COST MINIMIZATION STRATEGIES IN A MANUFACTURING COMPANIES

(A CASE STUDY DE LBN PLC)

PROPOSAL

 

The main purpose of conducting this research is to ex ray the effect of dividend announcement on security prices in order to determine whether the Nigeria capital market is efficient and at what form of its efficiency.

Many searchers have attempted to determine the efficiency from of Nigeria capital market. Empirical results observed from their research has tended to suggest that the efficiency from of Nigeria capital market is weak and others, in the semi- strong form. However very jew have attempted to analyze the  effect of dividend announcement do have impact on stock priles. This observation to the best of my knowledge have not been reasonable or scientifically studied in Nigeria.

Considering the act that Nigeria capital market. Is under development assessing relevant information was discover pain staking there were no easy reliable published data on divided  announcement as it is prevent in other advanced economic like USA limited period of time and unavailability of appropriate research facilities contribute  their quota as hindrance to this research work.

But base on the few available relevant data, decision was made to address this research work on a small sample size and upon securities on the first tier market so that to give dividend announcement in information starting from the ones previously announced. This information will affect the stock prices spontaneously. And at the this research will equally lends credence to the observation that Nigeria capital market is efficient in the semi strong form.

Chapter 1: Introduction

• Background of the Problem
• Statement of the Problem
• Objectives of the Research
• Research Questions
• Statement of Hypothesis
• Scope of the study and Its Delimitation
• Organization of the Report

 

Chapter 2:  Literature Review

• Evolution of the Nigeria Capital Market.
• Major Participation’s in the Nigerian Capital Market
  • The Central Bank of Nigeria
  • Development Finance Institutions
  • Issuing Houses
  • Stockbroking firms
  • Securities and Exchange Commission
  • Stock Exchange
  • Share Registrars
  • Commercial Banks
  • Insurance companies and Pensims / Provident funds
• Dividend
  • Forms of Dividend
  • Factors influencing Dividend Policy
  • Stability of Dividend
  • Relationship between Dividend and Share prices
  • Information content of Dividends
  • Random Walk Theory of Share Price Movements
  • Random Walk and an Efficient Stock Market
  • Varying Degrees Efficiency
  • Week form Tests or Weak form of Efficiency
  • Semi-strong form Tests and semi-strong Efficiency
  • Strong form Tests and Strong Form Efficiency
  • Implications of Efficient Market Hypothesis
  • Empirical Studies of Capital Market Efficiency in Nigeria
  • Dividend Announcement and Capital Market Efficiency.

 

Chapter 3:  Research Methodology

• research Design
• Sources of Primary & Secondary Data
• Population & Sample
• Data Collection Techniques
• Data Analysis Technique
• Hypothesis Test Statistic
• Limitation of Research Methodology

 

Chapter 4:  Analysis and Presentation of Data.

• Presentation of Primary Data
• Analysis and Presentation of Data According to Research Questions
• Analysis and Presentation of Data According to hypothesis.

 

Chapter 5

• Summary of Findings
• Conclusion
• Recommendation
• Suggested Research Work

 

 

 

 

 

 

 

 

CHAPTER ONE

 

 

GENERAL INTRODUCTION

The desire of every national producer is to minimize the resource invested to achieve a desired objective thus at any point in time he should be devising ways of minimizing the  cost of achieving the desired benefit.

This situation is equally relevant to organization of any kind whether profit oriented on nonprofit oriented and therefore make it imperative for every organization especially the profit oriented ones not to stop at controlling the use of resources to conform with established standards but should also  make spirited attempts to continuously minimize cost without impairing the quality of  their  products. The need for manufacturing companies to be conscious of the above need has been magnified by the fact that Nigeria economy is experiencing an era of astonishing rate of inflation despicable how exchange rate requiring reports of grossly low capity utilization and the inter play of some other very powerful extraneous variable which makes the business environment very inclement. These are the cries of mangers. Sectioning through the streets of industry and commerce saying Nigeria is passing through a difficult period, everything possible must be done to every one  in position to do so , to assist the economy in making a quick recovery. One way of heading these glariot calls    by mergers off companies is the adoption of cost minimization strategy aimed at improving efficiency.
1.1     STATEMENT OF PROIBLEM

Some companies embark on cost minimization strategies with full awareness of the benefit obtainable therefrom and therefore give a strong recognition and  support to such strategies. They strive ass much as  possible to carryout  their operations or project at the minimal costs. Therefor we they adopt and implement several strategies or techniques of  minimizing or reducing their cost of operation and or production.  This study will endeavor to find solution to the enumerated problem below as well as others.

• Does LBN minimize cost of production or operation
• How are cost minimization effected?
• What are the strategies or techniques used for cost minimization?
• Is cost minimization a viable means of enhancing the performance of manufacturing firm?
• What are the problem encountered in minimizing cost and ways minimizing  the impact of such problem or possible prevent them.
• How effective are the strategies adopted

 

• RESEARCH QUESTION

To accomplish the objective enumerated above answers are hopefully going to be provide to the following question.

• Does LBN has know cost minimization strategies apart from the generally accepted cost minimization techniques?
• Does the level of employees motivation related to the effectiveness of cost minimization strategy?
• Are the strategies effective?
• What are the problem associated with cost minimization implementations?
• What measures do they adopt to reduce the impact of the problem identified (iv) above?
• What other alternative measure do they adopt?

 

• HYPOTHESIS FORMULATION

In order to made conclusion and recommendation the following hypothesis will be tested.

• There is no significant difference in material costs before and after embarking on cost minimization stately.
• There is no significant difference in labour cost before and after embarking on cost minimization strategy.
• There is no significant difference in overhead cost before and after embarking on cost minimization strategy.

 

• STATEMENT OF PURPOSE

It is a know fact that there are many cost minimization strategies available for adoption by firm and industries. Over the years authorities on costing matters have published dissertation on means and ways of minimizing cost of production or sand operation in manufacturing industries. Theses have  subsequently been recognized by the management of the various enterprise. But the question is how many of these firm put these strategies and techniques into practice?

This study therefore will evaluate some of the existing cost minimization strategies and techniques (if any) as at effects the lever brothers Nigeria (LBN) Plc, the extent of their implementation how effective they are whether they are achieving the goals for which they are adopted as well as analysis their cost benefit to justify their acceance an important and veritable cost monition  tools.

 

• SIGNIFICANCE OF THE STUDY

The finding are recommendation of this study will, no doubt be of immense importance to the management of lever brothers Nigeria (LBN) Plc and will equally go long way to guiding similar firms in the manufacturing industries on the proper cost minimization strategies they should adopt that will be appropriate their daily activities, new mangers and prospective mangers should equally be acquainted with not just the cost  minimization strategies already familiar with but also  one suggested by more experienced mangers which may not be found in textbook.

 

 

 

• SCOPE AND LIMIATION

For the purpose of this study emphasis will be solely placed on level brother Nigeria (LBN) Plc this is influenced by the fact that LBN is the  longest surviving manufacturing grants in Nigeria having been operation since 1923.

