Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company
(A Case Study Of Roksna Industry Plc)
Complete Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company Project Materials (Chapters 1 to 5):
Several organization and institutions may have undertaken research in order to examine the problems and solutions of importance of negotiation in contract pricing and management. In fact, many of the research program in the universities and polytechnic have usually been sponsored by industries and companies therefore had to meet commercial and academic objectives. This project has attempted to identify what the impact for efficient negotiation is all about and the problems and solution of it in manufacturing industry like Rokana Industry Plc. It went further to explain the objective, strategies and techniques use in achieving negotiations. The term “negotiation” is used in general sense and it refers to the whole range of activities carried out by the buyer and supplier in a bid to reach a consensus of the best buying. The entire project work as divided into five chapters which help in treating the write up fairly. The first chapter briefly highlighted on the background of the company, when it started operation in Nigeria and the achievements was treatment. The statement of the problem, purpose of the study of and elimination of the study were well. Chapter two is on literature review as required the topic of this project which covered the concept of Negotiation, purchasing of capital and management, negotiation strategies, techniques in negotiation purchasing function in manufacturing company in the future as review by authors. Chapter three, covered the research methodology, research design, the questionnaire design, sampling and selection of respondents, data sources primary and secondary data and data analysis method used in analyzing data. Chapter four equally reflects on the analysis of data and testing of hypothesis, which will give a meaning to the project work. While chapter five provide summary, recommendation and conclusion of the research work. I wish that this paper will be of immense help to manufacturing industries the young once and the general public.
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
Chapter One
1.0 Introduction 1
1.1 General Overview of the study 1
1.1.1 Brief History Of The Company 2
1.2 Statement of Problem 4
1.3 Purpose of the study 5
1.4 Scope of the study 6
1.5 Research questions 6
1.6 Hypothesis 7
1.7 Significance of the study 8
1.8 Limitation of the study 9
1.9 Definition of terms 10
Chapter two
2.0 Review of Related Literature 15
2.1 Introduction 15
2.2 The Concept of Negotiation, purchasing function in manufacturing company 15
2.3 Negotiation Process and procedure 17
2.4 When and why do we Negotiate? 18
2.5 Negotiation Strategies 20
2.6 The roles of Purchasing Manager in Negotiation 24
2.7 Methods of Pricing Purchasing Contracts 26
2.8 Method of Pricing 29
2.9 Method of fixing prices by supplies 30
2.10 The impact of Negotiation on pricing 33
2.11 Importance of negotiation in purchasing of capital and
Management 34
Chapter Three
3.0 Research Methodology 36
3.1 Introduction 36
3.2 The Research Design 37
3.3 The Questionnaires Design 37
3.4 Sampling Method 38
3.5 Sources of Data 40
3.6 Data Collection Method 40
Chapter Four
4.0 Presentation, Analysis of data & Testing
of Hypothesis 42
4.1 Introduction 42
4.2 Analysis of Data 42
4.3 Testing of Hypothesis 64
Chapter Five
5.0 Summary, Recommendation and Conclusion 68
5.1 Introduction 68
5.2 Summary 68
5.3 Recommendation 70
5.4 Conclusion 71
References 74
Appendix 75
Questionnaire 76
1.0 INTRODUCTION
1.1 GENERAL OVERVIEW OF THE STUDY
Negotiation is seen as a vital element as well as one of the most interesting topic in purchasing and supply chain management. It applied in purchasing so as to arrive at a fair and reasonable business contract.
Consequently, upon recent shortages of materials, high prices and galloping inflation, general unfriendly supply market as well as the get-rich quick syndrome of some supplied it will be suicidal for a business firm and indeed government agencies to ignore negotiation exercise in its purchasing activities making process of planning, reviewing and analyzing used by the buyer and seller to reach acceptable agreement or compromise on all aspects of the business transaction. (Lee
In purchasing of material, some measures of trust exist between the buyer and the seller when negotiation begins identically, there would be equally of information on cost and estimates between parties involved, as a basis for negotiation, but this is rarely attained except in government’s research and development (R and D). The negotiation is thus usually a dialogue between the buyer and seller to produce a contract, which is at least acceptable to both parties.
