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Synopsis of the Proposed Research Plan

On

The Effect of Strategic Planning on Organisational Performance: An Analytical Study in Telecommunication Companies in the Republic of Yemen  

Submitted to

Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

For the Degree of Doctor of Philosophy in Management

Faculty of Commerce

    Submitted by

Nizar Mohmmed Abdulqader Al-samhi

Under the Guidance of

Dr.

Research Guide

June, 2016

INTRODUCTION:

Business managers today, are much more concerned about the effect of competition than they were even a few years ago. They must react to the competitive threats not only from local source but also from regional, national and international source; likewise they must seek to explore all opportunities that are available in the immediate, national and global environment.

Over time the concept and practice of strategic planning has been embraced worldwide and across sectors because of its perceived contribution to organizational effectiveness. Today organizations from both the private and public sectors have taken the practice of strategic planning seriously as a tool that can be utilized to fast track their performances. Strategic planning is arguably important ingredient in the conduct of strategic management.

Strategic Plan provides the basic direction and rationale for determining the focus of an organization; and also provides the specification against which any organization may best decide what to do and how to do it. Simply put, it is a process for creating and describing a better future in measurable terms and the selection of the best means to achieve the results desired. It is important to note that not all planning is actually strategic even though they may be termed so. It is said that failure to plan leads to planning to fail.

Effective strategic planning is necessary for organizations to survive and make appreciable contribution in such an environment (Patel, 2005). However, while there have been great breakthroughs in other fields, there has not been any significant breakthrough in the field of strategic planning to enable organizations in general to respond effectively to the challenges posed by the current and unfolding environment in which they exist. This has mostly been the case because there has been a lack of investment in strategic planning in general as compared to other fields of knowledge and practice (Patel, 2005).

Drucker (1974) defined strategic planning as, “the planning for an organization's future that includes setting major overall objectives, the determination of basic approaches to be used in pursuing these objectives and the means to be used in obtaining the necessary resources to be employed”. Adair (2002) emphasizes that strategic planning is about determining what is important in the long term for the organization. In other words strategic planning is about determining an organization's key priorities in the long term that the organization should start working on today.

Steiner (1979) noted that the framework for formulating and implementing strategies is the formal strategic planning system. Porter (1985) noted that despite the criticism leveled against strategic planning during the 1970s and 80s, it was still useful and it only needed to be improved and recasted. Greenley (1986) noted that strategic planning has potential advantages and intrinsic values that eventually translate into improved firm performance. It is, therefore, a vehicle that facilitates improved firm performance.

Strategic Planning is a process by which we can envision the future and develop the necessary procedures and operations to influence and achieve that future. As in many other fields, strategic planning professionals often cloak their work in pseudo-scientific jargon designed to glorify their work and create client dependence. In reality, strategic planning processes are neither scientific nor complex. With modest, front-end assistance and the occasional services of an outside facilitator, organizations can develop and manage an on-going and effective planning program.

Strategic planning consists of a set of underlying processes that are intended to create or manipulate a situation to create a more favorable outcome for a company. This is quite different from tradition tactical planning that is more defensive based and depends on the move of competition to drive the company's move. In business, strategic planning provides overall direction for specific units such as financial focuses, projects, human resources and marketing. Strategic planning may be conducive to productivity improvement when there is consensus about mission and when most work procedures depend on technical or technological considerations.

STATEMENT OF THE PROBLEM:

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

Strategic planning increases the efficiency and effectiveness of organizations by improving both current and future operations. Strategic planning provides a framework for management\'s vision of the future. The process determines how the organization will change to take advantage of new opportunities that help meet the needs of customers and clients. Strategic planning is a difficult process which requires that people think and act creatively. The strategic planning process is used by management to establish objectives, set goals, and schedule activities for achieving those goals and includes a method for measuring progress. These goals can be accomplished through the steps of the strategic plan, beginning with an external and internal analysis, a clearly defined mission statement, goals and objectives, formulation of specific strategies, concluding with the implementation of the strategy and managed control process.

This research study is to assess the impact of strategic planning on organizational performance. It explores the extent to which a new organizational structure, policy direction and business models affect the performance of telecommunication companies\' business models and policies appear to have created new relationships and roles which demand employees to stay focused, know exactly what part they play in the plan and ultimately what is expected of them as a result. These demands have created some interest and apprehension among employees and these seem to have significant implications in the new strategic plan of telecommunication companies. It is against this background that the researcher is exploring into the effect of strategic planning on the performance of the telecommunication companies in the Republic of Yemen.

