w h e t h e r t h e a p p l i c a t i o n o f

i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g t e c h n i -

q u e i n c o r p o r a t e p l a n n i n g h a s enhanced orga-

n i z a t i o n a l v i a b i l i t y .

I n o u r b i d t o d e t e r m i n e w h e t h e r t h e a p p l i c a t i o n of

i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g t e c h n i q u e i n c o r p o r a t e

p l a n n i n g e n h a n c e s o r g a n i z a t i o n a l v i a b i l i t y , t h e a b o v e d a t a

was g a t h e r e d . I t i s a l s o i n t e n d e d t o d e t e r m i n e how it

a f f e c t s t h e p l a n n i n g a c t i v i t y and by e x t e n s i o n b u s i n e s s

v i a b i l i t y . From t h e d a t a , 62% of t h e r e s p o n d e n t s

s u b m i t t e d t h a t i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g

e n h a n c e s p l a n n i n g a c t i v i t y and v i a b i l i t y w h i l e 38%

Response

Y e s

F i r m s

13 38

34 100

Frequency

2 1

P e r c e n t a g e

62

D

3

A

2 No

B

T o t a l 3

C

8 6 5 2

5 3

13 9 ) 7 ) 5

s a i d i t d o e s not . The c o n c l u s i o n d e r i v a b l e f rom t h i s

d a t a is t h a t t h e p o s i t i v e r e s p o n s e i s h i g h l y s i g n i f i c a n t .

A fo l low-up q u e s t i o n t o t h o s e who b e l i e v e t h a t

i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g h a v e n o t enhanced

b u s i n e s s v i a b i l i t y shows t h a t t h e i r r e a s o n i s ma in ly

stemmed on t h e i r c o n c e r n f o r l a c k of r e l i a b l e i n f o r m a t i o n

and t h e d i f f i c u l t i e s i n v o l v e d .

T a b l e 4.22: Response on w h e t h e r t h e c o r p o r a t e p l a n n i n g

e x e c u t i v e s a r e g i v e n i n c e n t i v e s t h a t s p u r

them t o come up w i t h b e t t e r q u a l i t y p l a n s .

T a b l e 4.22 i s meant t o e l i c i t r e s p o n s e t o t h e

q u e s t i o n of w h e t h e r c o r p o r a t e p l a n n i n g e x e c u t i v e s a r e

g i v e n i n c e n t i v e s t h a t s p u r them t o come up w i t h b e t t e r

q u a l i t y p l a n s , W e h a v e 44% o f t h e r e s p o n d e n t s who I

I

I s t a t e d t h a t t h e y a r e w e l l t r e a t e d w h i l e 56% c l a i m t h a t I

t h e y a r e n o t w e l l t r e a t e d . The e s s e n c e of t h i s in forma-

t i o n is t o e n a b l e u s know how i t a f f e c t s t h e c o r p o r a t e

p l a n n i n g a c t i v i t y .

P e r c e n t a g e

44

56

100

Frequency

1 5

19

1

Response

Y e s

No

F i r m s

T o t a l 1 1 3 9 1 7 1 5 1 34

A B C

5 5 3 2

8 4 4 3

D

79

T a b l e 4.23 Response on t h e e f f e c t o f i n a d e q u a t e / l a c k

of i n c e n t i v e on c o r p o r a t e p l a n n i n g a c t i v i t y .

The d a t a on t a b l e 4.23 is meant t o s u p p l y i n f o r m a t i o n

o n w h e t h e r i n a d e q u a t e / l a c k of i n c e n t i v e g i v e n to c o r p o r a t e

p l a n n i n g managers c o u l d have a n e g a t i v e e f f e c t on p l a n n i n g

a c t i v i t y and b u s i n e s s v i a b i l i t y . The r e s p o n s e shows 38%

who claim i t d o e s n o t w h i l e 62% c l a i m i t d o e s a f f e c t

p l a n n i n g . The i n f e r e n c e from t h i s d a t a i s t h a t i n a d e q u a t e /

l a c k of i n c e n t i v e t o c o r p o r a t e p l a n n i n g e x e c u t i v e s can

e f f e c t t h e p l a n n i n g a c t i v i t y a d v e r s e l y .

T a b l e 4.24: Response on w h e t h e r t h e t r e a t m e n t g i v e n t o

c o r p o r a t e p l a n n i n g e x e c u t i v e s c a n enhance

o r g a n i z a t i o n a l v i a b i l i t y .

I F i r m s

F requency

1 3

P e r c e n t a g e

38

Response

F a v o u r a b l e

U n f a v o u r a b l e

B

5 3 3 2

6

A

8

T o t a l 9 1 3

C

4

D

62

100

, 3 7

1

2 1

34

The d a t a on t a b l e 4.24 i s i n t e n d e d t o h e l p u s

e s t a b l i s h whe the r t h e r e i s a p o s i t i v e r e l a t i o n s h i p between

better t r e a t m e n t of c o r p o r a t e p l a n n i n g managers and o r q a n i -

z a t i o n a l v i a b i l i t y , 65% o f t h e r e s p o n d e n t s a s s e r t t h a t

be t ter t r e a t m e n t of managers c a n enhance o r g a n i z a t i o n a l

v i a b i l i t y w h i l e 35% d o e s n o t a g r e e w i t h t h i s op in ion .

The u n d e r s t a n d i n g d e r i v a b l e f rom t h e above d a t a i s t h a t

t h e r e i s a p o s i t i v e relationship between t h e t w o

v a r i a b l e s ,

4.3: INTERVIEW SUMMARY

The i n t e r v i e w method w a s u sed n o t o n l y a s a comple-

ment t o q u e s t i o n n a i r e b u t a l s o a s a p r imary s o u r c e of d a t a .

T h e i n t e r v i e w was c o n d u c t e d w i t h a v iew t o a s c e r t a i n t h e

n a t u r e and e x t e n t of t h e u s e of c o r p o r a t e p l a n n i n g by

b u s i n e s s f i r m s t o a c h i e v e v i a b i l i t y . I t was a l s o

d e s i g n e d t c a s c e r t a i n t h e c o n s t r a i n t s t h a t a r e

e n c o u n t e r e d i n t h e p r o c e s s of c o r p o r a t e p l a n n i n g and

how t h e y a f f e c t t h e v i a b i l i t y of f i r m s . S e q u e l t o

t h i s e n q u i r y , a number of i s s u e s were u n r a v e l l e d .

I n t h e c o u r s e of t h e i n t e r v i e w , i t was d i s c o -

v e r e d t h a t t h e a t t i t u d e o f t o p management towards

c o r p o r a t e p l a n n i n g h a s n o t been t h e same i n a l l t h e

companies w e s t u d i e d . I n companies A and B, t h e

p e r f o r m a n c e i s a l i t t l e above a v e r a g e w h i l e i n

c o m p a n i e s C a n d D t h e a t t i t u d e i s v e r y poor . I t w a s

f o u n d o u t t h a t m o d e r a t e a t t e n t i o n i s g i v e n t o t h c

c o r p o r a t e p l a n n i n g a c t i v i t y i n c o m p a n i e s C and 3 w h i l e

i n c o m p a n i e s A a n d B, the: c o n s t r a i n t s r a n g e f r o m t h a t o f

t i m e t o t h a t o f t h e n a t u r e o f t h p s o c i o - e c o n o m i c e n v i r o -

nment w h i c h h a s b e e n u n s t a b l e , c o m p e t i t i v e a n d u n f a v o u r -

a b l e a n d sometimes t u r b u l e n t . T h i s a s s u c h , a f f e c t s t h e

n a t u r e o f r e s u l t s a c h i e v e d w h i c h a t times c o u l d h a v e much

d e v i a t i o n f r o m t h e e x p e c t e d r e s u l t s .

I t w a s f o u n d t h a t f o r e c a s t i n g a s a p l a n n i n g t e c h n i q u e

was a d o p t e d w i d e l y b y a l l t h e f i r m s i n p r o d u c t i o n p l a n s .

w h i c h o f c o u r s e i n c l u d e s m a r k e t i n g o f p r o d u c t s / s e r v i c ~ s .

I t w a s a l s o d i s c o v e r e d t h ~ t f o r e c a s t i n g t e c h n i q u e e n h a n c e s

v i a b i l i t y a g r e a t d e a l .

