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IMPACT OF STRATEGIC MANAGEMENT ON GROWTH AND SURVIVAL OF AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Strategic management has emerged as a crucial aspect of organizational growth and survival in the increasingly competitive global business environment. Strategic management involves the formulation, implementation, and evaluation of cross-functional decisions that enable an organization to achieve its long-term objectives (David & David, 2018). As organizations face dynamic market conditions, technological advancements, and evolving consumer preferences, strategic management provides the framework necessary for aligning resources and capabilities with the external environment (Harrison & John, 2019). The relevance of strategic management in fostering growth and ensuring organizational survival cannot be overstated, particularly given the rapid pace of change in today's business landscape.

Organizations that effectively engage in strategic management are better positioned to identify opportunities and threats within their environments. This capability allows them to capitalize on emerging trends and mitigate risks associated with market fluctuations (Porter, 2019). Moreover, strategic management facilitates the alignment of organizational goals with the resources required to achieve them, thereby enhancing operational efficiency and effectiveness (Mintzberg et al., 2020). By establishing a clear strategic direction, organizations can motivate employees and foster a culture of innovation, which is essential for sustained growth.

The impact of strategic management on organizational growth and survival has been a focal point for researchers and practitioners alike. Numerous studies have demonstrated a positive correlation between strategic management practices and performance outcomes, such as profitability, market share, and overall competitive advantage (Rao, 2020). For instance, organizations that adopt a proactive approach to strategic management often outperform their competitors in terms of revenue growth and market positioning (Foss & Saebi, 2018). This underscores the need for organizations to prioritize strategic management as a fundamental aspect of their operations.

In the context of emerging markets, the significance of strategic management becomes even more pronounced. Organizations operating in developing economies often face unique challenges, including regulatory hurdles, limited access to resources, and fluctuating consumer demands (Adeleke et al., 2019). By leveraging strategic management practices, these organizations can navigate these challenges more effectively, ensuring their growth and survival in competitive environments. Strategic management also enables organizations to adapt to local market conditions, enhancing their ability to compete against established players and new entrants (Ogunyomi & Ayedun, 2020).

Additionally, the integration of strategic management with innovation processes can lead to improved organizational performance. Organizations that prioritize innovation as part of their strategic management initiatives are more likely to develop new products and services that meet the changing needs of consumers (Kafetzopoulos & Psomas, 2020). This alignment of strategic management with innovation can facilitate the development of competitive advantages that are difficult for rivals to replicate, thereby enhancing long-term survival.

Despite the proven benefits of strategic management, many organizations still struggle to implement effective strategies. This often results in poor performance and, ultimately, organizational failure (Bryson et al., 2020). The challenge lies in the ability to translate strategic plans into actionable initiatives that can be executed effectively at all levels of the organization. Thus, understanding the factors that contribute to successful strategic management implementation is crucial for fostering growth and survival.

In conclusion, the impact of strategic management on the growth and survival of organizations is multifaceted. It encompasses the alignment of resources with organizational objectives, the adaptation to changing market conditions, and the integration of innovation into strategic processes. As organizations navigate the complexities of the contemporary business environment, the role of strategic management in ensuring sustained growth and survival will remain a critical area of focus. By prioritizing strategic management practices, organizations can enhance their competitiveness and long-term viability in an ever-evolving marketplace.

1.2 Statement of the Problem

The contemporary business landscape is characterized by rapid changes, intense competition, and evolving consumer demands. As organizations strive to adapt to these dynamic conditions, the lack of effective strategic management practices often leads to stagnation, declining performance, and, ultimately, organizational failure. Despite the recognized importance of strategic management, many organizations continue to operate without clear strategic frameworks or fail to align their resources effectively with their objectives. This study aims to investigate the impact of strategic management on the growth and survival of organizations, particularly in the context of developing economies. By identifying the key challenges and opportunities associated with strategic management, the research will provide insights into how organizations can leverage strategic management practices to achieve sustainable growth.

1.3 Objectives of the Study

The main objective of this study is to determine the impact of strategic management on the growth and survival of organizations. The specific objectives include:

i. To evaluate the impact of strategic management practices on organizational performance.
ii. To determine the relationship between strategic management and organizational adaptability in changing market conditions.
iii. To find out how strategic management influences innovation and competitiveness in organizations.

1.4 Research Questions

i. What is the impact of strategic management practices on organizational performance?
ii. What is the relationship between strategic management and organizational adaptability in changing market conditions?
iii. How does strategic management influence innovation and competitiveness in organizations?

1.5 Significance of the Study

This study is significant for several reasons. First, it contributes to the growing body of literature on strategic management by providing empirical evidence of its impact on organizational growth and survival. Second, the findings of this study will have practical implications for organizational leaders and managers, offering insights into how effective strategic management practices can enhance performance and competitiveness. Additionally, policymakers can benefit from this research by understanding the role of strategic management in fostering economic growth and sustainability in developing economies. Ultimately, this study aims to provide a framework for organizations to implement strategic management practices that promote long-term success and resilience.

1.6 Scope of the Study

This study will focus on organizations operating in developing economies, examining the impact of strategic management on their growth and survival. The research will cover various industries, including manufacturing, services, and technology, to provide a comprehensive understanding of the role of strategic management in diverse organizational contexts. The study will utilize qualitative and quantitative methods to collect and analyze data, ensuring a robust and holistic approach to the research.

1.7 Limitations of the Study

The study may encounter several limitations, including potential biases in data collection and analysis. The reliance on self-reported data from organizational leaders may introduce subjectivity into the findings. Additionally, the study's focus on developing economies may limit the generalizability of the results to more developed markets. Furthermore, the dynamic nature of the business environment means that the findings may only reflect a specific period in time, necessitating further research to validate and expand upon the results.

1.8 Definition of Terms

Strategic Management: The process of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its long-term objectives.

Organizational Growth: The increase in an organization's size, revenue, or market share over time.

Organizational Survival: The ability of an organization to continue operating and thriving in a competitive environment.

Competitive Advantage: A favorable position an organization holds in the marketplace, enabling it to outperform its competitors.

Innovation: The process of developing new ideas, products, or services that create value for customers and drive organizational success.

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