STRATEGIC PLANNING AND BUSINESS GROWTH OF

SMALL AND MEDIUM SCALE FIRMS IN PORT

HARCOURT

BY

EGBO ERIENTA OGHENETEGA

U2014/0625001

DEPARTMENT OF MARKETING

FACULTY OF MANAGEMENT SCIENCE

UNIIVERSITY OF PORT HARCOURT

SUPERVISOR: DR. MRS. EDWINAH AMAH

SEPTEMBER, 2018

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STRATEGIC PLANNING AND BUSINESS GROWTH OF

SMALL AND MEDIUM SCALE FIRMS IN PORT

HARCOURT

BY

EGBO ERIENTA OGHENETEGA

U2014/0625001

BEING A B.Sc. PROJECT SUBMITTED TO THE

DEPARTMENT OF MARKETING, FACULTY OF MANAGEMENT SCIENCE

UNIIVERSITY OF PORT HARCOURT

IN PARTIAL FULFILMENT OF THE REQUIREMENT OF THE AWARD OF

BACHELORS DEGREE IN MARKETING

SUPERVISOR: DR. MRS. EDWINAH AMAH

SEPTEMBER, 2018

ii
 CERTIFICATION

UNIVERSITY OF PORTHARCOURT

FACULTY OF MANAGEMENT SCIENCE

DEPARTMENT OF MARKETING

STRATEGIC PLANNING AND BUSINESS GROWTH OF SMALL AND MEDIUM

SCALE FIRMS IN PORT HARCOURT

BY

EGBO ERIENTA OGHENETEGA

U2014/0625001

The board examiner certifies as follows

That to the best of my knowledge, this is the original work of the candidate

DR. MRS. EDWINAH AMAH

Supervisor Signature Date

DR. U.I IRONKWE

Head of Department Signature Date

PROF. B.F NWINEE

DEAN, Faculty of Signature Date

Management sciences.

EXTERNAL EXAMINER Signature Date

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 DECLARATION

I hereby declare that this project titled: STRATEGIC PLANNING AND BUSINESS

GROWTH OF SMALL AND MEDIUM SCALE FIRMS IN PORT HARCOURT was

carried out by me under the supervision of DR. MRS. EDWINAH AMAH. that this work is done

in partial fulfilment for the award of (B.Sc.) Degree in the department of marketing, management

science, University of port Harcourt, Choba, Rivers State, Nigeria.

EGBO ERIENTA OGHENETEGA

U2014/0625001 SIGNATURE/DATE

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 DEDICATION

This project work is dedicated to God almighty who gave me the wisdom,

knowledge, understanding, guidance and protection throughout my stay in the

university.

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 ACKNOWLEDGEMENT

First, my profound gratitude goes to God Almighty, the giver of life, for giving me
the opportunity and grace to complete this project.

My sincere gratitude goes to my parents Barrister and Mrs Isaac Egbo for their
unending love, moral support, prayers and finances during my study. My academic
pursuit would not have been a success without you and also to my loving uncle and
aunt Olorogun Jaro Movudu Egbo KSC and Lady Erhuvwu Vivan Egbo for their
unending support love, prayers and financial assistance in my stay in school. To
my younger siblings: Miss Oghoghome Egbo,Miss Erhuvwome Egbo and Miss
Eloho Egbo I say thank you for your love, support and prayers during my stay in
school.

Special thanks to my supervisor Mrs. Edwinah Amah for her support, love ,
guidance time and endless effort in impacting knowledge in me all through the
period of this study, I will forever remain grateful.

I wish to thank my lecturers and other academic staff in the department of

management, the head of department

Also I wish to thank the following people:Mr Iheanachor Opara,Miss Esther

Promise Kalio, Miss Alfred Saviour, and all my friends and family for all their
love, support, prayers and directions throughout my research work. Thanks for
being there for me.

Finally, I congratulate my humble self on the successful completion of my work.

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 Abstract
The discourse objective of the study was to evaluate the relationship between Strategic

planning and Business growth of small and medium scale firms in Rivers State. The study

adopted quasi-experimental research design which aimed at analyzing how Strategic planning

relate with Business growth of small and medium scale firms in Rivers State. A simple random

sampling method was used to pick a sample of 5 selected small and medium scale firms in rivers

state which consist of seventy-three employees. Primary data was used, Seventy-three

questionnaire were administered to the respondents while Sixty-seven questionnaire were the

valid questionnaire returned, forming the basis of data analysis. Spearman Rank Correlation

coefficient was used to test the hypotheses formulated and the estimation was facilitated by

Statistical Package for Social Sciences (SPSS) 21.0 version. Based on the analysis results, it was

found that the r-squared for the model was < than significance of 0.05 hence the null hypothesis

was rejected. It was also empirically verified that internal and external analysis have strong

positive significant relationship with sales volume and physical expansion of small and medium

Firms. The researchers recommended that the Management of small and medium scale firms

should identify their strength in order to have competitive advantage over their competitors and

also identify and understand their weaknesses to enable them come up with effective solutions

in the strategic plan.