B u d g e t i n g a s a form o f s h o r t - t e r m p l a n n i n g b u t a

t e c h n i q u e of l o n g - t e r m p l a n n i n g w a s f o u n d t o be i n e f f e c -

t i v e l y u s e d m a i n l y i n c o m p a n i e s C a n d D t o a c h i e v e

b u s i n e s s v i a b i l i t y . Bu t c o m p a n i e s A a n d B n e r f o r m e d f a i r l y

w e l l , v i a b i l i t y w i s e , w i t h i t s a p p l i c a t i o n ,

I t was r e a l i z e d t h a t t h e i n a b i l i t y of b u d g e t i n g

t e c h n i q u e t o make much i m p a c t o n t h e v i a b i l i t y o f f i r m s

c a n d D was d u e t o t h e f a c t t h a t t h e f i rms i n q u e s t i o n

p r e d i c a t e a l l b u d g e t i n g e f f o r t s o n p r o f i t m a x i m i z a t i o n

f o r a g i v e n f i n a n c i a l y e a r , T h i s , i n v a r i a b l y a f f c c t s t h e

l o n g - t e r m v i a b i l i t y o f t h e f i r m s s i n c e e v e r y e f f o r t

r e v o l v e s a r o u n d s a t i e f y i n g i m m e d i a t e o b j e c t i v e t o t h e

d e t r i m e n t o f l o n g - r u n o b j e c t i v e .

E x c e r p s f r o m t h e i n t e r v i e w i n d i c a t e t h a t a l l ,

c o m p a n i e s d o n o t h a v e e a s y a c c e s s t o i n f o r m a t i o n n e e d e d ,

i n t h e c o r p o r a t e p l a n n i n g a c t i v i t y . T h i s , t h e y c l a i m ,

h a v e some n e g a t i v e i m p l i c a t i o n s f o r t h e v i a b i l i t y o f I

t h e s e f i rms .

On Lhe t r e a t m e n t g i v e n t o c o r p o r a t e p l a n n i n g execu-

t i v e s a n d i t s i m p a c t o n t h ~ v i a b i l i t y o f t h e f i r m s , i t

was l e a r n t t h a t t h e s c h a v e n o t b e e n e n c o u r a g i n g and a s

s u c h c o u l d h a v e n e g a t i v e c o n s e q u e n c i e s f o r t h e v i a b i l i t y

o f f i r m s ,

F i n a l l y , i t was f o u n d t h a t w h e r e v e r p l a n n i n g was d o n e

w i t h o u t c o n s t r a i n t s , i t h a s p r o v e d a d e p e n d a b l e t o o l - f o r

p l a n n i n g t o w a r d s v i a b i l i t y .

4.4: HYPOTHESES TESTING

I n a l l b i d t o tes t t h e h y p o t h e s e s g e n e r a t e d f r o m t h e

s t a t e m e n t of p r o b l e m , we d r e w c o n t i n g e n c y t a b l c s w h i c h

r e f l e c t t h e o p i n i o n o f t h e 34 r e s p o n d e n t s o n t h e v a r i a b l e s ,

u n d e r i n v e s t i g a t i o n .

A s a mcthod f o r t e s t i n q t h c h y p o t h e s e s , t h e c h i -

s q u a r e ( ?G2 ) s t a t i s t i c i s u s e d a n d t h e e x p e c t e d f r e q u e n -

cies a r e c a l c u l a t e d on t h e a s s u m p t i o n t h a t t h e n u l l

h y p o t h e s e s a r e c o r r e c t , T h e s e s c a l c u l a t e d f r e q u e n c i e s

a r e s u s e q u c n t l y compared w i t h t h e o b s e r v e d f r e q u e n c i e s ,

In t e s t i n g t h e i n d e p e n d e n c e o f t h e s e v a r i s b l ~ s , t h e

d e g r e e s o f f reedom f o r x2 i s d e t e r m i n e d by t h e r e l a t i o n -

s h i p : d f = ( r - I ) , whe re r i s t h e number of rows ( o r v a r i a b l e s

y e s o r n o ) , T h e r e f o r e , a t a b l e of t h i s n a t u r e i s a 2 x 1

c o n t i n g e n c y t a b l e whose d e g r e e of f r eedom ( d f ) i s 1. , I

If t h e l e v e l o f s i g n i f i c a n c e i s 5%, t h e c r i t i c a l v a l u e

on a d e g r e e o f f r eedom of 1 w i l l be :

. 2 G L I , ~ 4 5 = 3 ~ 8 + c r i t i c a l v a l u e ( s p i e g e l , 1972 )

The e x p e c t e d f r e q u e n c i e s a r e o b t a i n e d on t h ~ assump-

t i o n of e q u a l l y l i k e l y r e s p o n s e s , T h i s a s s i g n s e q u a l w e i g h t

t o t h e v a r i a b l e s . Hence, t h e number o f y e s is e x p e c t e d t o

b e e q u a l t o thc number o f No r e s p o n s e s ,

With p a r t i c u l a r r e f e r e n c e t o ' b h i s s t u d y , w e d i v i d e d t h e

t o t a l number of r e s p o n s e s by 2 t o g e t t h e e x p e c t e d f r e q u e n c y .

The test s t a t i s t i c w e s h a l l a d o p t is:

2 3~ (0-e-0.5) w i t h y a t e s c o r r e c t i o n method of - 0.5 ,

e where ,

0 r e p r e s e n t s t h e o b s e r v e d f r e q u e n c y .

e r e p r e s e n t s t h e e x p e c t e d f r e q u e n c y ,

r e p r e s e n t s t h e summation s i g n of sums of t h e t w o

v a r i a b l e s - y e s and No.

Y a t e s c o r r e c t i o n : We s u b t r a c t 0-5 f r o m e a c h ( 0 - e )

b e f o r e s q u a r i n g .

X' s a m p l i n g d i s t r i b u t i o n i s a p p r o x i m a t e d c l o s e l y by

t h e c h i - s q u a r e d i s t r i b u t i o n p r e s e n t e d i n t h e c u r v e below.

T h e s h a d e d r e g i o n ( 1 4 ) i s t h e a c c e p t a n c e r e g i o n . Any

v a l u e o f ?G2 o u t s i d e t h i s r e q i o n f a l l s i n t h e r e j e c t i o n ,

W e s h a l l now test o u r h y p o t h e s e s i n t h e f o l l o w i n g

o r d e r :

1. A t t i t u d e o f t o p management t o w a r d s c o r p o r a t e

p l a n n i n g a n d o r g a n i z a t i o n a l v i a b i l i t y .

2. U s e o f f o r e c a s t i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g

a n d g r e a t e r m a r k e t s h a r e f o r p r o d u c t s / s e r v i c e s .

3. U s e of b u d g e t i n g t e c h n i q u e i n c o r p e r a t e p l a n n i n g

a n d p r o f i t a b l e u t i l i z a t i o n o f r e s o u r c e s .

4. A p p l i c a t i o n o f i n f o r m a t i o n m o n i t o r i n g and g a t h e r i n g

t e c h n i q u e s i n c o r p o r a t e p l a n n i n g a n d b u s i n e s s v i a b i l i t y .

5. T r e a t m e n t o f c o r p o r a t e p l a n n i n g a n d e x e c u t i v e s

a n d o r q a n i z a t i o n a l v i a b i l i t y .

T e s t i n a of H v ~ o t h e s h s I:

R e s e a r c h H y p o t h e s i s (HI) A t t i t u d e of t o p management

t o w a r d s c o r p o r a t e p l a n n i n g h a s enbanced o r g a n i z a t i o n a l

v i a b i l i t y .

N u l l H y p o t h e s i s (H 1: A t t i t u d e of t o p management 0

t o w a r d s c o r p o r a t e p l a n n i n g h a s n o t enhanced o r g a n i z a t i o n a l

v i a b i l i t y .

T a b l e 4.25: Response t o q u e s t i o n 1 4 o f t h e r e s e a r c h

q u e s t i o n n a i r e . . S e e Appendix ( i )

I R e s p o n s e 1 F r e q u e n c e 1 P e r c e n t a g e I

To g e t t h e e x p e c t e d f r e q u e n c y ( e l , w e c a l c u l a t e a s p e r

b4nomial d i s t r i b u t i o n s i n c e t h e r e a r e o n l y t w o p o s s i b l e

a n s w e r s ( o u t c o m e s ) , i.e. Y e s and No.

