BEST: International Journal of Management, Information

Technology and Engineering (BEST: IJMITE)

ISSN 2348-0513
Vol. 3, Issue 5, May 2015, 25-34
BEST Journals

BUILDING A VIABLE ORGANISATION THROUGH AN EFFECTIVE ORGANISATION

STRATEGY
AYOADE, EZEKIEL O.1 & ROWLAND, E. WORLU2
1

Research Scholar, Business Management Department, School of Business; College of Business and Social Sciences,
Covenant University, Ota, Nigeria
2

College of Business and Social Sciences, Covenant University, Ota, Nigeria

ABSTRACT
Effective organizational strategy is important to ensure that the organization chart an effective course towards the
organizational mission, goals and objectives. The relationship between an organization and its environment is a
determinant of type of strategy suitable for its viability. The purpose of this study is to determine the extent to which
Nigerian Association of Small Scale Industrialists (NASSI) employs strategic planning and its impacts on their
organizations. The methods used in this study are both secondary and primary means of data collection. Books, journals
and articles on small scale industries were read. 150 questionnaires were self administered to members of Nassi in their
monthly meeting. The analysis of the results pointed out that every organization that imbibes the culture of strategic
planning becomes more viable. Almost all the scholars stretched the fact that effective strategy in an organization is the
responsibility of the top management. The management of an organization must be creative with their strategies to be able
to cope with the challenges of sustaining and making their organization viable.

KEYWORDS: Organisation, Strategy, Nassi, Effectiveness, Organisation Performance

INTRODUCTION
The world is shrouded in uncertainty full of emerging markets, environmental factors, terrorists activities,
technological innovations, competition and development of trades. An organisation as part of the world system, needs
strategy to get close to it objectives, (Wzhen, Yang and Mclen 2010). To compete successfully in this environment, where
the activities of Boko Haram insurgency hold sway, organisations needs to continually review it strategy to be able to
surmount the daunting problems facing it. Muogbo (2013) emphasized the need for organisation to improve their
performance by reducing cost, innovating products and processes and improving quality, productivity and speed to market.
Strategic management is an ongoing process that evaluates and controls the business and the industries in which the
company is involved, assesses its competitors and set goals and strategies to meet all existing and potential competitors,
and then reassess each strategy annually or quarterly to determine how it has been implemented and whether it has
succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors,
a new economic environment, or a new social, financial or political environment. Achieving a competitive advantage
position and enhancing firm performance relative to their competitors are the main objectives that business organizations in
particular should strive to attain. (Raduan, Jegak, Haslinda and Alimin, 2009). The effect of globalization has placed the
task of survival on any organisation who wants to survive. Stiff competition has placed greater pressure on organizations to
seek ways to achieve a sustained competitive advantage. Globalisation has led to more intense competition among
manufacturing firms, with increased customer demands (Baines and Langfield-Smith, 2003). For an organisation to remain
viable the strategy must be effective. A set of specified criteria for an organization to be viable is what (Daff, 2009)
believed to be the effective strategy.

26

Ayoade, Ezekiel O. & Rowland, E. Worlu

Objectives of this Research

The study aims to find out the extent to which Nassi members employ strategy in their operations.

It is also to establish the relationship between an organisational strategy and the viability of such organization.

Research Questions

Is strategy management practice among Nassi members organization?

What is the effect of strategy on organisational performance of Nassi members?

LITERATURE REVIEW
Organisation
An organisation is made up of a group of people who come together to accomplish a common goal or a set of
goals. The size of an organisation can vary from two people to thousands of people. Organisations can range from profitdriven companies, such as Unilever/Shoprite, to non-profit organisations, such as, community youth clubs, church groups
or even a book club.
Bedeian and Zamnuto (1991) defined organisation as social entities that are goal directed, deliberately, structured
activities systems with permeable boundary. That mean it is an entity such as association, institution that has the same
goals and is linked with external environment (Daft, 2007). Barnard (1957) stated that it is a consciously coordinated
activity or effect of two or more persons. An organization hence consists of set goals and objectives which the promoters
are set out to achieve using strategy.
Argyris (1960) confirmed that organization is part of human strategies designed to achieve certain goals.
Organization therefore needs strategy to accomplish the tasks of achieving the goals and objectives of promoters.
Irrespective of which structure exist in an organization (Mechanistic or Organic), effective organization strategies will be
the means in which the objectives set by the organization are achieved.

