THE EFFECT OF CORPORATE PLANNING ON ORGANIZATIONAL

PERFORMANCE
A CASE STUDY OF EVENT PLANNING FIRMS IN NAIROBI.

LEEWELL KIMATHI MAINA

CBMZ -01-8192/2021

A RESEARCH PROJECT SUBMITTED TO THE KENYA NATIONAL

EXAMINATION COUNCIL IN THE PARTIAL FULLFILLMENT FOR THE
ARWARD OF CERTIFICATE FOR BUSINESS MANAGEMENT AT ZETECH
COLLEGE.

JULY 2023

i
DECLARATION

I declare that this thesis is my original work and has not been submitted to any other
college or university for academic credit.

Name : LEEWELL KIMATHI MA INA

Date : _____________________________

Sign : ______________________________

This project has been submitted with my approval as the

College Supervisor

Name : NICHOLAS OSIR

Date : _____________________________

Sign : ______________________________

ii
DEDICATION
I dedicate this project to my Parents and lecturers who have shown continued support through
my academic life.

iii
ACKNOWLEDGEMENT

I acknowledge the Almighty God for the providence of good health, understanding and
guidance through my academic life. Honor and glory be to Him.

Secondly, I sincerely appreciate the invaluable mentoring, contribution and guidance from
my supervisor, without whom the project would have not become a reality. Much attribute to
my other lecturers who also contributed in building the foundation upon which such explicit
knowledge for writing this project was gained.

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TABLE OF CONTENTS
DECLARATION............................................................................................................................ii
DEDICATION...............................................................................................................................iii
ACKNOWLEDGEMENT................................................................................................................iv
ABSTRACT......................................................................................................................................vii
CHAPTER ONE.................................................................................................................................1
1.0 Introduction...............................................................................................................................1
1.1 Background to the study..........................................................................................................1
1.2 Problem statement....................................................................................................................2
1.3 Purpose of the study.................................................................................................................3
1.4 General objectives....................................................................................................................3
1.5 Specific objectives...................................................................................................................3
1.6 Research Questions..................................................................................................................4
1.7 Scope of the study....................................................................................................................4
1.8 Significance of the study.........................................................................................................4
1.8.1 Management of event organizing........................................................................................4
1.8.2Stakeholders............................................................................................................................4
1.8.3Scholars...................................................................................................................................4
1.9Limitations of the study............................................................................................................5
CHAPTER TWO................................................................................................................................6
2.0 Literature review......................................................................................................................6
2.1 Introduction...............................................................................................................................6
2.2 Theoretical framework............................................................................................................6
2.2.1 Resource Based Theory........................................................................................................6
2.2.2 Industrial organizational Theory.........................................................................................7
2.2.3 Stakeholder Theory...............................................................................................................7
2.3 Empirical review......................................................................................................................8
2.4 Conceptual framework............................................................................................................9
CHAPTER THREE......................................................................................................................10
3.0 Research Methodology..........................................................................................................10
3.1 Introduction.............................................................................................................................10
3.2 Research Design.....................................................................................................................10
3.3 Target Population...................................................................................................................10
3.4 Sampling size..........................................................................................................................10
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3.5 Data Collection.......................................................................................................................11
3.6 Data Analysis..........................................................................................................................12
CHAPTER FOUR........................................................................................................................13
4.0 DATA ANALYSIS AND PRESENTATION OF FINDINGS.........................................13
4.1 Introduction.............................................................................................................................13
4.2 Data Analysis..........................................................................................................................13
4.2.1 Response rate.......................................................................................................................13
4.2.2 Gender..................................................................................................................................13
4.2.3 Education level of the respondents...................................................................................14
4.3 Study Variables......................................................................................................................14
4.3.1 Vision, mission, action.......................................................................................................14
4.4Vision........................................................................................................................................15
4.4.1Mission..................................................................................................................................16
4.4.2Nature of corporate planning ................................................................................ .16
4.4.3 Corporate Planning objectives...........................................................................................16
4.4.6Effective Corporate Management Approaches.................................................................18
4.5 Conclusion..............................................................................................................................21
4.6 Recommendations..................................................................................................................22
REFERENCES.............................................................................................................................23
APPENDICES..............................................................................................................................25
PART A: General Information....................................................................................................25
Part B: Vision, Mission and Action Plan in Corporate Planning............................................26
Part C: Corporate Planning Practices by Firm’s.......................................................................27

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ABSTRACT

The overall objective of the study was to identify the influence of corporate planning in event
planning firms in Nairobi Central Business District. The study was undertaken to further seek
to answer the following questions: Does a vision, mission and action plan as corporate
planning tools lead to performance of event planning firms in Nairobi CBD? What is the
nature of corporate planning by event planning firms in Nairobi CBD? How does the
corporate planning practice contribute to the performance of event planning firms? The
descriptive design was used because it ensured complete description of the situation. The
target population of interest in this study comprised of event planning firms in Nairobi CBD.
The sample size for the study was selected from the event planning firms in Nairobi’s CBD.
The study targeted a sample size of 60 (30%) event planning firms. The study adopted non-
probability purposive sampling method to arrive at the participating event planning firms.
The study performed data collected through a questionnaire structured to meet the objectives
of the study.

