PROPOSAL
The
main purpose of conducting this research is to ex ray THE EFFECT OF DIVIDEND ANNOUNCEMENT ON SECURITY PRICES in order to determine
whether the Nigeria
capital market is efficient and at what form of its efficiency.
Many
searchers have attempted to determine the efficiency from of Nigeria capital market. Empirical
results observed from their research has tended to suggest that the
efficiency from of Nigeria capital market is weak and
others, in the semi- strong form. However very jew have attempted to analyze
the effect of dividend announcement do
have impact on stock priles. This observation to the best of my knowledge have
not been reasonable or scientifically studied in Nigeria.
Considering
the jact that Nigeria
capital market. Is under development assessing relevant information was
discover pain staking there were no easy reliable published data on
divided announcement as it is prevent in
other advanced economic like USA
limited period of time and unavailability of appropriate research facilities
contribute their quota as hindrance to
this research work.
But base on the jew available relevant data, decision was
made to address this research work on a small sample size and upon securities
on the first tier market so that to give dividend announcement in information
starting from the ones previously announced. This information will affect the stock prices
spontaneously. And at the this research
will equally lends credence to the observation that Nigeria capital market is efficient
in the semi strong form.
CHAPTER ONE
GENERAL
INTRODUCTION
The desire
of every national producer is to minimize the resource invested to achieve a
desired objective thus at any point in time he should be devising ways of
minimizing the cost of achieving the
desired benefit.
This
situation is equally relevant to organization of any kind whether profit
oriented on nonprofit oriented and therefore make it imperative for every
organization especially the profit oriented ones not to stop at controlling the
use of resources to conform with established standards but should also make spirited attempts to continuously
minimize cost without impairing the quality of
their products. The need for
manufacturing companies to be conscious of the above need has been magnified by
the fact that Nigeria economy is experiencing an era of astonishing rate of
inflation despicable how exchange rate requiring reports of grossly low capity
utilization and the inter play of some other very powerful extraneous variable
which makes the business environment very inclement. These are the cries of
mangers. Sectioning through the streets of industry and commerce saying Nigeria
is passing through a difficult period, everything possible must be done to
every one in position to do so , to
assist the economy in making a quick recovery. One way of heading these glariot
calls by mergers off companies is the
adoption of cost minimization strategy aimed at improving efficiency.
1.1 STATEMENT
OF PROIBLEM
Some
companies embark on cost minimization strategies with full awareness of the
benefit obtainable therefrom and therefore give a strong recognition and support to such strategies. They strive ass
much as possible to carryout their operations or project at the minimal
costs. Therefor we they adopt and implement several strategies or techniques
of minimizing or reducing their cost of
operation and or production. This study
will endeavor to find solution to the enumerated problem below as well as
others.
(1)
Does LBN minimize cost of production or operation
(2)
How are cost minimization effected?
(3)
What are the
strategies or techniques used for cost minimization?
(4)
Is cost minimization a viable means of enhancing the
performance of manufacturing firm?
(5)
What are the problem encountered in minimizing cost
and ways minimizing the impact of such problem or possible
prevent them.
(6)
How effective are the strategies adopted
1.2
RESEARCH
QUESTION
To
accomplish the objective enumerated above answers are hopefully going to be
provide to the following question.
(i)
Does LBN has know cost minimization strategies apart from the generally accepted cost
minimization techniques?
(ii)
Does the level of employees motivation related to the
effectiveness of cost minimization strategy?
(iii)
Are the strategies effective?
(iv)
What are the problem associated with cost minimization
implementations?
(v)
What measures do they adopt to reduce the impact of
the problem identified (iv) above?
(vi)
What other alternative measure do they adopt?
1.3
HYPOTHESIS
FORMULATION
In order to
made conclusion and recommendation the following hypothesis will be tested.
(i)
There is no significant difference in material costs
before and after embarking on cost minimization stately.
(ii)
There is no significant difference in labour cost
before and after embarking on cost minimization strategy.
(iii)
There is no significant difference in overhead cost
before and after embarking on cost minimization strategy.
1.4
STATEMENT
OF PURPOSE
It is a
know fact that there are many cost minimization strategies available for
adoption by firm and industries. Over the years authorities on costing matters
have published dissertation on means and ways of minimizing cost of production
or sand operation in manufacturing industries. Theses have subsequently been recognized by the
management of the various enterprise. But the question is how many of these
firm put these strategies and techniques into practice?
