Impact Of Strategic Management On Productivity And Profitability Of A Business Organization

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Abstract

The research focused on examining strategic management as a critical factor influencing organizational performance in selected Nigerian Breweries based in Lagos. The specific objectives aimed to:

Assess the impact of the value chain on profitability growth in Nigerian Breweries.
Determine how strategic changes affect market share and productivity in Nigerian Breweries.
Evaluate the influence of strategic leadership on customer satisfaction and overall effectiveness in Nigerian Breweries.
Identify the primary challenges associated with implementing strategic management in Nigerian Breweries.

The study utilized a survey research design, involving direct interaction with a target population of 2,093 senior and junior staff members of Nigerian Breweries in Lagos. The sample size of 336 was determined using Taro Yamane’s formula. Data collection relied on structured questionnaires and oral interview guides, employing a 5-point Likert scale. Analysis methods included frequency tables for data presentation, and hypotheses were tested using simple linear regression and Friedman Chi-square tests.

Key findings indicated significant relationships: value chain strongly influenced profitability growth (r = 0.882; F = 1.057E3; t = 11.249; p = 0.05), strategic changes had a substantial effect on market share and productivity (r = 0.917; F = 11.596E3; t = 21.169; p = 0.05), and strategic leadership notably impacted customer satisfaction and overall effectiveness (r = 0.573; F = 148.292; t = 5.866; p = 0.05). Furthermore, the study identified economic factors and structural deficiencies as primary challenges hindering the adoption of strategic management in Nigerian Breweries (X2cal = 492.352 > X2critical = 11.14, p < 0.000 < α = 0.05).

In conclusion, the study emphasized that the performance of breweries hinges significantly on the types of strategic approaches they adopt. It recommends that organizations intensify efforts to continuously assess and monitor both internal and external variables to prevent potential failures and encourage ongoing improvement

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