Impact of purchasing strategies on organizational growth pz industrial plc

Thesis Overview

<p> <b></b></p><p><b><b>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1Background of the study</b></p><p><b></b></p><b><p>The Nigeria economy got in power till 1986 a highly regulated<br>economy with local, state and federal government owing a large value proportion<br>of the national economy. However, with the introduction of Structural<br>Adjustment Programme (SAP) in August 1986. The national economy was deregulated<br>and most of the control was abolished while the price mechanisms system or the<br>market force system was introduced to determine the price of goods and<br>services. Before the introduction of the Structural Adjustment Programme (SAP),<br>the purchasing industry, like other sector of the economy was owned largely and<br>controlled by the government. The sector was dominated by those referred<br>to as the Big four i.e. Intercontinental Company, Africompany, UBA and First<br>Company. However with deregulation of the economy brought about the Structural<br>Adjustment Programme (SAP), many private participants entered the industry. The<br>competition brought by that company offered some basic services some of the<br>service offered by company is receiving deposit of customers, collecting<br>cheques of customers drawn on them. From this traditional function developed<br>other services referred to as services purchasing. It is a related purchasing<br>services and now purchasing activities. A list of services offered by<br>company include acceptance and safe keeping of deposits and other valuable,<br>granting of loans and overdraft to customers, transfer of funds business<br>services foreign exchange services, money creation, cashing credit facility,<br>project financing service funds transfer outside and within Nigeria, letter of<br>credit and foreign currency domiciliary account etc. Finally, these<br>services benefit both the provide (Company and the receive customers) as well<br>as the economy without them company cannot be in business and the economy will<br>not grow individuals and corporate activities will also be hampered. It is<br>based on these facts that company services become very vital even before the<br>advent of modern purchasing activities. Paterson Zochoms (PZ) industries limited<br>was incorporated on 4th December 1948, under the name of P.M Nicholas and<br>company limited to take over the soap making activities of Mr. P.B. Nicholas<br>who had some years prior to that data established a factory for that<br>purpose.Paterson Zochoms itself was incorporated in England in 1884, become a<br>public company quoted in the London and Northern is that o general merchants in<br>activity is that of interest now includes city in Nigeria, Ghana, sierra Leona<br>and textile whole selling in the united kingdom.In 1957, Mr P.B. Nicholas sold<br>out his interest in the company to P.Z, two years later the company change it<br>name to Alaghon industries limited, and in 1960 adopted the name associated<br>industries 1976, the company change its name to Paterson Zochoms industries limited.After<br>incorporation in 1948, new factory buildings were erected and modern soap<br>making equipment installed at Aba.During the years 1967 to 1970, manufacturing<br>operation at the Aba factory was disrupted, and in consequence the company<br>operated in vented premises in Lagos, a factory which enabled it to its<br>customers. The manufacturing buif and equipped factory premises near Logos. The<br>company’s range of products includes bar soap and tablet soap perfumery.<br>Cosmetics, confectionery medicaments and pharmaceuticals, all which are<br>distributed throughout Nigeria with butter stock held at strategic centers. The<br>company (P.Z) is well known through its Duck, premier and joy soaps, Rubb<br>ointment, mint super mint pomade, jet hair cream, Venus de Milo rage of<br>cosmetics, Danfulani pomade, Elephant, Apc etc.All these categories of product<br>must be sold to enable organization attain its objectives that has already been<br>set. It is when consumers are happy with the organization can make the employee<br>happy. The big question therefore is can public relation serve effective as an<br>instrument for attaining the entire corporate objective.<b></b></p><b><p><b></b></p><b><p><b>1.2 STATEMENT OF THE PROBLEM</b></p><p><b></b></p><b><p>i. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To present the level of<br>competition in the purchasing industry calls for strategies that will win the<br>customer over. </p><p><b>ii. &nbsp; &nbsp; &nbsp; &nbsp; <br></b>To understand what is<br>purchasing, what are services and how company markets their products called<br>services? These are some of the areas this research emphasis much on.<b></b></p><b><p><b></b></p><b><p><b>iii. &nbsp; &nbsp; &nbsp; <br></b>&nbsp;Ways company can survive and have a<br>sustainable share of market, it must be able to properly and profitable market<br>its products.<b></b></p><b><p><b></b></p><b><p><b>iv. &nbsp; &nbsp; &nbsp; &nbsp;<br></b>&nbsp;To also understand at the end of this<br>research, why company are struggling to stay afloat in the turbulent business<br>environment.