It was a general consensus that it was against management policy to give out internal document to any outsider for  any reason unless under special circumstances. Therefore, the analysis will be made based on the questionnaire result fact gathered during interview and discussions as well as personnel observation made during the work.

Finally we are equally limited financially such that we may not cover major network (4) manufacturing sites for its operation spread across the country (Nigeria) we will therefore be concentrate its manufacturing sites at Aba Abia state and the commercial lactation at port Harcourt River state.

 

• ORIGIN AND HISTORY OF LEVER BROTHERS NIGERIA PLC.

Lever brothers Nigeria Plc (Rc 113) is the longest surviving manufacturing outfit in Nigeria. The company was incorporated as a private company in 1923 to manufacturing soaps based on local palm oil. Over the years the company diversifies and expandedits operation to the production and marketing of personal wash  product mainly toilet soaps, non soapy detergents foods and personal predicts including toothpaste, body creams lotion body care hair product. In particular and through selective acquisition the  company has strengthened its froth in foods and personal products through its merger with Lipton Nigeria  Limited in 1988 and lately in 1995 through a merger with unilever Nigeria Limited which a merger with unlived Nigeria Limited which effectively transferred to LBN the stewards business following the recent acquisition of seaward and in order to ensure sustained focus in management the company now has four manufacturing sites for its operations from the original sites viz, Apapa , the primes  and largest site, produces soaps such as sunlight they , Oxbare Luk, Breeze, ife  buoy, and Astral and some personal product mainly tooth past and Vaseline range. The second site Abia is devoted to the production of non- soapy detergent powders and bars. Here, the company makes such popular bran as omo Rin, and ox powder. The third and of the plants. Commission in 1983 is the utra modern foods factory in Agbare where the company production  Royco , Blue Band, plant, lree, lop and Beaden, among others and of course the fourth the organ site where popular personal products  brands like elide, pears, and lotus etc. are produced. It is intended that the company shall consolidate all the personal products production including tooth. Paste, ponds and Vaseline range at this site ultimately,

The company is fully committed to backward integration and self sufficiency and has made considerable progess in its effort towards local souring sad development of raw materials, the tea plantation on the man bill plateau underscores the company unrelenting derive for self sufficiency . the first crop of the end of 1991 and processing factory for the tea leaves has been COMPLETED ON SIT. THE COMPANY HAS ALSO BUTT AT LARGE PLAM KARNEL WILL AT ITS Aba factory  to improve supply vegetable oil essential raw material in soap and edible production. It is also making investment in oil plam plantation in order to improve its local sourcing. Lever brothers Nigeria plc rang of quality products is distributed sad sold at uniform prices all over the country through an established and tested distribution network using appointed distributors, supervised by a well trained sales forces.

The company has direct staff strength of about 2,250 employees in its four manufacturing sites and various distribution points throughout the country of this numbers only five are expatriates. These reflect the extents to which the company has gone at training  and developing management resources? the objective is  to bring in expertrvites who willing and able to work in Nigeria and who will contribute help and train Nigerians. They (expatriate) give LBN and international favour and are in exchange for the company mangers working overseas to obtain international experience. Expatriates are therefore brought into meet the company specific needs. The company also provides indirect employment for over six thousand people.

Lever brothers Nigeria Plc has been decanted to the production of top quality brands for Nigeria for over seventy years

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CORPORATE PLANNING AS A TOOL FOR ACHIEVING ORGANIZATIONAL OBJECTIVES

(A CASE STUDY OF ENUGU STATE WOMEN DEVELOPMENT CENTER)

PROPOSAL

This research work will be based on corporate planning as a tool for achieving organizational objective. Corporate planning is a long –term strategic planning which covers some  periods of years longer than one year and typically embraces 3,5,10 year or even longer than that period. Ian organization, corporate plan   coordinate the affairs of the organization effectively

 

In the curse of doing this we bring about the problems that will arise, the significance, objectives of the study and the limitation and the scope of the study some pimple of the study includes,

 

• Flexibility of corporate planning which will aim at setting corporate objective, clarify policies and stage that will provide the essential frame work for realistic operational planning and budgeting.
• It will also aim at the improvement of senior or top management to their goal congruence.
• It will aim at exposing weakness in the organizational information system and to force improvement which will be made.

The next stage will be chapter two which will deal with hierarchical nature of planning nature of the study and some stage in corporate planning which will entail, considering the best way to move from where organization will future.

This chapter will also explain the importance of the study and the description of the previous   research study.

The next stage which is chapter three will show how research will be design. Data will be collect from both primary  source  of data collection and secondary source  of data collection. Primary source of data will include personal interview and questionnaires, while  secondary   source of already existing data, journals and  text books.

Chapter four, will deal with presentation, analysis will use to determine the population  that will use in conducting our research. The last chapter will include summary of findings, conclusions and recommendation which also bibliography will   be included.

CHAPTER ONE

• INTRODUCTION
• BACKGROUND OF THE STUDY
• STATEMENT OF THE PROBLEMS
• PURPOSE OF THE STUDY
• SIGNIFICANCEOF THE STUDY
• RESEARCH QUESTIONS
• RESEARCH HYPOTHESIS
• SCOPE AND LIMITATIONS OF THE STUDY
• DEFINITION OF TERMS

CHAPTER TWO

• REVIEW OF RELATED LITERATURE
  • DESCIPTION OF PREVIOUS RESEARCH STUDY
  • NATURE OF THE STUDY
  • STAGE IN CORPORATE PLANNING
  • IMPORTANCE OF THE STUDY
  • CORPORATE PLANNING AND BUDGETING
  • COMPUTER IN CORPORATE PLANNING
  • ECONOMIC EFFECT IF CORPORATE PLANNING
  • CORPORATE PLANNING INVOLVE FINANCE

REFERENCES

CHAPTER THREE

• RESEARCH DESIGN
• AREA OF STUDY
• POPULATION OF THE STUDY
• SAMLE AND SAMPLING TECHNIQUES
• METHOD OF DATA COLLECTION
• METHOD OF DATA ANALYSIS

CHAPTER FOUR

4.1       DATA    PRESENTATION

4,2       DATA ANALYSIS

• TESTING OF HYPOTHESIS
• SUMMARY OF RESUKT

REFERENCES

CHAPTER FIVE

• SUMMARY OF FINDIGS
• CONCLUSION
• RECOMMENDATION

BIBLOGRAPHY

Chapter one

• Introduction

11 Background of the study.

Long-term strategic planning is termed corporate planning (c p) and when, it is applied to organizations as long-term plan, it covers periods longer than one year and typically embraces 3,5,10 year or even longer periods.

Moves organizations how been making use of planning  discharge of their objectives but, it seems as the short-term or ordinary plan have been used. Under this it was investigated that this short-term plan could on longer cover most of structured objectives  of an organizations, therefore, the introduction and application of corporate (long-term)planning arrived.

 

In an organizations ,this is implied  so to coordinate the affairs of the organization effectively. Therefore, it could be understand as the formulation,  evaluation, and selection of strategic which involves a review of the objectives of an organizations so as to see the proper display of responsibilities. As most corporate plan is  time consuming, which involves comprehensive statement of all the financial consequences and assumption, it is then necessary that organizations employing (c p)should as well, make use of computer base models. Also, the application of corporate planning in an dynamic  and flexible.

