AN EVALUATION OF CORPORATE PLANNING ACTIVITIES OF FIDELITY BANK (A CASE STUDY OF FIDELITY BANK PLC)
ABSTRACT
Organizations came to be for definite objectives and purposes. Each, at various times and, in response to varying situations formulates plans that help them actualize their business intentions. Although plans differ according to levels and organizations, they have a common and peculiar characteristics of giving direction to the target (purpose) of the organization. Since corporate planning is viewed as a systematic and disciplined study to help identify the objectives of a corporate body, determine an appropriate target, decide upon suitable constraints an devise a practical plan by which the objectives may be achieved, it became inevitable to test its validity. It is on this understanding that three strong hypothesis and some useful research question were formulated for testing at 5% level of significance open- ended questionnaires were prepare for generation of information.
CHAPTER ONE
1.0 INTRODUCTION
The identity research has been establishing as one of the most powerful tools and a panacea to many of the world’s greatest problems. Research is a goal oriented and its goals determine its nature ad form.
1.1 BACKGROUND OF THE STUDY
There exists one sure certainty in life of every organization, although the objective that organizations person varies according to the numerous organizations that pursue them. According to Akanwa [2000] indicated clearly well that individual’s limitations are overcome when people come together in organization to pursue and achieve those objectives and goals which they cannot realize when acting distinctly. It is on this understanding that Ajuogu [1996] defined on organization as a combination of people or individual efforts, machines and money working together for the achievement of group goals and objectives. These group goals and objectives as maintained by Akanwa [2000] is the concern of the total enterprise as made manifest in their corporate policy and plans.
As the overall plan of an organization corporate planning is formulated to ensure that individual and departmental plans does not run parallel and counter to each other. Ukeje [2000:4] maintained that corporate planning is important in understanding the process of developing objectives for the corporation. To reach or arrive at these objectives, it involves developing and evaluating alternative courses of action. In reaching these objectives it is important to understand that most of the problems, which affects general management on activities of the bank, are institutional in nature. Again, they can also be said to be external in nature since general management is most of the time relating the business organization to the demands of its environment (IBID).
To perform these activities, Akanwa [2000] maintained that they must formulate strategic and policies, which will provide them with, guided responses. Where environmental demand but where behaviors are continuously repetitive, policies are made for effective responses objectives, policies and activities and its attendant decisions make for success to failure of the organizations. This is where corporate planning activities come in.
Sadler and Robson [1986:8-9] portend that “Corporate planning activities represents a systematic attempt to influence the medium and long term future of the enterprise by those factors within the company and in the environment which will affect the achievement of these objectives and by establishing comprehensive but flexible plans which will help ensure that objectives are in fact achieved.
Union banks has diversified into a wide range of banking activities in other to satisfy the need of its customers. These banking activities include corporate planning, retail and mortgage banking, registrar ship, private equity financing, trusteeship and insurance brokerage.
Companies engage in corporate planning activities in order to improve the likelihood that they will achieve their desired objectives. Image [1996. 1998] believes that in modern business management and eventual business success there is nothing like luck.
What people refer to as luck is the logic of what happens when opportunity meets with preparedness. Organizations prepare and equip themselves to capture/secure these opportunities as they call through corporate planning. Business opportunities are seen whenever a “gap” exist. Akanwa [1990] believe that having the money, the talent or the determination to enter into business is not enough. The motivation to achieve something on your own may be crucial to your success in business, but to make it bear fruits, you should be able to plan.
The development of business planning is a revolutionary movement due to the increasing needs of man. As the needs of man increase, the responsibility on the shoulder of managers continues to increase and hence planning becomes more important. Today we require more than we did 20 years ago to keep life in state of equilibrium. This account for why comprehensive business planning activities now covers long range in the form of strategic planning involving the entire fabric of the organization and the concern of the top most management from where it descend to all. By so doing, it is then called corporate planning.
The word “corporate” is derived from Latin “corpus” which means “body” i.e. covering the entire body of the organization. Corporate strategy or plans is the overall management plan for a diversified company.
1.2 STATEMENT OF PROBLEMS
Since the future is uncertain and what it beholds not absolute precise when estimate, there exist the inevitable need for organizations to be strategic in struggling to know today what will happen tomorrow. Corporate planning becomes laudable in this regard since the continued existence of corporate organizations forms the prime concern of managers.