1.1.1 BRIEF HISTORY OF THE COMPANY
The name of the company is Rokana Industries Plc Nekede and it as incorporated on September 1978 as a private limites liability company.
The nature of the business is manufacturing and it was founded by Engr. Charles Ugwu, a British trained industrialist/Engineer in 1978.
The managing-Director is Chief Ekemma Geophry now while Engineer Charles Ugwu is the Chief Executive of the company.
The factory is divided into three basic areas namely: Administration, Marketing/sales and promotion. It has a branch in Lagos as their registered street off 52 Ogundana street Allen Avenue Ikeja Lagos. Over 80% of the raw materials for the production of the product are imported.
They also have sales outlets in Abuja, Kaduna, and Lagos. The company is hundred percent Nigerian owned while Union Bank Nigeria Plc own 40% shares of the company product produce.
Rokana currently maintains four existing manufacturing units.
1. The Cosmetic Units: This unit undertakes the production of the tooth paste, baby-care cosmetics, skin lotions, cream and oiltment.
2. The Plastic Units: This unit produces tooth brush, dental stick, plastic folders, plagues for the Areosol production.
3. Aerosol Unit: This unit produces insecticide air fresheners, perfumes, furniture polish, deodrant etc.
4. The LPG Unit: This unit refills domestic cooking gas cylinder, provides unstauncheal gas,as propellant to the aerosol production line.
1.5 STATEMENT OF PROBLEM
Strictly, this project is a case study of the impact for efficient negotiation in purchasing function in manufacturing company at Rokana Industries Limited Nekede Owerri Imo State.
The impact for efficient negotiation in purchasing function in manufacturing company can not be over stated. This is because when fairly in contract management result from poor negotiation.
The problem of the study therefore are as follow:
1. Firms or organization fair to see the element of pricing and negotiation as a vital element in contract management.
2. Most firms adopt the concept of I will” when you loose attitude this result into poor project execution.
3. Most people involving in purchasing of capital and mangement do not possess the right skill and knowledge of negotiation.
4. The economic situation of the country has serious effect on the quality of negotiation purchasing function in manufacturing company firm attempt.
5. There is no serious attempt on the part of firms to empower negotiation contract managers.
1.3 PURPOSE
In the light of the statement of problem this study aims at achieving the following objectives.
1. To create serious awareness in the mind of firms and their employees on these serious impact for effective contract negotiation, pricing and contract implementation.
2. To make people appreciate the importance of effective negotiation which emphasizes win-win negotiation.
3. To create the necessary awareness on the importance of empowering those who are involved in contract negotiation pricing and management through treating seminars etc.
4. To investigate the impact of the economic on contract negotiation pricing and execution.
5. To see whether negotiation contract management and pricing can be improved through empowerment.
6. To suggest other ways of improving negotiation contract pricing and management.
1.4 SCOPE OF THE STUDY
This study would have taking the researcher to all firms that are engaged in contract negotiation, pricing and management in Nigeria but for obvious reason the researcher is constraint to concentrate on the negotiation activities of Rokana industrial limited Owerri. The researcher beliefs that this would give her a fair situation position in other similar organizations.
However, the researcher will concentrate on the following department or units within the organization:-
1. The cosmetic unit
2. The plastic unit
3. The Aerosol unit
4. The LPG unit
1.5 RESEARCH QUESTIONS
One important thing a researcher of this nature impact s to achieve is to provide the subject matter of the study. It therefore become necessary to formulate research questions on which the answer would be based and are as follows:
1. Are negotiation and pricing basic element of contract.
2. Is poor contract administration tractable to poor pricing and negotiation.
3. Does your organization attach importance in carrying adequate negotiation before placing orders.
4. Does your organization achieve any efficient age as a result of effective and efficient negotiation via efficient purchasing.
