THE IMPACT OF INNOVATION ON FIRM SUSTAINABLE COMPETITIVENESS ADVANTAGE IN NIGERIA

CHAPTER ONE/INTRODUCTION

Background to the study

Nigeria’s business environment is situated in the midst of a challenging economic landscape and intense competition. Therefore, managers are increasingly seeking for strategic approaches to accomplish, improve, sustain, organizational performance and competitive advantage Porters (1989). Design and implementation of Strategy must be perceived as important components in the firm’s management process. This is because strategy gives the direction that business managers have in mind and which way they want to achieve their goals Gbolagade. A (2013). Earlier research demonstrated that firms that set out a clear strategy, for example: a quality differentiation or a cost leadership strategy, will outperform those firms that engage a mixed strategy. Amongst the many strategies implemented in firms, competitive strategy has been proven as an essential tool globally for any business to remain in the competitive market environment and gain superior performance lbidunni & Ogundana. (2014). Competitive strategy means consciously choosing to carry out activities differently or to perform different activities than competitors to convey a unique mix of value. Therefore to possess an edge over rivals firms employ innumerable competitive strategies, principally because each company’s strategic style entails custom-designed actions to fit its own circumstances and industry environment. As in most national economies Small and Medium Enterprises are an essential mechanism in achieving development and growth of Nigeria’s economy. The 2012 Enterprise Baseline Survey revealed that there are 17, 284, 671 Small and Medium Scale Enterprises in Nigeria, employing 32,414,884 persons and contributing 46.54 per cent of the nation’s Gross Domestic Product in nominal terms (CBN annual report,2017) . SMEs are considered the life blood of many economies and Nigeria is not left out. SMEs are very crucial in most economies including Nigeria in that they contribute a lot in terms of GDP and employment. A business is defined as small in the manufacturing sector if it employs fewer than 100 employees. Though there is no certified definition of what makes up a medium-sized enterprise, businesses with between 100 and 199 employees are generally considered medium sized. The SME sector of the economy cannot be overlooked because it plays a very important role in a nation’s economy and this is true for both developed and developing countries. They also form a high proportion of business activities and engender more employment opportunities than the large corporations in recent years. However due to globalization, competition amongst firms is on the rise and SMEs in Nigeria are struggling under this intense competitive environment both at the domestic and international terrain. Despite the economic significance some of the Small and medium Enterprises in Lagos, they have not played the expected vital and vibrant role in the economic growth and development of the country. These challenges may result from perceived ineffective competitive strategy which is having a negative effect on performance in terms of customer base, sales growth, returns on investment and revenue. Competitive advantage gives a firm an edge over its rivals and an ability to generate greater value for the firm and its stakeholders. Therefore to ensure survival in a highly competitive environment such as Lagos, SMEs have to learn to weather the storms of competition and beat today’s ferocious market forces and volatility by providing quality products, distinct product features and well packaged value adding products that satisfy customer need at affordable prices with effective promotional strategy. Every firm possesses certain unique capabilities and competences that distinguish it from other firms and these features greatly influence its performance in the market and determine to what extent a firm survives the pressure from global market competition. However this cannot be achieved except the right competitive strategy is developed and implemented appropriately. Therefore, this research study aims at examining how competitive strategies, such as product quality, distinct product features and value adding capacity, influence the performance of SMEs in Lagos, Nigeria.

