The Effect of Strategic Planning on the Organizational Performance: the Case of Shemu Plc

Strategic planning is important to organizations because it yields a defined path and specifies verifiable goals. Regarding the vital function and favorable effects that strategic planning has on organizational performance, the key objective of this research was to investigate the effect of vision and mission as strategic planning tools and leadership practices, as well as organizational culture, structure, and human resource planning as strategic planning factors, on organizational performance in the case of Shemu plc, Dire Dawa. The researcher used a simple random technique, and 239 respondents were selected from 596 by applying Slovin's formula. The information was acquired via a structured questionnaire and a thorough interview with top managers. To analyze the data and explain the results, inferential and descriptive statistical techniques were used. The correlation analysis showed that strategic planning (tools and factors) has a positive correlation with organization performance. The findings of the regression analysis demonstrated a positive and significant association between strategic planning (tools and factors) and organizational performance. According to the findings, mission and vision, leadership practice, human resource planning, organizational culture, and organizational structure all have a positive and significant impact on organizational performance. Based on the research's results and inferences, the study recommends that Shemu plc promote teamwork, employee welfare, have a clearly defined work plan, and improve cooperation and employee engagement to improve organizational performance