International Journal of Economics, Business and Management Studies

Volume 3, Number 2 (2016) pp 55-66 doi 10.20448/802. | Research Articles


Change, Customer Satisfaction and Competition: Issues from the Strategic Management Context

Adewale, A. Adekiya 1
1 Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria


In a global business and political environment being characterized by uncertainty and human dynamism, there is need for efficient change management among businesses and governments. Efficient change management leads to customer and other stake holder’s satisfaction which is needed for the achievement of a viable competitive positioning. This paper examines the strategic management process in the context of change management, customer satisfaction and competitive positioning. To achieve this objective, it follows the documentary research approach by employing items from academic and trade journals, government archives and relevant websites. Findings indicate that the strategic management process is inevitable and very crucial to organizational survival. In other words, efficient formulation and implementation of strategies consequent to environmental scanning process can serve as a framework for organizational sustainability and competitive positioning. In the light of this, firms, businesses and governments were advised to optimize the strategic management process through absolute dedication and commitment in terms of social, cultural and material resources in order to achieve the much needed cross-national and national competitive positioning.

Keywords:  Strategy, Context, Change management, Customer satisfaction, Competition.

DOI: 10.20448/802.

Citation | Adewale, A. Adekiya (2016). Change, Customer Satisfaction and Competition: Issues from the Strategic Management Context. International Journal of Economics, Business and Management Studies, 3(2): 55-66.

Copyright: This work is licensed under a Creative Commons Attribution 3.0 License

Funding : The authors declare that they have no competing interests.

Competing Interests: The author declares that there are no conflict of interests regarding the publication of this paper.

History : Received: 19 May 2016/ Revised: 13 June 2016/ Accepted: 18 June 2016/ Published: 21 June 2016

Publisher: Online Science Publishing

1. Introduction

With increased markets globalization and dynamic changes in customer’s wants and needs coupled with other relevant forces within the internal and external business environment, competition among market players has become more severe. In addition, the current knowledge revolution, digitalization, Internet & technological convergence, combined with deregulation and privatization have lead to intensification of competition, dissolution of industry barriers, new industries, and unprecedented levels of productivity growth. Hence in responding to these rapid changes with a view to achieve a viable competitive positioning, businesses and governments must embrace the change management process. For instance an efficient change management would ensure that product offerings and other related output from firms are in consistent compatibility with customer and other environmental requirements which will hence lead to a superior competition.

First, through an efficient change management, organizations can constantly fine tune their operations to be in compatibility with relevant customer requirements which will thus lead to customer satisfaction (Dwit & Meyer, 2005).   Customer satisfaction is crucial to firm’s success in that firms that cannot satisfy their customers are likely to lose market share to rivals who offer better service and products at lower prices (Simon & Gomes, 2005). As opined by Fornell (2001 “satisfied customers may be the most consequential of all economic assets; and indeed, they may be proxies for all other economic assets combined. More broadly, customers are a key stakeholder group that affects the firm’s legitimacy and long-term survival including marketplace competition (Post, Preston, & Sachs, 2002).

For Kotler & Keller (2009) a firm’s competitive positioning ensure its defense against rival, and thus ensures its long term market survival. Day (1994) pointed that a firm can achieve and maintain a superior competitive position through two related sources of advantages: assets, which are the resources endowment the business has accumulated (e.g investments in the scale and scope, efficiency of facilities and systems, brand equity and the consequences of the location of activities for factor costs and government support),  and capabilities which are the glues that brings these assets together and enables them to be deployed advantageously through strategic maneuvering. In other words, the strategic management process has been highlighted to be crucial for enhancing organizational competitive positioning.

In a nutshell, it has been theoretically presumed that an efficient change management process will lead to customer satisfaction, which would consequently result in a viable competitive positioning for the firm. Such can however be achieved through a procedure of strategizing, planning and decision making process. This paper examines the process of strategic management in the context of change, customer satisfaction and competition.