This study also alluded that corporate planning in event planning firms is an important
instrument for forecasting and planning which enables the firm to meet customers’ demands
and changes which might crop up while discharging its duties. it would be a useful
contribution to investigate the use of planning techniques and the pervasiveness of the
process in service organizations. The study recommends that there is need for corporate fit
between the needs of the environment in respect to what the business should offer, vis a viz
what the business needs with regards to what the environment can provide. Firms should take
into consideration all the steps take in the corporate planning process as important.

vii
CHAPTER ONE
1.0 Introduction
1.1 Background to the study

Over the years, the concept and practice of corporate planning has been embraced wide
reaching and across sectors because of its perceived influence on organizational performance
(Latif & Gohar, 2013). Organizations from both the public and private sectors have taken the
practice of corporate planning critically as a tool that can be adopted to improve their
performances (Aldehyyat, AlKhattab & Anchor, 2011). According to Aremu (2010), strategy
is needed to focus effort and promote coordination of activities. Without strategy, an
organization becomes bunch of individuals, hence strategy is required to ensure collective
actions and concentration of efforts towards achieving organizational plans and objective
Many organizations today are focusing on becoming more competitive by launching
competitive strategies that give them an edge over others. To do this, it is necessity to design
workable strategies (Cater & Pucko, 2010). Corporate planning is a crucial element in
supporting and facilitating effective corporate management. It plays a significant role in the
overall conduct of corporate management (Awino, Muturia, & Oeba, 2012). According to
Wagner (2013), the significance of corporate planning can be understood through four
perspectives: environmental scanning, strategy development, aligning goals with budgets, and
recognizing corporate planning as a systematic process. The strategy planning process starts
with setting organizational goals.
The corporate planning process is applied by management to establish objectives, set goals,
and schedule activities for achieving those goals and includes a method for measuring
progress (Bulle, 2012). The process regulates how the organization will change to take
advantage of new opportunities that help achieve the needs of customers and clients.
According to Thomson and Strickland (2012), strategy implementation can fail due to lack of
effective top management support because corporate management and leadership are
important drivers to corporate implementation.
According to Khan and Khalique (2014), strategy is traced from a Greek word “strategos”
which means the roles of a general. Mohamed (2010), posits that planning in management is
a process of preparing ways to use resources more economically and efficiently so that the
purpose of the company is achieved. The success or failure of an organization depends on the
importance of its corporate process in relation to work performance (Bryson, 2014). A
strategy is a deliberate plan designed to accomplish a specific purpose. Wernham (2014)
1
highlights that during the corporate planning process, it is crucial to ensure that resources
such as personnel, skills, facilities, and finances are sufficient for implementing the strategy.
According to Pearce and Robinson (2008), the corporate planning process can be depicted as
a series of steps, including strategy formulation (defining company vision, mission,
objectives, and conducting internal analysis), situation analysis and environmental scanning
(analyzing competitors, industry, market, and selecting appropriate strategies), strategy
implementation, and strategy evaluation and control. Corporate planning is an essential
component of the corporate management process, enabling non-governmental organizations
to develop and understand strategies that lead to improved performance effectiveness,
enhanced accountability measures, and sustainable competitive advantage (Awino, Muturia,
& Oeba, 2012).

1.2 Problem statement

Planning plays a crucial role in the performance management of organizations, helping them
achieve their goals and objectives. However, the relationship between the planning function
and performance management is not clearly understood (Bloom, Genakos, Martin & Sadun,
2011). Corporate planning is a complex process that requires a comprehensive understanding
before it can be effectively implemented. Those responsible for corporate planning face the
challenge of dealing with complexity and uncertainty. Additionally, planning in small firms
tends to be highly personalized and influenced by the preferences, experiences, attitudes,
prejudices, and overall personality traits of the organization (Goldstein & Ward, 2014). As a
result, planning processes in small businesses may differ significantly from those in large
organizations.
To address these challenges, numerous studies have been conducted over the years to develop
models that can assist managers and executives in making better decisions within the
complex and uncertain business environment. However, despite the research conducted on
corporate planning, our understanding of the factors that influence it remains limited.
Existing studies on contextual factors influencing corporate planning processes have been
either scarce or have produced conflicting results, particularly in areas such as decision
familiarity, magnitude of impact, organizational size, firm performance, dynamism, hostility,

2
heterogeneity, industry, cognitive diversity, cognitive conflict, and managers' need for
achievement in corporate planning processes (Awino & Mutua, 2014).
While several studies have examined corporate planning in organizations in Kenya, none
have focused specifically on the event planning industry and the factors that influence
corporate planning processes within this sector. Local studies on factors affecting strategy
implementation have been conducted, but they have not covered the processes involved in
strategy implementation and the challenges faced during this phase. The event planning
industry in Kenya has been inadequately addressed, resulting in undesirable outcomes. This
study aims to bridge this gap by identifying the influence of corporate planning in event
planning firms located in Nairobi's Central Business District.