This will enable, reviewing the plan regularly in    anticipation of unexpected events such as sudden loss of large market or source of supply of raw-materials due to a coup or some of technological break through.

 

 

• statement of problem

 Corporate planning  exist in an organization so as to help satisfy the various wants of interest groups. These include the investors., the analysis, the workers and decision makes. It also, meant to satisfy  the present and future objectives. But there are some problems which set back the execution follow:

 

v poor forecast of Relevant Environmental factor: If a firm fails to  put real forecast about important environmental factor, which will include (expected economic, political, social, technological, competitive) and other factor which will effect the organization over the time period of the plan, it will course the organization not to rise to poor assumption about the environmental  factors.

v Lock of corporate planning objectives:

Due to lack of corporate objective or specific objectives necessary for corporate planning it may not be easy to quantify even those factors which may be of qualitative in nature. The objective of plan is the most important aspect of any planning which sieves as guidance to execute the planning.

 

• Lack of strategies:

An organization which doesn’t have an agreed strategies which would help them achieve the objective with time scales carry out their activities or fulfill their objectives within the end of the agreed planning period.

 

 

 

Deride of Divisional/ Departmental plan:

Due to non-existence of divisional plan, it will be very difficult for an organization to operate prefecture, in discharge of the said plan and objective, this is because, the existence of division and departments will support the strategies already set out

 

• Poor financial implication:

This is a crucial section in corporate planning which if doesn’t   have in the system, it will paralyses the operations. In This, it include forecast financial  statistics.(Turnover, capital employed, net Assets employed , profit percentage) etc. In addition, application of funds statement

 

• Inadequate personnel Implication:

If a firm lacks proper personnel  structure, it will also make the operation of corporate plan  ineffective. Personnel implication helps to corporate department plans and thereby enhancing the discharge of objectives effectively without much complication.

 

 

 

• Purpose of The study.

The aim and objective of this study is to examine flexibility and dynamic ways of corporate planning which enables an organization to review the discussed in respect of the study so as to see the impact of the plan:

v Flexibility of corporate planning aim to setting corporate objectives clarify policies and strategies that provide the essential and fraise work for realistic operational planning and budgeting. This objective will  help the organization to carry out its plan creditability.

v Dynamic and flexible of corporate plan has its objective as to coordinate the differing aspect of the organization and help to avoid sub-optimality.

v Having corporate planning as a background, aims at avoiding undue concentration on short-term factors  and facilities, those policies which by their nature are long-term in nature,(capital investment,  acquisition and divestment) career planning and organization restructuring .

Ø The aim of corporate planning is to expose weakness in an organization information system and to force improvement to be made.

v Also, it aims at the improvement of senior or Top management to their goal congruence.

1.4            Significance  of The study

         This study is significant in various ways. it will draw attention to the various organizational structures and relevant of corporate planning which could be compatible in an organization. It will manifest in the area of mangers and supervisors to be conscious of certain factors which may call for a style of plan to be adopt in their organization. Further more, the study will manifest also in an organizational structure and the choice of planning in the management practice of Nigerian managers.

 

Meanwhile,  the study is an added discuss to related issues by some eminent  scholars, some of whose works  are reviewed in the next chapter. It will also sieve as a reference for potential researchers who

may be interested in the same or related topic.

 

• Research Question:

In order that the purpose of this research should be guided, the following research question has been asked:

 

1 Is corporate planning needed in an organization structure?

 

Ii   Did managers need corporate planning in discharge of their duties?

 

iii.  Is there any problem that arises from corporate planning?

 

Iv Does it means that without corporate planning organization could not achieve their aim?

 

1. Did corporate planning an organization lies on corporate planning

 

vii.   Does it required stage in corporate planning?

 

viii. Is there contribution of the personnel in corporate planning?

 

1. Should corporate planning be flexible and dynamic?

 

1. Did corporate planning requires financial implications ?

 

1. Does it need to consider environmental factors before implementing corporate plan?

 

xii.  must corporate planning requires or need computer applications?

 

xiii  Is there any adverse effect in application of corporate  planning ?

 

xiv   Do you agreed that corporate planning involves shoot analysis?

 

1. Did corporate planning relate to budgeting?

 

 

 

• Research Hypothesis.

1. Ho: Fifty percentages of managers do not operate on corporate planning.

 

Hi.  Fifty percentages of managers operates on corporate planning.

 

2. Ho:    corporate planning is not needed in an

organization.

Hi:    corporate planning is not needed in an

organization.

3     Ho: corporate planning has an objective.

Hi:  corporate planning has objective.

 

4    Ho:  Environmental factor is not considered in

corporate planning

Hi:: Environmental factor is  considered in

corporate Planning

 

5. Ho:   There is an adverse effect in application of

corporate planning.

 

Hi:     There is an adverse effect in application of

Corporate planning.

 

6. Ho:      corporate planning did not involve financial

implication.

 

Hi::     corporate planning involve financial

implications.

 

• Scope And Limitations of study

Scope of The study.,

 

Given the geographical area of the study, it is worthy of, that Enugu State Women Development center, operates on the implementation of corporate planning which could also found in other big organizations in Nigeria.

The study therefore, concentrates on what is available and relevant to the topic. To this end, emphasis was laid on the exposure of nature and implementation of corporate planning.

 

• Limitation of study

The validity of the study can be extended to other organization in the same field. But an over stretch  of it to organization which are more modern given the reference of modern technology and the accompanied   good information system, is not guaranteed.

 

However, the application of the principles to the design of organization plan given the influencing factors,  can be extend to any organization or business firm. Mean while, the study is not the fist of its kind, list as it can not be said to be the best among other studies given the factors that the in puts were restricted to the available fields and manilas were scare to locate for the research.

 

Furthermore, lack of finds also contributed to limit the expansion of further application of corporate planning within an organization. In addition, poor statistical data as regards to the study ; also act as a  limitation to the study. The is because, if there is in correct statistical information, to carry out any form of plan could not be effectively done because, it may cause or bring out some short comings with an organization.

 

Definition of terms  

Strategic :  An essential area or situation which need proper focus or consideration.

 

Frame work: That part of a structure that gives shape or support to an object.

 

Adverse: This mean an unfavorable or hostile effect in an organization or firm

 

Planning:   The management function that aims at drawing out line or arrangement for doing thing.

 

Flexibility:  Act of been easily bent or change without damage so as to snit a new conciliation .

 

Dynamic: A physical power and force producing  motion.

 

Effectiveness:   The extent to which the  desired result is realized; frequently compared with efficiency.

 

Organization:  Body or system that comes together as a whole.

Long-term: means lasting for a time ahead which may be above  one year or more.

Department: One of several division of a business   organization or otherwise.

Forecast:    Predict  in advance what is likely to lappen.

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 Account Number:  0117780667. 
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CONTRIBUTION OF BUSINESS SUPPORT SYSTEM TO ENTREPRENEURIAL DEVELOPMENT (A CASE STUDY OF INDUSTRIAL DEVELOPMENT CENTRE, ENUGU)

ABSTRACT

          Contribution of Business support system in entrepreneurial has highlighted its contribution of business support of small scale business and has helped to trance productivity, increase self reliance and employment opportunities.

