Thesis Abstract

Abstract
This study aims to investigate the effectiveness of pricing policy and profit planning in Nigerian organizations, with a focus on selected manufacturing firms. Pricing policy and profit planning are critical aspects of financial management that directly impact the performance and sustainability of businesses. In the context of the Nigerian manufacturing sector, which faces various challenges such as fluctuating exchange rates, inflation, and market competition, understanding the relationship between pricing strategies, profit planning, and overall organizational performance is crucial. The research will adopt a mixed-methods approach, incorporating both quantitative and qualitative data collection methods. Quantitative data will be gathered through financial reports, accounting records, and performance indicators of the selected manufacturing firms. Qualitative data will be obtained through interviews and surveys with key personnel involved in pricing decisions and profit planning within the organizations. By triangulating data from multiple sources, this study aims to provide a comprehensive assessment of the pricing policies and profit planning practices in the selected firms. The analysis will focus on evaluating the alignment between pricing strategies and organizational goals, assessing the impact of pricing decisions on profitability, and identifying the challenges faced by Nigerian manufacturing firms in implementing effective pricing policies and profit planning strategies. The findings of this study are expected to contribute to the existing body of knowledge on financial management practices in the Nigerian context and provide valuable insights for practitioners and policymakers. The implications of the research are significant for Nigerian organizations, particularly in the manufacturing sector, as they strive to improve their financial performance and competitive position in the market. By enhancing their understanding of pricing policy and profit planning, businesses can make informed decisions that optimize revenue generation, cost management, and overall profitability. This study also highlights the importance of continuous monitoring and evaluation of pricing strategies to adapt to changing market conditions and ensure long-term success for organizations in Nigeria. Overall, this research seeks to shed light on the effectiveness of pricing policy and profit planning in Nigerian manufacturing firms, offering practical recommendations for enhancing financial performance and strategic decision-making in the dynamic business environment of Nigeria.

Thesis Overview

One of the most crucial operating decisions management must make is establishing a setting price for its products but this is quiet unfortunately that many firms are  still mismanaging pricing causing lots of money and anticipated profit to be unexplored and wasted.
However in explaining the importance of pricing, Egbunike (2007:83) sustained that setting the price for an organizations product or service is one of the most difficult, due to some number of variety of factors that must be considered. The primary decision arises in virtually all types of organization, just to mention but a few of them such as manufacturers set prices for their products, they manufacture, merchandising companies set prices for their goods, service firms set prices for such services as insurance policies, bank loans etc.
A company’s survival and profitability depends upon its pricing decisions, thus price is the only element in the marketing mix that produce s revenue and thus ensures profit ability (kotler and keller 2006:475) Price adopted by firms must be able to cover all cost in the long run as well as to leave a profit margin to reward management.
The Price of a Product has a direct relationship with many operations of the firm’s activities. A price decision will affect demand and this in turn affects the revenue generated by the firm. Similarly, a firm which makes profit has the propensity of attracting more new capital. This shows that the public has confidence in the ability of the firm to yield return to them. So, the performance of management is usually measured by the amount of revenue it generates to satisfy the share holders of the organization.
It is evident that management has a big responsibility before them in setting and adopting the most advantageous pricing policy and the most effective profit plan for their firms, since prices are not set arbitrarily therefore management must focus on all the important factors in setting its price. Thus, it has become imperative to investigate the effectiveness of pricing policy and profit planning in Nigerian organizations.