SIGNIFICANCE OF THE STUDY:

Fubara (1986) noted that firms that practiced strategic planning recorded better performance compared to non-planners, their focus, however, was on the formality of planning rather than the link between planning and firm performance. It is noted that the past studies did not give attention to the individual steps that make up the strategic planning process. It is perceived that the manner and extent to which each of the strategic planning steps is addressed could have implications on the realization of the expected corporate goals.

The study is expected to have an effect on strategic planning practitioners, management of telecommunication companies in the Republic of Yemen, academia and the general public. The outcome of this study is to supplement the existing store of knowledge on the subject and serve as a channel for further research on innovative ways of gaining competitive advantage for the overall academic well-being of the nation. In addition, the research and its findings are expected to help inform decision-making in the area of strategic management using strategic planning. The study will be very useful to other researchers interested in the area, that is, the outcome of this study will serve as a base for academicians who might want to conduct further studies in strategic planning practices. This study sets to make a contribution towards improving strategic planning as a field and as a body of knowledge and theory through studying the practice of strategic planning in telecommunication companies in the Republic of Yemen.

LITERATURE REVIEW

(Arasa & K\'Obonyo, 2012) \"The Relationship between Strategic Planning and Firm Performance\"

This study examined the relationship between strategic planning and firm performance in a developing country's context (Kenya), giving attention to the strategic planning steps. A quantitative analytical approach was employed in an attempt to empirically determine the relationship between the variables of interest by applying appropriate statistical data techniques. Survey design was used. This was the most appropriate method towards effectively addressing the research objectives. The study involved collecting data from across section of firms within the studied sector. Interviews were conducted across the firms targeted and where possible focused group discussions were held. Both primary and secondary data was sourced and utilized for purposes of addressing the research objectives. Correlation analysis results indicate the existence of a strong relationship between strategic planning and firm performance. Further, all the strategic planning steps (defining firm's corporate purpose, scanning of business environment, identification of firm's strategic issues, strategy choice and setting up of implementation, evaluation and control systems) were found to be positively related to company performance.

(Karel, S., Adam, P., and Radomir, P., 2013), \"Strategic Planning and Business Performance of Micro, Small and Medium-Sized Enterprises\"

This paper deals with issues of strategic management, particularly strategic planning and its beneficial effect on the overall performance of businesses. It is based on empirical results of the original research study called Adaptability of Enterprises to Contemporary Economic Conditions in Years 2007-2012 performed via questionnaire survey in three rounds during years 2011, 2012 and 2013. The analyses presented in the paper were conducted on the second round sample of 677 organizations operating mostly in the SME sector in the Czech and Slovak Republic. The interdependence between the level of strategic planning (existence of strategy in the form of written document and its extent) and enterprise performance criteria (turnover, costs, profit, EVA, investments, period of arranged contracts) is examined with the use of four hypotheses. The results are commented and discussed. The outcome is the apparent positive impact of full strategic document on the performance criteria of the businesses.

(Aldehayyat & Al Khattab, 2013) \"Strategic Planning and Organisational Effectiveness in Jordanian Hotels\"

This research aims to identify and examine the characteristics of strategic planning systems in Jordanian hotels and their relationship with organizational effectiveness. In order to achieve this aim, a questionnaire is developed after reviewing the literature related to strategic planning and its effectiveness in both developed and emerging markets. The empirical research is undertaken via a survey of all four- and five-star hotels operating around Jordan's most popular tourist attractions: Amman, the Dead Sea, Petra and Aqaba. A total of 138 questionnaires were handed to the entire target population of 46 hotels. This questionnaire yielded an 80.4% per cent response rate. The main findings of this research are: the mean time horizon for strategic planning is 5.4 years; top management and boards of directors have less participation in strategic planning processes than outside consultants; internal scanning is used less frequently than external scanning; some important strategy analysis tools are used less frequently than traditional ones; and the areas of research and development and technology are rarely covered. However, strategic planning is found to be positively and significantly related to organisational effectiveness.

(Poku, D., 2012) \"The Effect Of Strategic Planning On The Performance And Operations Of The Agricultural Development Bank\"

The purpose of this study was to assess the effect of strategic planning on the performance of banks in Ghana with reference to the operations of the Agricultural Development Bank (ADB). Secondary and Primary data was utilized in this study. Secondary data was obtained from reviewing text books, publications, financial records and internal records of ADB. Primary data was gathered with the aid of questionnaires. One hundred and sixty (160) questionnaires were sent to employees of the Greater-Accra region of ADB and one hundred and forty (140) responses were obtained representing a response rate of 87.5%. The results of the administered questionnaires showed a fairly high level of agreement for the features of the various dimensions of an effectively managed bank. However, this study showed that structures put in place for bottom-up information flow were not known to all employees. This study also showed that employees were either ignorant about program evaluation or there was a clear disregard for program evaluation at ADB.