1.2 Statement of problem

In Lagos, Nigeria the problem of many SMEs is shown by this research that SMEs has fallen out terms of market growth, due to inadequate competitive strategy as regard to utilization of their organizations’ resources, lack of implementation of specific policies, strategies and actions designed to accomplish market growth in firms are not in place. Study and explanation of business competitiveness is a recurrent theme studied by academics, consultants and practitioners. The internalization of economy, dynamic nature of the environment, greater competitive firms, the need for continuous innovation, product customization and growing use of ICT forces firms to face challenges of improving their competitiveness. These difficulties are greater for small and medium enterprises because their economy of scale and their resources are less than those of large firms. Research has documented that 70% of SMEs fail in their first three years of operations in Lagos, Nigeria. The highly competitive environment for small scale businesses in Lagos Nigeria has necessitated the need for SMEs to develop strategic means of survival. Thus it becomes imperative to find out whether generating new product features, will increase their scale of productivity and reflect also on their customer base. Ability of top management to properly analyze the market is one of the crucial aspects of marketing rules. It is when a unique selling proposition is created with the aim of increasing the scale of product. Lack of better product/service quality and delivery, inadequate product customization and poor personnel management has hindered sales volume of various SMEs and their performance. This is as a result of narrow out- look to issues regarding competitive strategy planning, formulation, implementation and evaluation, research and development on product quality and service delivery. Furthermore there is an urgent need for small scale firms (SMEs) to gear effort towards increasing profitability because of the severe competition they face from multinational companies in the market and the need to meet consumer’s requirement for quality, quantity and price. In order to achieve this entrepreneur must put in place adequate competitive strategy that would be responsive to customer satisfaction, revenue growth and increased returns on investment. Despite the fact that the products produced by small and medium enterprises are cheaper, relevant available statistics data shows marginal improvement in this area. Base on this reasons this research is been carried out to identify competitive strategies that can improve the performance of small scale enterprises in Lagos, Nigeria.

Objectives of the Study 

The General Objective

 

The purpose of this study was to investigate the Impact Of Innovation On Firm Sustainable Competitiveness Advantage In Nigeria

Specific objectives 

1. To establish    the   effect   of   product   innovation   on   the    competitiveness    of manufacturing SMEs in Nigeria
2. To analyse the effect of process innovation on the competitiveness of manufacturing SMEs in Nigeria
3. To assess the effect of Marketing innovation on the competitiveness of manufacturing SMEs in Nigeria
4. To determine the effect of organizational innovation on the competitiveness of manufacturing SMEs in Nigeria
5. To examine the combined effect of product, process, marketing and organizational innovation on the competitiveness of manufacturing SMEs in,Nigeria
6. To investigate the moderating effect of firm Size on innovation and competitiveness of Manufacturing SMEs’ in Nigeria

   Research Hypotheses

This study tested the following Research Hypotheses in line with the specific objectives; H₀₁: Product innovation has no significant effect on the competitiveness of Manufacturing SMEs in Nigeria

H₀₂: Process innovation has no significant effect on the competitiveness of manufacturing SMEs in Nigeria

H₀₃:   Marketing    innovation   has   no    significant    effect on the competitiveness of manufacturing SMEs in Nigeria

H₀₄: Organizational innovation has no significant effect on the competitiveness of manufacturing SMEs in Nigeria

H₀₅: Combined innovation (Product, process, marketing and organizational) has no effect on the competitiveness of manufacturing SMEs in Nigeria

H_06: Firm size has no moderating effect on the relationship between SME Innovation and competitiveness in Manufacturing SMEs in Nigeria

Significance of the Study 

This study contributes to a better understanding of the innovation practice in Manufacturing SMEs in Nigeria and how it affects firm competitiveness. This is important to SME practioners, Government agencies and other researchers. Specifically the study findings provide a link between innovation and competitiveness’ by validating the role of innovation in firm competitiveness. The study findings provide a basis for the use of innovation strategy to enhance firm competitiveness.

For the Nigerian government and its relevant arms that include Nigeria Intellectual Property Institute, National Commission for Science Technology and Innovation, Ministry of Industrialization and enterprise development ( MOIED),the study findings provide the knowledge necessary for the formulation of relevant and effective policies and programmes in the area of enterprise development and use of innovation as a tool to enhance development and for stimulating innovativeness.

This study’s findings also add to the existing body of knowledge in the area of SMEs innovation and firm competitiveness. Owing to the limited studies linking innovation and firm competitiveness, the study contributes to empirical knowlegde and to the framework of research in SME competitiveness and innovation.The study also attempts to validate existing theoretical knowledge in the area of innovation and firm competitiveness. Lastly, the study findings may ignite further research in these area of innovation and SME competitiveness to fill up any research gaps, or to widen the scope.