Support systems like, the Central Bank of Nigeria (CBN), Nigeria bank for commerce and industry (NBC) National Directorate of Employment (NDE), National Economic Reconstruction Fund (NERFUND), Industrial Development Centre (IDC).

These support system and organisation has realty helped in improving the small scale business and has helped to develop entrepreneurial development. In analyzing the research work properly, the researcher analyzed the research chapter by chapter.

Chapter one is all about the introduction of the research of which states the background of the study, significance of study, the scope and limitations of the study and all other organisation and Definition of terms, the researcher used in the research.

Chapter two of this research is reviewing the related literature  of the work that is enhancing the entrepreneurial developments in the country. The relevant of the small businesses to the Nigeria economy, its contributions to entrepreneurial.

Chapter three, of the research is all about the design and methodology of the research that is the design area of the study, population, sampling and sampling procedure, types of data used, location of data, research instruments, procedure of dta gathering, method of data analysis.

Chapter four of the research is about presentation and analysis of data that is how to present the data and analyse all the data collected.

Chapter five, which is the final chapter is about the summary of the researcher findings, recommendation and conclusion of the research works and finally references that was used.

CHAPTER ONE

Introduction                                                         1

• Background of the study 1
• Statement of the study 4
• Purpose of study 5
• Significance of study 5
• Scope and limitation of study 5
• Research questions 7
• Organisation of study 7
• Definition of terms 8

CHAPTER TWO

Review of related literature

• Preamble 10
• Review of definitions 11
• The relevance of small scale business to the Nigeria 16
• Credit schemes for small scale industries 24
• Problems of small scale businesses 33
• The contribution of business agencies in sourcing for entrepreneurial                                                       39
• Support systems and entrepreneurial development 43
• Industrial development centre (IDC) and entrepreneurial development                              54
• The types of support given to (IDC) industrial development centre                              56
• Entrepreneurial development in Enugu state 60

 

CHAPTER THREE 

Design and methodology

• Research design 63
• Area of study 65
• Population 65
• Sample an sampling procedure 65
• Types of data used 66
• Location of data 67
• Research instrument 67
• Procedure for data gathering 68
• Method of data analysis 68

 

CHAPTER FOUR

Presentation and data analysis

• General information 71
• Presentation and analysis of data 72

 

CHAPTER FIVE

Summary of findings, recommendations and conclusion.

• Summary of findings 88
• Recommendations 89
• Conclusion 92
• Suggestion for further research 93

BIBLIOGRAPHY                                                          94

Questionnaire                                                       97

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The goal or desire of any nation is to achieve its economic growth and development. For the Nigeria government, employment provision for all and reasonable development of all localities are certainly not feasible within the limited government structures and establishment. The federal government therefore considers the active participation of the private sector especially at the grass root as the most viable means of achieving the development and job provisions. Hence, in its second and third national development plan, the federal government adopted the policy of giving active support to the promotion and development of small and medium enterprises on the country.

However, are would want to know what entrepreneurial development is all about. According to some writers, especially in the written work of H. O. Amaechina “entrepreneurship concept of small business management”, entrepreneur. So defined as the willingness and ability of an individual to seek out investment opportunities, establish and run the enterprise successfully. Thus entrepreneurship is associated with different kinds of activities that has to do with the establishment and operation of business enterprises. Such activities may include;

1. Identification of investment opportunities.
2. Deciding what opportunities to exploit for profit.

• Promotion and establishment of the business enterprises.

1. Pooling of the various scarce resources needed for production and distribution of good and services.
2. Organisation and management of the human and material resources for the attainment of the objectives of the enterprise, risk bearing and innovation.

On the other hand, entrepreneurial development can be described as the varied programme, and incentives provided by governments and non-governmental agencies aimed at training, promoting and encouraging entrepreneurs toward the attainment of maximum economic returns in any business ventures they embark on.

The importance of entrepreneurial development in the economy aids entrepreneurs to identify a profitability business and how to go about it. It makes the entrepreneur to be aware of how to locate a business. it creates awareness on the area of location and if it can affect their business. Infact, entrepreneurial development helps to avoid business failures.

The small business supports system such as National Directorate of Employment (NDE), Nigeria Bank for Commerce and Industry (NBCI), National Economic Reconstruction Fund (NERFUND), and industrial Development Centre (IDC) are all set up to aid small scale business in the areas of finding development of managerial and technical skills.

Industrial Development Center as one of the small business support systems is set to provide technical services such as;

• Technical advice and assistance regarding the selection of the right machinery, equipment and raw materials for the purpose of setting up the business.
• Assistance in the installation and operation of the machinery.
• On the job training of the artisans in handling of the machines.
• Giving advice an assistance to small industrialists to improve the design and quality of their products.

There are other managerial services which include:

• Training of proprietors and the supervisory staff of small and medium enterprises in modern management methods and practices.
• Supply of economic information needed by prospective investors for making investment decisions.
• Financial counseling
• Organizing seminars and workshops.
• Supply of industrial information
• Feasibility studies and market surveys.

To what extent has this organisation (IDC) achieved these objectives in the support of small scale business is the focus of this research.

 

• STATEMENT OF THE PROBLEMS

It is a general assumption that small – scale business is imperative for national growth and development. It has been emphasized that Nigeria is entrepreneurial under-developed.   

 

1.3     PURPOSE OF STUDY

The nation is experiencing a lot of economic crises such as decline in business activities, unemployment inflation, and mostly the problem of retrenchment. The purpose of this study therefore is to asses the contribution of industrial development center towards the solving of the unemployment crises and the realization of self reliance on the economy.

 

1.4     SIGNIFICANCE OF THE STUDY

The importance of this study is to help small scale business entrepreneurs gain awareness into organisation and institution where they can gain aid in terms of finance, managerial and technical assistance in the attainment of successful business ventures.

 

1.5     SCOPE AND LIMITATION OF THE STUDY

The research project is to cover the industrial development  center (IDC) Enugu, which falls under the Owerri industrial development center zone. The research work has some literature  as regards to time constraint, fiancé dearth of statistical information and secrecy/privacy.

TIME CONSTRAINTS

The researcher did not reach to all information and places necessary for this research work as a result of limited time available for this research work.

FINANCE

          Due to the shortage of financial with the economic hardship, the money needed by the researcher to finance the project was limited.

DEARTH OF STATISTICAL TOOL

          This research study was not sufficient due to improper record system of the board. There was also lack of research facilities from the libraries visited many of the textbooks in the library are absolute and current information needed for this research work are not enough.

SECRECY/PRIVACY

          Some of the staff in industrial development center did not reveal of all information needed fo this research because of far of losing their jobs.

 

 

 

• RESEARCH QUESTIONS

1. Is the performance of small – scale industries dependent on their training?
2. What is your area of coverage?
3. Does industrial development centre (IDC) Enugu have adequate facilities to cover its areas of operations?

