Project Abstract

Abstract
The aim of this study is to assess the effectiveness of pricing policy and profit planning in Nigerian organizations, specifically focusing on a performance appraisal of selected manufacturing firms. Pricing policy and profit planning are critical aspects of organizational management, particularly in the manufacturing sector, where pricing strategies directly impact revenue generation and overall profitability. This research will investigate how pricing policies are formulated and implemented in Nigerian manufacturing firms, and the extent to which profit planning practices contribute to achieving financial goals. A mixed-methods approach will be employed, utilizing both quantitative and qualitative data collection methods. The quantitative aspect will involve the analysis of financial data, such as pricing structures, profitability ratios, and budgeting processes, to evaluate the relationship between pricing policy, profit planning, and organizational performance. Qualitative data will be gathered through interviews and surveys with key stakeholders in the selected manufacturing firms to provide insights into the decision-making processes related to pricing and profit management. The study will focus on a sample of manufacturing firms in Nigeria, selected based on their industry ranking, revenue size, and market presence. By examining a diverse range of organizations, the research aims to provide a comprehensive assessment of pricing policy and profit planning practices in the Nigerian manufacturing sector. The findings of this study are expected to contribute to the existing body of knowledge on strategic management in developing economies, particularly in the context of pricing and profit optimization. The anticipated outcomes of this research include a detailed analysis of pricing strategies employed by Nigerian manufacturing firms, an evaluation of the effectiveness of profit planning techniques in achieving financial targets, and recommendations for improving pricing policy and profit planning practices in the organizations under study. The research findings will have practical implications for managers and executives in Nigerian manufacturing firms, offering insights into how pricing decisions can impact overall profitability and long-term sustainability. Ultimately, this study seeks to enhance understanding of the strategic management practices that drive financial performance in Nigerian organizations, with a specific focus on pricing policy and profit planning.

Project 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.