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 TABLE OF CONTENT

Cover page - - - - - - - - - - - - - - - - - - - - - - - - - --- i

Certification - - - - - - - - - - - - - - - - - - - - - - - - - - - ii

Declaration - - - - - - - - - - - - - - - - - - - - - - - - - - - iii

Dedication - - - - - - - - - - - - - - - - - - - - - - - - - - - - iv

Acknowledgement - - - - - - - - - - - - - - - - - - - - - - - -- v

Abstract- - - - - - - - - - - - - - - - - - - - - - - - - - - - - vi

Table of content - - - - - - - - - - - - - - - - - - - - - - - - - - vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the study - - - - - - - - - - - - - - - - - - - - ---- 1

1.2 Statement of the Research problem- - - - - - - - - - - - - - - - - - - - -3

1.3 Conceptual framework - - - - - - - - - - - - - - - - - - - -- -- - - - - - - - - - - - - - - - -- - - - - - - - 5

1.4 Aims and Objectives of the study- - - - - - - - - - - - - - - - - ---- 5

1.5 Research Questions- - - - - - - - - - - - - - - - - - - - - -- ----6

1.6 Research Hypothesis - - - - - - - - - - - - - - - - - - - - - ---- 6

1.7 Significance of the study - - - - - - - - - - - - - - - - - - -- - - --7

1.8 Scope of the study- - - - - - - - - - - - - - - - - - - - -- - - - - - 7

1.9 Definition of terms - - - - - - - - - - - - - - - - - - - - - - - - - - - - -8

1.10 Organization of the study - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

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CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Theoretical Framework - - - - - - - - - - - -- - - - - -- --- - 10

2.1.1 Contingency theory- - - - - - - - - - - - - - - - - - - - - - - - 10

2.1.2 The industrial economics approach- - - - - - - - - - - - - - - - - - - - - 11

2.2 Conceptual Literature Review - - - - - - - - - - - - - - - - - - - 13

2.2.1 The concept of strategic planning- - - - - - - - - - - - -- --- - - - - 13

2.2.2 Dimension of strategic planning - - - - - - - - - - - - - - - - - - 15

2.2.3 External environment - - - - - - - - - - - - - - - -- - - - - - 15

2.2.4Internal environment - - - - - - - - - - - - - - -- - - - - 16

2.2.5 Competitive advantage - - - - - - - - - - - - - - - - - - - - 17

2.2.6 Concept of business growth - - - - - - - - - - - - - - - - 18

2.2.7 Measures of business growth - - - - - - - - - - - - - 20

2.2.8 Sales volume - - - - - - - - - - -- - - - 20

2.2.9 Relationship between strategic planning and business growth - - - - - - - - 21

2.3 Empirical Review - - - - - - - - - - - - - - - - - - - - - - - - - 22

2.4 Operational framework -- - - - - - - - - - - -- - - - -- -- - - -- - -- - - - - - - -- - - - - - - - - 24

CHAPTER THREE: METHODOLOGY

3.0 Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - 25

3.1 Research design - - - - - - - - - - - - - - - - - - - - - - - - - - - 25

3.2 Population of the Study - - - - - - - - - - - - - - - - - - - - - - - - 25

3.3 Sampling technique- - - - - - - - - - - - - - - - - - - - - - - - - 26

3.4 Sample size determination - - - - - - - - - - - - - - - - - - - - - - 26

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3.7 Validation of the instrument - - - - - - - - - - - - - - - - - - - - - - - 27

3.8 Reliability of the instrument - - - - - - - - - - - - - - - - - - - - - - 27

3.5 Methods of data collection - - - - - - - - - - - - - - - - - - - - - 28

3.6 Instrument for data collection - - - - - - - - - - - - - - - - - - - - - - 28

3.9 Operational measurement of variables - - - - - - - - - - - - - - - - - - - 28

3.10 Data analysis technique - - - - - - - - - - - - - - - - - - - -- - - - - - 29

CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION

4.1 Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - 30

4.2 Data presentation - - - - - - - - - - - - - - - - - - - - - - - - - - 31

4.3 Data analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - 32

4.4 hypothesis testing - - - - - - - - - - - - - - - - - - - - - - - - - 33

4.5 Discussion of findings - - - - - - - - - - - - - - - - - - - - - - - - 34

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - 39

5.1 Summary of findings - - - - - - - - - - - - - - - - - - - - - - - - 39

5.2 Conclusion- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 40

5.3 Recommendations - - - - - - - - - - - - - - - - - - - - - - - - - 40

5.4 Suggestion for further studies - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41

REFERENCES - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 42

APPENDIX - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 44

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