EFFECTIVENESS
This is to be successful or achieving a desired result. Effectiveness in organization means the degree to which
objectives are achieved and the extent to which targeted problems are solved. According to Armstrong (2007),
effectiveness is a complicated concept that is defined in different ways and could be measured and evaluated in proportion
to each definition. Effectiveness is the level of results from the actions of employees and managers. Employees and
managers who demonstrate effectiveness in the workplace help produce high-quality results. Take, for instance, an
employee who works the sales floor. If hes effective, hell make sales consistently. If hes ineffective, hell struggle to
persuade customers to make a purchase. Companies measure effectiveness often by conducting performance reviews. The
effectiveness of a workforce has an enormous impact on the quality of a companys product or service, which often
dictates a companys reputation and customer satisfaction (Miksen 2015).

STRATEGY
The word strategy entered the literature and practice of management in recent years. At first the word was used in
military sense to mean- that which a manager does to offset the actual and potential actions of competitors. The word is
still used in this sense by fewer people.

Building a Viable Organisation through an Effective Organisation Strategy

27

Rose et al (2000) posited that, without a strategy an organization is like a ship without a rudder. It goes round in
circles and like a train, has no specific place to go. Supporting this thought Toffer (2003) narrated that an organization
without a strategy is like an airplane weaving through the skies, hurled up and down, slammed by the winds and lost in the
thunder heads. If lightning or crushing winds do not destroy it, it will simply run out of gas.
Strategy is a means of operationalising a policy for achieving some predetermined objectives. Abdul (2013)
quoting the work of Anao (1979), enumerated that strategies are schemes, methodologies, maneuvers which management
hopes to deploy to arrive at its target goal by the end of a specific period, recognizing that during the intervening period,
a host of changes are going to take place in the environment. Glueck (1984) defined strategy as a unified, comprehensive
and integrated plan relating the strategic advantages of the firm to the challenges of the environment.
Strategy is the nature, domain and scope of an organizations activities. This explains the likeness, value,
coverage area and the direction the organisation is going. A good strategy will be able to measure the success of the
organization and be able to chart the way for corrective measures and improve on the existing success achieved. Akinyele
& Fasogbon (2010) stated that strategy consists of a set of underlying processes that are intended to create or manipulate a
structure to create a more favorable outcome for an organisation.
Effective organizational strategy is important to ensure that the organization chart an effective course towards the
organizational mission, goals and objective. The organization is in constant evolution and the increase in change caused by
globalization is accelerating the challenges faced by different organization in all regions of the world. Cole (1994)
emphasized that world strategic dimensions of business have grown in importance because of increasing complexity of
modern business organizations.

REASONS FOR AN EFFECTIVE ORGANISATION STRATEGY

Increase competition among world organizations

Increase consumer taste which increases the volume of import

The interconnectedness of the world people

Entrance of new manufacturing nations into the world market

Improvement in technological advancement.

The above reasons for a viable organization to have an effective strategy throw a number of pertinent questions

into the mind of top management.

How do we cope with our new environmental factors?

What resources do we need in face of new challenges?

Where do we want to be in the next 10-20 years?

In what ways can we sustain our pressure and to remain competitive?

Reviewing or restating the core business.

