TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.2 HISTORICAL BACKGROUND
1.3 STATEMENT OF THE PROBLEM
1.4
SCOPE OF THE STUDY
1.5
LIMITATION AND CONSTRAINTS
1.6 SETTING OF HYPOTHESIS
1.7 DEFINITION OF TERMS
CHAPTER TWO
2.1 LITERATURE REVIEW
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH METHOD USED
3.2 INSTRUMENT USE FOR DATA COLLECTION
3.2
RESEARCH POPULATION AND SAMPLE SIZE
3.3 SAMPLING PROCEDURE
EMPLOYED
3.4 STATISTICAL METHOD USED IN ANALYZING THE DATA.
CHAPTER FOUR
4.1 PRESENTATIONS OF DATA AND ITS ANALYSIS
4.1 PROOF OF HYPOTHESIS
CHAPTER FIVE
5.1
SUMMARY OF FINDINGS
5.2 CONCLUSION
5.3 RECOMMENDATION
REFERENCES
CHAPTER ONE
1.1 INTRODUCTION
By no means can all
purchases and suppliers matter be dealt with by correspondence
and telephone. It is therefore a necessity that face to face •counters sometimes take place to resolve problems
and differences which id be overcome by
negotiation.
This research work
looks at negotiation as an important tool in ensuring effective buying in a construction company.
It is important to
recognize that the primary task of purchasing manager in fulfillment his role of maintaining
suppliers is through effective negotiation.
The purchase manger
should be a specialist in satisfying the needs of the company by seeking suitable sources of supply
and negotiating to secure the best terms
and service possible negotiation is necessary whenever it is require reconcile two or' more different opinion in order
that action "may be initiated continued in mutual agreed condition.
It is very important
that all buying and selling transaction leave both parties satisfied and hence negotiation is
not forcing and unwilling acceptance.
Though negotiation
is complex and costly, but it is use for primarily for naira value purchase. For high Naira value
purchases, where five criteria which
dictate competitive bidding prevail. Though competitive bidding is only used to narrow down the number of supplier
which implies dealing with a few successful bidder.
1.2 HISTORICAL BACKGROUND
Bulleting Construction Company limited is a duly registered company. In
corporate in Nigeria in 1989, the company
which is owned by both indigenous and foreign partners has operated
responsibility with the lanes of Nigeria.
The company's head office is in Ilorin
the Kwara State Capital with branch offices
all over the Federation from Kogi State to Deltal State, from River State to Bauchi state and making further
rapid cursion into other state of the
Federation.
As a responsible specialized corporate entity with a group of highly
responsible indigenous and foreign technical crew, the company has had the honour of handling numerous construction
Works both within and outside the state. The company future is very promising as this can readily be
assessed through its many
tangible and intangible assets.
Despite the present economic downturn in the
country which has forced many
organizations out of the business the company still forging a head with work force about (679) six hundred and seventy
nine workers, of this number (674) six hundred and
seventy four are Nigerians.
However, the staffs of the company are well pay and motivated hence the
company has contributed into small measure to social economic development
'Nigeria.
This
analysis has become imperative to show the Nigerian government that Bulletine Construction Company is a
well established responsible corporate body operating with in the frame work of
the Nigeria law.
1.3 STATEMENT OF THE PROBLEM
Negotiation with suppliers
is one of the most important functions of purchasing
department. The success or failure of an organization depends largely on
the effectiveness and efficiencies of the buyers to negotiate with suppliers on terms and conditions of the contract
such as price, quality, delivery services etc. However investigations have
shown that the purchasing departments of the company are not given free hand to operate in the procurement
of materials for the organization.
Though the role of buyer in any organization is to contribute immensely to the profitability and realization of
objectives of the organization. But during the economic recess the market
becomes unsuitable a fluctuation in prices. A very good example is what
is happening currently in Nigeria with
reference to deregulation of Naira as a result of which purchasing power
of Naira was drastically reduced.
The activities of buyer in
this situation become need with
i) What
Procurement procedure could be applicable for this situation? And this could include any of the following
a)
Speculative
purchase
b)
Hand
to mouth purchase
c)
Spot
purchase
d)
Time budgeting of purchase
ii)
How to
obtain the right quality and quantity of goods at the right times?
iii)
How can
(he right or fair price could he achieved?
iv)
How could the right materials or goods he
gotten from this right source
or location?
1.4
SCOPE OF THE STUDY
The research work will cover a broad area
in purchasing operation and procurement
procedure in organization.
It
entails the following specific area which the research would like to emphasize
upon in the course of writing the project. These include contract negotiation supplier relationship and others, buyer’s
role in negotiation, objective
of negotiation, creating conducive environment during the course of negotiation. In consolidation with the above
areas the research or will give various definition of terminology used in the course of the project work.
1.5
LIMITATION AND CONSTRAINTS
The
researcher encountered numerous problems during the course of carrying out this research work; some of the problems
include the following. The
uncooperative attitude of personnel of the commercial department of the organization who felt reluctant in the first
instance in providing necessary and required information to the researcher not
until a letter of identification was produced.
Among other limitation
and constraint, to this research work includes financial .constraint, limited text book and journal related to the
topic and time available for the
research work which hard compelled the researcher to combine academic
programme and at the same time carry out the research.
1.6 SETTING OF HYPOTHESIS
Hypothesis
is a tentative guess postulated for the purpose of assisting the researcher in directing his thinking
towards the solution to the research problem.
In carrying out the research, the researcher will use both null (Ho) and
alternative (HI) hypothesis to find out
whether negotiation is a vital tool to effective buying.
Ho, proper negotiation does not necessarily lead to effective buying in a construction company.
HI,
proper negotiation is inevitable to effective buying.
1.7 DEFINITION OF TERMS
1)
Purchase order:
- This is
the document used
by purchasing department to request for the supply of
certain items from the vendor
or supplier.
2)
Competitive
bidding: - This is used for standard items in which the quotation will requested from the vendor.
3)
Negotiator:
- Is a person authoritatively appointed to represent a company for negotiation he must be skilful
and have a broad business
experience.
4)
Negotiation:
- Is a process of planning reviewing and analyzing used by
a buyer and
a seller to
reach acceptable agreement
or compromise. These
agreement and compromise include all aspect of the business transaction not just price.
5)
Vendor: -
An outside supplier
of raw material
who suppliers equipment or services needed in operation of an
organization
6)
Purchasing:
- U is a continuous managing 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
it to increase its profitability.
7)
Specification:
- This is the document which describes in details the requirements to which the supplier or services must conform.
8)
Spot purchase: - Is the
purchase that is made on
Impulse.
9)
Hand to
mouth purchase: - The buying of the exact quantity of materials needed only with out stocking.
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