Then P ( y e s 1 f o r example - %

P(No1 = 1 - % = %

For t o t a l ou t come n , ei = n p

.: = ez = 34x3 = 17

Thus , e x p e c t e d f r e q u e n c y f o r T a b l e 4.25 a b o v e is:

Yes 16 44 I

F r e q u e n c y

I Y e s 16 1

2 C a l c u l a t e d K v a l u e E 0.1471

2 T a b u l a t e d 3C v a l u e = 3.84

L e v e l o f s i g n i f i c a n c e ~ 6 . 0 5

D e g r e e o f f r e e d o m = 1

2 ~ e c i s i o n : S i n c e t h e c a l c u l a t e d X v a l u e i s less t h a n

t h e t a b u l a t e d v a l u e , we a c c e p t t h e n u l l h y p o t h e s i s a n d

r e j e c t t h e r e s e a r c h h y p o t h e s i s .

D e d u c t i o n : Based on t h e a b o v e f i n d i n g , o n e c a n t h e r e -

f o r e assert t h a t t h e a t t i t u d e o f t o p management t o w a r d s

c o r p o r a t e p l a n n i n g s h a s n o t e n h a n c e d o r g a n i z a t i o n a l

v i a b i l i t y .

T e s t i n a o f H v n o t h e s i s 2

R e s e a r c h H y p o t h e s i s ( H i ) : F i r m s t h a t u s e f o r e c a s t i n g

t e c h n i q u e i n c o r n o r a t e p l a n n i n g a c h i e v e g r e a t e r m a r k e t I

s h a r e for t h e i r p r o d u c t s / s e r v i c e s .

N u l l H y p o t h e s i s ( Ho): F i r m s t h a t u s e f o r e c a s t i n g

t e c h n i q u e i n c o r p o r a t e p l a n n i n g d o n o t a c h i e v e g r e a t e r

m a r k e t s h a r e f o r t h e i r p r o d u c t s / s e r v i c e s .

T a b l e 4 - 2 6 : R e s p o n s e t o , q u e s t i o n 2 5 of t h e r e s e a r c h

q u e s t i o n n a i r e , See A p p e n d i x ( i )

Yes I 2 3 I 68

* .I

R e s p o n s e

i

T o get t h e e x p e c t e d f r e q u e n c y ( e ) , we c a l c u l a t e d a s D e r

b i n o m i a l d i s t r i b u t i o n s i n c e t h e r e a r e o n l y t w o p o s s i b l e

a n s w e r s ( o u t c o m e ) , ie. y e s a n d No.

P (Yes) = $

P (NO) =I-% = %

F o r t o t a l o u t c o m e n , c i = n p

F r e q u e n c y

32 -

100

No 1 11

T h u s , t h e e x p e c t e d f r e q u e n c y f o r t a b l e 4 - 2 6 above is :

P e r c e n t a g e

To ta l

I

34

R e s p o n s e O b s e r v e d F r e a u e n c v

E x p e c t e d Freauencv

2 C a l c u l a t e d 3C. v a l u e = 4.26

2 T a b u l a t e d X- v a l u e = 3,84

L e v e l o f s i g n i f i c a n c e ET 4 - 05

D e g r e e of f r e e d o m 1

2 D e c i s i o n : S l n c e ' t h e c a l c u l a t e d X v a l u e i s t h a n

t h e t a b u l a t e d v a l u e , w e r e j e c t t h e n u l l h y p o t h e s i s a n d

a c c e p t t h e r e s e a r c h h y p o t h e s i s ,

D e d u d c t i o n : T h e a b o v e f i n d i n g i n d i c a t e t h a t f i r m s t h a t

u s e f o r e c a s t i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g a c h i e v e

g r e a t e r m a r k e t s h a r e f o r t h e i r p r o d u c t s , Hence, t h e

c o n c l u s i o n is t h a t t h e a p p l i c a t i o n o f f o r e c a s t i n g t e c h n i q u e

i n c o r p o r a t e p l a n n i n g h a s e n h a n c e d t h e m a r k e t s h a r e of

t h e p r o d u c t s / s e r v i c e s o f t h e c a s e c o m p a n i e s ,

t e s t i n s of y y p o t h e s i s 3:

ReseaFch ( ~ 1 3 : U s e o f b u d g e t i n g t e c h n i q u e

i n c o r p o r a t e p l a n n i n g e n h a n c e s a n o r g a n i z a t i o n s a b i l i t y t o

u t i l i z e r e s o u r c e s more p r o f i t a b l y

N u l l H y p o t h e s i s (#,I: U s e of b u d g e t i n g t e c h n i q u e i n

c o r p o r a t e p l a n n i n g d o e s n o t e n h a n c e a n o r g a n i z a t i o n + s

a b i l i t y t o u t i l i z e r e s o u r c e s more p r o f i t a b l y

T a b l e 4.27: R e s p o n s e t o q u e s t i o n 2 9 o f t h e r e s e a r c h

q u e s t i o n n a i r e . S e e Appendix ( i )

To g e t t h e e x p e c t e d f r e q u e n c y (e) f o r t a b l e 4.27,

R e s p o n s e

f ' a v o u r a b l e

Unf a v o u r a b l e

T o t a l

w e c a l c u l a t e a s p e r binomiff1 d i s t r i b u t i o n s i n c e t h e r e a r e

o n l y t w o p o s s i b l e a n s w e r s ( o u t c o m e ) i e , Y e s a n d No.

F r e q u e n c y

19

15

3 4

F o r t o t a l o u t c o m e n , e i = n p

:. e - e2 = 34x25 1 - = I 7

P e r c e n t a q e

56

4 4 1 100 -

T h u s , e x p e c t e d f r e q u e n c y f o r t a b l e 4.27 a b o v e is:

R e s p o n s e

Yes

b N O

O b s e r v e d F r equericy

19

1 5

E x p e c t e d &eq,wency

17

1 7

4

L

2 C a l c u l a t e d 3C v a l u e = 0.5

2 T a b u l a t e d X v a l u e = 3.84

L e v e l of s i g n i f i c a n c e = 4 .05

D e g r e e of f r e e d o m = 1

D e c i s i o n & S i n c e t h e c a l c u l a t e d X' v a l u e i s less t h a n

t h e t a b u l a t e d v a l u e , w e a c c e p t t h e n u l l h y p o t h e s i s and

r e j e c t t h e r e s e a r c h h y p o t h e s i s .

D e d u c t i o n : T h e i n f e r e n c e h e r e i s t h a t t h e u s e of

b u d g e t i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g h a s n o t enhanced

t h e o r g s n i z a t i o n ' a b i l i t y t o u t i l i z e r e s o u r c e s more p r o f i t -

a b l y . P r o f i t a b l e u t i l i z a t i o n of r e s o u r c e s i s a n i n d e x o f

e x t e r n a l v i a b i l i t y o f a n o r q a n i z a t i o n . I t was f o u n d i n

t h e c o u r s e o f t h e r e s e a r c h t h a t b u s i n e s s f i r m s h a v e n o t

u t i l i z e d b u d g e t i n g t e c h n i q u e enough t o e n s u r e more

p r o f i t a b l e u t i l i z a t i o n of r e s o u r c e s .

T e s t i n g of H y p o t h e s i s 4:

R e s e a r c h H y p o t h e s i s (HI): A p p l i c a t i o n of i n f o r m a t i o n

m o n i t o r i n g and g a t h r r i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n a

f o s t e r s b u s i n e s s v i a b i l i t y .

N u l l H y p o t h e s i s ( H o ) : A p p l i c a t i o n o f i n f o r m a t i o n

m o n i t o r i n g and g a t h e r i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g

d o e s n o t f o s t e r b u s i n e s s v i a b i l i t y .

T a b l e 4 - 2 8 : R e s p o n s e t o q u e s t i o n 36 o f t h e r e s e a r c h

q u e s t i o n n a i r e , S e e Append ix ( i )

T o g e t t h e e x p e c t e d f r e q u e n c y ( e ) f o r t a b l e 4.28

-

a b o v e , w e c a l c u l a t e as p e r b i n o m i 4 1 d i s t r i b u t i o n s i n c e

t h e r e a r e o n l y t w o p o s s i b l e a n s w e r s ( o u t c o m e ) , i.e,

Y e s and No.

P ( Y e s ) = f i

P ( N 0 ) = I - % = %

F o r t o t a l o u t c o m e n , ei = n p

. . el= e2 = 34x+ =17.

