Effect of Strategic Management Processes on Company Expansion in Adama Beverages Yola, Adamawa State, Nigeria
Abstract
This study was on effect of strategic management processes on company expansion in Adama Beverages Yola, Adamawa State, Nigeria. Three objectives were raised which included: To examine the existing strategic management processes implemented by Adama Beverages to understand how the company formulates and executes its strategies for business growth, to investigate the influence of strategic management on providing a clear and well-defined direction for Adama Beverages and to evaluate the efficiency of resource allocation and utilization within Adama Beverages. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Adama Beverages. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Chapter one
Introduction
Background of the study
The effect of strategic management processes on company expansion is a critical aspect of organizational success. Strategic management involves the formulation and implementation of strategies that align with an organization’s objectives and facilitate its long-term growth.
A study by David (2015) emphasizes the importance of strategic planning in achieving market positioning and sustainable growth. Strategic planning enables companies to identify market opportunities, assess competitive forces, and position themselves effectively to capitalize on emerging trends.
According to Grant (2019), strategic management processes play a crucial role in resource allocation and investment decisions. Effective strategic management helps companies allocate resources efficiently, focusing on areas that contribute to expansion, such as new product development, market penetration, or international expansion.
Teece (2018) argues that strategic management fosters innovation and adaptability, essential elements for company expansion. By continuously scanning the external environment, companies can identify technological advancements and market shifts, allowing them to adapt their strategies to stay competitive and seize expansion opportunities.
Research by Hill and Jones (2017) highlights the role of strategic management in risk management and decision-making processes. Companies that effectively manage risks through strategic planning are better positioned to make informed decisions, mitigating potential challenges and creating a foundation for sustainable expansion.
According to Rothaermel (2017), strategic management processes contribute to organizational alignment and employee engagement. When employees understand the company’s strategic direction, they are more likely to be motivated and committed to achieving expansion goals, creating a conducive environment for growth.
Peng (2019) underscores the importance of strategic management in global expansion. Companies seeking international growth need to develop strategies that consider cultural, political, and economic factors. Effective strategic management processes facilitate successful internationalization efforts and enhance a company’s ability to expand its footprint globally.
Statement of the problem
Adama Beverages, located in Yola, Adamawa State, Nigeria, operates within a dynamic and competitive business environment. As the company endeavors to expand its operations, several challenges and uncertainties emerge, necessitating a focused examination of the effect of strategic management processes on its expansion efforts.
Adama Beverages may face challenges associated with the absence of a well-defined strategic direction. Without a clear roadmap, the company might struggle to identify growth opportunities, allocate resources effectively, and make informed decisions crucial for expansion. The company may encounter issues related to resource allocation and utilization. Inefficient allocation of financial, human, and technological resources could hinder the implementation of strategic initiatives essential for successful expansion, limiting the company’s ability to compete effectively. Adama Beverages operates in a market influenced by rapidly changing consumer preferences and competitive pressures. The lack of strategic management processes may expose the company to challenges in adapting to market dynamics and staying ahead of competitors, impacting its expansion prospects.
The company might face difficulties in fostering innovation and adaptability within its organizational culture. In a rapidly evolving business landscape, the inability to adapt to technological advancements and market trends could hinder Adama Beverages’ ability to innovate and seize expansion opportunities. Challenges related to risk management might arise, especially if the company lacks robust strategic management processes. Inability to identify, assess, and mitigate risks could expose Adama Beverages to uncertainties that pose obstacles to successful expansion endeavors.
The company may encounter issues related to employee engagement and organizational alignment with strategic goals. Without effective communication and alignment of employees with expansion objectives, the implementation of strategic initiatives may face resistance, affecting overall success. If Adama Beverages intends to expand globally, it may face challenges related to internationalization. Issues such as cultural differences, regulatory complexities, and geopolitical risks could impede the company’s global expansion efforts without robust strategic management processes in place.
Objective of the study
- To examine the existing strategic management processes implemented by Adama Beverages to understand how the company formulates and executes its strategies for business growth.
- To investigate the influence of strategic management on providing a clear and well-defined direction for Adama Beverages.
- To evaluate the efficiency of resource allocation and utilization within Adama Beverages.
