This study was motivated by the unstable economic climate pervading the country presently, its our belief that no meaningful result can be expected in terms of survival in any organization, establish strategy for coping with the dynamic trend of the economy and the periodic appraisal of such strategy for update purpose.
This project shall in summary attempt to look at Eleganza from within and try to see what system operates there that is still keeping them in business and how such business could be improved upon if the need arise. We shall highlight some of the defects inherent in the present system. Attempt shall be made to recommend alternative to such defects.
The project was given a broad introduction and some limitations were encountered which did not in any way, deter us from getting to the end of this project/study. We looked into necessary texts to see “what ought to be against what is”.
We appraised some of the relevant sections of such texts by citing them in the project.
We equally gave a brief but clear history of origin and operations of Eleganza. There we found out “what is” in reality
We also analyzed as much as possible all our findings at the company in attempt to recommend for the company.
The implications of our result findings were given and recommendations made as per what we judged appropriate strategies.
Suggestion from further research was also made.
TABLE OF CONTENTS
- Background of the study
- Statement of the problem
1.3 Purpose of the study:
- Scope of the study:
- Research question:
- Research hypothesis:
- Significance of the study:
- Limitations of the study:
- Definition of terms:
- The problems of organizational change:
- Forces causing change:
- Purpose and objectives of Management change
- What should be changed:
- The processes of managing change:
- Advantages of managing change:
- The new economic policy:
- Selecting and developing appropriate strategies:
- Specifications of objectives:
- Brief history of Eleganza industries (Nig) Ltd:
- Growth and Expression of its business activities:
- Extent of business activities
- Distribution Network
- Research design:
- Areas of the study:
- Population of the study
- Sample and sampling procedure/technique:
- Instrument for data collection:
- Validity of the instrument:
- Reliability of the instrument
- Method of data collection:
- Method of data analysis:
- Presentation and analysis of data:
- Test of hypothesis
- Summary of result
- Discussion of result findings
- Implications of research findings
- Suggestion for further research:
- BACKGROUND OF THE STUDY
According to Edward. H. (1976: p.146) he said that “the wind of the scientific management advocated by the Pioneers F.N. Taylor and his followers did not end at the factory where most of them were concerned mainly with the ultimate increase in productivity to the shared advantages of both the management and the workers”. He maintained that these early theories of scientific management were, however, influenced by the demand of the business environment as at that time: (a period of product scarcity)
However, Taylor and his men realized that the era of product scarcity should one-day end, a new era of product saturation and abundance would open up. This phenomenon because evident in the 1950’s and early 1960’s when most countries of the world experienced industrial revolution which brought about change in the world of industries. A change that had to be skillfully managed for industrial survival.
Although, this engendered more complex problems and challenges to the business enterprises and required the employment of more sophisticated approaches for solution, consequently, firms under one industry searched for all available innovative means to discharge the best in terms of services and production to their customers and to control a large portion of the market share. One of the strategies used to achieve this was the introduction of concept of “buy now pay later” which is technically known as credit grant.
Just like every stimulus exerts certain reactions, the result of management’s action sets forth a chain of “changes” in style. It is therefore the management of these changes that this study attempts to examine analyze and make some recommendations within the cost thirty-six months, a number of measures introduced by the government to bring the national economy back to its proper alignment have now become history, and there is no doubt that most of these measures have in one way or the other brought about change to the economic misfortunes of some companies as the case may be.
Prior to 1986, most manufacturing companies depended mostly on raw materials derived from foreign countries which were being purchased with the impart licensing system and the operation of L.C (letter of credit). This system was changed in 1986 with the introduction of second-tier foreign exchange market (SFEM) which definitely gave way to the single foreign exchange market which now makes it possible for individual and corporate bodies to purchase their foreign exchange directly, subject to the federal government stipulated conditions. One of the objectives of foreign exchange market is to establish a more realistic exchange rate for Naira. This was also a change.
There was also a change decreed by the federal military government in its 1987 budget speech, among others, aimed at making the economy self-reliant, and ensuring the abolition of the impart licensing system, the customers and exercise tariff with expert promotions and deregulation of the economy in other to uplift manufacturing capacity utilization.