  Scope of the Study

The study sought to investigate the effect of innovation on firm competitiveness focusing on the manufacturing SMEs. A sample 284 Manufacturing SMEs was drawn from manufacturing SMEs in Lagos where majority of enterprises from all sectors are located.. Data on innovation and competitiveness was collected for a period of 3  years( 2012-2014) as recommended for innovation studies (OECD, 2015). The dependent variable firm competitiveness focused on two constructs, profitability and market share while the dependent variable innovation considered product, process, marketing and organizational innovation. Multiple Linear regression analysis was used to analyse the effect of innovation on firm competitiveneness

 Limitations of the Study

Eventhough the study was designed to enable the researcher collect accurate and aunthetic data that can be used to make some inferences, it was however not free from limitations. First, while the study targeted all manufacturing SMEs in Lagos, however data was collected from samples drawn from three main clusters from Lagos. This may introduce some biasesness. However the researcher reduced this by using multistage sampling where cluster sampling was followed by stratified random sampling to increase the representativeness of the sample and reduce biasness.

Secondly, Innovation effect on enterprises have a time lag after implementation  before they are realised. The research attempted to deal with this limitation by obtaining innovation data for a period of three years as opposed to one year. Lastly, data collection on the dependent and independent variables enterprises was self-reporting and this can lead to subjectivity. This was used because most entreprises are hesitant to share records or audit reports from where the data can be extracted while others lack the reports.

 Organization of the Study

This thesis is organized in five different chapters. Chapter one of the study introduces the research, the reseach variables and the context . The chapter contains the background information, statement of the research problem, research objectives, significance of the study, the scope and the study limitations.

Chapter two presents literature review that includes theorerical, conceptual and empirical literature of the main study variables that include competitiveness, innovation. the. Based on the literature reviewed, a conceptual framework depicting the hypothesized relationship of the variables was developed.

Chapter three presents the research methodology that include a description of the research design, the research philosophy, the target population, sampling design and sample size and Operationalisation of the variables. The chapter also contains empirical models used in the study as well as data collection methods and instrument and lastly ethical considerations of the study.

 

Chapter Four presents the research findings, results of data analysis and a detailed discussion of the findings. The chapter also contains the descriptive statistics, diagnostic tests, and inferential statistics. Finally, Chapter Five presents the summary of research findings, contribution of the study to knowledge, conclusions, and recommendations for policy and suggests areas for further research.

 

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EFFECT OF DEBT MANAGEMENT IN NIGERIA (1960 – 2005)

ABSTRACT

This study is on Debt Management in Nigeria from (1960 – 2005) challenges and prospects. This study seeks to determine how and what contributed to Nigeria public debt, both internal and external. The study is a survey research. The study randomly selected three organizations responsible for managing debt. A sample of 364 was selected from a finite population by yamene’s statistical technique. Questionnaire was developed for soliciting information from the respondents. A test-retest method was used to make the questionnaire reliable, percentages were used to analyze the biodata and question items while X2 Test of a contingency table were used to analyze the hypotheses. This study found out that Nigeria is not heavily indebted, corruption, inadequate resources are not the challenges, poverty reduction, effective fiscal and monetary policies, plus sustainable economic growth are not prospects, that debt reschedule, debt buy back and debt conversion programme are not ways of managing Nigeria external debt. This work concludes that deficiencies in managing our debt by debt agencies, non centralization of the offices, and functions/activities, plus unpatriotic attitude of past leaders, including the rapid rate of technological innovation, and overnight policy reversals by past dictatorships government. Recommendations are that debt management office, in collaboration with other agencies managing debt in Nigeria should work out guidelines and criteria for borrowing from both internal and external sources by all tiers of government, even as the viability of the projects for which loan may be obtained and determined through realistic feasibility studies. Proper funding of the agencies and award for performance, adequate framework, mainly targeted of price stability, and form a good habit that will say no to corruption and pave way for effective communication and interaction for more productivity.