2. Literature Review

2.1. Change Management

Organizational Change management as observed by Smith (2011) is the structured, systematic, ordered, control and standardized procedure of defining and implementing procedures, technology or behavior both at individual or organizational level to deal with changes in the business environment or profiting from changing opportunity. Nowadays, the boundaries of countries can no longer define the limits of our imaginations. In other words, to see and appreciate the world from the perspective of others has become a matter of survival for businesses. The rate and magnitude of changes that affects organizations both domestically and internationally are increasing dramatically. To survive, all organization must be capable of identifying and adapting to change. According to Waterman (2003) in today’s business environment, more than in any preceding era, the only constant is change. He also pointed that successful organizations effectively manage change, continuously adapting their bureaucracies, strategies, systems, products and culture to survive the shocks and prosper from the forces that decimate competition. E- Commerce and globalization are external changes that are transforming business and society today. On a political map, the boundaries between countries may be clear but on a competitive map showing the real flow of financial and industrial activity, such boundaries have largely disappeared.

The speedy flow of information across the internet has eaten away at national boundaries so that people worldwide now see how other people leave. More people are equally travelling abroad: According to Adner & Zemsky (2006) 10 million Japanese annually travel abroad. They noted that more Germans are emigrating to England and Mexicans to the United States. This indicates that the world has become a borderless world with global citizens, global competitors, global customers, global suppliers and distributors.

More than ever, United States firms are challenges by rival companies in many industries. According to David (2009) general motors’ sales decreased by 16.6 percent in early 2007 while Ford motors sales decreased by 19 percent during the same period that Toyota motors sales rose by 9.5 percent and Honda motors sales rose by 2.4 percent in the United States. To say that US automobile firms are facing competition more than ever is an understatement. This also reflects in many other industries. For instance Citi- group cut nearly 17000 jobs in 2007 in a major restructuring, striving to compete. As argued by Dwit & Meyer (2005) the firm performance is concerned with adaptability rather than optimization.  This According to Bright & Gordon (2010) implies that organizations must innovate and bring new ideas to satisfy customers and thus sustain its existence. The need to adapt to change as pointed by Adner & Zemsky (2006) leads organisations to key strategic management question such as “what kind of business should we become? Are we in the right field? Should we reshape our business? What new competitors are entering our industry? What strategies should we pursue? How are our customers changing? Is new technology that could put us out of business being developed? All these critical questions are asked by firms as part of strategic management process which is geared towards gaining and sustaining competitive advantage.

For ‘living’ organizations, change is a given phenomenon but not all change is strategic in nature (Dwit & Meyer, 2005). For changes that are strategic in nature, resistance to change would be minimal, and the output from such change program would be more pronounced (Dwit& Meyer, 2005). In the opinion of Dorothy (2009) accurately designed strategies can be employed to avoid change failure, or solve troubled change projects. An example that portrays the use of strategy in change management is that of Erikson. As a multinational company, being faced with pressures and forces from internal and external environment that ranges from competitive and technological forces, and the requirement that workers knowledge must be enhanced to provide for more efficiency and better product offerings,   some of the strategic initiatives taken by the company to realize the change program were:

  • Reduction in the number of line managers which resulted in fewer line managers for different groups.
  • Movement of focus from a product based structure to competence based structure.
  • New constellation of groups.

The main aim of the above is simply to meet the challenges posed by the external environment through the strategy of diversification. For instance from specialization of groups to multitasking, different groups being made up of people with different knowledge orientation are created thus ensuring that a whole unit of a product could be produced by a single work group without coordinating with other work groups. Hence this makes it possible for customers to get a finished product or services from a single group without any engagement with other groups. All this as projected, would lead to a faster and more efficient delivery of products and services to customers in addition to a superior competitive edge.

