Strategic Management Practice on Performance of Small and Medium Enterprises (The Case of Gullele Sub City, Addis Ababa)
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Date
2019-06
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Addis Ababa University
Abstract
Strategic management practice or engaging in proper strategy planning, strategy implementation and strategy evaluation aids the organization to success. The aim of conducting this research was to determine the effect of strategy formulation, implementation and evaluation on performance. To carry out this research the researcher has adopted a descriptive and explanatory research design to determine the relationship and effect of strategic management (strategy formulation, implementation and evaluation) on performance. The study was targeted 152 SMEs and from these 50 SMEs were determined as a sample but out of which 4 respondents did not return the questionnaire. Stratified probability sampling method was applied and data were collected from 46 SME managers through structured questionnaire using 5-point likert scale. The primary data were generated from managers of the enterprise and secondary data from articles, full sized papers, meeting papers, books and internet, then primary data have been edited, classified, organized and coded to get descriptive and inferential statistics outputs using a professional software called SPSS version 23. Regression analysis was done to determine the effect of strategy formulation, implementation and evaluation on performance and correlation analysis was also used to determine the relationship between strategy formulation, implementation, evaluation and performance through inferential statistics. Finally, the finding shows that strategic management practice had a positive effect on performance. However, the only variable that had an effect on performance was strategy implementation. Based on the findings, the researcher has recommended that all enterprises should have a written vision and mission statement, should get training and as a result actively engaged in strategic management practice to increase their profit, output, market share, customer satisfaction and reduction of waste.
Description
A thesis submitted to Addis Ababa university college of business and economics in partial fulfillment of the requirements for the degree of master of business administration (MBA)
Keywords
Strategy evaluation and performance, Strategy formulation, Strategy implementation, Strategic management