Opportunity is a favourable condition in the organization’s environment which enables the organization to consolidate and strengthen its position e.g. economic boom, loosening of regulation and arrival of new technologies etc. Threats is an unfavourable condition in the organization’s environment which creates a risk for, or causes damage to, the organization e.g. demanding new regulations, economic downturn and new competitors etc
3. Stra tegy Formulation
Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified while addressing its weaknesses and external threats (QuickMBA 2009:3) in www.google.com. Hellriegel (1990:237) states three basic growth strategies. A market penetration strategy involves seeking growth in current markets with current products. It can be achieved by b uying a competitor and attracting competitors’ custome rs etc. A market development strategy involves seeking new markets for current products. It can be by entering new geographic market. A product development strategy which is the third strategy according t o Onwuchekwa (2000:35), consists of the company’s seeking increased sales by developing improved products for its present market. It can be achieved by improving the features, quality of the products and introducing new models etc.
4. Strategic Implementation
The selected strategy is implemented by mean s of programs, budgets and procedures. Implementation involves organizing of the firm’s resources and motivating of staff to achieve objectives (QuickMBA 2009:4) in (www.google.com). Strategy implementation according to Onwuchekwa (2000:201) , is the process of searching out appropriate organizational structure and technology which will match the level of turbulence in the environment of an organization. The ultimate result of strategy implementation is the effectivenes s of organization’s capability which is appropriate for attain ment of organizational objectives. Kazmi (2008:315) suggested two main means of overcoming the barriers of strategy implementation which are adopting a clear model of strategy implementation tha t is implementation activities take place according to the abilities and initiatives of the managers involves in them and effective management of change in complex situation. Areas of change are in the behavioural style and leadership style inherent in the organization.
5. Evaluation and Control
The purpose of strategic evaluation is to evaluate the effectiveness of a strategy in achieving organizational objectives. Kazmi (2008:489) defines strategic evaluation and control as the process of determining the effectiveness of a given strategy in achieving the organization objectives and taking corrective action wherever require. The implementation must be monitored and adjustments made as needed. QuickMBA (2009:5) in (www.google.com) states that evaluation and control requires the following steps:
i. Define parameters to be measured .
ii. Define target value for the parameters .
iii. Perform measurements .
iv. Compare measured results to the pre -defined standards.
v. Make necessary changes.
2.7 MODES OF STRATEGY FORMULATION
This is the various styles managers adopt in their strategy formulation process . The three modes of strategy formulation according to Onwuchekwa (2000:68) , are
i. Entrepreneurial mode which describes a situation in an organization where one of the highly place organization’s member makes most of the decisions in the organization. New strategies here are introduced intuitively without detailed analysis . The entrepreneur relies on his personal judgement. This mode of strategy formulation is necessary in organization that is new born and its entering business environment for the first time. The overriding objectives are usually what can be done to achieve rapid growth through productive activities.
ii. Adaptive mode is exhibited by large percentage of business firms and virtually by all non profit making organizations such as hospitals, churches and universities. Adaptive managers react to environment situations as they arise. The adaptive organization moves ahead timidly in the face of uncertainty. While entrepreneur constantly seeks to beat competition, the adaptive managers tend to react defensively t o the actions of competitors. Lack of technical competency and conservative indoctrination influence adaptive mode of strategy fo rmulation.
iii. Planning mode describes the formal strategic planning guidelines and strong sense of direction. The strategic planning guidelines which both the entrepreneurial and adaptive modes lack, advocates the systematic procedure in strategy formula tion. This is usually found in large fi rms where planning specialist s are employed to perform these functions on the basis of which the operating executives make strategic decision. The planning mode provides grand strategy which provides the overall concept of a firm.
2.8 STRATEGY IMPLEMENTATION IMPEDIMENTS
Most strategies outline in details the steps organizations must take to achieve their laid out plan which acts as a restraining force to strategy implementation and development.
Nilson (1989:28) postulates three major reasons for strategy failure and they are as follows:
i. The effectiveness of the strategic itself : Good strategies fall due to poor implementation. One can never really know whether a strategy is good until it has either succeeded or failed. According to Nilson, the reason for the failure of any strategy has to do with the fact that the people in the organization may not have the knowledge and skills t o implement the strategy. Kazmi (2008:314) listed the following obstacles that led to th e failure of strategy implementation and they include inability to manage change effectively, not having guidelines or a model to guide implementation efforts, poor or inadequate information sharing, unclear responsibility and accounta bility, working again st the organizational power structure and most especially not having the necessary technologies.
ii. The Internal Environment of the firm: The resources, behaviour, strengths and weaknesses, synergistic effects and competencies of an organization determine the nature of organization’s internal environment (Kazmi 2008:110). A common problem according to Nilson (189:29) in t he firm’s internal environment is defects in the organizational structure and effective communication.
J ackson (1990:325) defines organizatio nal structures as a formal system of working relationship that both separates and integrates tasks. J ackson proposes four elements that mitigate the internal environmental problems and they are specialization that is the process of identifying particular t asks and assigning the tasks to individuals who have been trained to do them. Standardization refers to the uniform and consistent procedures that employees are to follow in doing their jobs. Coordination comprises the formal and informal procedures that i ntegrate the activities of the separate individuals, teams and departments in an organization while authority is the right to decide and act.
iii. The External environment of the firm: Slocum (1999:73) states different kinds of information related to the external environment and they are customers, competitors, suppliers, technology and social, political, economic condition information.
Onwuchekwa (2000:163) proposes three types of technologies necessary to attain higher productivity and efficiency in the organization and they are long linked (assembly line) technology which is found in manufacturing organization. This type of technology is serial interdependent. It achieves efficiency through vertical integration. Mediating technology achieves efficiency through saturating the population it serves. It is found in service organization . Intensive technology attains efficiency by incorporating the object they work on and it is used in hospitals.
Nilson (1989:30) states that for every organization to overcome the external environment problem; the organizations must be able to compete globally, adopt new technologies and apply the technologies in their product innovation . This will make the organization to be able to stand the taste of time and ensure price cu tting since increase pricing scares customers away and make competitors to have an edge over the organizations.
2.9 HISTORICAL BACKGROUND OF NIGERIAN BOTTLING COMPANY PLC
Nigeria Bottling Company Plc is proudly, the Nigeria’s largest non - alcoholic beverage producers. It was incorporated in 1951 as a subsidiary of the A.G. Leventis Group, with the sole franchise to bottle and sell coca-cola products in Nigeria.
It began bottling in 1953, following the commissioning of the first plant in th e basement of Mainland Hotel, O yingbo, Lagos. In those days of small beginning, production consisted mainly of manual operations and an output of a few dozen cases per day. It believed firmly in a vision that would transfer the basement plant into one of the leading bott ling companies in African.
Through innovation, commitment to quality and sheer grit, it has continued to grow consistently in defiance of challenging economic conditions. In 1955, it introduces the 100z bottled into the market. 1958, established the first carbon dioxide plant and by 1960, seven years after production, began, annual sales were in excess of one million cases.
Nigeria Bottling Company Plc mission statement is to be a world class selling organization and the best bottler in