2.2. Customer Satisfaction

According to Liang (2008) satisfaction is a pursuit that organizations must continually strive to meet with the customers of its property or company. Taylor, Celuch, & Goodwin (2004) show that satisfaction has a direct influence on customer loyalty which would in turn form the basis of organizational sustainability. Successful organizations of the future will be those that can provide goods and services to the customers who wants it, where they want it and in the quantity and at the price they want it, thereby delighting, apart from merely satisfying them. Customer delight will lead to loyalty, which is one of the critical indicators used to measure the success of a marketing strategy (Simon & Gomes, 2005). This implies that the achievement of customer satisfaction is dependent on a well crafted strategy.  Kotler & Keller (2009 are of the opinion that that the main aim of any marketing strategy is to employ the use of available information in designing products (either goods or services) that provides the perfect match for targeted customers which will lead to an optimum satisfaction.

Business corporations thus employ the strategies of creating and providing their customers with higher value added products or services which consists of elements such as lower prices and additional benefits with a view to improve customer satisfaction significantly. For instance, the multinational brand, “McDonalds” in an attempt to foster customer satisfaction has embraced a cross cultural strategy that ensures that different menu items that is in accordance with the culture of a specific local environment of operation is on offer in such environment. Giant, a global brand name in the hypermarket business has devised a low price strategy to attract more customers thereby that they are appropriately satisfied. Also, the popular telecommunication company, "TECNO" has employed the use of its good understanding of the Nigerian market in addition to the price sensitivity of its consumers to create a strategy of price leadership and mass distribution of cheap but yet innovative and value added mobile telephones to its teaming customers with a view to achieve an optimum and desired level of satisfaction among them..

2.3. Achieving Competitive Advantage among Business Firms

While researchers have found a positive relationship between a firm’s own customer satisfaction and its performance, there has been little effort to examine the impact of rivals’ customer satisfaction (Capon, Farley, &Hoeni, 1990). As a consequence, we know very little about how firms’ competitive interaction affects customer satisfaction and firm performance. The strategic management process is all about gaining and maintaining competitive advantage. For instance David (2009) argued that a competitive advantage is anything that a firm does better compares to rival firms. When a firm can do something that rival firms cannot do, or owns something that rival firms desires, such can represent a competitive advantage.

Normally, a firm can sustain a competitive advantage for only a certain period due to rival firms imitating and undermining that advantage. Thus, it is not adequate to simply obtain competitive advantage but to strive to achieve a sustained competitive advantage which according to David (2009) can be done by continually adapting to changes in external trends, events and internal capabilities, competencies, and resources, through effectively formulating, implementing and evaluating strategies that capitalize upon those factors. Pursuit of competitive advantage leads to organizational success or failure. For instance an increasing number of companies such as Dell computers, are gaining competitive advantage by using the internet for direct selling and for communication with suppliers, customers, creditors, partners, shareholders and competitors who may be dispersed globally thus minimizing the constraint of expense, distance, and space, that is associated with doing business in international market-place, while at the same time, leading to better customer service, greater efficiency, improved product quality, customer satisfaction and enhanced organizational profitability. The resource based view and the industrial/organizational theories of organization present different perspectives on how best to capture and keep competitive advantage in various industries.

2.3.1. The Resource Based view Theory

According to this theory, competitors are firms that offer similar products and services in the same market. It posits that markets can be geographic, product area or segments. Researchers use the term market commonality and resource similarity to study rivalry among competitors (David, 2009). Market commonality according to him can be defined as number and significance of market that a firm competes in with rivals while resource similarity is the extent to which the type and amount of firm internal resources are comparable to a rival. Hence one way to analyze competitiveness between two or among several firms according to this theory is to investigate market communality and resource similarity while looking for areas of potential competitive advantage along each firm’s value chain (David, 2009).