 

HYPOTHESIS

1. The performance of small – scale industrial is dependent on their training.
2. Industrial development center, Enugu is having adequate coverage in its areas of operations.

 

• ORGANIZATION OF STUDY

The research titled “contribution of business support to entrepreneurial development center Enugu” has given to small scale enterprises. It is divided into five chapter dealing with specific. Chapter one deals with introduction, which consists of background of the study, statement of problem, significance of study, scope and limitation, purpose of the study, research questions and definition of terms. Chapter two deals with review of related literature  such as review of definition, small scale business, relevance to the Nigeria economy, small scale industries credit schemes problems of small scale business, contribution of government agencies in sourcing information for entrepreneurs, small scale business support system and entrepreneurial development, industrial development center (IDC) and entrepreneurial development.     

Chapter three deals with research design and methodology, which constitutes research design, area of study, data used, location of data, instrument of data collection, methods of data analysis.

Chapter four deals with data presentation and analysis. Chapter five deals with findings, conclusion and recommendations for further studies.

 

• DEFINITION OF TERMS

1. Entrepreneurial development: is defined as the various programmes and incentives provided by governments and non-governmental agencies aimed at training, promoting and encouraging entrepreneurs towards the attainment of maximum returns on any business ventures carried out.
2. Entrepreneurship: Defined as the willingness and ability of an individual to seek out investment opportunities, establish and run an enterprise successfully.
3. Entrepreneur: Defined as an individual who is willing and able to take business risks for gainful poses.
4. Support system: Is defined as organisation or institution designed to give financial, managerial and technical support to small scale business.

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ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

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COMPUTERIZATION AND ITS IMPACT ON ORGANISATION EFFICIENCY (A CASE STUDY OF NEPA, ABUJA)

ABSTRACT

This work is a case study and examine the impact of the computer on the efficient of operation in the National Electric Power Authority NEPA Abuja.

There exist a significant number of authority working on the general subject of the computer and its applications none of these literature  at least in this country, have cared to test practically how the computer effect work operations in an indigenous business especially in public corporation.

This project is an organized effort to break the trend. This study comprises five chapters: –

In chapter one, the problem was defined and the objective of the study was stated.

Some existing and related literature  is examine in chapter two.

In chapter three, research design and methodology, population, sample and method are discussed.

Data presentation and research result will be treated in chapter four. The discussion will cover major contributions and some problem of the computer in the authority under review.

Chapter five summaries findings and based on this findings recommendation will made for future implement. Findings and recommendations will be made based on the various chapter.

There also will be a conclusion based on five chapter as well as suggestion for the research that will be made in the nearest based on the research work on the chapter that are treated will also have to make notes and make  reference cornering various issues discussion in different chapter and bibliography.

CHAPTER ONE

• Introduction 1
• Objective of the study 8
• Statement of problems 10
• Research hypothesis 11
• Scoped and limitation of the study 12
• Definition of terms computer 13
• Notes and reference 15

 

 

CHAPTER TWO

• Review of related literature                                 16
• Erroneous notion of computerization cost to NEPA 21
• Improper guidance and fear of failure o computer in NEPA 22
• Computerizing with bare hands in NEAP 23
• Absence of an adequate methodology in NEPA 25
• Lack of high level sponsorship of computer in NEPA 27
• Seeing computer as a threat to the management decision makers ion NEPA such as the accountant and Auditor.                28
• History of computer and their business uses                          31
• National Electric Power Authority as business entity 35
• Installing a computer based processing system for billing

in NEPA                                                                        38

• The computer 40
• Types of computer 42
• Modes of processing 45
• Historical prospectus of data processing 47
• Conclusion 48
• Notes and reference                                                 51

 

CHAPTER THREE

• Research design and methodology 53
• Notes and reference 55

 

CHAPTER FOUR

• Data presentation analysis and findings 56
• Sources of document the billings of NEPA                            59
• Test of hypothesis 63

 

CHAPTER FIVE

• Summary of major findings, recommendation and conclusion
• Summary of major findings 82
• Recommendations 85
• Conclusion 91
• Suggestion for future research 93
• Notes and reference 94

BIBLIOGRAPHY                                                                   95

CHAPTER ONE

INTRODUCTION

          In this introduction, we will first look at some American great men, who contributed one way or the other in today modern computer.

We will first look at Drucker who proclaimed that man should live in turbulent times. Another of his country man Bernnis has been adventurous as to suggesting that we are witnessing a break with the nowadays traditional bureaucratic style and structures contemporary industrial society.

Tosher’s views that we are living through a period of massive social development.

Computes are currently in use in many companies and organisations, the appliances and administrative activities.

In addition, they are assisting with a wide range of well known applications which at first glance may seen pointless.

Currently the increasing connection exist between in the technology advantages enjoyed by industrialized nations and their intelligent use to computer technology.

The history of development shows that so far no industrialized nations has been able to make it without the use of computers.

It is hardly surprising therefore that even in under developed countries, the use of computer is gradually becoming the rule, rather  than exception.

Most certainty, computer has come to stay and our duty is to embrace it.

The complex nature of decision which that must be taken in today’s industrial set up business and government policies often makes the use of computer mandatory of effectiveness is desired.

The use of computer makes possible the compression of large volumes of data (such as are found in many industrial business and government establishment like (NEPA) into a small storage space.

In storage and retrieval of information are speeded up and can be dated as need arises with the use of computer.

Where records are not speeded and update when due, the information content gradually and becomes obsolete than management decisions would be sub-optional and in effective due to lack of valid data on which to base them.

Similarly, if data on past researched developments effort are computer based and readily available, scientists and engineering would case to waste useful efforts and scare research forms trying to reinvent what unknown to them has already been invented by others.

Available resources can then be concentrated on areas where they are bottle necks to break. In many profession such as law and medicine there is order to deal with the present situation such case studies and references are greatly facilitated when the operational data is computer based.

There are a host of other similar samples. It is not wonder therefore, that managers planners, administrators, security, businessmen and industrialists now feel an urgent need for computers in their respective organisations.

We know that one of the perennial problem confronting both the public and private sector in developing countries is that of absenteeism and low productivity of the work force often. This is imposed by external factors such as the poor and time consuming service obtain able at such vital establishments as banks, post offices and other places where people spent nearly the full working day just to collect money from their bank account are not common, this is the price to pay when such essential services are not computerized.

Absenteeism is very costly to employers of labour, beside imposing a bad pubic image on the absenteeism causes money to be spent on work not done.

Whenever the defaulters are paid their wages and salaries a sizeable amount of that money is actually paid for work not done for the enterprise.

Computerization can remove this wastage guarantee quick service at series point of vital importance to the public and improve productivity.

Such computerization effort often cost far less than the money it would same the general public revenue generation scheme.

Many people evade and some of the tax evaders also try to grab more than their shore of social amenities provided with tax payers money because of their social positions.

Deplorable through this is, many defaulters could not be apprehended owing to the lack of adequate information on taxable adult geared towards easy identification and tracing of evaders.

Computerization can ensure that taxable adult is automatically linked with all this or her taxable assets.

This include wages or salary income from business, fleets of vehicles, house, land rented out to others, market orals and every conceivable sources of income.

