1.1 Introduction
1.1 Background of the Study
Policy is a broadly stated course of action that individuals are to follow in making decision. It is a general agreed principle, which directs management thinking towards a specific direction. The world in which we live is replete with uncertainties and as such the growing complexities of our political social and economic needs etc, affect not only the government but also individuals and business world. In this vein therefore, the manager needs to plan to control activities both at the unit level and in the corporate level. These managers and administrators perform five basic functions to get things going viz: planning, organizing staffing, directing and controlling. Planning is the first and perhaps the most important function of management. The essence of planning is to prepare for and predict future events. It involves the development of strategy and procedure required for effective realization of the entire plan. it entails determination of control, direction and methods of accomplishing the overall organizational objectives.
Kenneth R. Andrews has this to say “awareness of the environment is not a special project to be undertaken only when warning of change becomes deafening”. The environment of a business cutoff has much influence on the attainment of the objectives of the business and its survival. And as such the business must strategies so as to remain in the system. This involves effective policy formulation and strategic planning. Sequel to the foregoing, this research is geared towards analyzing the impact of effective policy formulation and strategic planning to the survival of the business with a view to making recommendations for improved performance and growth of business in the midst of identifiable constraints.
1.1.1 Background of PZ Cussons Industries Plc Aba
The background of the PZ cussons industries Plc, Aba Paterson Zochonis (PZ) industries plc was incorporated on 4th December 1948, under the name of P.B Nicholas and company ltd. To take over the soap making activities of Mr. P.B Nicholas who has some years prior to that date established a factory for that purpose. Paterson Zochonis itself was incorporated in England in 1884, become a public company quoted on the London and Northern stock exchange in 1953. This activity is that of general merchant in West Africa and it has been established in this capacity in Nigeria since 1899, PZ's interest now include industrial ventures in Nigeria, Ghana, Sierra Leone, and textile which selling in the united kingdom. In 1951 Mr. P.B. Nicholas sold out his interest in the company to PZ, two years later the company changed its name to Alagbon industries limited and in 1960 adopted the name Associated industrial ltd.
After incorporation in 1948, new factory buildings were erected and modern soap making equipment installed at Aba. The company's range of products includes bar and table soap, performing all which are distributed throughout Nigeria with better stock held at strategic centers. The company (PZ) is well known through its Duck, premier and joy soap, Robb ointment, aninta super mint, jet hair cream, venues de Milo range of cosmetics, elephant detergent, etc. All these categories of products must be sold to enable the organization attain its objectives that has already been set. It is through effective policy formulation and strategic planning the objectives can be achieved hence its relevance to business survival.
1.2 Statement of Problem
To find out the problems associated with the application of effective policy formulation and strategic planning has been the paramount of this study. Investigation from PZ industrial plc Aba reveals that the company applies effective policy formulation in their operations and that those who implement it lack knowledge, skill and expertise required. The researcher also understands that the actual operation of the concept has certain shortcomings associated with it. They include: failure to properly scrutinize the environmental factors, inability to implement what has already formulated, inadequate incentive packages and rigid policy. Thus it is an attempt to solve this problem that this project seeks to research into the application of the concept using (PZ) Aba as a point of reference.
1.3 Aim and Objectives of the Study
The aim of the study is to explore the Effective Policy Formulation and Strategic Planning, a Pivot for Business Survival using Pz Cussons Industries Plc, Aba in Abia State. In achieving this aim, the following specific objectives were laid out as follows:
- To show how policy guides management thinking towards a specific direction.
- To x-ray the relevance of strategic planning in identifying the company's strength and weakness, opportunities and threats.
- To encourage managers in PZ to adhere to effective policy formulation and strategic to so as to achieve their objectives.
- To proffer solution to the problem identified.
- To analyze the problems encountered in the work place and proper measures to adopt in order to boost workers morale.
- To evaluate the impact of strategic planning in a dynamic environment.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does policy guide management towards a certain direction?
- Is there any procedure for analyzing problems encountered in the work place or sector?
- How does environment of business affect its policy and strategic planning?
- In what ways does policy formulation and strategic planning lead to business survival?
- What is the strategy of solving problems when arises?
- What is the impact of strategic planning in a dynamic environment?
1.5 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between effective policy formulation and business survival.
- H1: There is significant relationship between effective policy formulation and business survival.
Hypothesis Two
- H0: Strategic planning does not ensure business survival in a dynamic environment.
- H1: Strategic planning ensures business survival in a dynamic environment.
1.6 Significance of the Study
Here, so many people will benefit from this research work in so many ways.
Leaders of the organization will find the study useful as it will expose them to the consequences of no taking organize of certain environment factors which affect strategy formulation.
This study is significant in view of the fact that it will give an insight to the major benefits on effective policy formulation and strategic planning have over the existing method being used.
To organizations workers and subordinates, this research work will assist them know how best to adhere to the organizational laid down rules, regulation, programs and procedures so as to achieve objectives and able to assess their superior etc. To future student researcher, this work will be useful especially in the literature review.
1.7 Scope of the Study
Actually, the researcher wishes to analyze how effective policy formulation and strategic planning leads to business survival in virtually all organization, the impossibility of such has led to selection of PZ industries, Aba, as the case study. So the scope covers effective policy formulation and strategic planning solely at the PZ industries Plc. Aba, Abia State.
1.8 Limitation of the Study
The researcher encounters a lot of problems in working this project. Dearth of relevant materials on the subject, published exports and planning are virtually non-existence. Financial and time constraints were emended coupled with the attitude of employees towards answering questions that will produced vital information. High cost of transportation fare to and front at the PZ industries Plc, Aba are among the problem that limited this study.
1.9 Definition of key Terms
Planning: The process of establishing goals and a suitable course of action for achieving those goals
Strategy: A comprehensive description of an organization master plan for achieving its objectives.
Policy: A generally agreed principle which directs management thinking towards a specific direction.
Environment: The totality of the forces within and outside the business operation and business in term influences them.
Objectives: The target, which a firm desires to achieve.
Strength: An inherent capacity, which a firm mobilizes to achieve strategic advantage. Weakness: An inherent constraints or limitation which place an organization in a disadvantage position.