T h u s , t h e e x p e c t e d f r e q u e n c y f o r t a b l e 4-28 a b o v e

i s :

I O b s e r v e d I E x p e c t e d I

P e r c e n t a g e

6 2

38

100

-,

R e s p o n s e

Y e s

N O

~ o t a l

Yes 1 21 17

1 3- 17

F r e q u e n c y

2 1

13

34 ,

2 C a l c u l a t e d X v a l u e c 1.91

2 T a b u l a t e d X v a l u e = 3-84

L e v e l of s i g n i f i c a n c e = 6 . 0 5

D e g r e e o f f r e e d o m = 1

2 D e c i s i o n : S i n c e t h e c a l c u l a t e d X v a l u e i s less t h a n

t h e t a t u l d t e d v a l u e , w e a c c e p t t h e n u l l h y p o t h e s i s a n d

reject t h ~ r e s e a r c h h y p o t h e s i s ,

~ e d u c t i o n : B a s e d o n t h e a b o v e test, w e c a n c o n c l u d e

t h a t t h e a p p l i c a t i o n of i n f o r m a t i o n m o n i t o r i n g a n d g a t h e r -

i n g t e c h n i q u e i n c o r p o r a t e p l a n n i n g h a s n o t f o s t e r e d b u s i -

n e s s v i a b i l i t y . I n o t h e r w o r d s , d u e t o t h e p r o b l e m s

a s s o c i a t e d w i t h i n t o r m a t i o n m o n i t o r i n g a n d g a t h e r i n g i t s

a p p l i c a t i o n , i t h a s n o t c o n t r i b u t e d p o s i t i v e l y t o w a r d s thc:

i m p r o v e m ~ n t of o r g a n i z a t i o n a l v i a b i l i t y .

l ' e s t i n q of H y p o t h e s i s 5:

R e s e a r c h H y p o t h e s i s (HI): T r e a t m e n t g i v e n t o c o r p o r a t e

p l a n n i n g e x e c u t i v e s e n h a n c e s o r g a n i z a t i o n a l v i a b i l i t y ,

N u l l H y p o t h e s i s ( H o ) : T r e a t m e n t q i v e n t o c o r p o r a t e

p l a n n i n g e x e c u t i v e s d o e s n o t e n h a n c e o r g a n i z a t i o n a l

v i a b i l i t y ,

T a b l e 4.29: R e s p o n s e t o q u e s t i o n 4 0 of t h e r e s e a r c h

q u e s t i o n n a i r e . S e e Apnendix ( i) .

I R e s p o n s e F r e q u e n c y

I Y e s I 22 65 I

To g e t t h e e x p e c t e d f r e q u e n c y ( e ) , f o r t a b l e 4.29, w e

No ,..

c a l c u l a t e a s p e r b i n o m i a l d i s t r i b u t i o n s i n c e there are a o n l y

t w o p o s s i b l e ou t comes ( a n s w e r s ) i.e. Y e s a n d No.

P ( Y e s ) = % P ( N o ) = I - % = %

F o r t o t a l ou t come n, e i = n p

12

a * el = e2 = 34x% = 17.

*bust O x p e c t e d f r e q u e n c y f o r t a b l e 4.29 a b o v e is: .

35

+ T o t a l 34

Obse rved 1 ~ p p e c t e d R e s p o n s e F r e q u e n c y F r e q u e n c y f

100 -

= 1 ,7794 + 1.1911 2 C a l c u l a t e d X v v a l u e = 2.97

Yes

No

2 T a b u l a t e d X v a l u e = 3,84

L e v e l of s i g n i f i a a n c e = k - 0 5

1

2 2

1%

D e g r e e o f f r e e d o m = 1

7

1 7

1 7

2 D e c i s i o n : S i n c e t h e c a l c u l a t e d 3G v a l u e i s less

t h a n t h e t a b u l a t e d v a l u e , w e a c c e p t t h e n u l l h y p o t h e s i s

and r e j e c t t h e r e s e a r c h h y p o t h e s i s .

D e d u c t i o n : From t h e a b o v e c a l c u l a t i o n w e c a n asser

t h a t t h e t r e a t m e n t g i v e n t o c o r p o r a t e p l a n n i n g e x e c u t i v e s

does n o t e n h a n c e o r g a n i z a t i o n a l v i a b i l i t y . I n o t h e r words

f o r a n e n h a n c e d o r g a n i z a t i o n a l v i a b i l i t y t h e r e s h o u l d be

1 e t ter t r e d t r n e n t of c o r p o r a t e p l a n n i n g e x e c u t i v e s .

CHAPTER F I V E

SUMMARY OF FINDINGS, RECOMMENDATION, CONCLUSION AND AREAS OF FURTHER RESEARCH

5.1: SUMMARY OF FINDINGS

T h i s r e s e a r c h work h a s

t o wh ich c o r p o r a t e p l a n n i n g

e v a l u a t e d and s i e v e d t h e e x t e n t

i s employed by b u s i n e s s f i r m s t o

a c h i e v e v i a b i l i t y and t h e p o s s i b l e c o n s t r a i n t s t h a t f a c e

them i n t h e p r o c e s s . T h i s i s s e q u e l t o t h e u n p r e c e d e n t e d

b u s i n e s s f a i l u r e s n o t i c e a b l e i n N i g e r i a t o d a y , Hence, w e

t r i e d t o s e e k f o r i t s e x p l a n a t i o n i n t h e n a t u r e and

p r a c t i c e of c o r p o r a t e p l a n n i n g by b u s i n e s s f i r m s .

Undoubted ly , a number o f f i n d i n g s were made t o b u t t r e s s

o r debunk o u r h y p o t h e s e s .

I t was e s t a b l i s h e d t h a t t h e a t t i t u d e o f t o p manage-

ment t o w a r d s c o r p o r a t e p l a n n i n g h a s n o t been f a v o u r a b l e

t o c o r p o r a t e p l a n n i n g . The h y p o t h e s i s t h a t e n a b l e d u s t o

e s t a b l i s h t h i s f a c t w a s f o r m u l a t e d and t e s t e d a l o n g w i t h

o t h e r i n d i c e s t h a t were c o n s i d e r e d r e l e v a n t . T h e s e

i n d i c e s a r e c r e a t i v i t y , f a v o u r a b l e e n v i r o n m e n t , u t i l i z a -

t i o n o f r e s e a r c h f i n d i n g s and a d e q u a t e a t t e n t i o n g i v e n

t o t h e p l a n n i n g a c t i v i t y . The a t t i t u d e of t o p management

t o w a r d s c o r p o r a t e p l a n n i n g c o u l d be r e g a r d e d a s f a v o u r a b l e

t o b u s i n e s s v i a b i l i t y when t h e a b o v e i n d i c e s a r e p r o p e r l y

i n t e g r a t e d i n t h e c o r p o r a t e p l a n n i n g p r o c e s s .

T h e s t u d y i n d i c a t e s t h z t t h e r e is some p o s i t i v e

r e l a t i o n s h i p b e t w e e n t h e u s e of f o r e c a s t i n g a s a c o r p o r a t e

p l a n n i n g t e c h n i q u e a n d g r e a t e r m a r k e t s h a r e a c h i e v e d by

most o f t h e c o m p a n i e s s t u d i e d . T h u s , i n c r e a s e d m a r k e t

s h a r e f o r p r o d u c t s / s e r v i c e s i s a n i n d e x f o r m e a s u r i n g

e x t e r n a l v i a b i l i t y . C o n s e q u e n t l y , i f c o r p o r a t e p l a n n i n g

a d o p t s t h i s t e c h n i q u e a n d i n c r e a s e d m a r k e t s h a r e i s r e c o r d e d

i t c o u l d t h e n b e v a l i d a t e d t h a t t h e v a i b i l i t y o f a b u s i n e s s

f i r m h i n g e s p a r t l y o n t h i s , However , i t was d i s c o v e r e d t h a t

f o r e c a s t i n g t e c h n i q u e h a s n o t b e e n e f f e c t i v e l y u t i l i z e d i n

t h e a r e a o f f i n a n c i a l , t e c h n i c a l a n d manpower n e e d s .

B u d g e t i n g t e c h n i q u e was f o u n d t o be i n e f f e c t i v e i n

h e l p i n g t h e o r g a n i z a t i o n s t o a c h i e v e t h e d e s i r e d v i a b i l i t y .