28

Ayoade, Ezekiel O. & Rowland, E. Worlu

Figure1: Strategy Planning and Environmental Factors

The relationship between an organization and its environment is measured by its strength or viability. An
organization will do well in a given environment, if the strategy employed by the organization is environmental friendly
and taking into consideration the social, economic, political and religion factors that are existing around the organizational
settings. Adeoye (2012) laid emphases on the important of environmental factors on the success of organizational strategy.
A well environmental study will pave way for an effective strategy for achieving the goals and objective for which the
organization is set up.
Cole (1994) stated that effective organization strategic is a task that is directed towards the organization top
management, to determine the fundamental aims or goals of the organization and ensure a range of decisions which will
allow for the development of those aims or goals in the long terms, whilst providing for adoptive responses in the shorter
term.
The above opinion of Cole indicated that it is the work of top management in an organization that is saddled with
the strategic planning as it affects long term issues of the organization. While planning strategically for long term issues the
top management also put in place corrective measures for short term feedback gotten within the operational tenure of the
strategy.
The strategic choice made by an organization is a reflection of its top management and their perception
(Hambrich and Mason 1984). The failure of an organization majorly depends on the inactivity of the top management to
formulate an effective strategy to serve as the guide to achieve the organization goals, objectives and mission. Proper check
and balances should be in place to make sure the road to achieving the goals and objectives of the organization is not
derailed. Cabrey, Haughey and Davies (2014) stretched the fact that key success to organizational strategy is senior
management sponsorship. The sponsors play a key role in initiating, planning, monitoring, executing and evaluating the
strategy.
Muogbo (2013) explored the impact of strategic management on organizational growth and development of
selected manufacturing firms in Anambra State in Nigerian. Results from the analysis indicated that the adoption of
strategic management has significant effect on competitiveness and significant effect on employees performance and has
significantly increased organizational productivity. Luen, Yong & Fook (2013) investigated whether strategic planning
affects business performances of SMEs over the long term in Malaysia. The results confirmed that there was a positive
relationship between strategic planning and their business performances

29

Building a Viable Organisation through an Effective Organisation Strategy

The inability of the top management of an organization to understand and study properly the environment in
which it operate is simply and indirect planning of the organization to derail in achieving its goals and objectives which is
invariably lack of effective strategy to pilot the affairs of the organization. For growth and development to take place in
any organization the top management of such organization must be ready to take a proactive decision to form an effective
strategy either in marketing, production, sales and human resources. In their study (Akinyele and Fasogbon 2007) revealed
that the intensity depend on the managerial, environmental and organizational factors. The readiness of the top
management to study the presence and predict the future taking into consideration the environment which the organization
finds itself will determine greatly the survival and sustainability of such organization.
NASSI (Nigerian Association of Small Scale Industrialists)
The Nigerian Association of Small Scale Industrialists (NASSI) was founded in 1978 and was registered under
the Land Perpetual Succession Act as a non-profit making and non-governmental organization. It has a national secretariat,
four zonal offices and branches in all the states of the federation and Abuja.
MOTTO: Industrial Self- Reliance

AIMS AND OBJECTIVES

To establish and maintain an association for the exchange of ideas and techniques on issues relevant to the
development of small scale Industries

To establish contact with government, its institutions and other non-governmental organizations for the
advancement and promotion of the small industries.

To contact, consult, confer and cooperate with foreign agencies, institutions and organizations within and outside
Nigeria for the purpose of enhancing the growth and development of small scale industries in Nigeria.

To develop a computer based information and documentation center for accessing reliable economic data for
overall development of the small scale industries.

To source, provide and facilitate delivery to small scale industries as well as offer library services for SMEs.

There are two broad industrial groups in the association namelyThose in manufacturing / mining processing, and those in the service industry.

MANUFATURING /MINING PROCESSING GROUP

1.

Machineries and Metal fabrication

2.

Block and Concrete Moulding

B) SERVICE GROUP

3.

Agro Processing/Poultry & Animal Husbandry

1) Hotel\ catering

4.

Textiles and Garment

2) Printing\ graphic art

5.

Cosmetics/Chemicals

3) Photography\photo processing

6.

Rubber& Plastics

4) Gold/Blacksmithing

7.

Leather and Shoe

5) Mechanical/ Automobile workshops

8.

