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Tuesday, 11 December 2018

impact_of_strategic_management_in_banking industry




ABSTRACT

The content of a strategic management plan reflects entrepreneurial judgments about the long-term direction of the organization on whether there is a need for major new initiatives and actions aimed at keeping the organization in position to enjoy sustained success. Strategic management is the focal point of any business organization and both the sequence of actions and the speed of the implementation process are important aspects of uniting the entire organization behind strategy accomplishment. A good strategy is one that is right for the organization considering all the relevant specifics of its situation. The entrepreneurial task of formulating strategy is always requiring heavy doses of situation analysis and judgment with the aim of achieving good fit between strategy and all relevant aspects of the organization’s internal situation and external environment. Indeed, one of the special values and contributions of managers is the ability to develop customized solutions that fit the unique feature of an organization’s situation.




TABLE OF CONTENTS

ACKNOWLEDGEMENT ……………………………………………………………...i
ABSTRACT……………………………………...……...………………………............ii
TABLE OF CONTENTS…………………...........……………………………….........iii
ABBREVIATIONS…………………...…………………………………………..........vii
LIST OF TABLES ......……………………………………………...…………..….....viii
INTRODUCTION ...........................................................................................................1
CHAPTER 1 LITERATURE REVIEW ………………………………………………6
             1.1      INTRODUCTION ……………………………………………………….6
            1.2       THE HISTORY OF STRATEGY ………………………………………..6
            1.3       CONCEPTUAL FRAMEWORK ……………………………………….7
                        1.3.1    Strategy Levels ………………………………………………….9
                        1.3.2    Strategic Management Process ………………………………….9
                                    1.3.2.1 Agreement on the procedure …………………………..11
1.3.2.2 Identification and elucidation of the association’s
mission, targets and current techniques ……………….11
1.3.2.3 Identification of the asociation’s inner qualities
and shortcomings …………………………………….....12
                                    1.3.2.4 Assessment of dangers and opportunities in the
outer environment ………………………………………13
                                    1.3.2.5 Identification of key constituents and stakeholders,
their desires and assets ……………………………...…..14
1.3.2.6 Identification of key Strategic Issues …………………..15
  1.3.2.7    Design, investigation, and choice of system                                    options and alternatives to oversee issues recognized
in1.3.2.6…………………….…………………………16
                                    1.3.2.8 Implementation of the system ………………………….16
                                    1.3.2.9 Monitoring and survey execution ………………………17
                        1.3.3 The Environment ………………………………………………....17
                                    1.3.3.1 External Environment…………………………...............181.3.3.2   Internal Environment ………………………………...…19
                        1.3.4 Strategic Planning …………………………………………...……19
                        1.3.5 Strategic Thinking; The soft side of Strategic
                     Management ……………………………………………...………21
1.4       THEORETICAL FRAMEWORK: SCHOOLS OF
            STRATEGIC MANAGEMENT ………………………………………..23
            1.4.1 The Deign School: strategy as a process of conception ……….…23   1.4.2 The Planning School: strategy formation as a
                     formal process ……………………………………………………24   1.4.3    The Positioning School: strategy formation as an
                     analytical process …………………………………………………24  1.4.4    The Entrepreneurial School: strategy formation as a
                     visionary process …………………………………………………25
            1.4.5 The Cognitive School: s trategy formation as a mental
                     process……………………………………………………………25
         1.4.6 The Learning School: strategy formation as an emergent  
process………………………………………………………….....26
            1.4.7 The Power School: strategy formation as a process of
                     negotiation ……………………………………………………….26
            1.4.8 The Cultural School: strategy formation as a collective
                     process …………………………………………………………...27
            1.4.9 The Environmental School: strategy formation as a reactive
                     process ……………………………..…………………………..…27
            1.4.10  The Configuration School: strategy formation as process
                        of Transformation ………………………………………………28
1.5       EMPIRICAL FRAMEWORK ………………………………………….28