2.3.2. Industrial Organizational Theory

The industrial organization approach to competitive advantage advocates that external factors are more important than internal factors in a firm achieving competitive advantage. This implies that the industry in which a firm chooses to compete have more influence on the performance of the firm than internal factors. Proponents of the I/O view such as Michael porter contend that organizational performance will be primarily determined by industry forces. (Porter’s five forces model) is highlighted below Rivalry among Competing Firms

This according to Porter is usually the most powerful of the forces. The strategies pursued by one firm can be successful only to the extent that they provide competitive advantage over the strategies pursued by rival firms. i.e Changes in strategy by one firm may be met with retaliatory countermoves such as lowering prices, enhancing quality, adding features providing services, extending warranties and increasing advertisement. Free flowing information is driving down prices worldwide. The internet, coupled with the common currency in Europe enables consumers to make price comparison across countries. The intensity of rivalry among competing firms tends to increase as competitors become more equal in size and capabilities, as demand for the industry products declines and as price cutting becomes common. Rivalry also increases when consumers can switch brand easily, when barriers to leaving the market are high, when fixed cost are high, when rival firms are diverse in strategies, cultures, origin and when mergers and acquisition are common in the industry. As rivalry among competing firms intensifies, industry profits declines in some cases to the extent that the industry becomes unattractive (David, 2009). Thus, the strategic direction suggested by Day (1994) in this regard is pursuing distinctive capabilities that make a provision of superior customer value- as defined from the customer perspective. For example, Honda prowess with fuel efficient, reliable and responsive small displacement engines add a great deal of value and set their cars apart from the competition imbedded in the automobile industry. Another example is apple computer which thrives on the mastery of continuous quality and innovative improvement, coupled with rapid product development. Potential Entry of New Competitors

In this, Porter suggested that whenever new firms can easily enter a particular industry, the intensity of competitiveness among firm’s increases. Barriers to entry however can include the need to gain economies of scale quickly, the need to gain technology and specialized know how, the lack of experience, strong customer loyalty, strong brand preference, large capital requirements, lack of adequate distribution channels, government regulatory policies, tariffs, lack of access to raw materials, undesirable locations, counter attack by entrenched firms and potential saturation of the market. Here, the strategist job as suggested by David (2009) is to identify potential new firms entering the market, to monitor the new rival’s firm strategies,, to counter attack as needed, and to capitalize on existing strength and opportunities. In his opinion, Incumbent firms can equally fortify their positions by taking actions to deter new entrants such as lowering prices, extending warranties, or adding features. Potential Development of Substitute Products

This according to Porter (1980) deals with the degree to which firms are in close competition with products in other industries. Example of such are plastic container producers competing with glass, paper board and aluminum can producers. Other examples are acetaminophen manufacturers competing with manufacturers of pain and head ache remedies. The presence of substitute products puts ceiling on the price that can be charged before consumers will switch to the substitute product. Price ceiling equate to profit ceiling and more intense competition among rivals. Producers of eyeglasses and contact lenses for example face increasing competitive pressure from laser eye surgery. Producers of sugar also face similar pressure from artificial sweetener. Newspapers and magazines face substitute products competitive pressure from the internet and 24 hour cable television. Competitive pressures arising from substitute products increases as the relative price of substitute products declines and as consumers switching cost decreases. Thus an appropriate strategy for firms to embrace in this situation according to David (2009) are related and unrelated diversification, market development, product development, market penetration and brand extension. A very good example of a firm that have successfully employed the use of brand extension in taking care of threat from producers of substitute products is Honda which has extended its brand image to its motorbike in order to counter the threat to its automobile line. Thus, consumers who are fascinated by Honda products but are only interested in motorbike and not automobiles can still buy a motor-bike from the company’s arrays of branded Motor bikes. Bargaining Power of Suppliers

The bargaining power of supplier affects the intensity of competition in an industry especially when there are a few numbers of suppliers. i.e When there are only a few good substitute raw materials or when the cost of switching raw materials is especially costly. As suggested by David (2009) firms may pursue a backward integration strategy as being done by Toyota motors, to gain control or ownership of suppliers especially when existing suppliers are unreliable, too costly, or not capable of meeting the firm’s need on a consistent basis. Firm can equally negotiate more favorable terms with suppliers when backward integration is a commonly used strategy among rival firms in the industry. Nowadays sellers are however forging strategic partnership with select suppliers in effort to reduce inventory and logistics costs, speed the availability of next generation components, enhance the quality of the parts and components being supplied, reduce defects rate, and squeeze out important cost saving for both themselves and their suppliers (David, 2009). Bargaining Power of Consumers

