The Effect Of Marketing Information System In Performance Of Small And Medium Scale Enterprises ( A Study Of Foodco Nigeria Limited)

CHAPTER ONE 

  • INTRODUCTION

Marketing information system is the process of gathering information to learn about something that is not fully known. It is also includes all the data, in terms of facts opinions, views, guideline and policies which are necessary to make vital marketing decisions, the data is collected from customer. Competitors company sales forces and other staff. Government sources specialized agencies and sources.

Marketing information system provide relevant reliable and required information in respect of business environment both internal and external environment. And it is vital for successful decision making. Marketing information system helps to recognize marketing trends. The changing trends may be in respect of prices, product, design packaging promotion schemes etc and managers can take effective decision in respect of price, product, design etc. in response to changing trend in the environment.

Marketing Information System help achieving the organization decision making in every aspect of marketing, there is need to make constant correct decision properly designed, marketing information system promptly supplies reliable and relevant information, with the help of computers and other data processing equipment. The marketing managers can make the right decision at the right time.

Marketing information system provides marketing intelligence of the events that are happening in the external environment. E.g. changing in customer taste, expectation, competitors’ strategies, government policies, international environment with the help of marketing information system organization specialist.

It is possible to collect marketing intelligence which is vital to make effective marketing decision.

Marketing information system facilitates marketing planning and control. It required in terms of product planning, pricing, promotion and distribution. Such planning will be possible only if the company is possessing adequate and relevant information objective.

Marketing information system organization take quick decision for the purpose, it requires fast flow of information which is facilitated by a properly design. Marketing information system timely supply of marketing information management can make quick and effective decision.

TABLE OF CONTENT

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENT

 

CHAPTER ONE

  • INTRODUCTION
    • BACKGROUND OF THE STUDY
    • STATEMENT OF THE PROBLEM
    • OBJECTIVES OF THE STUDY
    • RESEARCH QUESTION
    • SIGNIFICANCE OF THE STUDY
    • SCOPE OF THE STUDY
    • LIMITATION OF THE STUDY
    • DEFINITION OF TERMS

 

CHAPTER TWO

  • LITERATURE REVIEW
    • INTRODUCTION
    • DEFINITION OF MARKETING INFORMATION SYSTEM
    • CONCEPT OF MARKETING INFORMATION SYSTEM
    • INFORMATION SYSTEM
    • COMPONENTS OF MARKETING INFORMATION SYSTEM
    • THE NEED FOR A MARKETING INFORMATION SYSTEM
    • ORGANIZATION OF MARKETING INFORMATION SYSTEM

 

CHAPTER THREE

  • RESEARCH METHODOLOGY
    • INTRODUCITON
    • RESEARCH DESIGN
    • SOURCES/METHODS OF DATA COLLECTION
    • POPULATION AND SAMPLE SIZE
    • SAMPLE TECHNIQUE
    • VALIDITY AND RELIABILITY OF MEASURING INSTRUMENT
    • METHOD OF DATA ANALYSIS

 

CHAPTER FOUR

  • PRESENTATION AND ANALYSIS OF DATA
    • INTRODUCTION
    • PRESENTATION OF DATA
    • ANALYSIS OF DATA
    • INTERPRETATION OF RESULT

 

CHAPTER FIVE

  • SUMMARY, CONCLUSION AND RECOMMENDATION
    • INTRODUCTION
    • SUMMARY OF FINDINGS
    • CONCLUSION
    • RECOMMENDATIONS

REFERENCES

APPENDIX

 

CHAPTER ONE 

  • INTRODUCTION

Marketing information system is the process of gathering information to learn about something that is not fully known. It is also includes all the data, in terms of facts opinions, views, guideline and policies which are necessary to make vital marketing decisions, the data is collected from customer. Competitors company sales forces and other staff. Government sources specialized agencies and sources.

Marketing information system provide relevant reliable and required information in respect of business environment both internal and external environment. And it is vital for successful decision making. Marketing information system helps to recognize marketing trends. The changing trends may be in respect of prices, product, design packaging promotion schemes etc and managers can take effective decision in respect of price, product, design etc. in response to changing trend in the environment.

Marketing Information System help achieving the organization decision making in every aspect of marketing, there is need to make constant correct decision properly designed, marketing information system promptly supplies reliable and relevant information, with the help of computers and other data processing equipment. The marketing managers can make the right decision at the right time.

Marketing information system provides marketing intelligence of the events that are happening in the external environment. E.g. changing in customer taste, expectation, competitors’ strategies, government policies, international environment with the help of marketing information system organization specialist.