T h i s i s v a l i d a t e d b y t h e t h i r d h y p o t h e s i s . H o w e v e r , t h e

p r o b l e m d o e s n o t stem from b u d g e t i n g i t se l f a s a t e c h n i q u e

b u t o n t h e n a t u r e o f i t s a p p l i c a t i o n b y m a n a g e m ~ n t , I t was

f o u n d t h a t b u d g e t i n g a s a form of s h o r t - t e r m p l a n n i n g i s

g e a f e d t o w a r d s a c h i e v e i n g p r o f i t a b i l i t y w i t h i n a a i v e n

f i n a n c i a l y e a r . T h u s , management p a y s more a t t e n t i o n t o

i i n m e d i a t e o b j e c t i v e w h i c h i s p r o f i t o r i e n t e d t o t h e d e t r i -

m e n t o f l o n g - t e r m o b j e c t i v e w h i c h i s t h e a b i l i t y t o s u r v i v e

a t u r b u l e n t / c o m p e t i t i v e e n v i r o n m e n t o v e r t i m e .

I t w a s a l s o a s c e r t a i n e d f r o m t h e s t u d y t h a t t h e

u t i l i z a t i o n of i n f o r m a t i o n m o n i t o r i n g a n d g a t h e r i n g t e c h -

n i q u e

i n c o r p o r a t e p l a n n i n g h a s n o t f o s t e r e d b u s i n e s s v i a b i l i t y .

T h e v a r i a b l e s u s e d t o t e s t t h i s a re t h e u t i l i z a t i o n o f

i n f o r m a t i o n by management a n d t h e a b i l i t y t o g e t t h e r e q u i -

r e d i n f o r m d t i - o n e a s i l y f r o m t h e e n v i r o n m e n t . E v e n t h o u g h i t

w a s d i s c o v e r e d t h a t t h e r e i s n o o n e t o o n e r e l a t i o n s h i p

b e t w e e n o r g a n i z a t i o n a l v i a b i l i t y a n d i n f o r m ~ t i o n m o n i t o r -

i n g a n d q a t h e r i n g , however , i t was d i s c o v e r e d t o h a v e a n

i n d i r e c t r e l a t i o n s h i p w i t h v i a b i l i t y . T h i s i s b e c a u s e

c o r p o r a t e p l a n n i n g f u n c t i o n was f o u n d t o d e p e n d h e a v i l y

o n t h e n a t u r e o f i n f o r m d t i o n g a t h e r e d from t h e e n v i r o n -

m e n t a n d t h i s f u r t h e r d e t e r m i n ~ s how e f f e c t i v e i t w i l l be

i n e n s u r i n g b u s i n e s s v i a b i l i t y .

One o t h e r f i n d i n g i s t h a t t h e r e i s a p o s i t i v e r e l a -

t i o n s h i p b e t w e e n t h e t r e a t m e n t g i v e n t o c o r p o r a t e p l a n n i n g

e x e c u t i v e s a n d o r g a n i z a t i o n a l v i a b i l i t y . However, t h e

h y p o t h e s i s t e s t e d shows t h ~ t t h e t r e a t m e n t g i v e n t o .hhe

c o r p o r a t e p l a n n i n g e x e c u t i v a h a s n o t e n h a n c e d b u s i n e s s

v i a b i l i t y . T h i s owes t o t h e l a c k o f r e c o g n i t i o n of t h e

e f f e c t t h a t t h e c o r p o r a t e p l a n n i n g f u n c t i o n c a n h a v e on

t h e b e h a v i o u r a n d p e r f o r m a n c e o f t h e p l a n n i n g e x e c u t i v e s .

I n d i c a t i o n ~ a r e t h a t more a t t e n t i o n is p a i d o n l y t o t h e

p r o f i t m o t i v e a n d t e c h n i c a l i t i e s o f c o r p o r a t e p l a n n i n g to

t h e d e t r i m e n t o f a t t e n t i o n t h a t s h o u l d be g i v e n t o t h e

b e h a v i o u r of t h e human e l e m e n t i n p l a n n i n g ,

I t was a l s o d i s c o v e r e d t h a a number o f c o n s t r a i n t s

s u c h a s a m u l t i p l i c t y o f o r g a n i z a t i o n a l o b j e c t i v e s ,

i n a d e q u a t e a t t e n t i o n g i v e n t o p l a n n i n g , i n a d e q u a t e s k i l l ,

t h e t u r b u l e n t n a t u r e o f t h e socio- e c o n o m i c environment

a n d i n s t a b i l i t y i n g o v e r n m e n t a n d i t s a t t e n d a n t c h a n g e s i n

p o l i c t c s a f f e c t t h e n a t u r e o f r e s u l t s a c h i e v e d t h r o u g h

c c r p o r a t e p l a n n i n g .

5.2 : RECOMMENDATIONS

1. Top management s h o u l d a d o p t a more p o s i t i v e a t t i t u d e

t o w a r d s c o r p o r a t e p l a n n i n g by c r e a t i n g a n e n a b l i n q e n v i r o -

nment f o r t h i s p u r p o s e , T h i s w i l l u n e q u i v o c a l l y e n h a n c e

t h e c o r p o r a t e p l a n n i n g a c t i v i t y , T h e r e i s a l so t h e n e e d

f o r management t o s t r i v e t o m a i n t a i n a n i n t e g r a t i v e ,

s y n e r g i s t i c , s t a b l e a n d c o n d u c i v e e n v i r o n m e n t b o t h i n t e r n a l l y

a n d e x t e r n a l l y i n o r d e r t o e n s u r e v i a b i l i t y .

2. T h e r e i s n e e d f o r t o p management t o d e v o t e a d e q u a t e

a t t e n t i o n o r t i m e t o t h e f u n c t i o n o f p l a n n i n g so a s t o

k r e p t r c 7 c k o f d e v e l o p m e n t s i n t h e b u s i n e s s e n v i r o n m e n t ,

S i m i l a r l y , manaqcment s h o u l d d e s i s t from d e l e g a t i n q

c o r p o r a t e p l a n n i n g f u n c t i o n t o s t a f f o t h e r t h a n t h e l i n e

p e r s o n n e l who h a v e better i d e a of how t o f o r m l a t e t h e p l a n s .

3, T h e r e s h o u l d b e t h e t h e e n c o u r a q e m e n t of c r e a t i v d t y

t h r o u g h t h e d e s i g n a t i o n o f ro les w h e r e p e o p l e c a n c r e a t e

a n d b e i n n o v a t i v e , T h i s i n d e x , i f p r o p e r l y u t i l i z e d , c o u l d

e n h a n c e b u s i n e s s v i a b i l i t y i m m e n s e l y .

4, T h e r e s h o u l d be t h e e n c o u r a g e m e n t of r e s e a r c h a s w e l l

a s t h e p r o p e r u t i l i z a t i o n of r e s e a r c h f i n d i n q s , T h i s h a v e

a n i m m e a s u r a b l e ro l e t o p l a y i n t h e l o n g - r u n s u s t a i n a b i l i t y

o f t h e f i r m .

5, T h e r e s h o u l d be i m p r o v e m e n t o n t h e i n e n t i v e s g i v e n t o

t h e e m p l o y e e s o f t h e f i r m s , T h i s w i l l e n a b l e t h e m t o

c o h e r e i n o r d e r t o r e a l i z e t h e o r g a n i z a t i o n ' s o b j e c t i v e .

6. T h e s e f a c t o F s t h a t i m p r o v e o n t h e i n t e r n a l v i a b i l i t y

o f t h e f i r m s s h o u l d be e n c o u r a q e d , T h e s e a r e i n t r i n s i c a l l y

m o t i v a t i n g job c o n t e n t , r e c r u i t m e n t of k e y p e r s o n n e l a t

r e a s o n a b l e i n t e r v a l s , p r o c e s s i n n o v a t i o n a n d i n t e r p e r s o a l

r e l a t i o n s h i p among e m p l o y e e s ,

7 . T h e t u r b u l e n t , c o m p e t i t i v e a n d u n s t a b l e p o s t u r e o f

o u r e c o n o m i c e n v i r o n m e n t d e m a n d s t h a t t h e r e s h o u l d b e

t h e e f f e c t i v e a d o p t i o n o f f o r e c a s t i n g t e c h n i q u e i n

p r o d u c i i o n . I t s h o u l d s l s o be a p p l i e d i n t h e a reas of

f i n a n c i a l t e c h n i c a l a n d manpower n e e d s . T h i s w i l l e n a b l e

t h e m a n a g e m c n t t o c i r c u m v e n t some of t h e n e g a t i v e u n f o r -

s e e n c i r c u m s t a n c e s w i t h i n t h e b u s i n e s s e n v i r o n m e n t .