When customers are concentrated or large, or buy in volume, their bargaining power according to Porter (1980)represents a major force affecting the intensity of competition in an industry. Rival firms may offer extended warranties or special services to gain customer loyalty whenever the bargaining power of consumer is substantial. Bargaining power of consumers is also higher when the products being purchased are standard or undifferentiated. When this is the case, consumers can negotiate selling price, warranty coverage and accessory packages to a greater extent. A suitable strategy for firms as suggested by David (2009) is pursuing a differentiated strategy, focus strategy, and price leadership strategy in order to make customers cost of switching to other brand very high and thus discourage switching.

2.4. Competitive Advantage among Countries

The notion of achieving a competitive advantage is quite evident nowadays, among governments and other profit and non for profit organizations. For instance, the united Arab emirate in order to position itself competitively for the nearest future has embarked on a strategic program of complete diversification from crude oil resources to tourism and other related hospitality products. This is done as a result of the projection that the demand and reliance on crude oil as a source of energy is expected to reduce drastically in years to come. Saudi Arabia as another oil rich state is diversifying from absolute reliance on crude oil by taking the strategic stance of massively investing on the education of its citizens to equip them with core knowledge in information technology. This is done in order to prepare its economy adequately for the emerging global knowledge economy. Malaysia, with the vision of becoming a fully developed nation in the year 2020 and being currently referred to as the fastest developing country is another country that have strategically invested in its educational sector and thus, currently positioned itself as a global educational hub, with advanced technology and up to date infrastructure for global competition. China, with the strategic vision of rivaling America for world powerhouse economically, politically and militarily, is currently building political and economic bases across the world by strategically investing massively in the economies of most developing nations across the world.

2.5. Strategic Management Process

Strategic management according to David (2009) is the art and science of formulating, implementing and evaluating cross functional decisions that enable an organization to achieve its objective. It focuses on integrating management, marketing, finance/accounting, production, operations, research and development and computer information system to achieve organizational success (David, 2009).Strategy is a formulated game plan designed to adjust to forces within the internal and external business environments, which could exist in the form of market forces, competitors, customers, political, and social cultural. It is the use of foresight in anticipating future events and on such basis, designing a control measure that will best take care of those future events, all this with the hope of achieving a competitive edge against competitors (David, 2009). Thus, Companies that is better equipped to respond to market requirements and anticipate changing conditions do enjoy long run competitive advantage and superior profitability (Day, 1994). 

The basic process involved in strategic management according to David (2009) is strategic analysis, strategic choices and strategic implementation. The strategic analysis process is the process concerned with analyzing the current situation of the organization and the factors affecting its performance with a view to identifying what steps to be taken to enhance organizational performance. It is carried out with the employment of three major form of analysis: SWOT analysis which deals with the assessment of the organizational internal capabilities in the form of its strength, weaknesses, opportunities and threat. PESTEL analysis, which deals with identifying and analyzing the external factors influencing the performance of the organization. such factors might be political, in form of government regulations or policies, economic factors, which is the current situation of the economy, social factors which concern issues such as culture, values and beliefs of the people, technological factors which is the current technological development of the society in concern, and lastly, the legal factors which deals with the legal framework that governs business operation in the society concerned. The third form of analysis is the stakeholder’s analysis and has to do with identifying all the parties that have various interests in the affairs of the organization. Such stakeholders according to David (2009) could be in form of the employees, government, consumers share holders, suppliers, distributors and labor unions. This is done with a view to determine who they are, how influential they are, and how best to solicit for and gain their support concerning objective formulation.

