ABSTRACT
The research work aim to study the evaluation of cost reduction techniques is achieving profitability in an inflated economy with particular reference to Nigerian Breweries Plc and to find out how effective, the resources of Nigerian Breweries Plc are utilized to improve profitability. This research work has five chapters.
Chapter one contains a general discussion of cost reduction as seen by different people. It went further to state the problem to be studies
and why this study was carried out, the scope and limitation for the study and finally the proposition and the definition of terms.
Chapter two reviewed related literature as it relate to costs, concept and definition of cost reduction.
Chapter three deals with the design of the study the method used in collecting relevant data. It also deals with way the questionnaire were distributed and the treatment of data.
Chapter four, showed data gotten from the research survey. its analysis and interpretation.
Finally, the summary of findings, conclusion on the research and recommendation made by the researcher are all in chapter five.
CHAPTER ONE
INTRODUCTION
For a business to succeed, knowledge of certain management, techniques is ver necessary.
Mastering the techniques that can help one to achieve the basis objectives of building up a business and making it profitable,
1.1 BACKGROUND OF THE STUDY
The aim of all production is to satisfy peoples wants, however in carrying out this production, certain costs are incurred I order to achieve the stated organisational objective be it to satisfy peoples wants according to Hanson J. L to maximizes profit. For any business to achieve it s set objective there have to be adequate, strong and effective cost reduction measures (formal or informal) which should be adopted.
The effectiveness of the these measures however may have heaped some of these companies to still remain in business irrespective of the hash condition like inflation among others.
Many Nigerian business establishments presently, especially the manufacturing sectors are in serious profit squeeze. A number of factors account for this into ward condition which include, the increasing cost of running business in Nigeria, drastic fall in Nigerian foreign exchange market did not help matters. The situation is further aggravate by tripple digit inflation present in our (Nigeria) economy. The structural adjustment programme, ban on importation of certain basic raw materials, payment of long excise duties have caused some companies either to have closed indefinitely or produce at high cost, thereby making even the local goods high and sale volume low.
All have result in poor profit margin payout, retrenchment, compulsory leave and retirement with or without benefit which invariable affects the company as well.
Firms therefore are struggling to maintain satisfactory pay-off where costs are using and o price increase becoming more and difficult to sustain. To maintain earnings in the face of thee conditions, there is the need for these companies to make decision with regard to cost maintenance culture, increase productivity to enhance profitability and diversification into a complete new market area.
In addition to these, it will enhance competitive ability and generate reasonable profit margin for survival, growth and expansion of the business.