It is possible to collect marketing intelligence which is vital to make effective marketing decision.

Marketing information system facilitates marketing planning and control. It required in terms of product planning, pricing, promotion and distribution. Such planning will be possible only if the company is possessing adequate and relevant information objective.

Marketing information system organization take quick decision for the purpose, it requires fast flow of information which is facilitated by a properly design. Marketing information system timely supply of marketing information management can make quick and effective decision.

  • BACKGROUND OF THE STUDY

The essence of this research on this particular topic is to know the importance of marketing information system in the achievement of organization objective. No meaningful decision is made without information and therefore information is a data that have been processed, interpreted and understood by the recipient of the message. This success of any organization is rooted mostly around the amount and quality of information they get. May scholars believed that to manage a business well is to manage its future is to manage information. For that we now look at the importance of information:

  1. Information tend to cover various areas of marketing operational areas.
  2. information will keep organization aware on what is happening in the labour market for that reason, must specialized areas of management have their professional information system, especially with the advent of computer technology in the 1950’s which makes it easy to transmit information directly from the operating level to the highest authority without obstructing from point. We now define organization as a combination of people or individual effort purposes called organizational goal. Marketing information system (MIS) consist of people, equipment and procedure to gather, sort and analyze, evaluate and distribute accurate, timely and pertinent information. Differently put, it is an orderly procedure for the regular collection of raw data both internally and externally and conversion of these data for marketing decision. Data is regularly collected, they are continually dated as environment condition changes. The data are converted into useful information e.g. sales figure may be translated into a plan of production in the coming week or for increasing or decreasing the budget for production. Manufacturing organization performance revolves around those types of information and management information that will emphasis on information system as it influence effective performance in the manufacturing organization.
    • STATEMENT OF THE PROBLEM

Observation has proved that for an organization to function very well and for it to have dynamic and flexible outcome of production, it depends largely on the proper use of marketing information system to minimize risk and about failure in manufacturing organization. The essence of this study is to show the relevance of (MIS) to marketing and in facilitating decision making of marketing and also to determined the extent to which it has enable planning, control and operation all functions of an organization planning requires marketing information system, the marketing have to retrieve information accurately from difference reliable sources to enhance quality decision making marketing information system aid the reception.

That most organization don’t have effective information system and if they have their information are not effective as to its role towards goal objective attainment. Most marketers are governed by institution and judgment as to what cause of action to follow in their planning and decision making function many of them as a matter of facts don’t make use of the information supplied to them from within and outside the organization and if they do to some degree, they don’t make optimum use of the data received about the business environment. There is also problem of evaluating the impact of marketing information system towards the achievement of objective many marketers are yet to capitalize and utilize information for decision making and goal attainment. Therefore the questions are as to whether marketing information system enable organizations to achieve their objectives.

  • OBJECTIVES OF THE STUDY

The main purpose of this study is on The Effect Of Marketing Information System In Performance Of Small And Medium Scale Enterprises and specifically to achieve the following objectives:

  • To understand how marketing research aids in the achievement of organization objective in marketing performance attainment.
  • To ascertain whether the use of marketing in intelligent system contribute significantly to the accuracy of marketing information system.
  • To find out whether marketing internal reporting system is for any benefit to achievement of organizational objectives.
  • To determine the relevance of marketing analytical system to achievement of organization objectives
  • To find out whether the performance of marketing decision support system enhances the marketing manufacturing organization.
    • RESEARCH QUESTION

In order to get clearer picture and focus for this we can pose serious question necessary for the solution of the problem we have identified in section 1.2 above such question includes these below;

  1. Why is marketing information system essential to business organization?
  2. Why do many business organization need marketing information system?
  3. is there no organization that need marketing information system.
  4. Do marketers have information system and how efficient is their information system if there are?
    • SIGNIFICANCE OF THE STUDY

In every establishment be it marketing of product, Banking of customers funds or money and even non-profit making organization there must be a purposeful target audience which efforts are worked effectively and efficiently to actualize the organizational goals.