1.3 Purpose of the study

The aim of the research was to examine the impact of corporate planning on organizational
performance by conducting a case study specifically focused on event planning firms located
in Nairobi's Central Business District.

1.4 General objectives

The primary goal of the study was to investigate the impacts of corporate planning on
organizational performance within the context of event planning firms operating in Nairobi's
Central Business District.
1.5 Specific objectives
i. To find out how a vision, mission and action plan as corporate planning tools leads to
performance of event planning firms in Nairobi CBD.
ii. To find out the nature of corporate planning by event planning firms in Nairobi CBD.
iii. To find out how corporate planning practice contributes to the performance of event
planning firms.

1.6 Research Questions

i. Do the utilization of vision, mission, and action plan as tools for corporate planning
result in improved performance for event planning firms in Nairobi's Central Business
District?

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 ii. What is the characteristic or nature of corporate planning employed by event planning
firms located in Nairobi's Central Business District?
iii. In what ways does the practice of corporate planning contribute to the performance of
event planning firms?
1.7 Scope of the study
The objective of the research was to investigate the impact of competitive corporate planning
strategies on the performance of event organizing firms in Nairobi. The study specifically
targeted employees of event organizing firms in Nairobi as the population of interest. The
research was confined to examining the strategies implemented by these firms during event
planning processes. The study will delve into the characteristics of corporate planning tools
such as vision, mission, and action plans, as well as explore the ways in which the practice of
corporate planning contributes to firm performance.

1.8 Significance of the study

1.8.1 Management of event organizing
The study's results will provide valuable insights to aid event organizing firms and other
organizations in tackling various corporate planning challenges that impact their
performance. The objective is to enhance understanding and appreciation of the important
factors related to corporate planning and its influence on overall firm performance.
Additionally, the findings will contribute to identifying ways to support and facilitate
corporate planning while addressing barriers that hinder the effective implementation of
corporate decisions both presently and in the future.
1.8.2 Stakeholders
The research will offer stakeholders a foundation for comprehending corporate planning
within the organization and explore strategies for adopting best management practices. This,
in turn, will have a positive impact on the overall planning within the sector.
1.8.3 Scholars
The research presented valuable insights for scholars, both existing and prospective, in the
field of corporate planning and its impact on organizational performance in both private and
public sectors. Similarly, researchers may find interest in gaining further understanding and
exploring the realm of corporate planning within the hospitality industry.

1.9Limitations of the study

4
 i. Lack of enough funds in carrying out the research.
ii. The respondent was not willing to offer the information required.
iii. There was being falsification of financial books of accounts through creative
accounting therefore misleading the researcher.
iv. There was inability to acquire the critical data required for the study.

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CHAPTER TWO
2.0 Literature review
2.1 Introduction
This chapter provides an overview of existing scholarly literature that is pertinent to the
effects of corporate planning on organizational performance. It encompasses relevant studies
conducted in different locations and examines the arguments and findings put forth by other
scholars regarding the subject matter investigated in this research. The literature review
begins with an exploration of literature on strategy formulation, followed by an examination
of the influence of corporate planning on organizational performance.

2.2 Theoretical framework

2.2.1 Resource Based Theory
The Resource Based View theory suggests that a firm's competitive advantage stems from the
uniqueness of its abundant resources. Therefore, it is crucial to review the resources available
to the organization. Resources encompass both tangible and intangible assets that an
organization selects to determine and implement its strategies. Tangible resources include
financial, physical, technological, and organizational resources, while intangible resources
include human capital, brand image, and innovation. This theory emphasizes the Value (V),
Rarity (R), Imitability (I), and Organizational (O) aspects of resources and capabilities,
leading to the development of the VRIO framework.
According to the VRIO framework, a firm's competitive edge is derived from value-adding
processes. Processes that do not add value can have a negative impact on a firm's
competitiveness by diverting attention from its primary objectives. Rarity refers to a situation
where an organization establishes a competitive advantage through a rare resource,
leveraging this resource to offer a unique product or service that other firms cannot fully
replicate in the market. Imitability refers to the inability of competitors to replicate the
services or products that are unique to a firm. Porter argues that an organization's superior
ability to prioritize and organize unique, inimitable, and rare resources grants it a competitive
advantage. Thus, the Resource Based View focuses on the resources a firm possesses and
how it utilizes them to achieve a competitive advantage over others.
Barney's analysis of competitive advantage considers two assumptions. First, firms within a
particular industry are unique in terms of the resources they control. Second, the resources
that confer a competitive edge have limited mobility both across and within the industry,
making them difficult to trade. Sustainability is crucial because even if an organization's

6
resources have been value-adding in the past, factors such as changes in customer
preferences, technological advancements, industry structures, or regulations can diminish
their value in the future.