Animal Feeds/Fertilizers

6) General Civil Engineering Repair

30

Ayoade, Ezekiel O. & Rowland, E. Worlu

9.

Wood/Furniture

7) Motor/Transport services

10. Bakery/Confectioneries

8) Retail/General Merchandise

11. Wine/ Alcohol

9)Consultancy/Training Services

12. Beverage and Food Drinks

10) Business Center/Cyber Cafe

13. Tobacco Processing

11) Beauty/Barbing Salon

14. Paper Conversion

12) Advertising Agencies

15. Glass/ Ceramics

13) Domestic Equipment Supply

16. Mining and Minerals Extraction

14) Haulage/ Crane Hiring Service

17. Others

15) Mining Equipment

16) Agricultural/ Road Engineering,
17) Architectural Civil Engineering Services
18) Commuter Services and Maintenance
19) Legal/ Accounting/ Auditing Service
20) General Cleaning Service

ACTIVITIES
The main activities of the association towards the achievement of set goals and objectives are:

Advocacy for the economic empowerment for the grassroots industrialists.

Policy input into the annual government and fiscal policies

Dissemination of information on raw materials, plants and equipment, manufacturing standards local and export
markets to enhance and improve performance of its members.

Engaging in capacity building facilities such as seminars, workshops, study tours, dialogues, symposia, trade fair
for its members.

Provision for in-house credit for financing working capital needs of its members through Cooperative schemes.

Undertaking of any other activity that may be expedient in the overall interest of members.

Source: Field survey 2015

Figure 2: Scholars studies on Effect of Organisational Strategy on Performance

Building a Viable Organisation through an Effective Organisation Strategy

31

RESEARCH METHOD
For this research, the methods employed were by survey and secondary data collection approach. The instrument
used in the survey was a questionnaire. Textbooks, journal, articles were used in the secondary data collection approach.
The respondents for the questionnaires were members of Nigerian Association of Small Scale Industrialists (NASSI) Lagos
state chapter. The questionnaires were administered to them at their monthly meeting. Out of 109 members who attended
the meetings and were sampled, 105 questionnaires were retrieved. 3 of the returned questionnaires were not properly
completed and 102 copies that are 93.6% were considered usable.
Validity and Reliability of the Instrument
To ensure the validity of the instrument, the questionnaires were pre-tested on a small sample of 9 members of
NASSI, correction were made based on their responses. The second pre-test was made using 11 executive members of
NASSI in their meeting a week before the general assembly. Improvements were done to the questionnaires based on the
comments and responses received.

ANALYSIS AND RESULT

In analyzing the result of data collected, the study shall employ a tabular method

Source: Field survey 2015

Figure 3
Figure 3 provides a summary of the descriptive statistics for the critical criteria. The mean is the sum of the
observed values in the distribution divided by the number of observations. It measures the central tendency, that is, the
average response of respondents.
The mean for these data is indicated for each question with the highest score being 4.4 and the lowest at 3.2 on a
rating scale ranging from (1) to (5). This indicates an extremely high rating by all the respondents. The simple mean
calculated in the above table supported the scholars opinions in figure 2. This implies that majority of the respondents
agree that a viable organization can only exist when the management of such organization imbibe the culture of strategic
planning.

