An assessment of strategic planning in enhancing the performance of state enterprises : a case study of the Industrial Development Corporation of Zimbabwe (IDCZ)

Abstract

The aim of this study was to analyse the strategic planning in enhancing the performance of State Enterprises, with special focus on the Industrial Development Corporation of Zimbabwe (IDCZ) which falls under the Ministry of Industry and Commerce. The study had to explore the strategic plans and goals of the Corporation, examine the Corporation’s resources and priority allocations, ascertain the current performance and the gap to the vision and how strategic plans were measured and reviewed by the Corporation. It also aimed to determine the strategic planning challenges faced by the Corporation. Bryson (1988) strategic planning theoretical framework was adopted in this study. Qualitative and quantitative methods of enquiry and presentation were used. Semi structured interviews, questionnaire and content analysis were used as data collection methods. Out of a population of 47 employees, a sample of 30 subjects participated in the research having been selected through purposive sampling on management and simple random sampling on non-managerial staff. Data collected showed that most of the Corporations’ investments were performing below 50% due to lack of working capital and poor strategic planning. The Corporation adopted the 4-D strategy in which some of its investments were in the process of being disposed. There was a huge negative empirical gap between the current performance of the Corporation and its vision. There is evidence of poor strategic planning at IDCZ given the continued decline of production capacity and revenue from US$128.1 million in 2013 to US$97.3 million in 2014. The study recommended the need for Ministry of Industry and Commerce to intervene with turnaround strategies, policies and to provide funding for re-capitalisation as a salvation for IDCZ group companies.