2.2.2 Industrial organizational Theory

The Industrial Organization Theory is based on the concept of the firm, which comprises
economic theories that aim to predict, describe, and explain the nature of an organization in
terms of its existence, composition, behaviour, and structural development in relation to the
market. This theory encompasses organizational structures, situational designs, operational
frameworks, and the relationship with the external environment in which the organization
competes. It recognizes the significance of the organization's external market position in
achieving competitive advantage. In the traditional perspective of industrial organization,
corporate management systematically evaluates and understands external competition within
a specific industry.
Nelson suggests that the structure and functioning of a market form the fundamental concept
underlying the industrial organization theory. According to Bennet, the framework for
analysing the relationship between market structure, conduct, and performance is determined
by industry organization. The behaviour and performance of a market are influenced by its
structural characteristics. The Industrial Organization Theory focuses on the market in which
a company operates rather than solely on the company itself. Therefore, the theory
emphasizes the entire industry and market conditions affecting a company, rather than solely
focusing on the internal analytical aspects that identify strategic choices available to
organizations within their respective industries (Porter, 2008).

2.2.3 Stakeholder Theory

The Stakeholder Theory was observed to have gained prominence in the 1970’s as a
management practice reference and gradually developed and adopted by Freeman in 1984
through the incorporation of corporate accountability to a vast range of stakeholders.
According to Wheeler, Colbert and Freeman the stakeholder theory is derived from a mix of
social and organizational disciplines. The theory takes a lesser formal unified approach
instead of adopting a broadened research tradition, incorporating philosophy, psychology,
ethics, economics, political theory, law and organizational management science.
IN 1995 Donaldson and Preston observed that this theory focuses on management level
decision making in which every stakeholder’s interest is valuable, in addition no particular set
7
of interest is superior to the other. As a suggestion of the theory, an organization’s
management must have a relationship network to serve employees, dealers, suppliers,
shareholders and all other business partners. It argues that these stakeholders are important.
The theory is thus significant in that be taking care of all the stakeholder’s interests the
performance of the Pharmaceutical Industry in Kenya is enhanced.

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2.3 Empirical review

According to Aldehayyat and Twaissi (2011), the roles of each actor involved in the
implementation of the corporate plan are clearly defined, ranging from employees to
senior management. This includes budget allocation for resource implementation, time
frames, responsibilities of various actors, and stakeholder roles. The relationships
between senior management and other employees are also outlined, fostering increased
commitment and dedication through the participation of individuals at all levels of
corporate planning. Formal planning focuses on the future implications of current
decisions, establishing a connection between short-term, intermediate, and long-term
plans. Corporate planning enables organizations to overcome biases and barriers
associated with planning challenges. Kraus (2006) highlights that corporate planning
provides direction and ensures a focus on the organization's mission and vision,
allowing for the identification of problems in advance and anticipation of challenges.
The use of corporate planning tools and techniques is another dimension of corporate
planning. Research conducted in 2012 showed that the use of such tools and techniques
enhances the effectiveness and efficiency of planning, leading to superior organizational
performance. It is essential for top management to allocate sufficient resources and
invest in modern tools and equipment to support the implementation of the corporate
plan. Equipping employees with the necessary tools and equipment keeps them
motivated and enhances productivity in their work. Tools and equipment provide an
enabling environment aligned with the organization's goals. Each stage of planning
requires specific tools and equipment tailored to the tasks at hand. The efficient
utilization of resources, in the form of tools and equipment, ensures that employees can
meet the requirements of each planning stage with minimal limitations. Well-
performing organizations provide high-quality tools and equipment to their employees,
matching their duties and responsibilities to achieve the expected performance.
Furthermore, the provision of tools and equipment significantly motivates employees to
work harder toward the achievement of goals and objectives. Investing in the provision
of quality tools and providing sufficient training on their use enhances employees'
efficiency and helps prevent accidents during the execution of their duties and
responsibilities.

2.4 Conceptual framework

9
 Conceptual framework is a diagrammatic representation of relationship between variables.
The variable that is manipulated to establish the impact it has on another variable is called
independent variable while dependent variable is a variable that is affected by independent
variable.
Figure 2.4.1

CORPORATE PLANNING

Vision, mission, action Nature of corporate Corporate planning

planning practices

ORGANIZATIONAL PERFOMANCE

CHAPTER THREE
3.0 Research Methodology
3.1 Introduction
This chapter provides an overview of the research design and methodology employed in this
study. It encompasses the entire process undertaken by the researcher to gather data,
including the research design, data collection method, sample size, target population, data
collection instrument, data collection procedure, and data analysis.
3.2 Research Design
A research design refers to the systematic arrangement and structure of a study aimed at
finding answers to research inquiries. The descriptive design involves presenting a precise
depiction of individuals, events, or accounts, including their characteristics such as behavior,

10
opinions, abilities, beliefs, and knowledge. The descriptive design is chosen because it allows
for a comprehensive description of strategies while minimizing bias in data collection.

3.3 Target Population

It encompasses the entire group of individuals or elements that share at least one
common characteristic (Collin & Hussey, 2009). Given that Nairobi is the most
developed county in Kenya, the study selected Nairobi, the capital city of Kenya, as the
specific focus area. The target population of interest for this research consisted of event
planning firms located in the Nairobi Central Business District (CBD). According to the
Kenya Revenue Authority (KRA) in 2017, there were 199 registered event planning
firms in Nairobi CBD.