TABLE OF CONTENTS
Cover Page
Title Page i
Approval page ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vii
List of Figures xi
List of Tables xii
CHAPTER ONE
1.1 Historical Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 5
1.6 Significance of the Study 6
1.7 Limitation of the Study 6
1.8 Scope of the Research 6
1.9 Definition of Terms 7
References 9
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0 Conceptual, Issues, Nature and Meaning of Debt Management 10
2.1 Genesis and Trend of Nigeria Public Debt 10
2.2 The Establishment and Operational Activities of the Debt
Management Office (DMO) 11
2.2.1 The Establishment of Debt Management Office 2000 12
2.2.2 Objectives and Functions of Debt Management Office 2000 12
2.3 Prospects and Benefits on Debt Management Office in Nigeria 13
2.3.1 Debt Management Office’s Strategic Plan 2002 – 2006 14
2.3.2 Organizational Structure and Budget of Debt Management (DMO) 15
2.3.3 Policy Framework for Debt Management 15
2.3.4 Legal/Regulatory Framework for Debt Management 15
2.3.5 Paris Club Data Reconciliation Negotiation of Debt Reconciliation 16
2.3.6 Bilateral Negotiation of Debt Management Office 16
2.3.7 London Club and Commercial Debts 16
2.3.8 External Relations Activities of DMO 17
2.3.9 Debt Conversion Activities 18
2.3.10 Debit Service Payments Activities 18
2.3.11 Debt Relief Campaign/Waiver 18
2.3.12 Domestic Debt Management Work Plan 19
2.3.13 Significant Achievements of Debt Management 2002 – 2006 DMO 20
2.4 The Need for External Debt Acquisition in Nigeria 22
2.5 Ways and Methods of Contracting Public Debt (DMO 2004:2). 23
2.6 Structure and Composition of Nigeria Public Debt D.M.O 2004 24
2.7 Different Foreign Lending Institutions to Nigeria 28
2.8 Managing Paris Club Debt and Data Reconciliation D.M.O Data
Based 2000 – 2005 29
2.9 Domestic Debt Operation and Capital Market Development (D.M.O) 2005 30
2.9.1 Domestic Debt Profile 30
2.10 Holding of Domestic Public Debt in Nigeria 31
2.10.0 Percentage Composition of Domestic Debt 32
2.10.1 Central Trust of Current Domestic Debt Programme 32
2.10.2 Issues of Capital Market Development 33
2.10.3 Meeting the Challenges of Borrowing from the Capital Market 35
2.10.4 Rationale for Issuing Bonds 35
2.10.5 Benefits of Bond Issuing to the Economy 36
2.10.6 Elements of Domestic Debt Problem in Nigeria 32
2.11 Nigeria External Policy and its Implementation 37
2.12 Guidelines for Borrowing by Federal, States and Locals Government and Implementation 38
2.13 projects Financed by Paris Club Loan 40
2.14 Problems and Challenges in Achieving Efficient Debt Management
in Nigeria 41
2.15 Characteristic of Efficient debt Management 44
2.16 The Dynamics of Nigeria External Debt 46
2.17 Indicators of Severity of Nigeria Debt Burden 47
2.18 Fundamentals and Immediate Factors that Plugged in
Nigeria into Debt Crisis 48
2.19 Strategies Adopted so Far at Managing Nigeria External Debt 50
References 55
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction 56
3.2 Research Design 56
3.3 Population of the Study 56
3.4 Sampling Procedure 57
3.5 Sample Size Determination 57
3.6 Sources of Data 58
3.7 Description of Research Instrument 59
3.8 Validity of the Research Instrument 59
3.9 Reliability of the Research instrument 59
3.10 Method of Data Analysis 60
References 62
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction 63
4.2 Questionnaire Distribution 63
4.3 Background Information of the Respondents 63
4.4 Analysis of Items in the Questionnaire of Section B 66
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction 80
5.2 Summary of Findings 80
5.3 Conclusion 80
5.4 Recommendations 81
5.5 Suggestions for Further Studies 81
References 82

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STRATEGIC PLANNING AS A TOOL FOR ORGANIZATIONAL GROWTH (A CASE OF UBA PLC AND ZENITH BANK PLC)

ABSTRACT

Every organization has its objectives and goals laid out. Specification of these objectives and goals is a major aspect of planning. Strategic planning is necessary to guide the decision making process in an organization with a view to acquiring superior performance. For companies to succeed, strategies adopted must fit into circumstances they face, their skills, resources as well as environment in which they operate. This research was designed to determine the impact of strategic planning as a tool for change in the dynamic business environment, a study of UBA group Nigeria Plc and Zenith Bank Nigeria Plc. The objectives were to ascertain that strategic planning affects business operations, to identify the common purpose of strategic planning process as well as to identify the dynamism of business environment and how managers swiftly respond to this considering the ever demanding and changing nature of the industry. The Headquarters and branches of UBA group Nigeria Plc as well as Zenith Bank Plc within Lagos, was the scope of study. Branches with four (4) years of existence with at least fifteen (15) staff were specifically considered for the study. In all about one thousand two hundred (1200) staff from both banks served as the research population. Sources of data included questionnaires and personal interviews administered on the participants directly by the researcher. The results were consistent with the hypotheses. Thus, strategic management planning has impact on effectiveness of the bank, other categories of staff apart from management staff should be involved in strategic planning process in an organization; inefficient strategic planning and implementation leads to failure of an organization. In conclusion strategic planning in an organization is very high and this has impacted well on the organization’s competitiveness in the dynamic environment, especially in the post consolidation era of the banking industry. 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Strategy is about winning. The purpose of strategic planning is to guide management decisions towards superior performances in an establishment. Competitive advantage strategy acts as a vehicle for communication and coordination within an organization. Strategic planning and management has become more of a business word in the 21^st century and in the new millennium than it ever was. Organizations have turned on to the strategic planning processes. For some, it meets stakeholders’ demands, for others, it was used to justify down-sizing and for an even smaller number, it was done because the organization truly understood the need for a strategic blueprint to guide the decision-making process towards superior performance in order to establish competitive edge.