The same will be true for commercial enterprises would be traceable and can be made liable to payment. Lack of computerization in an internal revenue generation schedule amidst exploding population is at the moment costing several developing countries millions of naira annually.

Therefore, there is need for computerization especially in the area of management decision making that can cover cost volume, profit analysis, variance analysis and decision under uncertainty.

What of techniques including changing values of parameters subject to certain contracts. It is more convenient to use computer to do recalculations than not, but the emphasis is more on the understanding of the techniques.

The need to understanding an integrated manner complex business making an how it affect and is in trun affected by the market. For instance, how much money should be spent on advertising product plants and machinery, personnel research and development how much money should be spent on advertising one each period of time.

How much that should be borrowed from banks because of the difficulty in controlling the environment. The studies are normally carried out through management decision and business games using singolical models of the economy.

Obviously a computer is needed in order to achieved fast response.

Services offered to customers range from the mostly common ones withdrawn and deposit of  money to less frequent ones of loan approval and repayment and foreign exchange transactions.

For each of these transactions, computers can be employed in maintaining the records, this is more of a benefit to NEPA, banks, NITEL than customers.

That of the benefit to customers concern mainly accuracy in balances and saving time at the counter.

Accuracy can be achieved of the computer is used for aspect of transaction which range from verification at balances and signatures to payment or receipts the money.

Computer do work under their own control, with little or less of operators interventions and therefore can reduce more error from work.

The ability to work under it’s own control ensures that a computer can execute those operations that are in logical series.

Step by step and most routine/clerical work can be reduced to logical sequence.

The National Electrical Power Authority as a public utility is a vast organisation dealing with several banks and financers.

It operation in many areas can be reduced to routine and all such routine process can be reduced and can be handled by the computer.

 

 

 

OBJECTIVE OF THE STUDY

          Let’s us take our country for instance, here we find out that Nigerians are becoming more computer conscious by realizing the benefits it offers.

According to Adekunle Ajogbaje: Comptuer is latest in Nigeria today and will continues to be relevant as the country develop.

It has also gained acceptance in all sectors of the economy, education, health labour and various other. It is gaining popularity and this will even increase with time.

Ben Osisioma said: Nigerians amling economy many be said to be on the way to quick recovery of the present tampon of electronic data processing and office equipment remains.

The increase demand for instant data have resulted in the invention of electronic computer system for processing words.       

          Due to computer increase chance in business methods with result achieved, it is now used cross all areas of human endeavors from the simplest chores to the most complex and complicated operations like:-

Keeping of records of financial transactions, the adaptation of computer to specialist jobs has made their per much more easier.

A computer expert: Mitchell Wardropones: Computer are young, renascent and are made to finite and believe like their creators.

They are changing the world and they are doing mankind to improve them at your peril.

Statistics on computer in Nigeria started as early as 1960 when international business machine (IBM) and international computer limited (ICL) installed their brands at Ahmadu Bello University, Zaria to assist in teaching and research especially in area of mathematics, statistic and agriculture.

The major objectives of the study is to assess the computerized system against the old system in NEPA billing, we want to investigate whether:-

1. The computer has affected employment comparatively in term of phases.
2. The computer introduced has many or any way improved the operational efficiency of the authority with regards to end of the day performance billing errors in bills by NEPA, cash collections, according to services rendered to the consumer etc.
3. To know whether computerized system in NEPA will facilitate the speed and accuracy of processing transactions and reduce customers wasting time and doubts in their payment made.
4. To ascertain whether computer does not reject or correct input mistakes such as entering N2,000 instead of N4,0000.
5. To make recommendation on how to improve the efficiency of NEPA in Nigeria by using computerized system of operations.

 

STATEMENT OF PROBLEM

Data processing is a managerial function aimed at improving the optional attainment of objectives. Computer is a means to an end and an end itself.

The need for computer in processing large masses of data is not in doubt at all what desires consideration are;-

1. Cost verse benefit
2. The extent to which computer should be applied
3. The availability of computerization up and down the line of management.
4. The acceptability of skilled computer personnel to work with computer.

RESEARCH HYPOTHESIS

In order to examine the efficiency of computerization in Nigeria National Electric Power Authority (NEPA).

The following have been formulated:

1. Ho: There has been an increase in the efficiency of NEPA

billing system.

Hi:     There has been a decrease in the efficiency of NEPA

billion system.

2. Ho: Prompt and accurate billing system has contributed in the

revenue generation of NEPA.

Hi:     Prompt and accurate billing system has not been contributing in the revenue generation of NEPA.

3. Ho: That fraud in the present computerized system is feasible.

Hi:     That fraud in the present computerized system is not

feasible.

4. Ho: That computerization has help NEPA to know the number

of points consumed by each customers.

 

Hi:     With computerized system NEPA is unable to know the

number a point consumed by each customers.

5. Ho: Computerization has made it possible for NEPA to trace

defaulters in the payment of NEPA bills.

Hi:     Computerization has not made it possible for NEPA to

trace defaulters in the payment of NEPA bills.

 

SCOPE AND LIMITATION OF THE STUDY

The study covered NEPA operation Head office Abuja. The period for which the study was carried is between 1993 – 2000.

The analysis of the work used only secondary data from the records of NEPA head office at Abuja.

The limitations of the study were inadequacy of statistical records at some branch office nationwide.

Data were lumped together such that it was difficult to use for research.

Limited time and finance also imposed some difficulties

on the research.

DEFINITION OF TERMS COMPUTER

Computer is defined as a machine which extract data from input device performs arithmetic and logical operation in accordance with defined programme and finally transfer processed data to an output device either for further processing or in printed forms such as business documents, schedule or management control report.

1. C. Chukwu said ineffective computerization that:

It can be said to be an electronic gadget that with the aid of human guidance accurately speed up work aids management in decision making.  Or

Computer is an electronic device which is capable of taking in information process it and produce it as an output which can be stored for record purpose.     Or

Computer is an electronic device which works faster than ordinary human brain.

Although a computer has no brain of it’s own to reason like a human being, but has built in memories that enable it perform complex and faster than the human brain.

The Mercian Heritage Dictionary of the English language defines a computer as “a device that computes, especially an electronic machine that perform high speed mathematical or logical calculation or that assembles, store correlates or other wise processes and prints information derived from coded data in accordance with a predetermined programme.

These days most of the work of a computer is done by tiny solid state electronic components called chips.

It can handle millions of items of information, with great speed, accuracy and reliability. The information processing needs have in recent times, greatly the result of the increase in competition among business and of consequent need for faster and nor accurate information for decision making.

This however, have diminished the efficiency and effectiveness of conventional methods (manual and mechanical processing business information).

NOTES AND REFERENCE

The Nigeria accountant:

1. January/March 1992 vol. XXVI No 1 page 8.
2. Anon – specialized application of computers
3. The Nigerian accountant, January/March 1991. vol. XXIV No 1

Page 28.

4. Extract from NEPA hand book – Development of Electricity

industries in Nigeria (1960 – 1985).