Table 3.4.1: Sample Size

Year of operation Population Sample (30%)
Below 5 years 46 14
5 – 7 years 39 12
8 – 10 years 59 18
Above 10 years 55 16
Total 199 60

3.5 Data Collection

According to Creswell and Clark, data collection refers to the systematic process of gathering
data from various sources, which has been observed, recorded, and organized for a specific
purpose. In this study, data was collected through a structured questionnaire designed to align
with the study's objectives. Mugenda and Mugenda highlight that questionnaires are
commonly used to gather important information about the population being studied. Each
item in the questionnaire was developed to address specific themes of the study. A five-point
Likert scale was utilized, which allows for evaluating behaviours on a continuum.
The questionnaire consisted of different sections. Part A focused on gathering demographic
information from the respondents, which provided standardized data for easy comparison and
understanding. Part B covered the topics of Vision, Mission, and Action Plan in Corporate
Planning. Part C addressed Corporate Planning practices adopted by the firms. Part D
explored the influence of Corporate Planning Practices on Firm's Performance. Lastly, Part E
examined the Firm's Performance itself. The respondents were asked to rate the extent to

11
which these parameters influenced their business performance on a Likert scale ranging from
1 to 5.
The questionnaires were administered to the respondents by the researcher within a specified
timeframe. The data was collected from managers involved in the corporate planning
processes of their respective firms. Permission to administer the questionnaires was obtained
through an introductory letter from the School of Business.

3.6 Data Analysis

The collected raw data was carefully reviewed, assessed, and refined to ensure completeness
and clarity. This involved eliminating any data that was deemed unusable, resolving
ambiguities in responses, and removing contradictory or inconsistent data from related
questions. Subsequently, the data was coded and entered into the Statistical Package for the
Social Sciences (SPSS) software program for further analysis.
Descriptive analysis was conducted on the coded data, allowing for a comprehensive
examination and interpretation of the findings. Both quantitative and qualitative data were
analysed using content analysis and descriptive statistics. To present the results, tables and
figures were utilized, providing a visual representation of the data in a clear and concise
manner.

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CHAPTER FOUR
4.0 DATA ANALYSIS AND PRESENTATION OF FINDINGS
4.1 Introduction
This chapter focuses on the analysis, presentation of findings, and subsequent discussion. The
findings are presented using percentages, frequency distributions, mean values, and standard
deviations. The variables examined in the study are thoroughly analyzed, and the model
proposed in the previous chapter is evaluated and estimated.
4.2 Data Analysis
4.2.1 Response rate
The participants in this study consisted of employees from event planning firms located in
Nairobi CBD. Out of the 60 questionnaires that were distributed, a total of 56 questionnaires
were returned, representing a response rate of 93%. This high response rate ensured the
collection of ample data that could be generalized to capture the perspectives, attitudes,
behaviors, or values of the respondents. It is worth noting that a response rate exceeding 30 to
50% of the total sample size is considered sufficient for gathering data that can be
generalized to represent the opinions of the target population regarding the research problem
under investigation.
4.2.2 Gender
The researcher aimed to determine the gender distribution within event planning firms.
According to the findings presented in Figure 4.1, a majority of the respondents (55.4%)
identified as males, while the minority (44.6%) identified as females. This indicates that there
may be a focus on maintaining a gender balance during the recruitment process in these
firms.

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Figure 4.1: Gender of Respondents

4.2.3 Education level of the respondents

The objective of the study was to determine the educational background of the
employees to assess their level of knowledge and skills in their respective fields. Table
4.2 presents the highest level of education attained by the respondents.
Table 4.2.4 Highest level of education

Frequency Percent

Doctorate 2 3.6

Masters 7 12.5

Degree 28 50.0

Diploma 16 28.6

Certificate 3 5.4

Total 56 100.0

The results presented in Table 4.2 indicate that the majority of the respondents (50.0%)
held a bachelor's degree as their highest level of education, followed by 28.6% who had
a diploma. Additionally, 12.5% of the respondents had a master's degree, 5.4% had a
certificate, and 3.6% had achieved a doctorate. These findings suggest that the
respondents possessed the necessary qualifications to provide meaningful responses to
the questionnaire.

4.3 Study Variables

4.3.1 Vision, mission, action
The study utilized a Likert scale ranging from 'strongly disagree' (1) to 'strongly agree' (5) to
measure the study variables in this section. The scores indicating agreement were categorized
as variables with a mean score between 0 and 2.4 on the continuous Likert scale (0 ≤ Mean <
2.4). The scores representing 'undecided' were categorized as variables with a mean score
between 2.5 and 3.4 on the continuous Likert scale (2.5 ≤ Mean < 3.4). Lastly, the scores
representing disagreement and strongly disagreement were categorized as variables with a
mean score between 3.5 and 5.0 on the continuous Likert scale (3.5 ≤ S.A. < 5.0). A standard
deviation greater than 0.9 indicates a significant difference in the impact of the variable
among respondents.