Unfortunately however, most businesses suffer paralysis and occasioned failures as a result of manager’s failure to plan corporately; not necessitated by shortage in human factor and other resource inputs.
It is also assumed that most organizations banks are strategically weak and lacks that abundant competitive capability because of their relegation of corporate planning.
Consequent upon the above background, the problem of this study is to understand why most organizations have failed to embrace corporate planning as a tool for ensuring business success and survival, in spite of the numerous benefits that corporate planning is believed to offer.
1.3 OBJECTIVE OF THE STUDY
In lieu of the fact that corporate plans must be developed so as to realize the corporate objective/activities of the organization and since investments/activities in an organization should not be left to chance the need for and objectives of this study include:
By stating how company objectives are formulated and implemented using the instrument of corporate planning activities.
To show how corporate planning can help to actualize the broad objectives of an organization [Union Banks]
Show theoretically how corporate planning works in an organization and how the feedback process works.
Indicate how an organization can develop or build up synergy through corporate planning activities .
Since business environment are always changing. It is the concern of this study to show how organization can adopts to changing environmental opportunities and minimize the impact of environmental threats through corporate planning activities.
1.4 RESEAECH QUESTIONS
Does your organization engaged in corporate or strategic planning?
Who set the plan?
By engaging in corporate or strategic planning, does the organization perform better in achieving her objectives?
How would you describe your organizational plan?
What happens when the plan could not achieve your objective?
From past experience, has strategic planning helped in providing solution to the problems for which they were formulated in your organization.
1.5 STATEMENT OF HYPOTHESIS
The following hypotheses will be tested in the study.
H0: The successful achievement/realization of an organizations objective does not depend on the type and quality of her corporate planning/activities.
H1: The successful achievement/realization of an organizations objective depend on the type and quality of her corporate planning/activities.
H0: Poor managerial planning significantly does not affect or influence the workability of corporate plans and activities in the organizations performance.
H1: Poor managerial planning significantly affects or influences the workability of corporate plans and activities in the organizations performance.
1.6 SIGNIFICANCE OF THE STUDY
Since the major plank of this study is no mainly to examine corporate planning not to investigate, rummage and clearly find out the problems and problems of corporate planning activities and the benefits organizations derived from its applications this study there fore becomes significant for the following reasons:
It will assist to identify the impending factors that accounts for the non-adoption of corporate planning by most organization.
Future researchers for reference on corporate business development in Nigeria will use it.
It will serve or become a part of growing body of literature on the subject of corporate planning.
1.7 SCOPE OF THE STUDY
All in a bid to avoid complexities and in accuracy, this study is circumscribed to private corporate organizations in the economy, with the Union banks of Nigerian Plc as the case study. Generalization will be made about the entire sector using the findings/results gathered from Union banks Nigeria Plc.
The scope of this work is limited because of inadequacy of time and finance to embark on a detailed study of all various types of private corporate organizations.
1.8 LIMITATION OF THE STUDY
The researcher in the course of his study encountered problems and constraints, which exerted a certain amount of influence on the successful completion of the work.
The first among them was inadequacy of financial resources to travel round and rummage for information and materials up date the work. Another impediment was inadequacy of time to carryout extension research work.
Much a problem was insufficiency and lack of useful modern materials to cite references with. The few available once were obsolete, out modeled and unmodern,
Finally, the nonchalant attitude and lukewarm corporation of most of the people the researcher encountered also affected the validity of the information obtained.
1.9 DEFINITION OF TERMS
BUDGET: A statement of expected results expressed in numerical terms.
CORPORATE GOAL: A long term, often multiple future states of affairs, which the organization is aiming at in fulfilling its mission.
CORPORATE MISSION: The board purpose which the society within which the organizations is operating experts it to serve.
DECISION MAKING: The act of choosing between two or more possible courses of action.
EFFECTIVE: Bringing about intended results, making a striking impression.
FORECAST: The quantitative and qualitative of events or trends that one believes may occur in future.
PROBLEMS: A question to be solved or decided, especially something difficult.
PROSPECTS: Something expected, hope for, looked forward to.
STRATEGIES: The determination of the basic long term objective of an organization and the adoption of courses of action and allocation of resources necessary to achieve these goals.
AN EVALUATION OF CORPORATE PLANNING ACTIVITIES OF FIDELITY BANK (A CASE STUDY OF FIDELITY BANK PLC)