Abstract

he need for strategic management in any organisation is very germane in view of the fact that most industry is subject to what JOHNSON; (1973) refers to as the “law of acceleration”. That is to say many companies are confronted with changes in government regulations, consumer demands, technology, economic and social elements of their business environment occur at dazzling rate, calling for effective strategies to cope with them. In the particular case of the Nigerian Corporate Institutions the need for planning assumes added importance. The reasons are multifarious and rather obvious. First, Corporate institutions are beginning to feel the impact of increasing competition within the business environment. An indication that this is happening can be seen from the increased and aggressive marketing efforts of these organisation mainly in the form of advertisement, publicity and cold-calls on customers. With competition, deposits and capital which constitute the core of the resources of these organizations are becoming increasingly scarce and costly. In addition, given the increased and improved unionization of employees, there is pressure on the management for higher salaries and better conditions of work. The egalitarian policy of share allotment during the privatization and commercialization exercises and after has led to the spread of equity ownership in Nigeria. Consequently, it is to be expected that this shareholders will become more forceful and articulate in their demand for better performance and higher dividend; thus exacting additional pressure on most companies. In most areas of business activities, technological innovations introduce new dimensions into existing ‘modus operandi’. The need to be up to date efficient and competitive makes planning necessary for corporate organisations, equally significant is the fact that strategic management process trains the organisation to always think ahead to be able to capitalize on environmental opportunities and takes care of possible environmental threats. There is no doubt that any organisation that plans ahead of time is bound to out-perform the one that treats planning with levity.