With a proper strategic analysis carried out, the process of strategic choice is embraced. This is usually divided into three parts which are identification of all strategies available to solve problem. The second part is the strategic evaluation which deals with identifying the cost and benefits of all available strategies and ranking them according to their order of importance. After this, the most suitable strategy is chosen and a FAS (feasibility, acceptability, suitability) analysis is carried out. Based on results from the FAS analysis, if the chosen strategy is found to meet all criteria then it is adopted and hence initiation of the implementation process.

The strategic implementation process involves the activities relating to the initiation and implementation of the proposed changes. It is a process of systematically, strategically and gradually adapting the agents of change: (strategy, organizational structure, people and process) in the proposed changes. i.e the organizational structure must be adapted to the strategy to be implemented, the people to implement the strategy must be changed, the process involved in change must be made adaptable to the people and the structure of the organization. For instance if popular hypermarkets such as ShopRite or grand square, all in Nigeria, wants to embrace the concept of e- commerce , these stores must be prepared to adapt its employees to the process of e- technology through training and development programs.

Lastly, is the evaluation process, which is the process of measuring the performance of the strategy. To determine how effective it is, or if there are needs to switch to an alternative strategy. Thus, the strategic management process when properly monitored and managed can be used in adapting to internal or external environmental requirements, competitive positioning and customer satisfaction.

2.6. Theoretical Issues

A theoretical approach that is most relevant to this study is the survival based theory, which according to Miesing & Preble (1985) was first developed by Herbert Spencer. As stated by Nelson & Winter (1982) the main thrust of the survival based theory is the analysis of how firms thrive and compete in industries. This theory, which was quite popular during late 19th and early 20th century, emphasized on the notion that by following the principle of nature, only the best and the fittest of competitors will win, which in the end would lead to the improvement of the social community as a whole (Abdullah, 2010). He further stated the most prominent businesses would be those who survived and prospered by successfully adapting to its environment. Thus, as survival-based theory argued, if businesses are not adapting to the ever-changing environment and becoming efficient in it, they simply will not survive. Thus the ones that really successfully make a turnaround in the face of challenges and become successful are those ones that operates efficiently, while at the same time, adapting successfully to environmental changes, which might be within the internal operations of the firm, or might emanates from the larger social, economic, political, legal and technological environments. Thus, following this line of reasoning, it is proposed that since the modern day business environment is characterized by constant changes in the demand from important stakeholders, then the only company who are likely to survive will be those who have the ability to deploy relevant strategies, through an efficient strategic management process to effect critical changes that will ensure customer and other stakeholder’s satisfaction, and consequently, a desired competitive positioning.

2.7. Conceptual Framework

This study contributes to the strategic management literature by using the survival based theory as a framework to examine the strategic management process in the context of change management, customer satisfaction and competitive positioning. These proposed relationships are depicted in Fig. 2.1.

Fig-2.1. The conceptual framework based on the review of literature, outlining the proposed relationships between organizational strategic management processes on one side and its ability to effect positive change, sustainability of customer satisfaction and competitive edge on the other.
Source: Author

3. Methodology

Based on the subject in focus in this study, and the research data available, we employed the documentary research approach. Specifically, we present a review of literature on the strategic management process, as it relates to change management, customer satisfaction and competitive positioning. Further, we synthesize the literature and present conclusions on how organizations can employ the strategic management tools whenever the objective is implementing change, to achieve a viable customer satisfaction base, and competitive positioning.

4. Discussion

The global business, political and economic environment is nowadays characterized by instabilities and unpredictable circumstances. Hence industry leaders, governments, institutions all over the world have discovered the relative importance of change management programs, stakeholder’s satisfaction and competitive positioning to their overall growth and sustainability. Also it has been discovered that the achievement of this is contingent upon the implementation of an effective strategic management process. For instance, with the mission of becoming the earth most customer centric company, where customers can find and discover anything they might want to buy online, and to offer customers the lowest possible prices have embraced the strategy of  constantly development of new online services and products, smart partnership, conservative expansion approach, and emphasis on price discount.