All these are because of the way each of these organizations view and manage their strategic plans. Strategic planning is the key element to organizational success and effectiveness. This is because it is the pattern or theme that gives coherence to the decision of an organization. It helps to achieve consistency in decision-making. Nowadays, managers are faced with challenges posed by the competitive environment as a result of efficient and effective decision-making which demand a thorough and intelligent understanding of the various dimensions that impinges on corporate performance and success of the organization. These various dimensions concern question on how, what, where, when, who, whom, and why of those cognate issues, which if successfully managed, help in organizational success, growth and development. In addition to the relevant questions being asked, decisions have to be made in organizational units and functional units; since efficient integration of organizational and unit decisions ultimately determines corporate success, growth and development. Also important, are those variable which are not under the control of organizational executives, but, which substantially affect or determine organizational efficiency and effectiveness. Therefore there is need for corporate organization and executive to have adequate understanding of these relevant functions determined, applied, and monitored for organizational survival growth and development.

Finally, according to Stath and Grigshy (1997:8), strategic planning refers to managerial decisions that relate the organization to its environment, guide internal activities, and determine organizational long-term performance. The principal responsibility of the practising manager is to ensure that the organization keeps in touch with the external environment; it must also see the essence of management in terms of service to customers.

David (1991: 1) therefore defined strategic planning as the art and science of formulating, implementing and evaluating cross-section business decisions that enable an organization to achieve its objectives.

Armstrong (1982:10) suggests that the specification of objectives and goals is regarded as a major aspect of formal planning. Strategy is not only being efficient, it is critically concerned with enabling the organization to be effective.

According to Drucker (1974:55), the prime task of strategic management is mediating through the overall mission of a business, i.e. asking the question “what is our business?”. This leads to setting objectives, development of strategies and making of today’s decision for tomorrow’s result. This should be carried out by balancing the present objectives and needs against those of the future in the light of available resources of men and materials.

Thompson (1995:101), states that if companies are to succeed they must adopt strategies appropriate for the circumstance they face, feasible in their resources, skills, and capabilities that are desirable to their stakeholders.

The bank can only be effective if it has awareness of and is responsive to the environment in which it operates. However, it is worthwhile emphasizing that the concepts of strategy has a dynamic component. It implies effectiveness and efficiency and it also implies responsiveness, developing awareness of environmental changes and identifying appropriate and effective reaction to the changes.

1.2     STATEMENT OF THE PROBLEM

In Nigeria, the banking environment of which UBA Plc plays active roles, has been facing stiff competition of increasing magnitude, brought about by the changes in government policies of deregulation, privatization, re-capitalization and globalization that cut across all corners of the globe. This has brought down profit margin and justified labour turnover. In order to redress the situation that has also affected effectiveness and service delivery, the bank has adopted effective strategic planning culture.

1.3     RATIONALE FOR THE STUDY

 The main objective of the research is to determine the impact of strategic planning as a tool for change in a dynamic business environment. Other objectives of the research work include:

• Ascertaining that strategic planning affects business operations.
• Identification of dynamism of business environment and how managers swiftly respond to this considering the ever demanding and changing nature of the industry.
• Identifying the common purpose of the strategic planning process.

