AN ANALYSIS OF STRATEGIC PLANNING AND CORPORATE PERFORMANCE IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the study

Majority of businesses seek growth not merely to endure, but to thrive. The majority of businesses seek growth because it is generally regarded as an indication of success and advancement. Indeed, numerous practicing managers consider organisation growth to be a fundamental concern, as it is utilised by both small and large businesses as an indicator of effectiveness (Ndule, 2019).

In the end, the success and expansion of an organisation will be determined by its ability to achieve the objectives it has established. Planning is a critical development driver for organisations because it must serve as a strategic business partner assisting upper management in organizations that is sustainable not only for the present but also for the future. Presently, strategic planning is collaborating with the highest level of administration to advance the organisation. A comprehensive evaluation of strategic planning is warranted, wherein our focus shifts from the performance of alternative approaches to the most effective strategic planning implemented by large corporations. 

Organisational management employs strategic planning as a methodology. It entails a collection of determinations and undertakings established by management to furnish the organisation with long-term guidance, establish precise performance goals, formulate strategies to attain these objectives while considering the current internal and external conditions, and commit to implementing, monitoring, and controlling the selected plans (Prince, 2020). It is a managerial methodology designed to ascertain the organization's assets and weaknesses, the opportunities and challenges it encounters, its future vision, and the means by which it intends to pursue its realisation. According to Obete (2018), strategic planning and decision making constitute a critical undertaking for any business manager. Strategic planning identifies strategies intended to propel the organisation forward, evaluates its capabilities to attain those objectives, and considers environmental factors that may have an impact on the organisation.

In essence, strategic planning delineates the desired future state of the organisation and devises the means by which it intends to achieve that state. The ongoing consideration of how current changes in the organisation and its external environment will impact the organization's future constitutes the "strategic" aspect of this planning procedure.  A collection of managerial decisions and actions known as strategic planning determines an organization's long-term course and viability. Additionally, strategic planning consists of the actions that culminate in the formulation of goals and objectives, as well as the selection of tactics to attain them (Mano, 2018).  Generally, its focus pertains to pivotal determinations concerning the trajectory of the organisation.

An important advantage of strategic planning in organisations is that it provides the institution with stability despite the escalating frequency of leadership transitions (Lennon, 2019). Additionally, they observed that the mean duration of leadership service has been drastically decreasing annually. According to their observation, the implementation of strategic planning fosters a diverse decision-making group through the active participation of intermediate and operational management levels. Through the delegation of decision-making authority, a strategic planning practice system can aid an organisation in preserving its fundamental mission amidst leadership transitions. Furthermore, Lennon emphasised that a participatory strategic planning practice with a broad scope can capitalise on frequent leadership changes by integrating the external perspective of a new leader with a stable core internal group that is united in pursuit of common objectives and a shared vision of a prosperous future.

The existing body of literature concerning the effects of strategic planning has progressively and predominantly focused on financial gains or profit (Haland, 2021). In fact, measuring other qualitative aspects of the impact of strategic planning and the planning process on organisational performance has received little attention or consideration hence the need for this study.

1.2 Statement of the problem

Since the inception of empirical investigations into the outcomes and performance of formal strategic planning (Haland, 2021), more than four decades' worth of planning performance studies have been published. With good reason, this line of inquiry has reduced to a trickle in recent years. Prior research in this field was devoid of a solid theoretical foundation, yielded a complex collection of inconsistent results, received significant criticism for its inadequate methodologies, and ultimately had minimal or no noticeable effect on strategic management practice or research (Mano, 2018). However, it is apparent that the correlation between planning and performance has substantial implications for both academic research and practical strategic management. Therefore, it is not advisable for scholars to completely forsake this line of inquiry. 

Furthermore, previous and current research has established that an elevated level of internal and external uncertainty has resulted from the emergence of threats and opportunities, a lack of awareness regarding facility-related issues and the surrounding environment, and a lack of direction. Numerous organisations allocate a significant portion of their time to responding to anticipated problems and changes rather than proactively anticipating and preparing for them. The term for this is crisis management. Unprepared organisations might have to expend a substantial amount of time and effort attempting to keep up. They expend their energy managing overwhelming problems, leaving them with little energy to anticipate and prepare for subsequent obstacles. This detrimental cycle confines numerous organisations to a reactive stance. It is on this premise that this study will be analyzing strategic planning and corporate performance in Cameroon.

1.3 Objectives of the study  

The general objective of this study is to critically analyse strategic planning and corporate performance in Cameroon. The specific objectives include the following:

To find out whether there is a relationship between strategic planning and corporate performance in Cameroon.

To examine the reasons strategic planning is important in an organization.

To establish the significant factors essential for effective strategic planning practice and how they affect the overall corporate performance in Cameroon.

To assess the effects of strategic planning on corporate performance in Cameroon.

1.4 Research Questions 

The following research questions will be answered in this study:

Is there a relationship between strategic planning and corporate performance in Cameroon?

What are the reasons strategic planning is important in an organization?

What are the significant factors essential for effective strategic planning practice and how they affect the overall corporate performance in Cameroon?

What are the effects of strategic planning on corporate performance in Cameroon?

1.5 Research Hypothesis

The following research null hypothesis will validate this study:

Ho1: There is no relationship between strategic planning and corporate performance in Cameroon.

1.6 Significance of the Study

The study will aid business organizations in Cameroon to understand the importance of strategic planning for optimum corporate performance. Revelations from the study will highlight the various benefits of strategic planning and how these measures if properly taken can increase organizational growth. The study will also enlighten managers of business organizations in Cameroon on how to effectively implement strategic planning for substantial growth of the organization.

Future researchers who will be interested in this area of study can use this research as a reference material or past study for their research work.

Finally, the study will also benefit scholars and academics by filling a gap in literature on the impact of strategic planning on corporate performance and survival. 

1.7 Scope of the study

Generally, this study focuses on strategic planning and corporate performance in Cameroon. Empirically, this study focuses on finding out whether there is a relationship between strategic planning and corporate performance, examining the reasons strategic planning is important in an organization, establishing the significant factors essential for effective strategic planning practice and how they affect the overall corporate performance and assessing the effects of strategic planning on corporate performance in Cameroon.

This study will be carried out in Cameroon.

1.8 Limitation of the study

The researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing that strategic planning and corporate performance in Cameroon discourse is vast thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size covering only residents of Cameroon. Thus findings of this study cannot be used for generalization for other regions within Cameroon. Additionally, the researcher will simultaneously engage in this study with other academic work will impede maximum devotion to the research. Howbeit, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.

1.9 Definition of terms

Planning: Planning (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired goal.

Strategy: Strategy is a high level plan to achieve one or more goals under conditions of uncertainty. Strategy is important because the resources available to achieve these goals are usually limited.

Firm : A social unit of people that is structured and managed to meet a need or to pursue collective goals. 

Strategic Planning: Is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

Management:Is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively.

Corporate Performance Management:Is the area of business intelligence (BI) involved with monitoring and managing an organization's performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead, and operational costs