Project Materials

PROCEDURES AND PROBLEMS OF INTERNATIONAL PURCHASING IN NIGERIA ECONOMY

ABSTRACT

This study project aims to investigate the procedures and difficulties of foreign purchasing in the Nigerian economy. I felt it important because this research topic is unique to Nigerian industry, and environmental practice research was conducted on Stallion Motors in Port Harcourt, which was used to generalise the project objectives.

Chapter one

INTRODUCTION

1.1 Background of the Study

In today’s economically challenging environment, both importing and exporting organisations face challenges, whether through increased competition in terms of product differentiation, price, and services, or through changes in political, legal, economic, and social regulations, or through the development of new technology and information techniques.

There are problems that a good purchasing and supplier management must address and use profitability to maintain its position as a planner and adviser.

In other terms, what is purchasing? Purchasing is a managerial process that involves more than just purchasing things; it is also the department in charge of ensuring that materials and services are given at the lowest possible cost while maintaining acceptable quality.

In that scenario, our main issue is international purchasing, which is the act of acquiring products from other countries that you are unable to obtain economically in your home country.

The procedures for overseas purchasing comprise identifying the need and final receipt of the items by the user department. This comprises all of the steps that must be completed before the final stock is delivered. In this research, we will analyse the methods and issues associated with foreign purchasing in the Nigerian economy.

The procedures and challenges associated with international purchasing in Nigeria. A case. Stallion Motors Ltd Port Harcourt Case Study.

This study is conducted out in a well-known company that has similar features to represent others known as stallion motors limited. Port Harcourt Kia Motors, which is owned by Stallion Motors Limited, was formed in 1944.

Previously, it was an automobile manufacturing. Kia Motors is South Korea’s second largest automobile manufacturer, having sold more than 18 million vehicles in 2010.

The world Kia is formed from Korean terms meaning “to arise to the world out of Asia” with its headquarters in Seoul, the firm is partially owned by the Hyundai Kia Hyouny-Keun (Hank) Lee heads the company’s global operations from the headquarters in Seoul.

Kia Motors America and Kia Motors Europe operate the North American and European arms, respectively. Kia has concentrated on the European market since 2005, identifying “design as its core future growth engine,” which led to the employment of Peter Schreyer as Chief Design Officer in 2006 and the subsequent production of a new corporate grille known as the Tiger Nose.

As of November 2010, it has 42,000 employees across its content businesses, including stallion motors limited Port-Harcourt (Kia Motors).

1.2 Statement of the Problem

This study attempts to investigate the fundamental issue associated with overseas purchasing in our economy. The problem consists of the following:

i. Price fluctuations are always predetermined.

ii. Arbitration issues and legal procedures

iii. There is no purchasing department, and the purchasing officer is not a professional.

iv. Insufficient information to assist in the procurement of raw materials and goods.

v. Government policies or laws and regulations governing international business and

vi. Language issues, etc.

1.3 GOALS OF THE STUDY

This study is intended to assess the procedures and issues surrounding foreign purchasing in the Nigerian economy. The study’s aims are:

– Determine the methods/processes used by the company when importing from abroad.

– Determine the challenges the organisation faces while purchasing internationally.

– To investigate the nature of international purchases in our economy.

– To understand the challenges that organisations face while purchasing internationally.

1.4 Significance of the Study

The significance of the study includes the following:

a. The purpose of this study is to help the researcher understand the relevance of research and its benefits.

c. It is also intended for the award of higher national diplomas.

c. The study will assist a company’s management in determining the efficacy of purchasing professionals in terms of organisational profitability.

d. It is intended to comprehend how the constraints that some companies confront throughout the purchasing process have contributed to the expansion of the Nigerian economy, notwithstanding the difficulties that importing companies face.

1.5 RESEARCH QUESTION.

a. Is your organisation having trouble obtaining vehicles from other countries?

b. Does the government impose any legal restrictions on your imports from abroad?

c. Does your company employ a clearing officer or agent?

d. What challenges do you face when clearing cargo at the port?

e. Do you have a qualified purchaser in charge of the purchases?

1.6 Statement of Hypothesis

Hypothesis I.

Hi: The corporation has constraints while importing from outside.

Ho: The corporation faces no limits while importing from outside.

Hypothesis II.

Hello: Legal limits affect the company’s ability to carry out foreign purchase effectively.

Ho: Legal constraints do not impede the company’s ability to conduct effective international purchasing.

1.7 SCOPE OF THE STUDY

This study focusses specifically on the methods and issues of international purchasing in our economy. In other words, these studies would have covered all companies or industries in our economy, but due to various factors and the researcher’s level, they were limited to stallion motors in Port Harcourt.

1.8 Limitations of the Study

As a student, the researcher encountered numerous constraints while doing the study, including:

a. Financial restrictions.

c. Seasonal weather.

C. Lectures

d. Lack of appropriate materials

FINANCIAL CONSTRAINTS: As a student, the challenge is related to transportation and food. Due to fuel scarcity and distance, it was difficult for me to transfer from school to the firm.

Seasonal weather Another limitation of this study was the seasonal condition or weather, as it was difficult for me to go outside in the rain at times, especially with heavy rain falling every day.

LECTURES This is another issue; the time I spent attending my classes could have been spent at this company.

Lack of adequate materials This also posed a limitation to the investigation.

1.9 Definition of Terms

The research terms are defined as follows:

PURCHASING: (Business) actively purchasing products, especially for a firm.

ECONOMY: The relationship between production, trade, and the supply of money in a given country. You are thinking about a country’s economic system.

PROCEDURES: A means of doing things, especially the normal or correct manner; an official or formal order or method of doing things, particularly in business, law, or politics.

Importation is the act of bringing a commodity or service from one country to another. A commodity or service imported from another country.

QUOTA: An act of lowering the volume of commodities brought into the country. This is a mechanism by which government agencies limit the quality of goods and services that an international buyer or seller can bring into and out of the country for economic reasons.

ARBITRATIONS: This is a circumstance in which two parties have a disagreement and a third party (the Arbitrator) steps in to settle the conflict.

SOURCING: The identification and development of appropriate sources of supply.