CHAPTER 2 RESEARCH METHODOLOGY  
2.1       INTRODUCTION ……………………………………………………...31
2.2       BRIEF HISTORY OF ACCESS BANK PLC ………………………….31
2.3       RESEARCH DESIGN ………………………………………………….33
2.4       RESEARCH HYPOTHESIS …………………………………………...33
2.5       SAMPLING INCLUDING SAMPLING FRAME …………………….33
2.6       DATA SPECIFICATION/MATERIALS ……………………………….34
2.7       METHODS OF DATA COLLECTION ………………………………..34
2.8       METHOD OF DATA ANALYSIS …………………………………...…35
CHAPTER 3 DATA ANALYSIS AND PRESENTATION
            3.1       INTRODUCTION …………………………………………….………..37
            3.2       PRESNTATION AND ANALYIS OF DATA …………………………..37
            3.3       TEST OF HYPOTHESIS ………………………………………………40
SUMMARY, CONCLUSION AND  RECOMMENDATIONS……………………..48
REFERENCES ……………………………………………………………………..…53
                                   









ACRONYMS AND ABBREVIATIONS

ANOVA          Analysis of Variance
ASM               Adoption of strategic management
BC                   Before Christ
CBN                Central Bank of Nigeria
ID                    Identity Document
MBO               Management by Objectives
PLC                 Public Limited Company
R & D             Research and Development
PER                 Performance
SM                  Strategic Management
SP                    Superior Performance


LIST OF TABLES
Tables                                                                                                               Page

4.1       Response on theStrategic Management and Performance ……………………..42
4.2       Model Summary 1 ………………………………………………………...……42
4.3       ANOVAb1………………………………………………………………………43
4.4       Coefficientsa1…………………………………………………………………..44
4.5       Response to the Adoption of Strategic Management and
Superior Performance …………………………………………………………. 45
4.6       Model Summary 2 ……………………………………………………………...45
4.7       ANOVAb 2……………………………………………………………………...46
4.8       Coefficientsa 2 ………………………………………………………………….47
















INTRODUCTION
In Nigeria, the banking system has over the years witnessed a revolutionary which can be classified into six major periods, the free banking period (up to 1952); the pre-central banking era (1952-1959); the era of banking legislation (1959-1970); the indigenization era (1970-1977); the post Okadigbo era (1977-1995) and the post consolidation era (1996-date). This revolutionary trend has brought about a characteristic performance in the behavior, growth and survival of the industry and it is this need to survive that has generated a lot of research in the overall management of the banks to bring about the best in them.
It is therefore; to this end that strategy formulation is largely an excursion in entrepreneurship. The content of a strategic management plan reflects entrepreneurial judgments about the long-term direction of the organization on whether there is a need for major new initiatives and actions aimed at keeping the organization in position to enjoy sustained success.
Broadly viewed, the management task of strategy implementation is one of scrutinizing the whole internal organization to diagnose what strategy approaches are needed and what actions to take in order to accomplish them. In addition, there is the need for the different pieces of the implementation plan to be arranged into a pattern of action that will produce an orderly change from the old practice to the new strategy rather than creating disruption and dissatisfaction with the way things are being handled.
Strategic management is the focal point of any business organization and both the sequence of actions and the speed of the implementation process are important aspects of uniting the entire organization behind strategy accomplishment.
A good strategy is one that is right for the organization considering all the relevant specifics of its situation. The entrepreneurial task of formulating strategy is always requiring heavy doses of situational analysis and judgment with the aim being to achieve goodness of fit between strategy and all the relevant aspects of the organization’s internal situation and external environment. Indeed, one of the special values and contributions of managers is the ability to develop customized solutions that fit the unique features of an organization’s situation.
Business organizations are constantly making decisions which contribute a great deal to the survival of the industry and play a major role in the destiny of the firm on the long-run and it takes superior entrepreneurship and competent strategy implementation over a long period of time.
The future belongs to the aggressive and the ambitious who can apply strategy as a process of stretching resources and seeing opportunities for innovation. The chances are excellent that when an organization has a well-conceived, well executed strategy, it will be a high performer.








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