Empirical Study on the Impact of Business Strategy on Annual Budget Performance

Abstract

This study was aimed at studying the impact of business strategy on annual budget performance among selected private organizations with the objectives of identifying the business strategy modalities used in such an organization and compares budget performance with business growth. Purposive and sampling techniques were used to conveniently select fifteen organizations as the sample size by conducting semi-structured interviews along with the aid of questionnaires to respondents who are top management members of the targeted samples within the studies area. The response from the respondents was statistically analyzed using Origin 6.1, statistical software. The results indicated that majority of the surveyed organizations are passive on using a specific business strategy modality with response values range from 3.27 – 4.13 and Cronbach's Alpha value of 0.81, an indication that different organization pursue different goals and therefore uses different strategies to enhance the organization's budget performance and an indication of a high level of internal consistency in the surveyed organizations' business strategies. It may also be affirmed that business strategies employed helped the organizations' annual budget performance as the reported values indicated a strong agreement by the respondents with average budget performance values of 4.00 – 4.17 and Cronbach's Alpha value of 0.82. It is therefore recommended that budget strategies should be implemented diagnostically and traditionally used to ensure better budget and organization's performances.