<b></b></p><b><p><b></b></p><b><p><b>1.3 OBJECTIVE OF THE STUDY</b></p><p><b></b></p><b><p>The<br>objectives of the study are;</p><p>• To examine the purchasing strategies employed by company in<br>retaining existing customers and attracting new ones. </p><p>• To critically examine the various financial services<br>offered by company to measure the effectiveness of the purchasing activities<br>employed by the company also the objective that are intended to be achieved.</p><p>• To inquire into the cause of negative perception on the<br>company by the public.</p><p><b>1.4 RESEARCH<br>HYPOTHESES</b></p><p><b></b></p><b><p>For<br>the successful completion of the study, the following research hypotheses were<br>formulated by the researcher; </p><p><b>H0:</b>there is no purchasing strategies employed by company in<br>retaining existing customers and attracting new ones</p><p><b>H1:</b>there is purchasing strategies employed by company in<br>retaining existing customers and attracting new ones</p><p><b>H02:</b>there is no cause of negative perception on the company by<br>the public.</p><p><b>H2: </b>there is cause of negative perception on the company by the<br>public.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.5 SIGNIFICANCE OF<br>THE STUDY</b></p><p><b></b></p><b><p>i. The research work is in partial fulfillment for the<br>requirement for the award of Higher National Diploma (HND) in purchasing and<br>finance.<br>ii. The study will help open up the new possible<br>avenue for further researcher, which will help to widen the knowledge of<br>research. <br>iii. The study will give the researcher as well<br>as the public an insight on the issues, problems and prospect of Purchasing of<br>purchasing in Nigeria.</p><p><b>1.6 SCOPE AND LIMITATION OF THE STUDY</b></p><p><b></b></p><b><p>As Anyanwu (2010) point out, a researcher is not expected to<br>cover a discipline in the course of his study in line with this statement, this<br>research work would not cover everything on this topic, but specially on the<br>relevant aspect of the impact of purchasing of purchasing service and the post<br>reform of purchasing strategies in company services delivery in<br>Nigeria. This study will examine the various purchasing strategies<br>employed by some selected company. The focus is on Nigeria Company and the<br>study does not attempt to do comparative analysis of Nigeria Company and<br>company in other countries.There is no human successful endeavour without<br>constraints. The limitation for this study include: <br>Financial and time constraints which restrained<br>free movement round the study areas in order to make adequate interviews,<br>observation and assembling of secondary data. The uncooperative attitude<br>of some staff and customers of the selected company by withdrawing information<br>needed. The uncooperative attitude of some staff and customers of the selected<br>company by withdrawing information needed. If we lack the secondary data<br>required for this works it will make the research work difficult.</p><p><b>1.7 DEFINITION OF<br>TERMS</b></p><p><b></b></p><b><p>The researcher employed simple English for easy understanding<br>of the terms phrases few terms can still be defined. </p><p><b>Purchasing Strategies</b>: Those strategies employed by firms and organisation to<br>attract customer to their product and services. <br><b>Arm Chair<br>Purchasing</b>: This is a period where<br>companies seat and wait for customers to come and patronize them, they don’t<br>hunt for customers. <br><b>Customer<br>Satisfaction</b>: This happen when the<br>customer is pleased with the various services rendered by the company. </p><p><b>Deregulation</b>: To allow a particular sector or allow the market forces to<br>determine price in the market or a particular industry. <br><b>Purchasing:</b>&nbsp;This is getting the right goods and service to the<br>right people at the right place at the right time and with the right<br>communication and promotion. <br><b>Company:</b>&nbsp;An institution corporate recognised by a country’s<br>highest monetary authority or government, business is determined by that<br>monetary authority or government. </p><p><b>1.8<br>ORGANIZATION OF THE STUDY</b></p><p><b></b></p><b><p>This research work is<br>organized in five chapters, for easy understanding, as follows</p><p>Chapter<br>one is concern with the introduction, which consist of the (overview, of the<br>study), historical background, statement of problem, objectives of the study,<br>research hypotheses, significance of the study, scope and limitation of the<br>study, definition of terms and historical background of the study. Chapter two<br>highlights the theoretical framework on which the study is based, thus the<br>review of related literature. Chapter three deals on the research design and<br>methodology adopted in the study. Chapter four concentrate on the data collection<br>and analysis and presentation of finding. <br>Chapter five gives summary, conclusion, and recommendations made of the<br>study<b></b></p><b><p><b></b></p><b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b><br> <br><p></p>