 OBJECTIVES OF THE STUDY:

The main objective of the study is to evaluate the effect of strategic planning on the performance of telecommunication companies in the Republic of Yemen.

1. To establish the need of strategic planning in telecommunication companies.

2. To study the reality of strategic planning in telecommunication companies in the republic of Yemen

3. To identify the challenges and obstacles faced strategic planning in the telecommunication companies.

4. To find out the main factors that affect strategic planning practices at telecommunication companies.

5. To find out how strategic planning affects telecommunication performance.

HYPOTHESES

H1: There is no challenges faced strategic planning in the organisation.

H2: There is no relationship between strategic planning and organisational performance.

H3: There are no statistically significant relationship between top management and executive management in the preparation of the strategic planning of telecommunication companies.

H4: There are no statistically significant differences on respondents\' answers about strategic planning in telecommunication companies in the Republic of Yemen attributed to (Sex, Age, Educational Qualification, Occupation, and Work experience).

RESEARCH METHODOLOGY

Research method is a science of collecting, identifying and presenting facts in such a way that it leads to discovering some facts. The sources of materials for the study will be both primary and secondary. Primary data will be collected by the use of a structured questionnaire which will be designed and administered to the management and staff of telecommunication companies in the Republic of Yemen, for information on the general perception of organisational performance on the subject of strategic planning. Secondary material will be extracted from relevant textbooks, newspapers, reports/articles, journals, bulletins and documents presented by corporate strategists and policy planners. A pilot survey will be conducted to prepare a questionnaire. A suitable sample based on the standard norms will be taken up as primary data.

SAMPLING

It includes managers, head of the departments and employees in telecommunication companies in Yemen. The sample will be selected through simple random sampling method. The sample companies will cover all telecommunication companies in Yemen. In all 10% of employees will be interviewed. The responses will be collected through questionnaire.

STATISTICAL ANALYSIS:

For the analysis of data various statistical tools will be used in this study such as:-

1) Graph and Chart will be used for Presentation

2) Percentage Analysis and Ratio Analysis and Different Statistical tools will be used.

3) T Test

4) Cronbach\'s Alpha Test

5) Standard Deviation

6) Correlation and Regression analysis.

7) One Way ANOVA

8) Two Sample T Test

LIMITATION OF THE STUDY

This study is limited to telecommunication companies in the Republic of Yemen and is confined to the selected units, where strategic planning practices help for better performance.

Period of study

To evaluate the impact of strategic planning on organisational performance in telecommunication companies in Yemen the researcher will collect the data of 10 years, so the study covers the period of 10 years from 2004 to 2014.

SCOPE OF THE STUDY:

The scope of the study covers the variation in telecommunication companies in Yemen and effects of strategic planning on organisational performance.

The study provides scope for conducting further studies in the areas of:

1. Evaluating the impact of strategic planning on organisational performance in telecommunication companies.

2. Developing the performance of telecommunication companies in Yemen by focusing more on strategic planning.

CHAPTER SCHEME OF THE STUDY

1. Introduction

2. Literature Review

3. Conceptual Framework and practices of strategic planning

4. Data Analysis and Interpretation

5. Conclusions and Suggestions

Reference/ Bibliography

References

1. Arasa, R., & K\'Obonyo, P., (2012) \"The Relationship between Strategic Planning and Firm Performance\", International Journal of Humanities and Social Science, Vol. 2 No. 22.Pp. 201-213.

2. Karel, S., Adam, P., and Radomir, P., (2013), \"Strategic Planning and Business Performance of Micro, Small and Medium-Sized Enterprises\" Journal of Competitiveness, Vol. 5, Issue 4, pp. 57-72

3. Aldehayyat, J., & Al Khattab, A., (2013) \"Strategic Planning and Organisational Effectiveness in Jordanian Hotels\", International Journal of Business and Management; Vol. 8, No. 1, Pp. 11-25

4. Poku, D. (2012) \"The Effect Of Strategic Planning On The Performance And Operations Of The Agricultural Development Bank\", Master Thesis, Kwame Nkrumah University Of Science And Technology

5. Drucker, P. (1974), The Practice of Management. Oxford: Butterworth-Heinemann.

6. Adair, J. 2002. Effective Strategic Leadership. London: MacMillan.

7. Patel, L. (2005) \"The Master Strategist: Power, Purpose and Principle\". London: Arrow.

8. Fubara, B. (1986). Corporate Planning in Nigeria. Long Range Planning, 19(2), Pp. 125-132.

9. Ansoff, H. I., & McDonnell, E. (1990). Implanting Strategic Management (2nd Edition). Europe: Prentice Hall.

    Research Scholar    Dr.

Nizar Mohmmed Abdulqader Al-samhi   Research guide     

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