ABSTRACT
This research work is aimed at An Evaluation of cost Reduction Techniques in Achieving Profitability in an Inflated Economy with particular reference to Nigerian Breweries plc, this work examined the following:
-To find out how effective, the resources of Nigerian Breweries PLC are being utilized to improve profitability. To know of cost reduction scheme are being applied in the industry.
-To find out the specific strategies adopted, the level of application and the specific areas where they are being administered their evaluation.
-To ascertain whether there is a systematized cost reduction schemes/programme under the personnel and or accounting department. An Evaluation of cost Reduction Techniques in Achieving Profitability in an Inflated Economy.
These are the areas that the researcher concentrated while carrying out this research work. The first chapter is the introductory part of the research work. This chapter also contains the background of the study, statement of problems, research Question etc.
Data for the study was sourced from two main sources which include Primary and Secondary sources of data collection.
Primary data: Questionnaires and oral interviews were used to collect information from the respondents.
Secondary data: Journals, magazine and other relevant materials relating to the area of my investigation will be review.
Extensive literature review was carried out on direct literature and indirect literature on books, journals and past works. The research instrument used in this study includes oral interview and questionnaire. The questionnaire is structural as to contain both close and open ended question. Simple tables, pie-charts and percentages were used in treatment of data while chi-square was used in the research work. Based on the findings, conclusions were drawn and recommendations were also made in the last chapter of this work which is the fifth chapter.
CHAPTER ONE
INTRODUCTION
For a business to succeed, knowledge of certain management, techniques is very 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 aggravated by triple 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. It is the view that most industries do not have approved they exist, are not well organisation.