14
The respondents were asked to indicate their level of agreement with various factors
contributing to firm's performance using a five-point Likert scale: 1= Strongly Agree, 2=
Agree, 3= Neutral, 4= Disagree, 5= Strongly Disagree. The results are presented in Table
4.3.2 below.

Table 4.3.2 Vision, Mission and Action Plan in Corporate Planning

Std.
N Mean Deviatio
n
Company mission and vision are crucial elements of corporate 56 3.91 1.225
management in my organization
My business vision and growth are reinforced by my corporate focus
on market growth and profits 56 3.96 1.220
In my business plan, I always decide on who is going to do what and
by when and in what order for so as to be successful 56 3.73 1.213
As a business man, I consistently apply a disciplined approach to
corporate planning in order to be ready for any market changes 56 3.98 1.168
At times when my business has gone off track, I use corporate
planning to redirect my recovery process 56 3.98 1.136
Corporate planning has helped me establish benchmarks or milestones
that show me whether or not I am meeting my goals and objectives 56 4.32 1.208
As a business man, I include my employees in the decision-making
plan of my business 56 4.20 1.102
As business man, I have developed a decision-making routine that
simplifies the process of decision-making for me 56 4.18 1.223
As an entrepreneur I have improved my level of understanding of me
competitor’s strategies through corporate planning 56 3.95 1.197
High competition in the market has reinforced my ability in making
effective choices about when to leave marketplaces and about which 56 3.88 1.222
new ones to move into and being innovative
Valid N (listwise) 56

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4.4 Vision
The results presented in Table 4.4 indicate that, when their business faces challenges, the
respondents utilize corporate planning to redirect their recovery process (mean=3.98,
SD=1.136). Moreover, as business individuals, they consistently adopt a disciplined approach
to corporate planning in order to be prepared for potential market changes (mean=3.98,
SD=1.168). Additionally, their business vision and growth are strengthened by their
corporate focus on market growth and profits (mean=4.96, SD=1.220). Furthermore, as
entrepreneurs, the respondents have enhanced their understanding of their competitors'
strategies through corporate planning (mean=3.95, SD=1.197).

4.4.1 Mission
The findings indicate that the respondents consider company missions as crucial aspects of
corporate management in their organization (mean=3.91, SD=1.225). They also believe that
high competition in the market has enhanced their ability to make effective choices regarding
entering or leaving marketplaces and being innovative (mean=3.88, SD=1.222). Furthermore,
in their business plans, they prioritize assigning responsibilities, setting deadlines, and
determining the order of tasks to achieve success (mean=3.73, SD=1.213).
Table 4.4 also demonstrates that a majority of the respondents agree that corporate planning
has helped them establish benchmarks or milestones to track their progress towards goals and
objectives (mean=4.32, SD=1.208). Additionally, as business individuals, they involve their
employees in the decision-making process (mean=4.20, SD=1.101). Moreover, the
respondents have developed a routine for decision-making that simplifies the process for
them (mean=4.18, SD=1.223).

4.4.2 Nature of corporate planning.

4.4.3 Corporate Planning objectives.
The participants were requested to express their level of agreement with different factors
influencing firm performance using a Likert scale ranging from 5=strongly agree to
1=strongly disagree. The outcomes of their responses are presented in table 4.5.

16
 Table 4.4.5 Influence of Corporate Planning, Practices on Firm’s Performance
Std.

N Mean Deviation

Setting performance targets and the preceding process of corporate

planning is an important aspect of performance management for my 56 4.21 1.155

organization

Corporate planning and target setting allow me to translate my

organization vision and strategy into corporate objectives that are 56 4.25 1.225

associated with medium to long-term goals

While setting targets, I combine human expertise and organizational

resources to implement my value-creating organizational strategies 56 4.12 1.161

Target setting allows me to reconfigure my existing business

capabilities and also build new capabilities 56 3.96 1.111

I normally grant rewards to my employees to influence their behavior 56 4.02 1.243

I have a feedback system in place that influences the development of

new capabilities and my organizational learning 56 4.32 1.162

My business has loyal customers facilitating my ability to work easily

and achieve my objectives and outperform my set targets 56 4.11 1.171

I use communication as an essential determinant of customer

dedication and satisfaction strategy 56 4.20 1.086

The feedback given by my customers helps my business to reinforce

its operational systems and subsequently turns out to be more focused 56 4.09 1.210

The pursuit of personal non-economic goals is something I am willing

to sacrifice the prospect of achieving greater financial rewards 56 4.43 1.126

Valid N (list wise) 56

17
Table 4.5 illustrates the findings, indicating that the respondents are willing to prioritize
personal non-economic goals over the potential for greater financial rewards (mean=4.43,
SD=1.126). The presence of a feedback system influences the development of new
capabilities and organizational learning (mean=4.32, SD=1.162). Corporate planning and
target setting enable the translation of organizational vision and strategy into medium to
long-term goals and objectives (mean=4.25, SD=1.225). Setting performance targets and the
preceding process of corporate planning play a vital role in performance management for the
organization (mean=4.21, SD=1.155).
Additionally, the respondents combine human expertise and organizational resources to
implement value-creating organizational strategies when setting targets (mean=4.12,
SD=1.161). The presence of loyal customers contributes to their business's ability to work
smoothly, achieve objectives, and surpass set targets (mean=4.11, SD=1.171). Customer
feedback helps reinforce the operational systems of their business, resulting in increased
focus (mean=4.09, SD=1.210). Rewards are granted to employees to influence their
behaviour (mean=4.02, SD=1.243). The factor with the lowest level of agreement is that
target setting allows the respondents to reconfigure existing business capabilities and build
new ones (mean=3.96, SD=1.111).

