CHAPTER ONE

INTRODUCTION

1.0      BACKGROUND OFTHE STUDY

Companies now operate invastly competitive and non linear environment, the value of business liesincreasingly in its ability to capture information and generate new idea.According to (Kotler 2009), “an idea that is no dangerous is hardly worthcalling an idea”. The same can be said of strategic plan. A great planprovokes. It takes chances. This eventually attracts customers and the marketto ones brand. Therefore there is a need for effective strategy planning in anorganization. In today’s competitive environment, every company has a plan, butfirstly, we need to understand the concept of strategic planning.

Strategy is an overallapproach and plan so strategy planning is an overall planning that facilitatesthe good management of a process. Strategy planning takes you outsides theday-to-day activities of your organization or project. It provides you with thebig picture of what you are doing and where you are going.

Strategy gives you clarityabout what you actually want to achieve and how to go achieving it, rather thana plan of action for day-to day operations. 

Strategic planning consistsof a set of underlying processes that are intended to create or manipulate asituation to create a more favorable outcome for a company. In business,strategic planning provides overall direction for specific unit such asfinancial focuses, projects, human resources and marketing.

Strategic planning can bedefined as a broad managerial process of developing a vision, missionstatement, goals and objectives with which to serve an influential guide toemployees using the top bottom management approach (Warmer 2000).

Berry (2001) strategicplanning is a tool for finding the best future for your organization and thebest path to reach that destination.

Strategic planning can bedefined as a process of using systematic criteria and rigorous investigation toformulate, implement and control strategy and formally document organizationalexpectations.

Strategic planning is anoff-short of strategic management and is nowadays referred to as corporateplanning.

Strategy managementrefers to the formulation and implementation of plans and the carrying out ofactivities. In short, it implies a set of activities relation to theformulation and implementation of strategies to achieve organizationalobjective.

According to Owolabi(2001), “Strategic management is the management process by which policies areformulated and strategies are selected to achieve the goals and objective of anorganization”.

Strategy management is adisciplined approach utilizing the principal and process of management toidentify the objective or mission of any business.

Strategic managementprocess as the way in which strategists determine objective and make strategicdecision. Strategic management’s main focus is the achievement oforganizational goals taking into consideration the internal and externalenvironment factors.

Planning is the processof establishing goals and objective and courses of action to attain them. Thyeffective successful strategy is departed in structure, thus to effectiveeconomic performance the organization needs to alter it structure.