Based on the research topic, which is the relevance of marketing information system in the achievement of organization objectives. The following points are significance to be listed below;

  1. With the help of marketing information system, past records on sales are stored properly in order to apply techniques to improve marketing concept.
  2. It is also significance for an organization to protect the system in order not to temper by malicious operators of the marketing information system.
  3. Again, the marketing information system has to be in a better placement so that, the information in the system can be saved for future use by the organization objectives realization.
    • SCOPE OF THE STUDY
    • The Effect Of Marketing Information System In Performance Of Small And Medium Scale Enterprises
    • LIMITATION OF THE STUDY

In an undertaking of the nature, it demand that a lot of resources, time, energy, intellectual ability and carefulness should be expanded. There is no doubt that there should be limitation and obstacle looming largely ahead. Trying to prove insurmountable of all the limitation is time fact or which tends to the most crucial in spite of the length period allowed the researcher lots of problem came in between to consumer most of the time that would have been useful to the researcher. This ranges form time to financial resources limitation.

  • DEFINITION OF TERMS

Marketing: it is the identification and satisfaction of consumers needs and wants through exchange process.

Information: Information is anything capable of affecting the uncertainty associated with a given situation.

Objective: objective are broad and qualitative statement about the organization performance.

Goal: A goal refers to the end toward which activity is aimed

Data: Data is simply defined as any figure word letter, charts or symbols that attempt to convey a condition situation or idea.

Organization: an organization is a combination of people or individual effort working together in order to achieve an organizational goal.

System: System can be simply express as those parts, elements instruments that is attracted to the computer hardware and software to function property in order to bring result outcome

Computer System: Computer system is made up of software and hardware packages in order to produce result at the end of that processed and stored in the computer system for present and future use.

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PROFIT MAXIMIZATION: A STRATEGIC TOOL FOR SURVIVAL OF BUSINESSES IN NIGERIA

PROFIT MAXIMIZATION: A STRATEGIC TOOL FOR SURVIVAL OF BUSINESSES IN NIGERIA

ABSTRACT

As we all know the objective of any business venture is to maximize profit. Hence all the decisions with respect to new projects, acquisition of assets, raising capital, distributing dividends e.t.c  are studied for their impact on profits and profitability.

Profit maximization theory is based on profits and profits are a must for the survival of any business. Therefore, this research work focused on the effectiveness of profit maximization on Dangote Cement Plc as a case study.

The data used was gathered with the aid of a questionnaire and Chi-Square

(x2 ) method of data analysis was applied in analyzing the data.

Based on the findings, the research reviewed that profit maximization occurs with efficient and effective use of resources by the employees in an organization. It also brings to the fore an organizations Strengths, Weaknesses, Opportunities and Threats in an attempt to be relevant and meet customer needs.

It was also discovered that cost volume profit analysis is the technique that is being used at Dangote Cement Plc when planning for profit cost. Hence, it is recommended that Business owners and Organizations interested in maximizing profit must review their cost structure regularly, must be diligent in cutting frivolous cost and boost productivity amongst employees. Furthermore, they must ensure that they make adequate provisions for contingency funds to help control risks and external factors that could hinder the progress of the business.

 CHAPTER ONE

INTRODUCTION

1.0   BACKGROUND OF STUDY

 The ultimate goal of every firm in business is profit i.e. (Profit Maximization) and cost minimization in order to maximize shareholder wealth. Many industries today are facing problems due to the expansion through increases sales and the introduction of new product. Some on the other hand are facing problem of contraction owing to the introduction of substitute material.  It is vital that management should be in position to plan for these changing levels of activities.

Apart from the problem of contraction and expansion during economic depression, an enterprise may be faced with the alternative of closing down or selling it at a price below the total cost.

Hence profit planning and control becomes difficult as a result of product offered and the action of competitor. In order to solve the problem created by the above situation profit, planning, cost, and their behaviour at different separating level, one of the most important tools developed by accountants to assist management in meeting the challenges is cost volume profit analysis.

According to I.M Pandey the analytical technique used to study the behavior of profit in response to changes in volume, cost and price, is called “Cost volume profit analysis” It is  a device used to determine the usefulness of the profit planning process of the firm.

The entire field of profit planning has become associated with the cost volume profit relationship in organization. In micro-economics course, profit  maximization is frequently cited as the goal of the firm; Profit maximization stressed the efficient use of  capital resources but it is not specific with respect to the time frame over which profit are to be measured; Profit maximization function largely as a theoretic goal with  economist using it to prove how firms behave rationally to increase profit.

Unfortunately, it ignores many real-world complexities that financial management firms must deal everyday with. Two major factors not considered by the profit maximization are Uncertainty and timing.