1.7 SIGNIFICANCE OF THE STUDY
The primary significance of this study is for partial fulfillment of the requirements for the award of Higher National Diploma (HND) in purchasing and supply.
The secondary significance is also geared towards exploring the academic relationship between classroom theory and what is practically attainable in industries and government establishment thus the carefulness in choosing the research topic.
The third significance of the project is to help and guide the younger ones on what to do when writing project or carrying out any research.
The fourth significance of the project is to guide industrial purchasing s to effective and efficient negotiation to enable them to obtain the “best buy which is the ultimate goal of the purchasing function.
1.8 LIMITATION OF THE STUDY
Infact, there cannot be any successful research of this magnitude without encountering some difficulties. This project work is surrounded by some limitation, which indicated that it was not hitch free.
The following were some problem that was encountered in carrying out the following work.
1. Difficulties in securing some vital documents containing some valid information relating to the subject matter of the research.
2. The lukewarm attitudes of some offices who were supposed to attend and give reasonable response. Some of those interviewed failed to give adequate information believing that it will reveal their lapses and loopholes.
3. The degree of time consumed at the expenses of lectures and other important assignments. This cannot be over emphasized.
4. Finally, finance was another constraint for the researcher. Normally, a considerable amount of money for the gathering of information, typing of manuscripts.
1.9 DEFINITION OF TERMS
The terms here are some of the terms used in this project work necessary because these terms have their own professional meanings in purchasing other than the grammatical definition.
1. Purchasing: It’s a continuous management process that is responsible for the anticipation, identification, and the provision of goods and services that are required by an organization with the objective of helping its profitability or service provided.
2. Negotiation: Is a process of planning reviewing and analysis used by a buyers and seller to reach acceptable agreements or compromise includes all aspects of the business transaction not just price.
3. Negotiator: Is a person authoritatively appointed to represent his/her organization for negotiation. He must be skillful and broad business experience.
4. Vendor: An outside supplier or raw materials suppliers equipment or service impact ed in the operation of an organization.
5. Procurement: This includes duties perform by purchasing a well as additional function materials supervision and management, inventory control, receiving inspection and salvage operation.
6. Price: This may includes all the sacrifice made to acquire a given product both monetary and non monetary.
7. Pricing :- This is the activities involved in setting the price for which a product will be said. or deciding how much to change for something. ie we say that it is an on going activities that can hardly be completed.
8. Strategy:- It is the determination of the basic longterm objectives of an enterprises and adaptation of course of action and allocation of resources necessary to achieve these goals on the organization presented mean or approach to achieving it’s objectives.
9. Purchasing :- It us that function of management, lease or other legal means equipment materials supplies and services required by an undertaking for use of production.
10. Cost:- The total amount of money that impact to be spent by a business. it is also the amount of money that you impact in order to buy, make or do some things.
The introduction of Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company should start with the relevant background information of the study, clearly define the specific problem that it addresses, outline the main object, discuss the scope and any limitation that may affect the outcome of your findings
Literature Review of Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company should start with an overview of existing research, theoretical framework and identify any gaps in the existing literature and explain how it will address the gaps
Methodology of Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company should describe the overall design of your project, detail the methods and tools used to collect data explain the techniques used to analyse the collected data and discuss any ethical issues related to your project
Results should include presentation of findings and interpretation of results
The discussion section of Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company should Interpret the implications of your findings, address any limitations of your study and discuss the broader implications of your findings
The conclusion of Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company should include summarize the main results and conclusions of your project, provide recommendations based on your findings and offer any concluding remarks on the project.
References should List all the sources cited in Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company project by following the required citation style (e.g., APA, MLA, Chicago).
The appendices section should Include any additional materials that support your project (Impact For Efficient Negotiation In Purchasing Function In Manufacturing Company) but are too detailed for the main chapters such as raw data, detailed calculations etc.