5. Quoted in M. A. Tamuro Feberesima Brown. The Nigeria workers and job satisfaction: A study of workers in NEPA (Unpublished Degree thesis university of Port –Harcourt Diode Port Harcourt November 18, 1986).
6. Technology – How if affects us (Awake November 22, 1985 page 4 – 8).

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CAPITAL MAINTENANCE IN A PERIOD OF INFLATION

(A CASE STUDY OF NIGERIAN BOTTLING COMPANY – COCA COLA 9^TH MILE CORNER ENUGU).

ABSTRACT

Political stability in Nigeria has led to a marked improvement in the general operating environment in the country.  Hence capital maintenance is looked into in the period of inflation as the only way out.

The word inflation is not a new phenomenon; it has been experienced by most countries in the world at some stages in their history.  Mere looking at this statement, ones mind will really run to developing countries; but it is history that the UNITED KINGDOM in 1974 when they could no longer sit back and watch inflation ruin them set up the Inflation Accounting Committee with Fianers Sandilands as chairman, to look into the problem.

Since Nigeria’s inflationary trend is monetary, prices have been rising because many people including the government have been spending it.  This is to say that uncontrolled inflation can dislocate the economy and can cause social upheaval.  As such, this may create havoc if left uncontrolled.

CHAPTER ONE

• Introduction 1

1.1     Statement of the problem                                              10

• Objective and Purpose of Study 11
• The Research work hypothesis 13
• The scope and limitations of the study 14
• Definitions of terms 16

 

CHAPTER TWO

• Literature Review 18

2.1     Historical Background                                         18

• Capital 21
  • Capital accumulation structure 23
• Inflation 25
  • Types, causes and effect of inflation 26
  • Inflation and asset choice 30
  • Inflation, taxation and corporate decisions 32
• Capital maintenance and profit determination 46
• Accounting and Inflation 52

 

CHAPTER THREE

• Research Design 70

3.1     Sources of data                                                    70

• Method of data analysis 72
• Area of study 75

 

CHAPTER FOUR

• Analysis and Interpretation of data 76

4.1     Data presentation                                                 76

 

CHAPTER FIVE

• Summary, Recommendation and Conclusion 91

5.1     Summary of findings                                            91

• Conclusion 93
• Recommendation 94

BIBLIOGRAPHY                                                          97

QUESTIONNAIRE                                              99

CHAPTER ONE

 

INTRODUCTION

The word inflation is not a new phenomenon; it has been experienced by most countries in the world at some stages in their history.  Mere looking at this statement, ones mind will really run to developing countries; but it is history that the UNITED KINGDOM in 1974 when they could no longer sit back and watch inflation ruin them set up the Inflation Accounting Committee with Fianers Sandilands as chairman, to look into the problem.  Even the almighty UNITED STATES OF AMERICA went through it sometime in sixties before they come to present economic stability.  So, one will not be surprise when countries like ours and some other like the Asian countries and even Latin American countries are mentioned as suffering from this CANKER WORM called inflation.

There are so many definitions on inflation.  Solow (1979), for instance, sees inflation as going on when one need more and more money to buy some representative bundle of goods and services, or a sustained fall in the purchasing power of money.  It is a sustained rising trend in the general price level or put in another way, it is a high and persistent rise in the price level.

Inflation is a rise in the general level of all goods and services.  The general price level thus varies inversely with the purchasing power of a unit of money.  For example if prices double, purchasing power decreases by one-half.  If prices halve, purchasing power doubles.  Therefore, inflation is also a reduction in the purchasing power of a unit of money.  The opposite of inflation is deflation.

 

TYPES OF INFLATION

• Demand – Pull Inflation: This type of inflation takes place when aggregate demand is rising while the available supply of good is becoming increasingly limited. It is induced by excessive demand not matched with increases in supply.
• Cost-Push Inflation: this occurs when prices increases because factor payment to one or more groups of resource owners rise faster than productivity or technical efficiency. Typical forms of cost-push inflation are wage-push, profit-push and commodity.
• Hyper–Inflation: Hyper-Inflation occurs when the price level rises at a very rapid rate.

Causes and Control of Inflation in Nigeria

Causes: There are several causes of inflation in Nigeria.

• Excessive money supply caused by ineffective monetary and fiscal policy.
• Fall in the supply of goods and services especially agricultural product causing demand to rise and price to rise as well.
• Budget deficit or government expenditure programmers is a major cause of inflation in developing nation. Too much expenditure by government can cause inflation.
• Too much importation of goods and services can cause inflation especially in developing nation.
• An increase in population can put more pressure on the little goods and services thereby price will rise.
• The activities of the middleman in the distribution of goods and services can also cause severe inflation in our economy.
• Excessive demand by consumers and higher production cost also can cause inflation.
• Monopolistic practices with respect to production, importation and distribution of certain essential commodities can cause inflation.
• Increase in wages and salaries, and competitive attempts by various economic and social groups to increase their share of the “national cake” can also cause inflation.

Control

• The setting of price control board by the government of fix maximum prices changed for certain commodities is one way of controlling inflation but experience shows that this system does not work.
• Monetary policy is another way of traditional monetary instruments to reduce the quantity of money in circulation. The techniques applied include:
  • Increase in the bank or discount rate;
  • Increase in he liquidity ratio;
  • Use of open market operation OMO) and all special directives
  • Fiscal policy: This entails an increase in personal income tax reduction in government expenditure.
  • Total ban on the importation of certain items may help to control inflation especially when such inflation is imported.
  • The production of more goods and services in an economy may also help.
  • The control of wages increase or wage freeze will help to control inflation.
  • There is need to overhaul the entire distribution networks to control inflation in an economy.

INFLATION IN NIGERIA

One of the major causes of inflation in Nigeria has been the various government policies to stimulate a fast rate of economic growth and development since independence.  In recent years, however, specific policy like:

SAP: external debt policies, policies on subsidies on petroleum product and fertilizer, policies of privatization and commercialization, policies on trade liberalization and responsible for the inflationary trend in our economy.

Before the SAP, inflation in Nigeria, was cursed primarily by using world export price and falling output.  These are major external factor contributing to Nigeria inflation.  Thereafter, domestic or internal causes like increasing government expenditures, rising domestic credit creation and supply bottlenecks such as shortage of raw materials and spares parts worsened the situation.  There is need therefore, for monetary policy reform, exchange rate reform, effective price and wage policy, and fiscal policy reform, to solve the problem of inflation in Nigeria.

But for the purpose of this research, inflation according to Samuelso (1976) is a time of generally rising prices for goods and factors of production, rising prices for head, cars, haircuts, rising wages, rent, etc.  Inflation has assumed a great deal of political, social and economic significance that goes along with it.  The political and social effect apart, the economic impact cannot be over emphasized.  One of the most disturbing aspects of this to companies and their managers is its effect on capital maintenance.  By companies we mean those publicly owned those whose capital must have been sourced through the money market.  CAPITAL!! This is name that has failed to agree with the word INFLATION right from the world go.  While the managers are busy managing and trying their best to maintain the capital entrusted in them, the inflation on its part is busy disobeying and eroding the value of the capital being handled and sub squally increased by managers.