100

8. I n v i e w of t h e h i g h d g r e e o f u n p r e d i c t a b i l i t y

a s s o c i a t e d w i t h d e v e l o p i n g e c o n o m i e s , t h e r e i s n e e d f o r

t o p manaqemcnt t o e n g a g e i n c o n t i n m u s b u d q e t i n g , T h i s i s

t o e n a b l e i t g a u r d a g a i n s t some i n c i d e n t a l d e v e l o p m e n t s

w i t h i n t h e o r q a n i z a t i o n i t s e l f a n d t h e economy i n g e n e r a l .

9. To ~ : o l v e t h e p r o b l e m o f d i f f i c u l t a c c e s s i b i l i t y t o

n e e d e d i n f o r m a t i o n , t h e r e s h o u l d be t h e e s t a b l i s h m e n t o f

d a t a b a n k s , t h o u s e o f r e s m r c h a n d d e v e l o p m e n t a g e n t s ,

t h c e s t a b l i s h m e n t o f m a r k e t i n t e l l i g e n t n e t w o r k s a n d

> i p p l i c a t i o n o f i n f o r m a t i o n p r o v i d e d by s a l e s m e n ,

10, T h e r e s h o u l d be d u e r e c o g n i t i o n o f t h e e s s e n t i a l role

t h ~ human e l e m e n t c a n p l a y t o w a r d s c o r p o r a t e p l a n n i n g a n d

b u s i n e s s v i a b i l i t y . T h e r e i s t h e n e e d t o g i v e them a l l t h e

n e c e s s a r y i n c e n t i v e s t h e y r e q u i r e i n v i e w of t h e e f f e c t t h e

c o r p o r a t e p l a n n i n g f u n c t i o n c a n h a v e o n human b e h a v i o u r ,

S i n c e t h e p i v o t of t h i s r e s e a r c h work h a s b e e n o n how

t o a c h i e v e o r g a n i z a t i o n a l v i a b i l i t y u s i n g c o r p o r a t e p l a n n i n g

i t i s b e l i e v e d t h ~ t i f t h e a b o v e r e c o m m e n d a t i o n s a r e a d o p t e d

t h e d e s i r e d r e s u l t w i l l b e a c h i e v e d ,

5.3: C O N C L U S I O N

b'or a n o r g a n i z a t i o n t o s u r v i v e a n d become d u r a b l e i n

i t s e n v i r o n m e n t , i t m u s t s a t i s f y m d j o r i n s i d e r s a s w e l l as

outs ider i n t e r e s t . I n o t h e r w o r d s , f o r a n o r g a n i z a t i o n t o

r e m a i n v i a b l e , i t m u s t s a t i s f y t h e clt.-mands o f c l i e n t s a n d

o t h e r c o n t e n d i n g f o r c e s i n i t s e n v i r o n m e n t . Correspondingly

i t s h o u l d t r y t o meet w i t h t h e a i m s a n d o b j e c t i v e s o f t h e

o r g a n i z a t i o n w i t h i n t h e l i m i t s o f i t s r c \ s o u r c e s . T o d o t h i s ,

a n o r g a n i z a t i o n m u s t p l a n c o n c i o u s l y t o w d r d s t h i s , end .

S i n c e c o r p o r a t e p l a n n i n g i n v o l v e s a r e x a m i n a t i o n o f

t h e c a u s e - a n d - e f f ect c o n s e c - l u e n e s o n a loncr- t i m e s p a n o f t h e

a c t i o n s o f management o n how t o t a k e u s f r o m w h e r e w e a r e now

t o where %e \,t:dfit to be, i t becomes p e r t i n e n t t h a t i t s h o u l d be

u s e d < : s a d e r i u n d a b l e tool t o a c h i w e b u s i n e s s v i s b i l i t y wl ; i ch

a l s o b r i n c r s o n t h e o u t c o m e o f f u t u r e o c c u r c n c e s . P l a n n i n q

c o u l < i be s e e n a s indispensable t o a n o r q a n i z a t i o n t h a t i s i n

p e r p e t u a l i n t t - r a c t i o n w i t h i t s e x t e r n a l s n d i n t e r n a l e n v i r o n -

m e n t w h i c h c o u l d be t u r b u l e n t , h o s t i l e , d i v e r s e , s t a b l e ,

r e s t r i c t i v e o r t e c h n i c a l l y c o m p l e x , C o r p o r a t e p l a n n i n g does

t h i s by h e l p i n q t h e b u s i n e s s f i r m d e t e r m i n e a h e a d o f t i .me t h e

q u a l i t y a n d q y a n ~ k ' i t y of q o o d s / ~ i e r v i c e s to be u s e d or n r o d u c e d

a n d the t i m e - f r a m e t o make t .hm a v a i l a b l e t o the t a r g e t

g r o u p , I n t h i s l i g t h , t h e v i a b i l i t y o f a n o r g a n i z a t i o n

i s e n s u r d ,

1 n f t : r r e d f r o m t h e stuc:?y i s t h a t t h e c a s e c o m p a n i e s d o

n o t o f t t z .n a d h e r e s t r i c t l y t o t h e p r e c e p t s of c o r p o r a t e p l a n n i n g .

Thi:; of c o u r s e b r i n g s a b o u t i t s a t t . e n d a n t n e g a t i v e c o n s e q u e n c e s

o n t h e v i a b i l i t y o f t h e f i r m s , However , i t was d i s c o v e r e d t h a t

some f a c t o r s w i t h i n a n d b e y o n d t h e c o n t r o l o f thc: f i r m s c o u l d

b e responsible f o r t h i s d e v i a t i o n , F o r e x a m p l e , t h e p r o b l e m

of t u r b u l c n t e c o n o m i c e n v i r o n m e n t , i n s u f f i c i e n t t i m e a i v e n t o

p l a n n i n g , i n a d e q u a t e s k i l l a n d u n s t a b l e p o l i t i c a l

e n v i r o n m e n t ,

I t c o u l d be d e d u c e d f r o m t h i s work t h a f o r a n o r g a -

n i z a t i o n a l c o r p o r a t e p l a n n i n g t o he e f f e c t i v e , i t h a s t o I

ensure. t h a t t h e a t t i t u d e o f t o p m a n a q e m e n t towards c o r p o r a t e I

p l ~ ~ n n i n q i s f a v c : ~ r a b l e , I t a l s o h a s t o e n s u r e t h a t t h e r e

i s e f l e c t i v e u t i l i z a t i o n o f f o r c c c l s t i n g t e c h n i q u e a n d

c o n t i n u o u e b u d g e t i n g , T h i s i s t o e n s u r e t h z t b o t h t h e s h o r t -

r u n ( t h a t i s , p r o f i t ) \ . n d l o n g - r u n ( t h a t i s , d u r a b i l i t y or

v i a b i l i t y ) o b j e c t i v e of t h e f i r m are achieved. I n f o r m a t i o n

t e c h n i o u e a l s o c o n t r i b i ~ t e s i m m e n s e l y t o t h e c o r p o r z t e p l a n n i n g

p r o c e s s w h i l e t h e n a t u r e of t r e a t m e n t q i v e n t o t h e c o r p o r a t e

p l a n n i n g e x e c u t i v e s h a s a t r e m e n d o u s role t o p l a y o n t h e

q i l a l i t y of c o r p o r a t e p l a n s m a c i e a n d how i t a f f e c t s o r q a n i z a -

t i o n a l v i a b i l i t y ,

T h i s work c o u l d be r e g a r d e d as i n c l u s i v e a n d c o n c l u s i v e ir

t r a c i n q t h e h i g h s p a t e o f b u s i n e s s f a i l u r e s a n d or u n v i a b i l i t y

t o t h e p r ~ i c t i c e o f c o r p o r a t e p l a n n i n g by b u s i n e s s f i r m s .

5.4: A ~ L A L OF t. U r \ ' Y H t H H L J L ~ H C H .

