CORPORATE PLANNING PROBLEMS AND BENEFITS (A CASE STUDY OF DANGOTE GROUP OF COMPANY

ABSTRACT

The research is on corporate planning; problems and benefits, A case study of Dangote of Company Lagos. The main objective of the research is to determine the problems managers encounter in corporate planning,  and thus suggest possible solutions. The researcher analyzed the data collected based on the responses from questionnaire. Chi-square was used to test to hypotheses formulated. The major findings of the research shows that lack of reliable and adequate information, poor structural policy framework and lack of adequate managerial skills and technical in corporate planning. Based on the above findings, the study concludes that corporate planning covers every aspects of the organization as it sets long term goals for the organization. It is vital for the growth of the organization. On the basis of the above finding, the study recommend that there is the need for managers to always reassess the set goals in the light of the performance of the corporate plan over-time ascertain if their target is been achieved, and thus set their goals in the light of the prevailing circumstances, which is the essence of emergent approach in corporate planning.

CHAPTER ONE INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The development of corporate planning is a post world war II phenomenon. Before the period of the world war II, almost all business enterprises were carrying on their business affairs without stating any formal objectives or formal long range business plans. Usually business planning was confined to the lower organizational levels, mainly the functional or the departmental levels and they had only short-term plans which focused mainly on manufacturing product planning, materials ordering and receiving and hiring of labour. Most companies used to have annual budgets or yearly financial plans to ensure their liquidity Imaga (2000:1).

Since that period of world war II, higher level that is at the care body of the company level long-range, usually of 3 to 7 years period planning has assumed ever increasing importance.

The  development  of  business  planning  been  a revolutionary movement or as technological   revolution or even the revolution in life-styles due to income

demonstration effects from time to time. According to Hberts, (1950), comprehensive business planning now

covers long-range in the form of strategic planning involving the entire fabric of the organization and is the concern of the top- most management from where it descends to all. The scope of corporate planning covers not only the whole organization but every functional aspects of the organization. It takes into account the full environments in which the business operates and is a systematic assessment of a most comprehensive nature, leading to the realistic mapping out of long term objectives, strategies and operational plans Akpala (1990).

In corporate planning, top management is concerned with the future direction of the business as a whole, such decisions taken are long-term in nature and are bound to have far reaching implications on employment, the financing of the business and the types of products manufactured.

Thus,  corporate  planning  involves  major  strategic decisions. It is against this background that this study is set to examine corporate planning with a view to determining its

benefits  and  identifying  its  problems  in  Dangote  Group  of

Company Nigeria Limited.

1.2    STATEMENT OF PROBLEM

Corporate planning often fails to achieve it’s objectives  in many organization due to some militating factors. The problem of poor planning which are usually defective due to lack of skills and expertise reliable and accurate information on the sides of the managers, which will often leads to poor forecast and formulation of vague goals and objective. Also poor policies and implementation strategies is yet another problem which in most cases leads to deviation of results from the sets goals, and poor feedback.

Finally, the very dynamic nature of the business environment which makes forecasting practically impossible, sometimes     jeopardizes  the  organizational  policy.  Lack  of effective monitor of plan implementation and review of results usually undermine even the most articulated corporate plan.

1.3    OBJECTIVES OF THE STUDY

The objectives of the study include the following:

1.To  determine  the  problem manager encounter  in corporate planning and suggest solution.

2.To   determine  the   strategic  planning  approach   used   by organizations and assesses its appropriateness.

3.To    evaluate    forecasting    methods    used   by   corporate organizations.

4.To   determine   the   corporate   planning   approach   use   by organization.

1.4    RESEARCH QUESTIONS

The following researcher questions were asked to elicit useful information to be able to deal with the subject matter.

1.What  are  the  problem  managers’  encounters  in  corporate planning?

2.What   are   the   strategic   planning   approaches   used   by organizations and how appropriate are they?

3.What   are   the   forecasting   methods   used   by   corporate organizations?

1.5    RESEARCH HYPOTHESES

Ho    :The problems managers encounters in corporate planning does not include lack of adequate and reliable information, poor structural policy framework, lack of adequate managerial skill and technical know-how.