1. RESEARCH QUESTIONS

The following questions will be answered in the course of the study:

• Does the success of the organization depend on the effectiveness of strategic planning?
• Who is responsible for leading the strategic planning process     in the organisation.
• Will the efficiency or inefficiency of strategic planning and implementation lead to the success or failure of an organization?
• How well is information technology explored in implementation of strategies?
• How does the management react to environmental challenges? 

1.5     RESEARCH HYPOTHESES

The research hypothesis below will be tested in this study:

HYPOTHESIS I

H₀:    Strategic management planning does not have impact on effectiveness of the bank.

H₁:    Strategic management planning has impact on effectiveness of the bank.

HYPOTHESIS II

H_O:    Other categories of staff apart from management staff should not be involved in strategic planning process in an organization.

H_1:        Other categories of staff apart from management staff should be involved in strategic planning process in an organization.

1.6     SCOPE AND LIMITATION OF STUDY

The scope of this study will be UBA Group Nigeria Plc. and Zenith bank Plc. The study will be carried out in the bank’s headquarter and some of its branches within Lagos. Thelimitations envisaged in this study includes that of time, finances and unwillingness of some respondents to complete questionnaire.

1.7     SIGNIFICANCE OF THE STUDY

 Tilles (1960:63), has suggested that without an explicit statement of strategic planning, it becomes more difficult for expanding organizations to reconcile coordinated action without entrepreneurial effort. Thus, this study will be significant in the following areas:

• This study will enable the bank to maximize its effectiveness by improving its position in the competitive environment.
• This study will enable the bank to clarify its goal, improve allocations of resources and examine problems of decisions making.
• This study will enable the management of the bank to define the scheme of strategy for their business, based on the bank’s strength, weakness and external environment.
• It will ascertain that changing strategies with situation factors is also a form of strategic planning.
• It will help in establishing whether wrong application of strategies leads to the non-performance of a business or not.

1. BRIEF  HISTORY OF ORGANIZATION UNDER STUDY; UBA PLC AND ZENITH BANK PLC

History of UBA

United Bank for Africa Plc (UBA) is one of the leading financial services institution listed on the Nigerian Stock Exchange which offers a complete range of over 200 banking, bank assurance and wealth management products and services.

Its vision is to be the undisputed leading and dominant financial services institution in Africa.

UBA’s history dates back to 1948 when the British and French Bank Limited (“BFB”) commenced business in Nigeria. Following Nigeria’s independence from Britain, UBA was incorporated in 1961 to take over the business of BFB.  Today UBA is the product of the 2005 merger between UBA and Standard Trust Bank; shortly after Continental Trust Bank, was acquired. The consolidated UBA is here on a mission to be a role model for African business, by creating superior value for all their stake holders, abiding by the utmost professional and ethical standards and by building an enduring institution

History of Zenith Bank

Zenith Bank was established in May, 1990 and started operation in July 1990. It became a Plc in June 17, 2004 and today has over 300 branches, including branches in Ghana, Sierra Leone, UK and South Africa. As one of the biggest and most capitalized bank, Zenith Bank desires to become the leading Nigerian, technology drive, global financial institution providing distinctively a unique range of financial services.

Zenith Bank’s core values are customer satisfaction, sustainable stakeholder value creation, professionalism and good corporate governance; little wonder, in November 2007 it was named the African Bank of the year.

1.9     STRATEGIC PLANNING IN UBA PLC. AND ZENITH BANK PLC.

Strategic Planning in Uba Plc.

The strategy for the take-off of the new board and management of UBA involved merging the CBN accounts of both banks, commencement of a unified reporting system and alignment of the products being offered to customers of the pre-merger banks              

The first phase of the integration of the IT networks of the two banks and in tune with global best practices has been completed. This has led to the change of each of the two organisation’s software from Flexicube to Finnacle. Several other strategic steps followed suit which includes; roll out of I. T. backed up products that would demystify banking.

The bank has also recruited more young and vibrant staff. Lastly, it has aggressive marketing department in place aside from each member of staff been trained as a potential marketer of the bank’s products. The bank now enjoys reduced overheads which enhance shareholders’ value through the exploitation of various operational synergies. This has led to improved revenues, significant cost savings and improved efficiency. (The Punch Newspaper, August 1^st, 2005, pg. 17).

