AN IN-DEPTH ANALYSIS ON THE FACTORS INFLUENCING THE IMPLEMENTATION OF STRATEGIC MANAGEMENT IN SMALL SCALE BUSINESSES IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

For both large and small enterprises to survive, strategic management is essential. A serious realization in the business world, especially in Cameroon, is that a company needs a competitive, winning corporate strategy that is exclusive to the organization in order to thrive and endure in the twenty-first century. Branislav (2019) defines strategic management as the art and science of developing, putting into practice, and assessing cross-functional decisions that help an organization accomplish its goals.. This definition acknowledged that synchronisation of decision-making across functions is necessary for an organization to thrive. The need to boost performance through efficient planning, goal-setting, and continuous performance monitoring drove the business world to embrace strategy (Anyoso and Mang'ana, 2022). Furthermore,  Adeyemi, Isaac, and Olufemi (2017) states that strategic management is an iterative, ongoing process that involves significant interactions and feedback. Goal-setting, strategy analysis, strategy implementation, strategy monitoring, and strategy formulation are the five domains that are impacted by these interactions and feedbacks. Similarly, Agwu (2018) asserts that small scale businesses must be able to put in place and implement attainable strategic management plans to improve their business performance, in addition to understanding why they are in business. However, to ensure that small scale businesses remain competitive, it is important to conceptualize and implement strategic management practices as intricate and collaborative methods for examining the business environment and developing organizational goals, strategies, and tactics for enhancing performance (Anyoso and Mang'ana, 2022). Additionally, Ikaharehon and Briggs (2016) asserted that a number of factors influence the strategic management techniques or practices that a business, especially small scale businesses in Cameroon uses. Beyond that, a number of elements influence an organization's capacity to implement strategic management techniques. Furthermore, the authors emphasized that a small business's ownership structure, scope, size, and scale all play important roles in determining whether or not it would implement strategic management approaches. According to Obaidullah et al. (2021), small enterprise characteristics are negatively correlated with both business success and the adoption of strategic practices, whereas the personal characteristics of small-scale entrepreneurs are positively correlated with both outcomes. On the other hand, Gibbons and O'Connor (2020) state that the financial capacity factor contributes to a situation where managers of small businesses are overwhelmed by the immediate financial difficulties they face and, as a result, often misunderstand or, in the worst cases, completely ignore the implementation or adoption and relationship between successful strategic management practices and business success.  In a developing nation such as Cameroon, where 50% of labour is engaged, 97% of firms fall under the SMEs category, and 50% of industrial output is produced, the idea of strategic management techniques is more applicable (Joseph et al, 2021). The evidence presented in business literature, however, has unambiguously suggested (Osotimehin et al., 2022) that small businesses must implement and practise strategic management because the viability of their strategic design and implementation is a major factor in their survival and success in the business environment. This is because growth, expansion, and exceptional performance are the main needs of all organizations, regardless of size. Nevertheless, creating and implementing strategies that can assist in resolving both internal and external difficulties in implementing strategic management is the foundation for surviving in today's fiercely competitive and unforgiving business environment; in keeping with this assertion, small scale business must think and act strategically (Rumelt, 2022). Rumelt also added that both giant enterprises with a global presence and the small corner store need strategy management. In order to maintain its position as a major player in its industry, a corporation needs to implement and use strategic management techniques. Therefore, a survey will be conducted in order to analyze on the factors influencing the implementation of strategic management in small scale businesses in Cameroon.

1.2 Statement of the Problem

Historically, strategic management has been a source of sustained competitive advantage across a range of human pursuits, where it is understood as a cohesive set of actions intended to address a particular set of issues in business (Kraja and Osmani, 2023). However, the survival and viability of small businesses are challenged by the competitive and volatile environment they operate in, despite the fact that small businesses are vital to the nation's economies (Sandada, 2018). Despite the identified importance attached to strategic management practices, small scale businesses in Cameroon have generally failed to adopt such practices. Similarly, Abosede et al (2016) noted the fact that small scale business are not proactive in the utilization of strategic practices. Such strategies as practiced by these businesses tend to be unstructured and inconsistent. Similarly, prominent business intellectuals believe that poor strategy or poor strategic execution will render all natural or financial resources worthless. Furthermore, Mungai (2018) found that communication, organizational structures, and resource allocation have the greatest influence on how well strategic plans are implemented in small scale businesses. He further asserts that business owners must mobilize additional resources and dedicate them to carrying out the strategic plans. Thus, it is in the light of this, the study seeks to analyze on the factors influencing the implementation of strategic management in small scale businesses in Cameroon.

1.3  Objectives of the Study

The main purpose of this study is to analyze on the factors influencing the implementation of strategic management in small scale businesses in Cameroon. Specifically, the study will;

Identify the key strategic management practices commonly utilized by small-scale businesses in Cameroon

Assess the internal factors influencing the implementation of strategic management in small-scale businesses in Cameroon

Investigate the external environmental factors impacting the implementation of strategic management in small-scale businesses in Cameroon

Investigate the challenges associated with implementing strategic management practices in small-scale businesses in Cameroon

1.4 Research Questions 

The following questions have been prepared for the study:

What are the key strategic management practices commonly utilized by small-scale businesses in Cameroon?

What internal factors influence the implementation of strategic management in small-scale businesses in Cameroon?

What external environmental factors impact the implementation of strategic management in small-scale businesses in Cameroon?

What challenges are associated with implementing strategic management practices in small-scale businesses in Cameroon?

1.5 Research Hypotheses

H0: There is no significant relationship between the factors influencing the implementation of strategic management and small scale businesses in Cameroon.

Ha: There is a significant relationship between the factors influencing the implementation of strategic management and small scale businesses in Cameroon.

1.6 Significance of the Study

The study's findings will be used by experts in consulting firms that focus on small business development and strategy formulation to offer customised counsel, direction, and assistance to Cameroonian small enterprises aiming to enhance their strategic planning procedures and overall business efficacy. Additionally, officials and lawmakers will use the study's findings to create and carry out programmes, policies, and initiatives meant to promote an atmosphere that is favourable to growth, innovation, and entrepreneurship. Also, business owners will be better equipped to make more informed decisions, create winning strategies, and negotiate the challenges of strategic management in a cutthroat market. They will also know what best practices, success factors, and pitfalls are and how to avoid them. Furthermore, it will serve as a valuable resource for scholars conducting literature reviews in this area, contributing to the academic discourse and serving as a foundational text for future research endeavors. 

1.7 Scope of the study

The scope of this study is boarded on an in-depth analysis on the factors influencing the implementation of strategic management in small scale businesses in Cameroon. Empirically, this study will identify the key strategic management practices commonly utilized by small-scale businesses, assess the internal factors influencing the implementation of strategic management in small-scale businesses, investigate the external environmental factors impacting the implementation of strategic management in small-scale businesses and the challenges associated with implementing strategic management practices in small-scale businesses.

Geographically, the study will be delimited to small-scale businesses in Mogolo, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents.In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Strategic management: refers to the systematic process of formulating, implementing, and evaluating long-term organizational objectives and strategies to achieve sustainable competitive advantage.

Small-scale businesses: also known as small and medium-sized enterprises (SMEs), are enterprises characterized by their relatively small size in terms of assets, revenues, and number of employees.