32

Ayoade, Ezekiel O. & Rowland, E. Worlu

CONCLUSIONS AND RECOMMENDATIONS

Majority of the studies on the relationship between strategy and organization viability/performance revealed that
there is positive relationship between strategy and performance. The study confirmed the work of Volberda et al. (2010)
that strategic management based on long-term forecasts, helps the company to anticipate future challenges and
opportunities. This make the organization strategic to be linked closely with the objectives that was set. It is important
therefore for every organization to be proactive in their strategic planning to be able to withstand the ever increasing global
turbulent challenges. To avoid short life span being experienced by SMEs, the management of these organizations must
imbibe the culture of planning for their immediate and future activities.
The organization top management should employ a system of scanning and receiving feedback from the
environment for better planning. For its viability, every organization must employ a good communication system that will
disseminate to all members all the necessary information about the organization. The limitations of the paper are based in
limited geographical scope of obtained data. Unfortunately we were not able to cover all regions of Nigeria with
comparable sample size. Mandy & Hunter (2014) emphasized that this approach also balances the research scope, time and
resources without losing out on quality. Worlu & Chidozie (2012) indicated that the use of a questionnaire, the working of
the questions, the methods of administration and presentation may have caused an unknown bias in a study. These
limitations thus not by any means outclass the findings of scholars which supported the result of this study. For further
studies, it is important to carry out and extensive study which will give a good representation of organizations in Nigeria as
this study is limited to Lagos state in Nigeria. Mixed methods can be used in future research of this study, this can start
with a qualitative approach using interview on stakeholders like the managing directors and other management staff, board
members employees and other people in the industries. This will allow more insights to be gained as to how to structure the
variables in the questionnaires of quantitative stage.

REFERENCES
1.

Abdel-Aziz, A. S., & Saed, J. F. (2014). The Impact Of Strategic Management on The Jordanian Pharmaceutical
Manufacturing Organisations Business Performance. International Review of Management and Business
Research, 3(2), 668-687.

2.

Abdul, F. A. (2013). Strategic Marketing Planning And The Nigerian Banking Industry. Journal of Research in
National Development, 11(1), 145-151.

3.

Adeoye, A. O (2012). Impacts of external business environment on organizational performance in the food and
beverages industry in Nigeria. British Journal of Arts and Social Sciences, 6(2), 194-201.

4.

Akinyele, S. T. & Fasogbon, O.I (2011). Impact of strategic planning on organizational performance and survival.
Research Journal of Business Management, 4(1), 73-83.

5.

Al-shammari, H. A., & Hussein, R. T. (2007). Strategic Planning firm performance linkage: Empirical
investigation from an emergent market perspective. Advances in Competitiveness Research, 15(1-2), 15-26.

6.

APS Group (2014) Our place in time: The historic environment strategy for Scotland. Retrieved 24/12/2014.
www.scotland.gov.uk

7.

Argyris, C. (1960). Personality and organization. Harper & Row

Building a Viable Organisation through an Effective Organisation Strategy

8.

33

Babatunde, B. O. & Adebisi, A. O (2012). Strategic environmental scanning and organisation performance in a
competitive business environment. Economy insights - Trends and challenges. Vol. LXIV (1), 24-34.

9.

Barnard, C.I. (1952). Organisation and management: Selected Papers. Cambridge, M.A: Harvard University
Press.