Ever since the re-branding of the bank, the new management has not relented in new financial product development and marketing. For instance, in June 2006, the organization released into the financial market four mutual fund products namely; UBA balanced fund, UBA hedge fund, UBA bond fund and UBA money market fund. Different investors have different motives for investing so these products were targeted at meeting diverse needs of investors namely:  UBA balanced fund for spreading risk; UBA hedge fund for investors who intends to hedge against inflation: UBA bond fund for investors who are interested in long term yield; and UBA money market fund for low risk investment.

An important feature of this is the strategic market entry. During the consolidating period, the bank did not release any initial public offer but now after some banks have made several offers, the bank now deems it fit to release not the usual public offers but a strategic market entry through these mutual funds. All of these among other strategic implementation yet to be unraveled by the organization attests to the strategic planning approach of UBA GROUP plc (Sunday Punch, June 11, 2006, pp 1 and 6).

Strategic Planning in Zenith Bank Plc

From inception, Zenith Bank clearly set out to differentiate itself in the banking industry through its service quality, drive for a unique customer experience and the calibre of its client base. Today, the bank is easily associated with the following attributes in the Nigerian banking industry:

• Innovation
• Best risk assets portfolio
• Consistent superior financial performance
• High quality personnel
• Leadership in the use of Information and Communication    Technology (ICT)
• Consistent in raising the bar of competition, and
• Formidable marketing team

Strategic planning in the organization is always hinged on overall vision of the bank which is to make the Zenith brand a reputable international financial services network recognised for innovation, superior customer service and performance while creating premium value for all stakeholders.

The key strategies management of the organization depends on include:

• Delivering superior and tailor-made service experience to all our customers at all times.
• Developing deeper and broader relationship with all clients and strive to understand their individual and industry peculiarities with a view to developing specific solutions for each segment of our customer base.
• Significantly expanding its operations by adding various distribution channels and entering into new markets.
• Maintaining its position as a leading service provider in Nigeria while expanding its operations internationally in West Africa and the financial capitals of the world.
• Striving to be a leading service provider in Nigeria by continuing to build on longstanding relationships, capabilities and the strength of our brand and reputation.
• Expanding its business through the establishment of key subsidiaries for the provision of non-bank financial services to accentuate the service offerings and experience of our customers.
• Continually enhancing its processes and systems platforms to deliver new capabilities and improve operational efficiencies and achieve economies of scale.
• Having a strong information network that allows the management to take a well informed decision ahead of peers.
• Commitment to being a leading light in the deployment and utilization of Information and Communications Technology (ICT) for financial services delivery, with its service offering covering, but not limited to: Corporate and Commercial Banking Services, e-business Solutions including local and international card business, treasury and cash Management Services, foreign exchange and trade finance services funds assets management private banking and investment banking and financial advisory services among others.
• Assemblage of seasoned world-renowned group of financial experts, legal and technology experts to deliver pioneering solutions to both businesses and individuals while shareholders get real value for their hard investment (Zenithbank.com, 2008).

 1.10   DEFINITION OF TERMS

The following terms are defined as used in the report:

• Corporate Strategy: These are plans to carry out value and performance objectives of a company Ansoff (1984:83).
• Dynamism: This implies constantly changing nature of something, in this case of the business environment Ansoff (1984:88).
• Effectiveness: This is the degree to which the bank accomplishes specified goals and objectives of the organization Tilles (1969:80).

• Environmental Complexity:- This is the heterogeneity and concentration of elements in a firm’s external environment Anao (1980:500).
• Goal: It is an objective expressed in terms of one or more specific dimension Tilles (1969:58).
• Strategies:  These are the approaches by which long-term objectives are attained with a view to making profit Tilles (1969:52).

                                  REFERENCES

Aghayere and Ojo (1997), Method in Social Science. Ibadan: Sterling-Holden Ltd.

Anao, A. R. (1980), Survival of Business Firm: Management in Nigeria, July Edition.

Ansoff, I. (1984), Corporate Strategy. New York: McGraw-Hill Book Ltd.

Armstrong M. (1996), Personnel & Human Resources Management. New York: Pageon Book.

David’s, K. (1991), Business and Society Environment Responsibilities. New York: McGraw-Hill Books.

Druckers, P. (1974), Management. UK: Heinemann Books.

Wolfangs and Hand (1992), Are you a Strategist or just a Manager? Harvard Business Review Jan-Feb.

Tilles, S. and Ansoff H. I. (1969), Making Strategy Explicit.  Penguin Books.

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