CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Goals indicate what an organization wants to achieve, strategic planning is a game plan for getting there. Every organization or company must design a strategic plan for achieving its goals. In every economic system, there are two producers of goods and services for customer use; these are the private owner of factors of production and the government. In recent time, the world is experiencing a global pressed economy. Nigeria which is a developing country is no exception, the implication of this is that an organization has to be sound strategically and operationally to cover its costs and stay in business. According to porter in Kotler (2007), firms pursuing the same strategic planning to the same target customer constitute a strategic group, the firm that do not pursue a clear strategy and try to be good on all strategic dimension do the worst.

Strategic is rooted in the firm’s ability to look ahead, understanding a dynamic environment and effectively position the organization or it’s sub-unite for continued success in changing times. Therefore, there is need for manager at top level (strategic level of management) to think strategically. However, any company or organization that placed much emphases on strategic planning and implementation will have little problem as they would have been identified before they become a nightmare. According to Thompson and strihland (2001), there are three conditions necessary for continued corporation survival and growth in competitive and rapid changing economy. A company must maintain a keen awareness as its own resources and capabilities and remain alert to changes in its own market as well as those of other firms. Management must have timely and accurate information with which to assess the potential value of an opportunity. Corporate Governance must be maintained at a level which provides investment for ventures having acceptable level of risk and uncertainty. In order to meet these requirements, a company must develop and adhere to a plan which provides direction for future and guideline for day to day operation.

Strategic planning involves the formulation of long-term goals and objectives for the company and the selection of strategies to achieve these goals and objectives in the light of the uncertain future and external environment in which the firm operate. The purpose of strategic planning is to provide management with a frame work at which decision can be made which will have a long-term impact on the behavior of the firm. All the management problems of strategic planning on corporate governance has necessitated the intent of the researcher into a research about organization/company using strategic planning as a test to assess one of the great corporate governance with particular reference to Dangote Flour Mill, Lagos, Lagos State.

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