This study
therefore will evaluate some of the existing cost minimization strategies and
techniques (if any) as at effects the lever brothers Nigeria (LBN) Plc, the
extent of their implementation how effective they are whether they are
achieving the goals for which they are adopted as well as analysis their cost
benefit to justify their acceance an important and veritable cost monition tools.
1.5
SIGNIFICANCE
OF THE STUDY
The finding
are recommendation of this study will, no doubt be of immense importance to the
management of lever brothers Nigeria (LBN) Plc and will equally go long way to
guiding similar firms in the manufacturing industries on the proper cost
minimization strategies they should adopt that will be appropriate their daily
activities, new mangers and prospective mangers should equally be acquainted
with not just the cost minimization
strategies already familiar with but also
one suggested by more experienced mangers which may not be found in
textbook.
1.6
SCOPE AND
LIMIATION
For the
purpose of this study emphasis will be solely placed on level brother Nigeria
(LBN) Plc this is influenced by the fact that LBN is the longest surviving manufacturing grants in Nigeria
having been operation since 1923.
It was a
general consensus that it was against management policy to give out internal
document to any outsider for any reason
unless under special circumstances. Therefore, the analysis will be made based
on the questionnaire result fact gathered during interview and discussions as
well as personnel observation made during the work.
Finally we
are equally limited financially such that we may not cover major network (4)
manufacturing sites for its operation spread across the country (Nigeria) we
will therefore be concentrate its manufacturing sites at Aba Abia state and the
commercial lactation at port Harcourt River state.
1.7
ORIGIN AND
HISTORY OF LEVER BROTHERS NIGERIA PLC.
Lever
brothers Nigeria Plc (Rc 113) is the longest surviving manufacturing outfit in Nigeria. The
company was incorporated as a private company in 1923 to manufacturing soaps
based on local palm oil. Over the years the company diversifies and expandedits
operation to the production and marketing of personal wash product mainly toilet soaps, non soapy
detergents foods and personal predicts including toothpaste, body creams lotion
body care hair product. In particular and through selective acquisition
the company has strengthened its froth
in foods and personal products through its merger with Lipton Nigeria Limited in 1988 and lately in 1995 through a
merger with unilever Nigeria Limited which a merger with unlived Nigeria
Limited which effectively transferred to LBN the stewards business following
the recent acquisition of seaward and in order to ensure sustained focus in
management the company now has four manufacturing sites for its operations from
the original sites viz, Apapa , the primes
and largest site, produces soaps such as sunlight they , Oxbare Luk,
Breeze, ife buoy, and Astral and some
personal product mainly tooth past and Vaseline range. The second site Abia is
devoted to the production of non- soapy detergent powders and bars. Here, the
company makes such popular bran as omo Rin, and ox powder. The third and of the
plants. Commission in 1983 is the utra modern foods factory in Agbare where the
company production Royco , Blue Band,
plant, lree, lop and Beaden, among others and of course the fourth the organ
site where popular personal products
brands like elide, pears, and lotus etc. are produced. It is intended that
the company shall consolidate all the personal products production including
tooth. Paste, ponds and Vaseline range at this site ultimately,
The company is fully committed to backward
integration and self sufficiency and has made considerable progess in its
effort towards local souring sad development of raw materials, the tea
plantation on the man bill plateau underscores the company unrelenting derive
for self sufficiency . the first crop of the end of 1991 and processing factory
for the tea leaves has been COMPLETED ON SIT. THE COMPANY HAS ALSO BUTT AT
LARGE PLAM KARNEL WILL AT ITS Aba
factory to improve supply vegetable oil
essential raw material in soap and edible production. It is also making
investment in oil plam plantation in order to improve its local sourcing. Lever
brothers Nigeria plc rang of quality products is distributed sad sold at
uniform prices all over the country through an established and tested
distribution network using appointed distributors, supervised by a well trained
sales forces.
The company
has direct staff strength of about 2,250 employees in its four manufacturing
sites and various distribution points throughout the country of this numbers
only five are expatriates. These reflect the extents to which the company has
gone at training and developing
management resources? the objective is
to bring in expertrvites who willing and able to work in Nigeria
and who will contribute help and train Nigerians. They (expatriate) give LBN
and international favour and are in exchange for the company mangers working
overseas to obtain international experience. Expatriates are therefore brought
into meet the company specific needs. The company also provides indirect
employment for over six thousand people.
Lever
brothers Nigeria Plc has been decanted to the production of top quality brands
for Nigeria
for over seventy years
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