Research Hypotheses
H1: There are no existing strategic management processes implemented by Adama Beverages to understand how the company formulates and executes its strategies for business growth
H2: There is no influence of strategic management on providing a clear and well-defined direction for Adama Beverages
Significance of the study
The research on the effect of strategic management processes on the expansion initiatives of Adama Beverages in Yola, Adamawa State, Nigeria holds considerable significance for various stakeholders, including the company, the industry, policymakers, and the academic community. The study aims to contribute to knowledge and practice in strategic management while providing practical implications for business growth and expansion. The significance of the study is outlined below:
The study will provide Adama Beverages with insights into the strengths and weaknesses of its current strategic management processes. This information can guide informed decision-making, enabling the company to optimize its strategies and make necessary adjustments to enhance the likelihood of successful expansion.
Understanding the impact of strategic management on expansion will equip Adama Beverages with tools to enhance its competitiveness. By identifying and leveraging strategic advantages, the company can position itself more effectively in the market, contributing to sustained growth and a stronger market presence.
The research will contribute to the existing body of knowledge in strategic management, particularly in the context of a beverage industry in Nigeria. The findings may generate new insights and perspectives that can enrich strategic management theories and frameworks, benefiting academics and researchers in the field.
Policymakers and industry practitioners can benefit from the study’s insights. Understanding how strategic management processes influence expansion in the beverage industry can inform policy decisions and industry best practices, fostering a more conducive environment for business growth in the region.
Scope of the study
The scope of the study covers effect of strategic management processes on company expansion. The study will be limited to Adama Beverages Yola, Adamawa State Nigeria
Limitation of the study
While this research aims to provide valuable insights into the effect of strategic management processes on the expansion initiatives of Adama Beverages in Yola, Adamawa State, Nigeria, it is important to acknowledge several limitations that may affect the scope and generalizability of the findings:
- Single-Case Study Design:
The study focuses on a single case, Adama Beverages, limiting the generalizability of the findings to other companies in the beverage industry. The unique characteristics of the company may not be fully representative of the broader industry context.
- Temporal Constraints:
The research is conducted within a specific timeframe, and business conditions, market dynamics, and strategic management practices may evolve over time. The findings may not capture long-term trends or changes that occur after the study period.
- Availability of Data:
The study’s findings heavily rely on the availability and accessibility of accurate and comprehensive data from Adama Beverages. Limited access to certain internal company information or data gaps may impact the depth and accuracy of the analysis.
- Subjectivity in Perceptions:
The study involves subjective assessments of strategic management processes, employee engagement, and organizational alignment. Individual perspectives and biases may influence the interpretation of qualitative data, potentially introducing a degree of subjectivity.
- External Environmental Factors:
External factors, such as economic conditions, regulatory changes, or unforeseen events, can significantly impact a company’s expansion efforts. These external factors may not be fully accounted for in the study, limiting the depth of the analysis.
Definition of terms
- Strategic Management Processes:
Strategic management processes refer to the systematic and continuous activities undertaken by an organization to formulate, implement, and evaluate strategies. These processes involve setting objectives, analyzing the internal and external environment, making strategic decisions, and adapting to changes, aiming to achieve the organization’s long-term goals and competitive advantage.
- Company Expansion:
Company expansion denotes the deliberate and planned growth of a business, extending its operations, market reach, or product/service offerings. Expansion strategies may include entering new markets, launching new products, forming partnerships, or engaging in mergers and acquisitions to enhance the organization’s overall size and influence.
- Market Positioning:
Market positioning is the strategic process of establishing a distinctive image and identity for a product or company within the target market. It involves differentiating the brand from competitors and creating a unique perception among consumers to influence their preferences and buying behavior.
- Resource Allocation:
Resource allocation involves the strategic distribution and assignment of a company’s available resources, including financial, human, and technological assets, to various activities, projects, or departments. Effective resource allocation aims to optimize productivity, enhance efficiency, and support organizational goals.
- Innovation:
Innovation refers to the creation and implementation of new ideas, processes, products, or services that bring about significant improvements or novel solutions. In a business context, innovation is essential for staying competitive, adapting to change, and driving continuous improvement.
- Risk Management:
Risk management involves the identification, assessment, and mitigation of potential risks that may impact an organization’s objectives. It encompasses strategies and processes to minimize the negative consequences of uncertainties and unexpected events, ensuring the organization’s resilience and sustainability.
- Organizational Alignment:
Organizational alignment refers to the harmonization of individual and team efforts with the overall goals and objectives of the organization. It involves ensuring that all levels of the organization work cohesively and collaboratively towards common strategic objectives.
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