4.4.6Effective Corporate Management Approaches.

The participants were requested to express their level of agreement with different
factors influencing firm performance using a Likert scale ranging from 1 (strongly
disagree) to 5 (strongly agree). The outcomes of their responses are presented in the
following table.

Table 4.4.7 Corporate Planning Approaches by Firms

Std.
N Mean Deviati
on
18
The nature of my business requires specific, predetermined behavior 56 3.77 1.079
by means of formal direction and control to be successful
Corporate planning structures and systems in my business
contribute towards building my organizational capabilities that 56 4.16 1.125
drive my performance
Corporate planning is the foundation that improves my business
processes and ultimately reduces my internal costs of operation 56 4.41 1.172
As a Firm owner, I find myself in an environment of constant
technological change 56 4.23 1.128
As a business man, I am keen on monitoring and identifying trends
or cycles of some kind in order to find patterns of the market trend 56 4.21 .967
As an entrepreneur, I monitor my environment by collecting
information in all environmental sectors, sort out relevant 56 4.34 1.100
information and adjust my business to meet future forecasts
Corporate planning is vital for business men to give a dependable
direction of assessing the most appropriate methods for enhancing a 7 52
product/ item
My business enterprise concentrates on producing products/ services
that meet the desires or needs of various target markets 3 29
Despite the existence of the support programs that provide my
business with a back-up plan, my business continues to weaken or 8 52
face stunted growth
My business has an advantage in terms of making quick decisions
and the willingness to take risks 2 76
Valid N (list wise)

19
The results presented in Table 4.6 strongly indicate that corporate planning plays a fundamental
role in enhancing business processes and reducing internal operational costs (mean=4.41,
SD=1.172). Entrepreneurs actively monitor their environment by gathering relevant information
across different sectors and adapt their business strategies accordingly (mean=4.34, SD=1.100).
Corporate planning is considered crucial by business owners as it provides a reliable framework
for evaluating the most effective approaches to enhance products or items (mean=4.27,
SD=1.152). The respondents also acknowledge that being business owners exposes them to a
constantly evolving technological landscape (mean=4.23, SD=1.128).
Furthermore, the respondents expressed agreement that as business individuals, they diligently
monitor and identify market trends or cycles to identify patterns and make informed decisions
(mean=4.21, SD=0.967). Despite the presence of supportive programs intended to provide
backup plans, some respondents reported that their businesses still experience weakening or
stagnant growth (mean=4.18, SD=1.252). The implementation of corporate planning structures
and systems within their organizations contributes to the development of organizational
capabilities that drive overall performance (mean=4.16, SD=1.125). The respondents' business
enterprises focus on producing products or services that cater to the desires and needs of various
target markets (mean=4.13, SD=1.129), and they also exhibit an advantage in making swift
decisions and embracing risk-taking (mean=4.12, SD=1.176). However, to a lesser extent,
respondents noted that the nature of their business requires predetermined behaviour through
formal direction and control for success (mean=3.77, SD=1.079).

20
4.5 Conclusion
Based on the gathered information, business owners can analyse the environmental factors
and determine the appropriate direction for their firms. Entrepreneurial businesses are
driven by vision and ambitious goals. Creating a mission statement helps small businesses
align with their vision. By incorporating the mission statement into a corporate plan,
entrepreneurs increase their chances of success and maintain focus on what truly matters.
The mission statement encourages managers and small business owners to consider the
nature and scope of their operations.
The study's conclusion emphasizes the importance of a corporate fit between the business's
offerings and the demands of the environment, as well as alignment between the business's
needs and the resources provided by the environment. The findings highlight the
significance of each step in the corporate planning process. If the firm's direction is
unclear, employees will lack guidance. Failure to critically examine the business
environment hinders understanding of internal competencies and available opportunities,
which are essential for developing effective strategies and achieving success. In summary,
the corporate planning process should receive the necessary attention, considering all the
prescribed steps outlined in existing literature.
Additionally, the study emphasizes the importance of analysing the external environment.
This analysis benefits both researchers and firms by aiding in understanding the driving
forces behind firms' activities and guiding appropriate actions in response to
environmental changes.

4.6 Recommendations
Vision, mission, and action plan play a crucial role in corporate planning, as they
significantly impact a firm's performance. Therefore, business organizations should adopt
corporate planning practices to enhance their performance. By analysing the information
gathered during environmental analysis, business owners can determine the appropriate
direction for their firms. Entrepreneurial businesses are motivated by their vision and
ambitious goals. Developing a mission statement aids small businesses in realizing their
vision. Incorporating the mission statement into a comprehensive corporate plan increases

21
the likelihood of success and helps entrepreneurs stay focused on their priorities. The
mission statement also encourages managers and small business owners to consider the
nature and scope of their operations.

