Strategic Approach To The Management Of Small Business Enterprises In Nigeria

1.5 Research Hypotheses

A hypothesis is the statement of relationship between variables. To understand better what aspect of the relationship between the variable that the researcher is interested in she makes a conjectural statement or tentative statement about this relationship. This conjecture or tentative statement is the hypothesis in this case, the research hypothesis under study area as follow:

Hypothesis one

HYPOTHESIS 1: The level of organizational efficiency is in direct proportion with the level of implementation of differentiation strategy in an organization.

HYPOTHESIS 2:  Organizational efficiency maintains a strong positive relationship with Differentiation strategy in todays dynamic environment.

HYPOTHESIS 3:  Differentiation strategy is an applicable tool for increasing profitability level in a business organization.

1.6 Significance Of The Study

i) This study is significant because it would reveal empirically, the relationship between strategic management and organizational efficiency.

ii) It would also reveal to managers, the possibility of attaining organizational efficiency through differentiation strategy.

iii) It would enable managers to adequately match their limited resources to the dynamic environment.

iv) This study will reveal how differentiation strategy can serve as a bench mark for the attainment of organizational efficiency.

v) Source of information for further research.

1.7 Scope Of The Study

This research will examine strategic management focusing on Differentiation strategy in particular as a tool for organizational efficiency. A comparison will be made between organizations which operate in a common business environment who have attained various levels of organizational efficiency through the application of Differentiation strategy i.e., offering unique products or services to that of the competitors. This comparison should reveal if there is variance in the level of organizational efficiency achievable as a result of the degree of differentiation strategy adopted.

1.8 Operational Definition Of Terms

1. STRATEGY: A pattern of organizational moves an managerial approaches used to achieve organizational objectives band pursue organizational mission.

2. STRATEGIC MANAGEMENT: A set of managerial decisions and actions that determines the long-run performance of a corporation.

3. ORGANIZATIONAL EFFICIENCY : The capacity of an organization, or business to produce desiredresults with a minimum expenditure of resources.

4. DIFFERENTIATION STRATEGY: the process of distinguishing  the differences of a product or offering from others, to make it more attractive to the target market.

5. MARKET SHARE: Is the percentage of the entire target market that the organization has secured.

6. PROFITABILITY: The ability of an organization to generate profit.

7. ENVIRONMENT: Is the combination of factors, both internal and external to the organization, which influence the activities of the organization directly.

8. CORPORATE STRATEGY: Is the major strategy for the entire organization.

9. INTUITIVE STRATEGY: A non-systematic strategy that is based on the judgment of business owners or managers.

10.INDEPENDENT VARIABLE: the presumed cause, which in this study is Strategic Management.

11.DEPENDENT VARIABLE: The presumed effect, which in this study is Organizational Efficiency