This thesis work is designed to basically reveal the inefficiencies that are eminent in the distribution process of the Nigerian Bottling Company; which is the company chosen for evaluation in this study; as there are huge loss of funds and other useful resources. This thesis will further come up with a business process that will be suggested to the company to replace the process presently used in the supply and distribution unit of Nigerian Bottling Company. In recent years, most business organization have not taken a cognizance look into controlling income leakages as a result of excess and unnecessary expense line, poor distribution or operational process development; but has rather concentrated much effort on generating revenue which invariably will in the long run take its course on the business survival.

Hence, it is of vital consideration for a business to put in place working internal and cost controls strategies in order to ensure business survival and maintain competitive presence in the market. Business development does not just results; it takes cognitive efforts on the part of the management team to design working modalities that put the firm on the part of actualizing its business goals and purpose. Effective business process development ensures that there is adequate cost management and cost control tools needed for achieving this aim. (Garcia- Pérez-de-Lema, Strategy for business growth, 2011)

1.1               Purpose of the thesis

This study relates to the business process of Nigerian Bottling Company. It is designed to show the importance of an effective business process model in cost control and cost management in order to ensure business development. In the business world of today, competition has never been more tensed than what is happening in the global market presently; and as such the survival of a business establishment is important in the face of stiff business rivalry in the market place(UniversityofSouthernCalifornia,(http://www.consumerpsychologist.com/intl_Global_Marketplace.html),(http://www.business2community.com/marketing/global-business-competition-dont-get-outmarketed-0439165) . Hence, there is dire need for a business organization to consciously develop its business strategies in order to ensure business survival and profitability both in the long run and also in the short run so as to maintain its existence in the market.

Hence, this research work will give an in-depth analysis of how an ineffective business process model can ruin the chance of a business attaining profitability. The supply and distribution process of the chosen company (The Nigerian Bottling Company) will be used as an example. As a result, this work could serve as useful materials for intending entrepreneurs with the hope of ensuring business success and attain business growth.

1.2               Research Approach

The research approach designed for this thesis is descriptive in nature as the supply and delivery process of the company is critically observed by the researcher and an analytical review of the flaws in the process is adequately carried out on the company (The Nigerian Bottling Company Plc., Lagos) in Nigeria with the hope of obtaining relevant and vital information needed for this research. In the same vein, in order to ensure a successful outcome of this work, the researcher has interviewed some key management staff of the company with the belief of obtaining more realistic responses which will serve as check on the information observed by the researcher.

1.3               Limitation and Scope of the study

The scope of this study involves revealing the importance of effective business process model in cost control and cost management in order to ensure business development and also ensure business profitability both in the long run and likewise in the short run. This is to give us an in-depth understanding about how an effective business process model are relevant in real business problem solution and practicability, considering the dire need for cost control and management in business organizational process development.

Hence, due to time constraints and likewise limited amount of other resources at the disposal of the researcher; the scope of this study is limited to only the corporate Head Office of the company in Lagos and likewise other neighboring depots within Lagos state. Since the business offices of the organization is so large, it is unrealistic to observe all the business processes in all of them and so; the selected branches in addition to the Head Office will be chosen from Lagos only.

1.4               Structure of the study

The structure of this study comprises of five (5) sections as its main parts and these includes the introduction, the theoretical background of the study, research methodology, result and analysis; and finally; discussion and conclusion

The introduction page gives background information about the study. It also explains what arouses the interest in writing this particular topic. This section of the study defines the purpose of the thesis while also explaining the structure of the thesis. The chapter two (2) of this study discusses the relevant literature background of the research work and it clearly defines relevant terms like cost control, business environment, cost management, internal control and so on. The historical background and relevant business information of the case company – Nigerian Bottling Company, is also discussed in this section of the study. The research methodology forms the major part of chapter three (3). This chapter concentrates majorly on the research strategy used in collecting the relevant data. The various data collection techniques were also mentioned, qualitative and quantitative method of data analysis were also briefly explained and not forgetting the various methodological limitation that is present in each of the chosen methods. In a nutshell, this chapter was designed to basically give the readers an overview of the research data collected, how they were collected and what strategies that were employed in the course of the collection. The next chapter, which is chapter four (4) deals with the data analysis and data presentation. Collected data were analysed at this stage and the research hypotheses were also stated. The results observed from the collected data were critically analysed and relevant conclusions were also inferred from the result. The last chapter deals with the observed findings from the collected data, the results were discussed and suggestions and recommendations were made.

1.1               The historical background of the case company

Sevenup Bottling Company Plc, one of Nigeria’s leading carbonated soft drinks CSD) manufacturers, was founded by Mr. Mohammed ElKhalil, a Lebanese, in the year 1959. The company commenced operation on October 1st 1960, which conceded with Nigeria’s Independence Day, with just one plant in Ijora Lagos (now the administrative Head Office). Records showed that, on that same day, a total of 14 cases of sevenup flavor were produced.

The company was quoted in the Nigerian stock exchange and went into public offered in 1984. Through hard work and determination, the company has been able to expand its plants and distributions network to all parts of the country. Its greatest period of growth actually started in the early 80’s with the opening of Ibadan plants (1980), Ikeja plant in 1981, Kano plant in 1985, and Aba plant in 1989.

The acquisition of John Holt soft drinks brought Kaduna plant to lime light in late 1989. The company later opened Benin plant in 1996, Ilorin plant in year 2002, and Enugu plant in year 2002.

The company’s vision statement is to be most admired and innovative company in Nigerian by year 2010”, the mission statement is to fresh and inspire a youthful life style.

The company produces 7up, Pepsi, Mirinda orange, Mirinda soda, Mirinda lemon, Mirinda apple, Mirinda fruity, Mirinda tonic, Mirinda tropical, Teem lemon, and Mountain dew.

Table 1: Analysis of the share capital of the Nigerian Bottling Company

Majority of the share holdings is held by foreign investors comprising of Molino Soft Drinks S.A as its major shareholder with a holding percentage of 55.81% and CCHBC Services Ltd having 10.62% while the general public have about 33.57% holdings.

Table 2: Analysis of the shareholding structure of Nigerian Bottling Company as at 2006 financial year.

The shareholders’ fund has also increased from =N=19.31billion in 2003 to =N=22.81billion in 2007 representing compounded annual growth rate of 4%. After a significant decline in 2006, the total assets of the firm increased from =N=15billion to =N=48billion in 2007. The equity contribution to total assets as at end of 2007 stood at 47.4%, a decline from 13.1% in 2003. The reduction in total assets in 2006 could be as a result of the restructuring exercise embark upon by the company the same year, which invariably resulted in a decline in the leverage level as debt to equity ratio also declined from 70.43% in 2006 to 41.63% in 2007(Nigerian Bottling Company plc., Annual Financial Report for the year ending 2007).

Table 3: Analysis of the capital structure of Nigerian Bottling Company as at 2006 financial year.