Hi     :The problems managers’ encounter in corporate planning

does include lack of adequate and

reliable information, poor structural   policy framework, lack of adequate managerial skills and technical know-how.

Ho    :The strategic planning approach used by organization foes

not include analyzing the current status, examining the prospects of the future, setting future course of strategy, putting a strategy to work and evaluating and controlling strategy.

Hi     :The strategic planning approach used by organizations

includes analyzing the current status, examining the prospects of the future, setting the future course of strategy, putting a

strategy to work, evaluating and controlling the strategy.

Ho  :Historical trend analysis, quantitative methods brain storming, etc are not forecasting methods used by corporate organizations.

Hi     :Historical     trend     analysis,     quantitative     methods,

brainstorming, etc are forecasting method used by corporate organizations.

Ho    :The corporate planning approach used by organizations

does not include prescriptive and emergent approach.

Hi     :The corporate planning approaches used by organizations

include prescriptive and emergent approach.

1.6    SCOPE AND LIMITATION OF THE STUDY

The study is on corporate planning: problems benefits. A study of Dangote Group of Company. The major constraints of this study include;

1.Time Constraints

Due to limited time given for the study, the researcher could not visits places where relevant information necessary for the study cod be obtained.

2.Financial Constraints

The researcher has not enough money to embark on an indepth study of this magnitude. Because of financial constrain the researcher could not visit places where necessary information needed for the study could be obtained.

3.Attitude of the Respondents

Some of the respondents were not interested in the questionnaire given  to  them  because  they feel  they have  nothing  to benefit from the study.

1.7    SIGNIFICANCE OF THE STUDY

This research derives its significance from its usefulness to management  of  small and by organization,  governments  and students.

This work will be of great importance to the following group of people.

1.The potential and prospective managers might  find this work useful as a guide to better business initiative and management towards ensuring proficiency, efficiency and effectiveness.

2.The policy making arms of the government could also appreciate this work and thus make good policies in favour of corporate planning development in Nigeria considering the role it plays in Nigeria economic development

3.Other researcher could as well find this work very useful for further research work as a reference material.

1.8    BRIEF HISTORY OF DANGOTE GROUP OF COMPANY

Dangote group of company was founded in 1977 with the formation  of  Alco  international  limited.  Subsequently Dangote Nigeria Limited was incorporated during the 1980s

and 1990s, the group ventured into the importation of sugar, milk, flour, fish, rice, cement and iron rods, later, the group embarked on the haulage business, which started 60 struck under Dangote transport.

Dangote industries limited was incorporated in order to sustain the group market leadership in trading commodities and to  expand  into  manufacturing  of  food,  clothing  and  build materials.

Focus was placed on the following; sugar refining, flour milling, pasta production, salt processing, bulk cement bagging, oil and gas exportation, real estate, propylene bag manufacturing, haulage, textiles, maritime operations and telecommunications. The Dangote group includes the following subsidiaries:

1.Alco international limited

2.Dangote flour mills Plc

3.Dangote cement Plc

4.Dangote transport limited

5.Dangote sugar Plc

6.Dangote oil and gas industries international

7.Dangote textiles limited

8.Blue star limited

9.Dangote Holding limited

10.Dansa food limited

1.9    DEFINITION OF TERMS

1.Corporate Planning

This is decision support systems that holds and derives knowledge relevant to planning decisions that cut across organizational units involve the entire fabric of the organization and is the concern of the top most management from where it descends to all Karl (1998:14).

2.Management

This is defined as the process by which organizations resources of men, materials and money are combined in such a way that goals and objectives of the organization are realized in a effective and efficient manner, Akpala (1990:44).

3.Corporation

This is a mechanism by which different parties contribute capital, expertise, and labour to achieve mutual benefit.

4.Corporate Culture

This is the totality of the shared beliefs values,        norms and expectations by organizations members

which are transmitted from generation to generation.

5.Planning

This is the act of determining in advance possible future work of actions.

6.Strategic Management This is the process by which top management determine the long run performance of the organization by ensuring careful formulation, proper implementation and continuous evaluation of the strategy.

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