Business management practice and organizational profitability: Evidence from selected deposit money banks in central area, Abuja

Abstract

The profitability of deposit money institutions in the Central Area of Abuja is increasingly threatened by severe competition, regulatory challenges, and changing consumer needs, requiring good business management strategies to maintain financial success. Although strategic planning is crucial for organisational success, its precise influence on profitability in this context is yet little examined. This study investigates the correlation between strategic planning, a fundamental aspect of corporate management practices, and the profitability of specific deposit money institutions in the Central Area of Abuja. Utilising a quantitative research methodology and a cross-sectional survey design, data were gathered from 93 management personnel across five banks through a prepared questionnaire. Regression study indicated that strategic planning exerts a robust, positive, and significant influence on organisational profitability, explaining 69.6% of the variability in profitability. The results
highlight the significance of strategic planning in augmenting revenue and aligning organisational objectives with market realities. The study indicates that the integration of comprehensive planning at each level of the corporate value chain is vital for attaining continuous profitability. Recommendations emphasise the prioritisation of strategic planning activities to enhance financial performance and tackle operational difficulties within the banking sector.