In 1998 fiscal year, the foreign trade and exchange policy measures provided that the policy of guided deregulation introduced in 1995 be continued in 1998. in this regard, it is necessary to emphasis that with the abrogation of foreign exchange control act 0f 1962, all exchange restriction shall contain subject to minimum transaction shall continue while available foreign exchange is expected to be channeled to the productive sector. The implementation of this change brought about cost escalation without a corresponding increase in the purchasing power of the consumer. The income level remained stagnant. Competition for sell became more intensive. It seem reasonable at this time to assert that the economy become one where the consumer is “king.” In other wards, he has the final decision utilize his money where he believes that the value of the product is the optimal value of his money.
The introduction of second-tier foreign exchange market in the last quarter of 1986 as part of the on-going adjustment programmes (SAP) by the federal government appeared to be a silver lining in the sky, was however, to present its cloud. First was that it took a long time for its modalities to be understood by the whole people concerned including the Nigeria Banking System? The same problem was also encountered when the autonomous foreign exchange market (AFEM) was introduced in 1989. Consequently, it still took a long time for goods to arrive after the foreign exchange has been purchased from the market. This again was another change that needed to be managed using appropriate strategy for the survival of the industries.
The rumbles that rocked the financial institutions in 1994 head to the promulgation of failed band and other financial institutions tribunal in 1996 again brought about another changes that affected the industries. Again, the rate at which foreign exchange was being procured at the autonomous foreign exchange market brought about an inevitable rise in the prices of raw materials and consumer goods. With the purchasing power of consumers limited due to the wage freeze and strategy aimed at curbing inflation, manufacturers were faced with low demand for their products. This has meant the on-going low capacity utilization and subsequent pressure on the industrial relation. This also was a change that needed to be managed by the use of appropriate strategies like control on operating cost, improved productivity optimal efficiency and most importantly, planning operation generally.
Furthermore, local sourcing of raw material as a step towards reliant economy has also being part of changes that had affected industries and the economy at large. The future of most industries lie in their ability to source for their raw materials locally. A good example is brewing industries, which the government decreed that from 1988 purchase raw materials from foreign countries. This was also another change.
Finally, the introduction of computer in most companies in Nigeria in the mid. 1990s, which affected the industries in the areas; its relationship with its employees, productivities, services etc was equally a change. All these change, which must be managed effectively in order to survive, have instigated and aroused my interest to carrying out this research.
- STATEMENT OF PROBLEM
The most enormous and current problem facing industries is the government order that manufacturing companies will hence forth, source their raw materials locally and on rare bases import at straggling high prices. This policy one will ague, is only another phase in the overall policy of substitution, which has been in integral part of government macro-economic policy in the last forty-eight years.
It will be useful if we analyze various phases of the policy. The first was the introduction of the concept of import substitution whereby companies that engaged in the importation of finished goods were obliged to set up local production units but the multinationals that were engaged in these activities were allowed to import machinery, technology, capital, personnel and materials.
The indigenization policy by which the ownership of equity in some companies were transferred to Nigeria without a conducive environment for effective operation is also a problem and the second stage. The directive of the federal government to the industries to source for their raw materials locally is the third phase.
The forth phase is likely to deal with the question of machinery and plant configuration. We have not seen any government intention on the matter but one can conceive given the trend shown from phase to three that government may well be thinking of a total indignization of the production process and the replacement by Nigerian made machine of existing imported ones, can then be seen as a good final phase of the policy of substitution or indigenization. It is in fact, a matter of predicate/reality as to whether or not the government adopt the policy but the most important thing is to recognize the fact that it poses threat if introduced and the management has the responsibility to use appropriate strategies for its management or overcome it when it arises or has the option to allow the company fie. This is an issue this project will address.
- PURPOSE OF THE STUDY
The principal purpose of this study is to find an effective management strategy for Eleganza Industries Nig. Plc. under a depressing economy. Among other things, the purpose of this study are ;
- To find out the difficulties management daces today in terms of planning and decision-making in the company.
- To identify changes that are currently taking place and producing difficult conditions for companies in our environment and in Eleganza Industry in particular.
- To identify the effect of political instability in the country on the performance of Eleganza Industry.
- To evaluate the adequacy of the strategies in use by Eleganza under dynamic business environment.
- To deduce an appropriate strategy for Eleganza for the management of change under a dynamic business environment.