1.1   STATEMENT OF PROBLEM

The rising magnitude of the incessant profit or loss in Nigeria business organization over the year has become a thing of concern to managers; government, Policymakers, academia, entrepreneurs, financial analysis, economist and other stakeholders in the country’s economy. Various studies have been carried out to explain with empirical evidence, the factors driving profit and loss in business organization

The challenges facing most firms is numerous particularly during the period of economic depression or recession characterized by high liquidation of many companies, merger and acquisition, low technological powers, shortage of foreign exchange to buy needed raw material, high cost of production, erratic powers supply, high volume of imported goods and the advanced state of competition has affected drastically the maximization profit and cost maximization in most business organisation.

In a competitive world the key factors are cost price turnover and profit and these are factors which no business organization can ignore.

Management is faced with the problem of how to make effective and efficient use of their available scarce resources in order to achieve the objective of profit maximization.

Most management and organization lack under-standing on the importance of cost minimization as an effective tool or technique that has help in the sustainability on most business organization.

Most organization is faced with high cost of production which has led to inefficient utilization of the cost volume profit analysis technique.

1.2   OBJECTIVE OF THE STUDY

Profit planning and control are essential ingredients of every successful business in the world. The efficiency of management is measured by the amount of profit or loss in a given accounting year. The general objective of this study therefore will be;

1)           To find a way of making use of scarce resource in order to achieve profit maximization.

2)           To highlight the importance of profit using cost volume profit analysis over other forms of technique.

3)           To identify the problems encountered in the economy that leads to lack of practical application of profit maximization.

4)           To evaluate the extent to which the use of profit maximization on Dangote Cement Plc has been efficient.

1.3   RESEARCH QUESTIONS

1)           Does your organization use cost volume profit analysis as a tool for profit planning and control?

2)           Apart from cost volume profit analysis; what other techniques do you employ in the profit planning and control?

3)           What problems does Dangote Cement Plc encounter in the profit planning and control?

4)           In what ways specifically has the application of cost volume profit analysis helped the organization to achieve efficiency and effectiveness?

1.4      STATEMENT OF HYPOTHESIS

  1. HO:   Cost volume profit analysis as a tool for profit planning and control is  not used in Dangote Cement Plc.

        H1:   Cost volume profit analysis as a tool for profit planning and control in Dangote Cement Plc.

  1. HO:   The application of cost volume profit analysis has not helped Dangote Cement Plc to be efficient and effective in its operations.

        H1:   The application of cost volume profit analysis has helped Dangote Cement Plc to be efficient and effective in its operations.

  1. HO:   Dangote Cement Plc does not employ other techniques in  profit planning and control apart from cost volume profit analysis.

        H1:   Dangote Cement Plc employs other techniques in profit

        planning and control apart from cost volume profit analysis.

1.5      SIGNIFICANCE OF THE STUDY

It is hoped that this study will be of importance to students (Accounting, Banking and Finance, Business Administration, Economics etc) staff and management of business organization, the individuals in banking profession and the shareholders of the companies.

The students are to be aware of the role played by profit maximization in business organization. Profit maximization is an essential tool in all business organization.

In a competitive world, the key factors are cost, price turnover and profit, and these are factors which no business organization can ignore. Therefore, the significance of the study is as follows:

How the study of profit maximization and cost minimization of Dangote Cement Plc knows how their profit margin is increasing over time.

  1. It is useful to student in schools since it will serve as a source of reference to them in the nearest future.
  1. It is useful to the state since it is used by government in making decision for improvement of the states.
  1. It is useful to the economy as a whole since it is used by policy makers to maximize profit in the economy.
  1. It is a basis for understanding, contribution, margin pricing, related short run decisions and transfer pricing.

1.6   SCOPE OF THE STUDY

This study is to analyze the effectiveness of profit maximization tool in business growth in Nigeria as a tool for profit planning and control in general but with particular reference to Dangote Cement Plc. This is with the view of finding out how the company, has been able to manage cost in order to maximize profit.

1.7   LIMITATION OF THE STUDY

The study of the effectiveness of profit maximization as strategic tool in business growth in Nigeria using Dangote Cement Plc., Lagos State. In carrying out this study, I was faced with number of constraints some of which are:

FINANCE: Inadequacies of funds affected expenses on distribution and collection of questionnaires to respondent and from respondents; printing of questionnaires and other transport expenses in conducting the research.

TIME: There is need to observe lots of protocols in respects to levels of management before the collection soring that the primary data collected would be dependable to some extent, also the rationing of time so as to accommodate my other courses.

Nevertheless, these constraints were taken care of and with limited errors and variances.