( i ) T o t a l Q u a l i t y Management (T,c.M.) i n c o r p o r a t e

P l a n n i n g a n d O r a a n i z a t i o n a l E f f e c t i v e n e s s ,

T h e o b j e c t i v e o f t h i s a rea o f r e s e a r c h w i l l be t o

e x a m i n e T o t a l Q u a l i t y Mclnagement (T.Q.M.) a s a too l o f

c o r p o r a t e s t r ~ i t e g y , R e s e a r c h i n t o t h i s a r e a w i l l b e e x p e c t e d

t o assess t h e n a t u r e of s t r a t e q y f o r m u l a t i o n a n d i m p l e m e n t a t i o n ,

t a r g e t s e t t i n q , and s t r a t e g i c e n v i r o n m e n t a l a n a l y s i s a n d how . : ' .

t h i s a f f e c t s o r g a n i z a t i o n a l e f f e c t i v e n e s s ,

( i i ) j t r a t e q i c P l a n n i n g a n d O r g a n i z a t i o n a l p o l i c y i n

D e v e l o p i n g economy.

T h i s s t u d y a r e a i s e x p e c t e d t o make a n i m p a c t a s s e s s - I

m t n t of s t r a t e q i c p l a n n i n g s y s t e m s a n d t h e p o l i t i c s o f s t r a t e q i c

p l a n n i n g i n t h e c o n t e x t o f a d e v e l o n i n g economy v i s - a - v i z

t h e c o v e r a g e of s e r v i c e / p r o d u c t s m a r k e t s e g m e n t s , I t w i l l be

e x p e c t e d a l s o t o e s t a b l i s h t h e k i n d o f c o n s t r a i n t s t h a t f a c e

t h e s t r ; ! t e q i c p l a n n e r i n a d e v e l o p i n q economy a s c o m p a r e d

w i t h h i s c o u n t e r p a r t i n a d e v e l o p e d economy.

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APPENDIX

QUESTIONNAIRE

SCHOOL OF' POSTGHwDUATC S ' I U U L L S FACULTY OF' BUSINLSS ADMINLSTHATILJN IJ t l ? ~ ~ H ~ i ' F l t , NT OF iLljiNkGEMtNT UNIVCRSITY uF N I G L H Z H L N U G U C h i v l P U ~ ,

D e a r s i r /madarn ,

I am a p o s t g r a d u a t e s t u d e n t o f t h e d e p a r t m e n t o f managemen t , U n i v e r s i t y o f N i g e r i a , Enugu campus . I am c u r r e n t l y c o n d u c t i n g a s t u d y t h a t d e a l s w i t h c o r ~ o r a t e p l a n n i n a a n d o r q a n i z a t i o n a l v i a b i l i t y .

You a r e k i n d l y r e q u e s t e d t o a n s w e r t h e a u e s t i o n s t b a t a r e a t t a c h e d a s c l e a r l y a s p o s s i b l e . T h i s i s t o e n a b l e m e c a r r y o u t a m a s t e r s d g r e e r e s e a r c h work t h a t i s b a s e d o n y o u r company, P l e a s e y o u a r e e x p c c t e d t o t i c k t h e a p p r o p r i a t e a n s w e r s an:: make s h o r t comment s w h e r e n e c e s s a r y .

T h i s e x e r c i s e i s for a c a d e m i c p u r p o s e s o n l y a n d i n f o r m a t i o n s u p p l i e d w i l l be t r e a t e d w i t h s t r i c t c o n f i d e n c e . A c c e p t my s i n c e r e a p p r e c i a t i o n i n a d v ~ i n c e f o r y o u r u s u a l ~ 0 - 0 l i e r r 3 t i o n ,

T h a n k s ,

Y o u r s f a i t h f u l l y , C h r i s .C. Ugwu,

I n f o r m a t i o n o n P e r s o n a l D a t a o f R e s p o n d e n t s ,

Sex: Male /7 - F e m a l e - 17 - M a r i t a l S t a t u s : . S i n g l e - / / M a r r i e d /-/ -

D i v o r c e d 1-7 - F,duca t i c jna l S t a t u s : F i r s t S c h o o l L e a v i n g C e r t i f i c a t e /7 - -

W A s C / / H i g e r E d u c a t i o n /7 - - - - - Age: 2 0 - 2 9 - / / 3 0 - 39 / 4 0 - 4 9 / / - -

50 - 59 / 60 a n d a b o v e / / - - J o b P o s i t i o n : J u n i o r S t a f f - / / G e n e r a l Manaqer/CEO /7 - H o w l o n g h d v e y o u worked w i t h t h e company? - -- -

3 - 7 y e a r s / 8 - 1 2 y e a r s // 1 3 - 2 0 y e a r s L-,

2 1 y e a r s a n d a b o v e

Do y o u b e l o n g t o t h e t o p l e v e l management t h a t make

s t r a t e g i c d e c i s i o n s f o r t h e company?

Y e s : No: / / - I f t h e a n s w e r t o t h e a b o v e q u e s t i o n i s y e s , w h a t i s

y o u r p o s i t i o n ? - - G e n e r a l Mandqer/CEO - / / Personne l /Admin . Manaqer / / - - - P r o d u c t i o n Nanaqer / / A c c o u n t / F n a n c e Mandger / / -. - O t h e r c a t e q o r i e s of Manaqers -. 1 7

Do y o u t h i n k t h s t a f a v o u r a b l e e n v i r o n m e n t e x i s t s f o r

t h e f o r m u l a t i o n a n ? i m p l e m t a t . i o n o f c o r p o r a t e p l a n $ ?

I f t h e a n s w e r t o t h e a b o v e q u e s t i o n i s No, why?

(F3e b r i e f )

: I . Docs t o p manaqement u t i l i z e r e s e a r c h f i n d i n g s i n i t s

c o r p o r a t e p l a n n i n s f o r m u l a t i o n ?

2 , E o e s t o p rnanagcme'nt encourc iqe c r e a t i v i t y by d e s i c l n i n g

r o l e s w h e r e p e o p l e c a n c r e a t a n d be i n n o v a t i v e ?

3. i f t h e a n s w e r t o t h e a b o v e i s y e s , w h a t i s t h e e f f e c t ? -. - - -

P o s i t i v e - / / N e g a t i v e / / D o n ' t know / / - -

14. Lloes t h e a t t i t u d e o f t o p management t o w a r d s c o r p o r a t e

p l a n n i n g e n h d n c e o r g a n i z a t i o n a l v i a b i l i t y ?

Y e s 1 7 NO /7 - - 15. IS c o r p o r a t e p l a n n i n g a c t i v i t y u s u a l l y d e l e g a t e d t o

o t h e r s t a f f 6f t h e company?

Y e s / / - NO / / - D o n ' t know / / - 16. k o y o u see y o u r o r g a n i z a t i o n a s h a v i n g i m p r o v e d

e m p l o y e e s k t i s f ? . c t i o n / i n t e r p e r s c b n a l r e l a t i o n s h i p ?

No - 1-7 D o n ' t know - /7

17. h o u l d you r e q a r d y o u r f i r m a s h a v i n g i n t r i n s i c a l l y

m o t i v a t i n g joL> c o n t e n t / n r o c e s s i n n o v a t i o n .

1 . Has y o u r o r q l n i z a t i o n b e e n i n v o i v e d i n t h e r e c r u i t m e n t

o f k e y p e r s o n n e l i n t h e p a s t f i c e y e a r s ? - -

Yes / / - No / / No Comment 17 - -

Do y o u c o n s i d e r y o u r o r q a n i z a t i o n a s v i a b l e ?

Y e s / / NO / / - - I f t h e a n s w e r t o t h e a b o v e q u e s t i o n i s No, w h c t d o

y o u t h i n k i s r e s p o n s i b l e ?

If y o u r o r q a n i z a t i o n i s v i a b l e , w o ~ i l d y o u e t t r i b u t e

t h i s t o t h e e f f e c t i v e n e s s of c o r p o r a t e p l a n n i n g ?

Y e s / / - No / / D o n ' t know / / - -

Do y o u a d o p t f o r e c a s t i n g t e c h n i a u e i n c o r p o r s t e

p l a n n i n g ? - -

Yes - / / No /T D o n ' t know / / - - Can y o u s a y t h a t f o r e c a s t i n g h a s h e l p e d y o u t o foresee

p r o b l e m s / e x p o r t o p p o r t u n i t i e s i n t h e e n v i r o n m e n t ?

D o n ' t know

Has t h e u s e o f f o r e c a s t i n g i n c r e a s e d t h e p r o f i t t h a t

a c c r u e s t o t h e company?

