Sustaining Organizational Growth through Strategic Management in Production Companies

Abstract

In today's world, organizations face various unexpected events such as policy changes, market failures, natural disasters, terrorist attacks, and technology breakdowns. To tackle such unpredictable situations, the study of strategic management and organizational growth has become essential. It helps organizations to develop strategies and plans to overcome these challenges and achieve sustainable growth. Two research questions were posed and two research hypotheses were developed to guide the study. The study population comprised of 63 regular staff members from the Mouka and Frendy foam production industry, which also constituted the sample size due to its small size. A questionnaire consisting of 15 items was used to collect data from the sampled staff in Warri and Abraka, after validating and testing for reliability with a Cronbach Alpha score of 0.75. According to the statistical analysis conducted on the extracted data, it has been found that defensive strategy has a significant impact on organizational growth. However, it was observed that prospective strategy does not have a significant effect on organizational growth. Based on these findings, it is recommended that managers at all levels and stages of business development adopt a defensive strategy. This strategy proves to be effective in combating competitors and navigating through the challenging and competitive business environment.