1.8   ORGANISATION OF THE STUDY

The study is presented in five chapters. The first chapter introduces the study and establishes the problem to be addressed in the study. The background, the scope as well as the significance of the study is also discussed. Chapter two explores the review of literature; the third chapter reviews the research methodology and theoretical framework to be used. The fourth chapter presents the result of the analysis data and trend of Dangote activities in Nigeria during the years under review; while chapter five presents the conclusion, summary and recommendation of the study.

1.9   HISTORICAL BACKGROUND OF DANGOTE CEMENT INDUSTRY

Dangote Group of Companies was established in May 1981 as a trading business with, an initial focus on Cement, the group diversified overtime into a Conglomerate trading, salt, flour, sugar and fish. By the early 1990s, the Group had given into one of the largest trading conglomerate operating in the country.

In November 1992, Dangote Cement was incorporated on 4th, it was formally known as the Obajana Cement Plc and it was commissioned in 2003 as the largest cement plant in sub-Saharan Africa.

In comparison to local peers, Dangote Cement Plc significantly outplays other cement manufacturers, as it presently control about 57% of local manufacturing capacity, this is expected to rise even further to about 67% on completion of Ibese plant and Obajana’s 3rd and 4th by Q1.11 combining manufacturing (excluding BCC) and imports, Dangote Cement accounted for about 40% of total Cement supply as at 2009; overall market share rose to about 49% with the inclusion of BCC.

In line with Nigeria’s Millennium Development Goals, the huge deficit in infrastructure especially adequate housing and transportation – roads, rails and ports, present a major case for continuing growth in cement consumption in Nigeria over the next 10 years at least. Based on a broad base argument that cement demand is more likely to continue rising. In the medium to long term,

we assess in this report, the key scenario, undergirding our expectation for cement demand in Nigeria, and present our outlook for Dangote cement’s revenue and profitability in the near to long term.

The company was granted a pioneer status for a period of 3 years with effect from January 1st 2009. The company is therefore exempted from payment of income tax in respect of profit accruing from manufacturing and sales of cement during the period to December 1st 2011.

1.10 DEFINITION OF TERMS

  1. BREAK EVEN POINT: This is the level of operations at which a business revenue and expired costs (expense) are exactly equal.
  1. BUSINESS: A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities. It is also the activity or the organized effort of an individual or a group of individuals making use of resources in the environment to provide and distribute goods and services at a profit.
  1. COST: Cost denotes the amount of money that a company spent on the creation of production of goods or services. It does not include the mark-up for profit; it is also total money time and resources associated with a purchase or activity.
  1. DIVIDEND: It is a taxable payment declared by a company’s board of directors and given to it’s shareholders out of the company’s current or retained earnings, usually quarterly. Dividends are usually given as cash (cash dividend), but they can also take the form of stock (stock dividend) or other property.
  1. EFFICIENCY: Efficiency is the comparison of what is actually produced or performed with what can be achieved with the same  consumption of resources (money, time, labour etc). It is an important factor in determination of productivity.
  1. INVESTMENTS: Is an asset or an item that is purchased with the hope that it will generate income or appreciate in the future. In economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
  1. MARKET: Market is a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities. It is actual or normal place where forces of demand and supply operate, and where buyers and sellers interact (direct or through intermediaries) to trade goods, services, or contracts of instrument, for money or barter.
  1. ORGANISATION: Is an elements or process of management concerned with the growth or change of the structure. It is a process of dividing and accountability within and external to the sections, the whole being coordinated to achieve the overall objectives.
  1. PRODUCTS: Product is an article or substance that is manufactured or refined for sale. It is also a good or services that most closely meets the requirement of a particular market and yields enough profit to justify its continued existence.
  1. PROFIT: The surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. It is the best known measure of success in an enterprise.
  1. PROFIT MARGIN: The amount by which revenue from sales exceeds costs in a business. It is also a ratio of profitability calculated as net income divided by revenues or net profits divided by sales.
  1. RESOURCES: Resource is an economic or productive factor required to accomplish an activity, or as means to under take an enterprise and achieve desired outcome. Three most basic resources include land,labour and capital; other resources include; energy, entrepreneurship, information, expertise, management and time.
  1. SALE MIX: This can be defined as the relative proportions in which a company’s products are sold. The idea is to achieve the combination or mix that will yield the greatest amount of profits.
  1. SHORT RUN: This is a period during which the quantity of at least one input is filled and the quantity of the other input can be varied.
  1. TRANSFER PRICING: This is the rate of prices that are utilized when selling goods or services between divisions
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