Y e s / / -- No / / C a n ' t s a y / / - - Does t h e a p p l i c a t i o n o f f o r e c a s t i n g i n c o r p o r a t e

p l a n n i n g e n h a n c e t h e m a r k e t s h a r e f o r y o u r f i r m ' s

y e s /7 - Was t h e u s e o f f o r e c a s t i n g e v e r e n h a n c e d t h e s u c c e s s f u l

i n t r o d u c t i o n o f new p r o d u c t s f o r y o u r f i r m i n t h e

l a s t 7 y e a r s ?

1-7 -

Yes -- No - / Don' t know / / -

7 , Is b u d g e t i n g t e c h n i q u e a d o p t e d i n y o u r c . o r p o r a t e

p l a n n i n q ?

Y e s /7 NO - 7 - '8. Do y o u r e g < i r d b u d g e t i n g a s a n e f f e c t i v e c o n t r o l

t e c h n i q u e ?

29. What w o u l d y o u regarc! a s t h e e f f e c t of b u d g e t i n q o n

t h e momentum f o r r e s o u r c e u t i l i z a t i o n ?

F a v o u r a b l e /7 - Unf a v o u r a b l e 17 - 30, D o y o u t h i n k t h a t t h e a p p l i c a t i o n o f b u d q e t i n g i n

c o r p o r a t e p l a n n i n g i n c r e a s c , ~ a f i r m q r o w t h r a t e

3 1- Does t h e a p p l i c a t i o n of b u d g e t i n g i n c o r n o r e ~ t e p l a n n i n g

d e c r e a s e s t h e cost o f p r o m o t i o n f o r y o u r p r o d u c t s / s e r v i c e s ?

Yes 17 - 32. Was b u d q e t i n q t e c h n i u u e b e e n e f f e c t i v e i n t h e e v a l u a t i o n

o f p e r f o r m a n c e , c o - o r d i n d t i o n o f a c t i v i t i e s a n d

i m p l e m e n t a t i o n o f p l a n s t h a t c n s u r e l o n g - r u n p e r f o r m a n c e ?

33. If t h e a n s e r t o t h e a b o v e q u e s t i o n is No, w h a t d o

y o u t h i n k i s r e s p o n s i b l e ?

34. Do y o u m a k e u s e o f i n f o r m a t i o n m o n i t o r i n g and

g a t h e r i n g i n y o u r c o r p o r a t e p l a n n i n c ; t echn icque?

Yes 7 NO /7 - - 3 5 . Lo y o u h a v e e a s y access t o t h e in fo r rna t i . cn r e n u i r e d

i n t h e c o r p o r a t e p l a n n i n g ?

y e s /7

36. UoeS t h e a p p l i c o t i o n of i n f o rmlz t ion m o n i t o r i n q a n d

q a t h e r i n g t e c h n i o u e i n c o r p o r a t e p l a n n i n a f o r s t e r

o r g a n i z a t i o n a l v i a b i l i t y .

Yes /7 - No - 7 3 7. I f t h e a n s w e r t o t h e a b o v e q u e s t i o n i s No, how does i t

aFf ect t h e p l ~ n n i n q a c t i v i t y ? . . . . .

38. A r e you cj iven any i n c e n t - i v e t h = t s p u r s y o u t o come up

w i t h b c t t e r q u a l i t y c o r p o r a t e p l a n s t h a t e n s u r e p r o p e r

i m p l e m e n t a t i o n ?

Yes /7 - No - /-i 39. I f t h e a n s w e r t o t h e a b o v e q u ~ s t i o n i s No, how d o e s

i t akf ect t he n a t u r e o f r t . s u l t a c h i c w e c ?

F a v o u r a b l e /T - Unf avouri:bl e - /T

40. Do y o u t h i n k t h a t t h e t r e a t m ~ n t q i v e n t o c o r p o r a t e

p l a n n i n g e x e c u t i v e s can e n h f n c e o r g c ~ n i z a t i o n c ~ l

v i a b i 1 i t y "

INTERVIEW GUIDE FOR TOP MANAGEMENT

D o y o u e n g a g e i n c o r p o r a t e p l a n n i n g v e r y o f t e n ?

Is t h e c o r p o r a t e p l a n n i n q a c t i v i t y u s u a l l y q i v e n

s u f f i c i e n t a t t e n t i o n by t h e t o p m a n a q e m e n t t h a t i s

r e s p o n s i b l e f o r t h i s f u n c t i o n ? i f n o t how d o e s i t

a f f e c t t h e v i a b i l i t y of t h e company.

I s t , h c c o r p o r a t e p l a n n i n n f u n c t i o n sometimes d e l e g a t e d

t o a p l l a n n i n g u n i t o t h e r t h a n t h e t o p m a n a g e m e n t ? i f

so, w h a t a r e t h e c o n s e q u e n c i e s ?

D o y o u h a v e access t o a d e a u a t e r e l i a b l e i n f o r m a t i o n

a n d how d o e s i t a f f e c t t h e c o r p o r a t e p l a n n i n g fo rmu-

l a t i o n a n d i r n p l e m e t a t i o n ?

' d h a t a r e t h e c o n s t a i n t : ; y o u f a c e i n p l a n n i n g a n d how

d o t h e y rer.211~ a-ifect t h e p e r f o r m a n c e o f t h c company?

What a re some of t h ~ t e c h n i q u e s t h a t y o u a d o p t i n

c o r p o r a t e p l i a n n i n q ?

How do y o u e n s u r e t h a t y o u h a v e a c o n s i d e r a b l e m a r k e t

s h a r e f o r y o u r p r o d u c t s , / f i n a n c i a l a n d t e c h n o l o q i c a l

i n p u t s .

I f y o u a d o p t f o r e c a s t i n g i n c o r p o r a t e p l a n n i n g , w o u l d

y o u s a y t h d t i t e n h a n c e s t h e o r q a n i z a t i o n a l v i a h i l i t y ?

How e f f e c t i v e c o u l d y o u s a y t h a t b u d g e t i n g h a s b e e n

as a c o n t r o l t e c h n i q u e i n c o r p o r a t e p l a n n i n g ?

C o u l d y o u s a y t h a t b u e g e t i n g h \ i s f a c i l i t a t e d t h e work

of t o p m a n a g e m e n t i n its b i d t o r e a l i z e t b , e f irm's

o b j e c t i v e s ?

I L a What k i n d o f i n f o r m d t i o n m o n i t o r i n q a n d g a t h e r i n g

s y s t e m d o y o u o p e r a t e i n t h e company? a n d w h a t a r e

t h e c o n s t r a i n t s e x p e r i e n c e d i n t h e p r o c e s s .

;i. C o u l d y o u s a y t h a t t h e i n f o r m a t i o n s y s t e m h a s s beern

e f f e c t i v e i n e n h a n c i n g t h c c o r p o r a t e p l a n n i n g a c t i v i t y

a n d by e x t e n s i o n o r o a n i z a t i o n a l v i i t b i l i t y .

. - b -J . DO y o u h a v e a n e a s y access t o a d e q u a t e r e l i a b l e i n f o r m -

a t i o n i n t h e a r e a o f r e s e a r c h / d e v e l o p m e n t a n d m a r k e t

s i t u a t i o n a n d how c 'ocs t h i s a f f e c t t h e p l a n n i n g a c t i v i t y

a n d o r g a n i z a t i o n a l v i s b i l i t y .

- 4* C o u l d y o u s a y t h L i t t h e l i n e m a n a g e r s who make c o r p o r a t e

p l a n s a r e g i v e n a d e q u a t e i n c e n t i v e t h b t makes f o r

e f f e c t i v e c o r p o r a t e p l a n s ?

D I n w h a t way do y o u t h i n k t h a t t h e o u t c o m e o f c o r p o r a t e

p l a n s a r e a f f e c t e d by t h e t r e s t e m e n t g i v e n t o t h e

m a n a g e r s who f o r m u l ~ t e c o r p o r t i t e p l a n s 7

J . HOW d o y o u m o n i t o r a n d d e t e r m i n e t h e s u c c e s s o f a p l a n ?

1 I . c o u l d y o u s a y t h a t m o s t o f y o u r p l a n s h a v e been i n s t r u -

m e n t a l t o t h e q o o d / b u d p e r f o r m a n c e o f y o u r o r a a n i z a t i o n ?

, ,. D o y o u o f t e n a q r c e w i t h t h e p r o c e d u r c s a d o p t e d i n for-

m u l a t i n q c o r p o r c i t e p l a n s dnd t h e c r i t e r i a a d o p t e d i n

d e t e r m i n i n g i i s s u c c e s s ?