IMPACT OF STRATEGIC MANAGEMENT ON PRODUCTIVITY AND PROFITABILITY OF A BUSINESS ORGANIZATION
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Abstract
The study focused on strategic management as a tool for the attainment of organizational performance in selected Nigerian Breweries in Lagos. The specific objectives sought to: ascertain the extent value chain affects growth in Nigerian Breweries profitability, determine the extent of effects of strategic change on market share in Nigerian Breweries productivity, examine the extent strategic leadership affects customer satisfaction in Nigerian Breweries effectiveness and determine the key challenges of adopting strategic management in Nigerian Breweries . The research design adopted in this study was survey which is characterized by direct interaction with the population. The target population of the study is 2093 comprising both the senior and junior staff of the Nigeria Breweries in Lagos Nigeria. Taro Yamane’s formula was used to determine the sample size of 336. The key instrument of data collection was questionnaire and oral interview guide. The questionnaire was structured in 5-point Likert scale. The data were presented using sample table frequency and the formulated hypotheses were tested using simple linear regression and Friedman Chi-square. The study found that value chain to a great extent affected growth in Nigerian Breweries profitability (r = 0.882; F = 1.057E3; t = 11. 249; p = 0.05). Also the study discovered that strategic change to a great extent had effect on market share in Nigerian Breweries productivity (r = 0.917; F = 11. 596E3; t = 21.169; p = 0.05). Strategic leadership to a great extent affected customer satisfaction in Nigerian Breweries effectiveness (r = 0. 573; F= 148.292; t = 5.866; p = 0.05).Further the study revealed that economic and poor structures were the key challenges of adopting strategic management in Nigerian Breweries (X2cal = 492.352 >X2critical = 11.14, p 0.000 < α = 0.05).The study concludes that, the performance of Breweries depend on the types of strategic they adopted. The study recommends that the organizations should intensify every effort to assess and monitor both internal and external variables in order to checkmate the unprecedented failure that could be controlled by continuous improvement.
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