The study recommends that a corporate fit should exist between what the environment
demands and what the business offers, as well as between the business's needs and the
resources provided by the environment. Every step in the corporate planning process is
deemed important and should be carefully considered. If the firm's direction is unclear,
employees will lack guidance and may not be on the right track. Failure to critically
examine the business environment hampers understanding of internal competencies and
available opportunities, which are crucial for developing appropriate strategies and
achieving success. The study further suggests that the process of corporate planning should
receive the necessary attention, following the prescribed steps outlined in existing
literature. Additionally, firms are advised to analyse their external environment, as it is
vital for both researchers and firms. Such analysis helps researchers understand the
motivations behind firms' activities and enables firms to take appropriate actions in
response to the changing environment.

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APPENDICES

Appendix one: Study Questionnaire

This questionnaire is designed to gather information concerning the nature and scope of
corporate planning in your organization. Please describe the planning practices as you feel they
truly exist in your organization, not as you believe they should exist. Data gathered with this
questionnaire will be treated confidentially and presented only in summary form without
disclosing the name or affiliation of the respondent.

PART A: General Information

1. What is your gender? Male [] Female[]

24
 2. How old are you?

Age Below 26- 36- 46- Above

(years) 25 35 45 55 56
Response

3. What is your highest level of education?

Doctorate [] Masters [] Degree [] Diploma [] Certificate [] Other ………………
4. What is your current designation? ................................................................
5. Do you have relevant training for your current role? ………………………….
6. How much working experience do you have in event planning?

Years Below 1 1-3 4-6 7-9 Above

10
Experience

7. How many employees do you have in your firm?

25
Part B: Vision, Mission and Action Plan in Corporate Planning
To what extent has vision, mission, and action corporate planning influenced performance in
your business? Use the scale: SD-Strongly Disagree; D-Disagree; N-Neutral; A-Agree; and SA-
Strongly Agree to rate the statements as it relates to your business.

SD D N A S
A
VMA Company mission and vision are crucial elements of 1 2 3 4 5
1 corporate management in my organization
VMA My business vision and growth are reinforced by my 1 2 3 4 5
2 corporate focus on market growth and profits
VMA In my business plan, I always decide on who is going to do 1 2 3 4 5
3 what and by when and in what order for so as to be
successful

VMA As a business man, I consistently apply a disciplined 1 2 3 4 5

4 approach to corporate planning in order to be ready for any
market changes

VMA At times when my business has gone off track, I use 1 2 3 4 5

5 corporate planning to redirect my recovery process
VMA Corporate planning has helped me establish benchmarks or 1 2 3 4 5
6 milestones that show me whether or not I am meeting my
goals and objectives

VMA As a business man, I include my employees in the 1 2 3 4 5

7 decision-making plan of my business
VMA As business man, I have developed a decision-making 1 2 3 4 5
8 routine that simplifies the process of decision-making for
me

VMA As an entrepreneur, I have improved my level of 1 2 3 4 5

9 understanding of my competitors’ strategies through
corporate planning

VMA High competition in the market has reinforced my ability in 1 2 3 4 5

10 making effective choices about when to leave marketplaces
and about which new ones to move into and
being innovative

26
Part C: Corporate Planning Practices by Firm’s
To what extent would you rate the following statements with regards to corporate planning
practices in your organization? Use the scale: SD-Strongly Disagree; D-Disagree; N- Neutral; A-
Agree; and SA-Strongly Agree.

SD D N A SA
SPP The nature of my business requires specific, predetermined 1 2 3 4 5
1 behavior by means of formal direction and control to be
successful

SPP Corporate planning structures and systems in my business 1 2 3 4 5

2 contribute towards building my organizational capabilities
that drive my performance

SPP Corporate planning is the foundation that improves my 1 2 3 4 5

3 business
processes and ultimately reduces my internal costs of
operation
SPP As a Firm owner, I find myself in an environment of constant 1 2 3 4 5
4 technological change
SPP As a business man, I am keen on monitoring and identifying 1 2 3 4 5
5 trends or cycles of some kind in order to find patterns of the
market trend

SPP As an entrepreneur, I monitor my environment by collecting 1 2 3 4 5

6 information in all environmental sectors, sort out relevant
information and adjust my business to meet future forecasts

SPP Corporate planning is vital for business men to give a 1 2 3 4 5

7 dependable direction of assessing the most appropriate
methods for enhancing a product/ item

SPP My business enterprise concentrates on producing products 1 2 3 4 5

8 services that meet the desires or needs of various target
markets
SPP Despite the existence of the support programs that provide 1 2 3 4 5
9 my business with a back-up plan, my business continues to
weaken or face stunted growth

SPP My business has an advantage in terms of making quick 1 2 3 4 5

27
10 decisions
and the willingness to take risks

28