CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The issue of strategic planning was primarily applied to organizations in the twentieth century. It is defined as the science and art of formulating, implementing, and evaluating cross-functional decisions that help a company achieve its goals. To achieve organizational performance, strategic planning integrates all functional areas in the business, including marketing, finance and accounting, operations and production, and management. Strategic planning is an organizational process that tries to efficiently redirect human and other organizational resources toward meeting the needs of consumers and other key stakeholders. The specified policies, mission statement, and strategic goals and objectives govern the implementation of strategic planning. The organization’s senior management and other important managers’ actions.
STATEMENT OF PROBLEM
The growing importance of SMES cannot be overstated, given their contribution to the country’s economic growth through employment and revenue generation for a broad proportion of the population.
SME owners, on the other hand, confront difficulties in developing and implementing strategic goals. Many SME’s have folded due to their unwillingness to be proactive and protect their future with success, as well as their incapacity to grow swiftly. As a result, management experts have recommended for SME’s to use strategic planning as a tool to assure the effective and efficient channeling of resources in order to financially meet customers’ expanding needs for new products and services. Many of the growing issues that SME’s face are listed below.
OBJECTIVES OF THE STUDY
To assess the nature and impact of strategic planning on the performance of small and medium-sized businesses.
Determine the impact of strategic planning on the performance of small and medium-sized enterprises in south-west Nigeria.
To achieve organizational performance, strategic planning integrates all functional areas in the business, including marketing, finance and accounting, operations and production, and management. Strategic planning is an organizational process that tries to efficiently redirect human and other organizational resources toward meeting the needs of consumers and other key stakeholders. The specified policies, mission statement, and strategic goals and objectives govern the implementation of strategic planning. The organization’s senior management and other important managers’ actions. Strategic management necessitates the definition of strategic goals and objectives in light of the current situation.
RESEARCH QUESTIONS
What does strategic planning entail?
What impact does strategic planning have on the performance of small and medium-sized businesses?
What impact does strategic planning have on the performance of SMEs in south-west Nigeria?
SIGNIFICANCE OF THE STUDY
The study gives SME’s an opportunity to learn about the techniques of strategic planning and strategic management in order to improve their performance.
The growing importance of SMES cannot be overstated, given their contribution to the country’s economic growth through employment and revenue generation for a broad proportion of the population.
SME owners, on the other hand, confront difficulties in developing and implementing strategic goals. Many SME’s have folded due to their unwillingness to be proactive and protect their future with success, as well as their incapacity to grow swiftly. As a result, management professionals have recommended for SMES to use strategic planning as a strategy to ensure the successful and efficient operation of their businesses.
RESEARCH HYPOTHESIS
Ho The impact of strategic planning on the performance of small and medium-sized enterprises in south-west Nigeria is minimal.
Hi Strategic planning has a significant impact on the success of small and medium-sized enterprises in south-west Nigeria.
SCOPE OF THE STUDY
The study examines the impact of strategic planning on the performance of small and medium-sized enterprises in south-west Nigeria.
LIMITATION OF THE STUDY
There were certain limitations to the study, such as logistical and geographic concerns.
DEFINITION OF TERMS
INTERNATIONAL ENVIRONMENTAL CONDITIONS
The factors within the firm’s internal environment make up the firm’s internal environment.
Its resources, culture, and structure, as well as its strengths and flaws (Beal, 2000)
MEASUREMENT OF PERFORMANCE
Performance measurement is the approach for determining what to measure and how to assess it.
DEFINED OBJECTIVE
The firm’s objectives are defined as the end or consequence of the firm’s planned operations, which must be consistent with the firm’s mission, targets, and objectives. Johnson et al. (2007; Johnson et al., 2008).
DEFINITION OF STRATEGIC PLANNING
It is defined as the science and art of formulating, implementing, and evaluating cross-functional decisions that help a company achieve its goals. Strategic planning entails bringing together all of the organization’s functional components.