- SCOPE OF THE STUDY
Change is a very sensitive issue especially when it comes to its management. It is very sensitive and delicate in the sense that any mistake could mean a big mis-fortune for the company or may even bring about the death of the company and it is on this sensitivity of change that this project will extensively enumerate appropriate strategies for the management of change especially in an unstable economy.
Scope of the study. Continued for effective conduct of this study, the researcher has decided to use Eleganza Industries (Nig) Limited as his case study since it is one of the biggest manufacturing industries in Nigeria.
- RESEARCH QUESTION
- Do changes in business environment affect the policies of Eleganza industries (Nig) Limited?
- Does management face difficulties in planning and decision-making in the company?
- Does political instability in the country have effect on the performance of Eleganza industries?
- Does the strategies adopt by the company enable the company to achieve its corporate objectives.
- RESEARCH HYPOTHESIS
Ho: The changing business environment have effect on the policies of industry.
Hi: The changing business environment do not have effect on the policies of industry.
Ho: The strategies adopted by the industries enable the industries to achieve its corporate objective.
Ho: The strategies adopted by the industries do not enable the industries to achieve its corporate objective.
1.7 SIGNIFICANT OF THE STUDY
This work provides an insight into the effect of various changes in government policies that have affected Eleganza Industry Nigeria Limited. This work exposes and calls for attention given all the adverse contributions of these changes to the proper growth and development of the company.
The timing of this problem couldn’t have been of any importance to the company considering the foregoing problems enumerated in terms of the current economic frustration and instability. The significance of the study is made more obvious now that economic instability may compel management to take drastic decision as per strategies for survival, which of course unknowingly be suicidal to the company. The significance of this project could be justified on the above stated problems of facts.
This work will be beneficial to the following group: They are;
- The management of other manufacturing industries might as well apply the result of this study in managing their own business more effectively.
- The policy making arm of government who might after going through this work, will now come to appreciate the problem associated with these policies they make and therefore be more considerate in the type of policies they make.
- Fellow students and for researchers who may find this work useful for further investigations.
1.8 LIMITATIONS OF THE STUDY
There is no rule that stipulates what strategies will be appropriate or otherwise in a depressed economy. In the case of the above anticipated obstacles and limitations, this research work has been limited or restricted to a case study of one of the leading manufacturing industries in the country.
I had the problem of gathering information from the company. In some cases, they were not available, there was fear on the side of the officers on whether or not to give me the required information and sometime said “it is against our company policy to do that”. It was also a difficult thing because the management staffs were spoken with.
Time was another limiting factor. As lectures, term papers, assignments, quizzes, project and even examination run concurrently, I found it difficult to above average of the time to project alone at the detriment of others.
In spite of the above limitation, however, they were seen as challenges faced as a step to a qualitative project work and did not in any way affect the project quality. The success of this work was paramount to me and occasions did I compromise.
1.9 DEFINITION OF TERM
Strategy is a military term used in leading an army but for the purpose of this project strategy is looked into from the business perspective. According to Agbo. (2000, p.38), he defined strategy as “a general programme of action an a deployment of emphasis and resources towards the attainment of the overall objective:.
As a process, management is defined as the process of doing things in an organization. This process if basically the combination and utilization of organizational resources towards achievement of the common organizational objective. It is the process combining and utilizing or of allocating organization input (Man, material, money/machine) by planning, organizing, directing and controlling for the purpose of producing output goods & services directed by customers so that the organizations objective are accomplished (Akpala, 1990: 3)
Change means to alter ones attitude or principle to make things other than it has been (Frank & Wegnalls: 1976)
An organization is defined as two or more people who work together in a structured way to achieve a specific goal or set of goals. (Stoner & Freeman : 1992. p.2)
Agbo O.G (2000) Small Scale Business Management,
Enugu, Iyke Venture
Akpala .A. (1990) Management: An Introduction and the
Nigeria Perspective, Enugu Precision printers
Edward .H. (1976) Credit Management handbook, Epping
Essex, Bowker Publishing company Ltd.
Frank and Wagnalls. (1976) Standard Dictionary Epping
Essea, Bowker publishing company Ltd.
Federal Government of Nigeria 11 1998 Budget
Breakdown “Business Time”, January 20, 1998. p.17
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