One school of thought has argued in favour of inflation base on its benefits.  But they were proved wrong based on the long run effect of such advantages.  This could be illustrated thus:

Supposing a company with a capital base of N4million incurs expedition of say N200,000 to make a profit of N50,000 after tax.  Again, supposing in the next ten years more due to inflation their profit rose to N1million surely, workers salaries will have to be increased or they would seek for the increase by force since every other factor of production reward has increased.  Like wise intense or dividends.  The government will not be left out in the their share of the “national cake” by the time the company tries to meet all these demands of all these interest groups; they may be left with nothing to their credit.  Meanwhile the asset i.e. machines plants, building, etc. have in one way or the other won out.  And the company might not be able to replace them or even repair them despite the huge profit recorded.  This is the handwork of inflation.  At this juncture, if the manager involved does not take time, he might be in deep shit.  And this is where the problem lies.

The question of maintaining capital in a period of inflation in manufacturing companies has become relevant, mostly in the recent past.  Capital may simply be defined as “Money” which is invested from a lay man’s point of view.  But in the real sense, it encompassed the working capital, real assets like building, machines, plants and even vehicles used in the business.  It is still embarrassing that even the accounting profession have not postulated up till now.  Hence the researcher has to investigate capital maintenance in a period of inflation with NIGERIA BOTTLING COMPANY PLC ENUGU makers of COCA COLA and other soft drinks.  The researcher is interested in finding out how his multinational company6 which is highly equipped and mechanized has been able to remain at the top through out all this inflation any period from the 1970’s and at the same time maintaining its capital (Nigerian situation being as critical as it is with the value of Naira depreciating every day, now at the rate of about N138.00 to $1.00 as against some 85 –7 pence to $1.00 as it used to be in the 60s.

For convenience, this research is organized into five major chapters: chapter one deals with general overview of the study;  chapter two centers on literature review it is the work of previous authors on the subject matter of inflation and capital maintenance.  Chapter tree treats the research procedures; chapter four is devoted to source of data and analysis as well as the hypothesis testing.

Finally, chapter five deals with summary of the work, conclusion and recommendation.

 

 

 

• STATEMENT OF THE PROBLEM

Capital being the life wire of an organization has been defined by many authors from the perspective of their discipline but a business profit making organization (manufacturing concern in this case), it includes their working the liquid cash manufacturing and official buildings, machines, reserves, loan capital and even share capital as equity.  Growth of this chapter should be the ultimate aim of both the managers and the owners of the business and even the creditors and investors.  But this aim is not easy to come by even in a small scale industry to talk of a multination manufacturing company like “Nigeria Bottling Company” especially during inflation.

Sequel to the above statement, the outline problems of this research are:

• Companies have difficulties in pooling the adequate volume of capital from different sources.
• During inflation, the companies also have difficulties in maintenance of real asset in terms of problem of choosing an adequate depreciation method.
• Companies encounter some difficulties in measurement of profit and maintenance of profit and maintenance of reserve to the tune of inflation.
• The government taxation policies during inflation also have some adverse effect on the manufacturing companies.

 

• OBJECTIVES AND PURPOSE OF THE STUDY

It is very pertinent and clear that not company director and manager will pilot the affairs of their companies for a whole accounting period only to pay their debt and dividends from their capital.  It is very unheard of at least the owners (shareholders) will not fine it funny.  This fact therefore necessitates the importance and relevance of the subject matter.

The objectives of this study is to:

• Find out how manufacturing companies gather their required volume of capital from different sources during inflation (ie internal and external sources) and the impact of this inflation on the different cost of the different sources of capital.
• For the company to keep going, assets have to be replaced or maintained whether inflation or not. This research will find out how these assets are being maintained during inflation, the concepts and depreciation method adopted during the period.
• The researcher is also determined to find out the impact of government taxation policies and tax rates on the profit and capital maintenance of the companies during inflation.
• It is also the interest of the researcher to find out these manufacturing companies, the techniques and methods they adopt in the maintenance of their reserves and measurement of their profit so as to beat the situation of inflation. This include their assets revaluation policies and dividend policies.

The above stated objectives will enable the researcher to unravel some of the underlying mysteries surrounding the subject matter, to give an understanding of the situation and finally, to proffer a constructive solution and recommendation which might be a lasting solution to the problem of “capital maintenance during a period of inflation” that was why he chose a multi-national company like coca-cola, which in its capacity would be able to help the researcher in his study.

 

THE RESEARCH WORKING HYPOTHESIS

To guide the research to have a clear insight into the topic “capital maintenance during inflation and enable him make a dependable discovery and draw a helping conclusion and hence render his recommendation accordingly.  The following working hypotheses have been formulated.

Hypothesis 1

          Null hypothesis (h1)

Inflation has affected the maintenance of capital in manufacturing comprises manufacturing companies reserves and profits cannot be measured adequately during inflation.

Alternative hypothesis (H0)

Manufacturing companies reserves and profits can be measured adequately during inflation.

Hypothesis 3

Null Hypothesis (H0)

Taxation (minimum taxable income) affects inflation rate significantly.

 

• THE SCOPE AND LIMITATION OF THE STUDY

The scope of this research work centers on Nigeria Bottling Company Enugu, of all the manufacturing companies in the country.  It covers the major sectors of the company’s operations such as, production maintenance, and accounting.  The research also covers information from place like the National Library and State Library and I.M.T. Library all in Enugu.

The researcher encountered some problems, amongst these problems are:

• Some find it very difficult to part with some information which they consider confidential. This was the case until the researcher produced a letter form the school duly signed by the head of department before they could grant research work.
• Another constraint which the researcher encountered was gathering materials for the literature review. This was not easy as he has to travel from time to time to the centre of study and the libraries and schools mentioned above.
• The uncooperative attitude of the company in the earlier stage as regards to the questionnaires did not help matters. And also to get some date like their published accounts of different dates, to enable the required compassion was not an easy task.  But all in all,  this work will be success which is the most important thing.

 

 

 

• DEFINITION OF TERMS
• Bond: a note, which represents a prosing to pay its holder a fixed amount at various times in future

(ii) Capital: Most commonly refers to net worth in some situations the term refers to owner’s equity.

(iii) Capital Maintenance: This means the replace of the enterprise’s resources used up or consumed in the production of goods and services.

(iv) Debenture: It is a long term investment that is usually secured by mortgage on a specific properly.

(v) Debt: This is payment which must be paid to somebody, institution or country.  it creates an obligation.

(vi) Dividend: It can be defined as any part of profit distributable to share holders in form of cash or otherwise.

(vii) Equity Fund: The contribution made by the owner and refrained profit in a company.

(vii) ED: Exposure draft.

(ix) Government: A body that governs the affairs of the people in a definite territory.

(x) Inflation: This can be defined as a persistent rise in price of goods and series without a corresponding increase in production.

(xi) Investors: They are individuals, companies and cooperation who commit the resources with the sole aim of receiving in return higher benefit.

(xii) Monetary Items: This means cash accounts, note interests, etc. payable or receivable in a specific number of Naira or other current units.

(xii) Profit: This is simply the growth of capital value over time.

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