1.0 Introduction
1.1 Background Of The Study
The Nigeria economy got in power till 1986 a highly regulated economy with local, state and federal government owing a large value proportion of the national economy.
However, with the introduction of Structural Adjustment Programme (SAP) in August 1986. The national economy was deregulated and most of the control were abolished while the price mechanisms system or the market force system was introduced to determine the price of goods and services. Before the introduction of the Structural Adjustment Programme (SAP), the purchasing industry, like other sector of the economy was owned largely and controlled by the government.
The sector was dominated by those referred to as the Big four i.e. Intercontinental Company, Africompany, UBA and First Company. However with deregulation of the economy brought about the Structural Adjustment Programme (SAP), many private participants entered the industry. The competition brought by those company offered some basic services some of the service offered by company are receiving deposit of customers, collecting cheques of customers drawn on themselves. From this traditional function developed other services referred to as services purchasing. It is a related purchasing services and now purchasing activities.
A list of services offered by company include acceptance and safe keeping of deposits and other valuable, granting of loans and overdraft to customers, transfer of funds business services foreign exchange services, money creation, cashing credit facility, project financing service funds transfer outside and within Nigeria, letter of credit and foreign currency domiciliary account etc.
Finally, these services benefit both the provide (Company and the receive customers) as well as the economy without them company cannot be in business and the economy will not grow individuals and corporate activities will also be hampered. It is based on these facts that company services become very vital even before the advent of modern purchasing activities.
Paterson Zochoms (PZ) industries limited was incorporated on 4th December 1948, under the name of P.M Nicholas and company limited to take over the soap making activities of Mr. P.B. Nicholas who had some years prior to that data established a factory for that purpose.
Paterson Zochoms itself was incorporated in England in 1884, become a public company quoted in the London and Northern is that o general merchants in activity is that of interest now includes city in Nigeria, Ghana, sierra Leona and textile whole selling in the united kingdom.
In 1957, Mr P.B. Nicholas sold out his interest in the company to P.Z, two years later the company change it name to Alaghon industries limited, and in 1960 adopted the name associated industries 1976, the company change its name to Paterson Zochoms industries limited.
After incorporation in 1948, new factory buildings were erected and modern soap making equipment installed at Aba.
During the years 1967 to 1970, manufacturing operation at the Aba factory was disrupted, and in consequence the company operated in vented premises in Lagos, a factory which enabled it to its customers. The manufacturing buif and equipped factory premises near Logos. The company’s range of products include bar soap and tablet soap perfumery. Cosmetics, confectionery medicaments and pharmaceuticals, all which are distributed throughout Nigeria with butter stock held at strategic centers. The company (P.Z) is well known through its Duck, premier and joy soaps, Rubb ointment, mint super mint pomade, jet hair cream, Venus de Milo rage of cosmetics, Danfulani pomade, Elephant, Apc etc.
All these categories of product must be sold to enable organization attain its objectives that has already been set. It is when consumers are happy with the organization can make the employee happy. The big question therefore is can public relation serve effective as an instrument for attaining the entire corporate objective.
1.2 Statement Of Problems
Investigation revealed the following problem statements:
- To present the level of competition in the purchasing industry calls for strategies that will win the customer over.
- To understand what is purchasing, what are services and how company market their products called services. These are some of the areas this research emphasis much on.
- To identify the ways company can survive and have a sustainable share of market, it must be able to properly and profitable market its products.
- To also understand at the end of this research, why company are struggling to stay afloat in the turbulent business environment.
1.3 Aim and Objectives Of The Study
The aim of the study is to examine the Impact of Purchasing Strategies on Organisational Growth PZ Industrial Plc. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the purchasing strategies employed by company in retaining existing customers and attracting new ones;
- To inquire into the cause of negative perception on the company by the public; and
- To critically examine the various financial services offered by company to measure the effectiveness of the purchasing activities employed by the company also the objective that are intended to be achieved.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Did the post reform competitive create any impact in the purchasing of purchasing services?
- Does purchasing have any negative effect on purchasing services?
- What can purchasing of purchasing services contribute to the development of there industry?
1.5 Statement Of Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H01: Purchasing strategies activities lead to higher profit for an organisation.
- H02: Competition among company lead to better quality of services.
1.6 Significance Of The Study
The research work is in partial fulfilment for the requirement for the award of Higher National Diploma (HND) in purchasing and finance.
The study will help open up the new possible avenue for further researcher, which will help to widen the knowledge of research.
The study will give the researcher as well as the public an insight on the issues, problems and prospect of Purchasing of purchasing in Nigeria.
1.7 Scope Of Study
The scope of this research is focused on the Impact of Purchasing Strategies on Organisational Growth PZ Industrial Plc.
As Anyanwu (2010) point out, a researcher is not expected to cover a discipline in the course of his study in line with this statement, this research work would not cover every thing on this topic, but specially on the relevant aspect of the impact of purchasing of purchasing service and the post reform of purchasing strategies in company services delivery in Nigeria.
This study will examine the various purchasing strategies employed by some selected company. The focus is on Nigeria company and the study does not attempt to do comparative analysis of Nigeria company and company in other countries.
1.8 Limitation Of The Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies:
Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Lack of Initial Cooperation from Respondents:
A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition Of Terms
The researcher employed simple English for easy understanding of the terms phrases few terms can still be defined.
Purchasing Strategies:
Those strategies employed by firms and organisation to attract customer to there product and services.
Arm Chair Purchasing:
This is a period where companyers seat and wait for customers to come and patronize them, they don’t hunt for customers.
Customer Satisfaction:
This happen when the customer is pleased with the various services rendered by the company.
Deregulation:
To allow a particular sector or allow the market forces to determine price in the market or a particular industry.
Purchasing:
This is getting the right goods and service to the right people at the right place at the right time and with the right communication and promotion.
Company:
An institution corporate recognised by a country’s highest monetary authority or government, business is determined by that monetary authority or government.
