Impact of purchasing strategies on organizational growth pz industrial plc

Project Abstract

This research project aims to investigate the impact of purchasing strategies on the growth of PZ Industrial Plc, a leading industrial company in the region. The study will explore how different purchasing strategies, such as strategic sourcing, supplier relationship management, and procurement process optimization, influence the overall performance and growth of the organization. By conducting a thorough analysis of the current purchasing practices at PZ Industrial Plc and comparing them with industry best practices, this research seeks to identify areas of improvement and provide recommendations for enhancing the company's purchasing strategies. The research will employ a mixed-methods approach, combining quantitative data analysis and qualitative interviews with key stakeholders within the organization. Quantitative data will be collected through surveys and financial reports to assess the current purchasing performance metrics and their correlation with the company's growth indicators. Qualitative interviews will provide insights into the perceptions and experiences of employees involved in the purchasing process, as well as senior management's strategic vision for procurement. The findings of this research are expected to contribute to the existing body of knowledge on the role of purchasing strategies in organizational growth, particularly in the context of the industrial sector. By identifying the key success factors and challenges faced by PZ Industrial Plc in its purchasing operations, this study aims to offer practical recommendations that can be implemented to drive sustainable growth and competitive advantage for the company. Overall, this research project will shed light on the importance of effective purchasing strategies in driving organizational growth and performance, with a specific focus on PZ Industrial Plc. By understanding the impact of strategic sourcing, supplier relationship management, and procurement process optimization on the company's bottom line, this study aims to provide valuable insights that can inform decision-making and strategic planning within the organization.

Project 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>