Coca cola, with the strategic objective of matching Pepsico in its energy and healthy drink, after discovering the current trend of a drift towards healthy drink by the consumers of its traditional sugar based beverage, embraced a diversification strategy by acquiring Glaceau in order to give its traditional customers, access to varieties, thereby ensuring their satisfaction, and discouraging them from switching brand.

Within the Nigerian business landscape, major players in the telecommunication industry such as MTN and Glo-mobile have gone into various price war strategies such as late midnight calls, discounts for bulk purchases, free airtime, and change programs such as services optimization for subscribers. All this are employed as a strategic stance to attract, satisfy and retain subscribers in a telecommunication industry that is currently characterized by saturation and price war among competitors.

In addition, countries, such as Singapore and the United Arab emirates continue to attract foreign investments through various forms of investment tax waivers and incentive as a means of developing their economy and achieving a global competitive positioning. Within the socio economic environment of Nigeria, the government in its attempt of positioning the country as the 20th largest economy by the year 2020 have developed the vision 2020 concept among which entails strategically diversifying the bulk of the economy from the oil sector by encouraging massive investment in the agro based industries, in addition to matching expenditure on education with the 22% stipulations by the united nation educational, socio cultural organization (UNESCO), and the development of the industrial sector by the encouragement of small and medium scale enterprises through such agencies as the Medium Industries Equity Investment Scheme (SMEIS), National Economic Empowerment and Development Strategy (NEEDS 2004) and the Industrial park development strategy (IPDs) among others.

5. Conclusion and Recommendations

With a global setting that is characterized by unpredictability and uncertainty; Decline of Multilateralism: Collapse of Doha round, trade wars between US, EU, China, Weakening of UN, The Curse of Terrorism: Sept. 11, 2001, Suicide bombings in Israel, Iraq, Afghanistan and Nigeria,Unstable Currencies: US dollar declines by >50% against Euro between 2002 and 2004, Fear of Disease: SARS, Mad Cow, Bird Flu, Corporate Scandals: Enron, WorldCom, Parmalat, Jack Welch’s retirement package, Collapse of New Economy: bubble bursts, TMT recession, War: Invasion of Afghanistan & Iraq, Civil wars in Congo, Liberia, Sudan, Somalia, intensified competition for available meager resources among nations and countries, the rapid pace of development both in technology and innovation (among nations and industries), the need for corporate social responsibilities, and the advent of global warming, accompanied by the emergence of green the environment campaign, nations, institutions and businesses are expected to wither these storms by employing the use of strategic principles.

With pressure of competition & turbulent business environment - the only sustainable competitive advantage is the ability to create new sources of competitive advantage, the need to reconcile the requirements of different performance dimensions - cost efficiency, differentiation, innovation, responsiveness and global learning. Thus, with the process of strategic management, customers, competitions and other environmental factors relating to socio political and economic that affects businesses and operations can be effectively analyzed. With the results from such analysis, basic objectives for achieving competitive edge and the strategic directions to take for the achievement of such objectives can be formulated, implemented, evaluated, monitored and controlled.

Nevertheless, it must be noted that the strategic management process is far from formulating excellent plans and goals just on the paper without having the will, values and proper regulatory institutions and authorities for an effective and efficient implementation, monitoring and plans evaluation. As could be observed from the Nigerian experience, a country, which has never been short of great plans/objectives, and the relevant policies/strategies to achieve them but has been shortcoming in inculcating the necessary values needed for an efficient implementation of such strategies both in its citizens and institutions.

Hence an effective implementation of strategic plans requires that parties concerned should consider the resources, human, financial and material needed for such implementation. All these resources must be adapted, and made as a fit to the strategic context under consideration. It must however be noted that the need for a strategic direction is usually accompanied by change. Thus, all agents of change such as the organizational structure, culture, people and the strategy under consideration must be made to be a correct mix of each other.


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About the Authors

Adewale, A. Adekiya
Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria

Corresponding Authors

Adewale, A. Adekiya

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