Project Materials

IMPACT OF PURCHASING STRATEGIES ON ORGANISATIONAL GROWTH PZ INDUSTRIAL PLC

Chapter one

Introduction

1.1 Background of the Study

Until 1986, Nigeria’s economy was heavily controlled, with the local, state, and federal governments accounting for a sizable share of the national economy. However, with the implementation of the Structural Adjustment Programme (SAP) in August 1986.

The national economy was deregulated, and most controls were eliminated, while the pricing mechanism or market force system was implemented to decide the price of products and services.

Prior to the implementation of the Structural Adjustment Programme (SAP), the purchasing industry, like other sectors of the economy, was mostly owned and controlled by the government.

The sector was dominated by the “Big four,” which included Intercontinental Company, Africompany, UBA, and First Company. However, with the liberalisation of the economy brought about by the Structural Adjustment Programme (SAP), several private players entered the industry.

The rivalry fostered by various companies provided certain fundamental services. Some of the services provided by the corporation include receiving customer deposits and collecting customer checks drawn on themselves.

From this basic duty arose new services known as service purchasing. It is a linked purchasing service, as well as current purchasing activities.

Acceptance and safekeeping of deposits and other valuables, granting 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, and so on are among the services provided by the company.

Finally, these services help both the provider (Company) and the recipient (clients) as well as the economy; without them, the company cannot be in business, and the economy cannot flourish, affecting individuals and corporate operations.

Based on these facts, firm services became increasingly important even before the introduction of contemporary purchasing operations.

Paterson Zochoms (PZ) Industries Limited was created on December 4, 1948, under the name P.M Nicholas and Company Limited to take over the soap producing business of Mr. P.B. Nicholas, who had constructed a plant for that purpose several years before. Paterson Zochoms was founded in England in 1884 and has since become a public business quoted in London and Northern.

The company’s activities today encompass cities in Nigeria, Ghana, Sierra Leone, and textile wholesale in the United Kingdom.

In 1957, Mr P.B. Nicholas gave out his investment in the company to P.Z, two years later the company change it name to Alaghon industries limited, then in 1960 adopted the name associated industries 1976, the company change its name to Paterson Zochoms industries limited.

Aba saw the construction of new production structures and the installation of advanced soapmaking equipment following its incorporation in 1948. Manufacturing operations in the Aba factory were halted from 1967 to 1970, but the company functioned in vented premises in Lagos, allowing it to serve its clients.

The production building and well equipped factory premises near Logos. The company’s offerings include bar soap and tablet soap fragrances. Cosmetics, confectionary, medicaments, and pharmaceuticals are delivered throughout Nigeria, with butter stock stored at strategic locations.

The firm (P.Z) is well-known for its Duck, Premier and Joy soaps, Rubb ointment, Mint Super Mint Pomade, Jet Hair Cream, Venus de Milo cosmetics line, Danfulani pomade, Elephant and Apc.

All of these product categories must be sold in order for the organisation to meet its previously established objectives. When customers are satisfied with an organisation, it can make employees happy. The big question is, can public relations be effective as a tool for achieving the overall corporate goal?

1.2 Statement of The Problems

i. To present the level of competition in the purchasing industry calls for strategies that will win the customer over.

ii. To comprehend what purchasing is, what services are, and how companies market their service-based products. These are some of the issues that this study focusses heavily on.

iii. In order for a firm to exist and maintain a sustainable market share, it must be able to promote its products effectively and profitably.

iv. By the end of this research, you will understand why companies are fighting to stay afloat in a difficult business environment.

1.3 GOALS OF THE STUDY

• To assess the purchasing methods adopted by company in retaining existing clients and gaining new ones.

• To critically review the numerous financial services given by company to measure the success of the purchasing activities utilised by the organisation also the objective that are intended to be reached.

• Investigate the source of the public’s poor image of the company.

1.4 RESEARCH QUESTION.

1. Did the post-reform competitive environment have an impact on the purchasing of services?

2. Does purchasing have a negative impact on purchasing services?

3. What may purchasing of purchasing services help to the development of there industry?

1.5 Statement of Hypothesis

• Purchasing strategy actions result in increased profits for an organisation.

• Competition among companies leads to higher quality services.

1.6 SIGNIFICANCE OF THE STUDY

i. The research work fulfils a portion of the requirements for a Higher National Diploma (HND) in purchasing and finance.

ii. The study will help to open up new avenues for future researchers, thereby broadening research knowledge.

iii. The study will provide insight to both the researcher and the general public into the concerns, problems, and prospects for purchasing in Nigeria.

1.7 SCOPE OF THE STUDY

As Anyanwu (2010) points out, a researcher is not expected to cover a discipline in the course of his research. In accordance with this statement, this research work will not cover everything on this topic, but will focus on the relevant aspect of the impact of purchasing services and the post-reform of purchasing strategies in company service delivery in Nigeria.

This study will look into the various purchasing strategies used by a specific company. The study focusses on Nigerian companies and does not seek to compare them to companies in other nations.

1.8 Limitations of the Study

There is no effective human activity that is free of restrictions. The limitations of this study include: Financial and time constraints limited free travel throughout the study sites in order to conduct enough interviews, observation, and secondary data collection.

Some of the selected company’s employees and customers are uncooperative, withholding necessary information. Some of the selected company’s employees and customers are uncooperative, withholding necessary information. It will be impossible to conduct research if we do not have the necessary secondary data.

1.9 Definition of Terms

The researcher used plain English to make the concepts and phrases easier to understand. A few terms can still be described.

Purchasing techniques: The techniques used by businesses and organisations to attract customers to their products and services.

Arm Chair Purchasing: During this time, firm employees sit and wait for consumers to come and patronise them, rather than actively seeking them out.

consumer Satisfaction: This occurs when the consumer is satisfied with the numerous services provided by the organisation.

Deregulation is allowing a certain sector or market forces to determine market or industry prices.

Purchasing is the process of delivering the right goods and services to the right people in the right place at the right time, using the appropriate communication and promotion.

A company is a corporate institution that has been recognised by a country’s highest monetary authority or government; its business is determined by such authority or government.