10. Bedeian, A. G., & Zamnuto, F. R. (1991). Organisational theory and design. New York: Dryden Press.
11. Cabrey, T.S., Haughey, A. & Davies, T. C. (2014). Enabling organizational change through strategic initiatives.
Project Management Institute. Pulse of the profession March 2014. Retrieved 24-12-2015. PMI.org/Pulse.
12. Cole. G. A (1994), Strategic management. D.P. Publication
13. Daft, R. L (2008) Organizational theory and structural design. Ali Parisian and Syed Mohammed Aerati, Tehran,
Commercial Publication Company. 2nd ed pp 10.
14. Frankling, P. W. (2011).Relationship Between Strategic Planning and Non-Profit Organisational Performance.
PhD Dissertation, Retrieved Jan 24/12/14.
15. Fulshaw, J. R., & Glaister, K.W (2006). Evidence of Formal Strategic Planning and Company performance.
Emerald management Decision, 44 (1), 9-30.
16. Ghoneim, N., & El-Baraclei, L (2013). The Impact of Strategic Planning On Mission Achievement in Egyptian
Non-Profit Organisation: An Assessment Using the Balanced Scorecard. Journal of U.S-China Public
Administration,10(1), 57-76.
17. Glaister, K. W., & Dincer, O. et al (2008). A causal analysis of formal strategic Planning and firm performanceEvidence from an emerging country. Emerald Management Decision, 46(3-4), 365-391.
18. Glueck William F. (1980) Business Policy and Strategic Management. New York. McGraw Hills,.
19. Hambrich, D. C., & Mason, P. A(1984). Upper Echelons. The organization as a reflection at its top managers. The
Academy of Management Review, 9(2),193-206.
20. Hassan, M. V., Qureshi, S. U., Sharif, S. and Mukhtar, A. (2013). Impact of Marketing Strategy Creativity on
Organisational Performance via Marketing Strategy Implementation Effectiveness: Emperial Evidence from
Pakistani Organisations. Journal of Scientific Research, 16(2), 264-273.
21. Karel, K., Adam, P., & Radomir, P. (2013). Strategic Planning and Business Performance of Micro, Small and
Medium-sized Enterprises. Journal of Competitiveness, 5(4), 57-72.
22. Li, S., Kinman. R., Duan, Y., & Edwards, J. S. (2000). Computer- based support for marketing strategy
development. European Journal of Marketing, 34(5/6), 551-575.
23. Luen, W.K., Yong, K.T. & Fook, O.S. (2013). Strategic Planning and Business Performance: A Study of SMEs in
Malaysia. Proceedings of 3rd Asia-Pacific Business Research Conference, 25 - 26 February 2013. Kuala Lumpur,
Malaysia.
24. Mandy, S. M. & Hunter, C.J. (2014). Applying a Project Management Approach to Qualitative Survey Research
Projects. The premier e-journal resource for the public opinion and survey research community. Retrieved
http://www.surveypractice.org/index.php/SurveyPractice/article/view/262/html_3

34

Ayoade, Ezekiel O. & Rowland, E. Worlu

25. Mc Adam, R. L. & Bailie (2002). Business Performance measures and Alignment Impact on Strategy.
International Journal of Operations & Production Management, 22(9), 72-96.
26. Miksen, C.(2015). What Is the Difference Between Efficiency and Effectiveness in Business?. Retrieved 4/4/15
from http://smallbusiness.chron.com/difference-between-efficiency-effectiveness-business-26009.html
27. Muogbo, U. S. (2013). The Impact of Strategic Management on Organisational Growth and Development.
Journal of Business and Management, 7 (1), 24-32.
28. NASSI Information bulletin
29. Parnell, J. A. (2013). Uncertainty generic Strategy, Strategic Clarity, and Performance of Retail SMEs in Peru,
Argentina, and USA. Journal of Small Business Management, 51(2), 215-234.
30. Raduan, C.R., Jegak, U., Haslinder, A. & Alimi, I.I. (2009). Management, Strategic Management Theories and the
Linkage with Organisational Competitive Advantage from the Resource-Based View. European Journal of Social
Sciences, 11(3), 402- 418.
31. Song, M., Im, S.M., Bij, H., & Song, L. Z. (2011). Does Strategic Planning Enhance or impede Innovation and
Firm Performance? Journal of Product Innovation Management, 28(4), 503-520.
32. Tapinos, E., Dyson, R. G., Meadows, M., (2005). The Impact of Performance Measurement in Strategic Planning.
International Journal of productivity and performance Management, 54 (5/6) pp 370-384
33. www.forna.com 9 key principles to Organizational Strategy.
34. Volberda, H. W et al. (2010). Strategic Management: Competitiveness and Globalization (Concepts and Cases).
Andover: Cengage Learning EMEA.
35. Worlu, R. E., & Chidozie, F. C. (2012). The Validity of Herzbergs Dual-Factor Theory on Job Satisfaction of
Political Marketers. African Research Review, An International Multidisciplinary Journal, Ethiopia, 6 (1), 39-50.
36. Wzhen W., Yang, B., & Mclean, G. N (2010). Linking Organizational Structure, Strategy and organizational
effectiveness, mediating role of knowledge management. Journal of Business Research, 63(7), 764-771