ABSTRACT
This
study investigates market orientation and company performance in an
organization. The study analysie the market orientation on company performance
in an organization through the provision of effective marketing strategies in
satisfying customer’s need. The specific objective was to examine market
orientation and company performance in Frigoglass Nigeria Limited.
The
literatures reveal that most market oriented firms are the most productive and
profitable, hence, this study predicated upon Drucker’s company philosophy
theory and Trout and Ries Strategic – Behavioual Theory.
However,
Survey research was adopted for the study. The respondents were One Hundred and
Fifty (150) workers drawn from Frigoglass Nigeria Limited. The strategic random
sampling technique was used in selection of the respondents. Questionnaire
method was used to collect relevant data for the study. The data collected
through the questionnaire were analysed using simple percentage and frequency
distribution.
The
analysis shows that the relationship between market orientation and company
performance does really exist, and it is indeed a significant contributor to
the company’s performance. The findings of the study can help international
organizations and scholars in assisting individual organizations to more
effectively navigate the adoption and implementation of market orientation strategies
in an emergent economy undergoing market restructuring.
TABLE OF CONTENTS
Title Page - - - - - - - -- i
Certificate - - - - - - - - ii
Dedication - - - - - - - - iii
Acknowledgement - - - - - - iv
Abstract - - - - - - - - v
Table of Content - - - - - - - vii
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study - - - - 1
1.2 Statement of Problem - - - - - 2
1.3 Aim and Objectives of Study - - - - 3
1.4 Research Question - - - - - 3
1.5 Statement of Hypothesis - - - - - 4
1.6 Research Methodology - - - - - 5
1.7 Significance of Study - - - - 6
1.8 Scope and Limitation of Study - - - 6
1.9 Definition of Terms - - - - - 7
CHAPTER
TWO
LITERATURE
REVIEW
2.0 Introduction - - - - - - 9
2.1 Definition of Internal Control - - - - 11
2.2 Purposes of Internal Control System - - - 13
2.3 Types of Internal Control - - - - 13
2.3.1 Directive or Entity Level Controls - - - 14
2.3.2 Preventive Internal Control - - - - - 14
2.3.3 Detective / Corrective - - - - - 14
2.3.4 Compensating Control - - - - - - 14
2.4 Components of the Internal Control System - 15
2.4.1 Definition of Responsibilities - - - - 15
2.4.2 The In-House Dissemination of Relevant and
Reliable Information - - - - - 17
2.4.3 A System for identifying and Analysing Risk - 17
2.4.4 Control Activities - - - - - 18
2.4.5 On-Going Monitoring of the Internal Control
System
- - - - - - - 19
2.5 internal Control Players - - - - - 19
2.5.1 The Board of Directors or the Supervisory
Board
(“The Board”) - - - - - - 20
2.5.2 Executive Management / The management Board 20
2.5.3 Internal Audit - - - - - - - 20
2.5.4 Company Staff - - - - - - - 21
2.6 Conceptual Framework - - - - - 21
2.6.1 Control Environment - - - - - 26
2.6.2 Risk Assessment - - - - - - 29
2.6.3 Control Activities - - - - - - 31
2.6.4 Application Controls - - - - - 32
2.6.5 Information and Communication - - - 34
2.6.6 Monitoring - - - - - - - 35
2.7 Effective Internal Control - - - - 37
References - - - - - - - - 38
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Introduction - - - - - - 40
3.2 Sources of Data - - - - - - 40
3.3 Population and Sample Size - - - - 41
3.4 Research Instrument Design - - - - 41
3.5 Administration of Research Instrument - - 42
3.6 Analysis of Data - - - - - - 42
3.7 Methodology - - - - - - 43
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - 44
4.2 Personal Characteristics of the Respondent
- - 44
4.3 Response of Respondents of the Problem
Areas - 47
4.4 Testing and Interpretation of the
Hypothesis - 54
4.4.1 Test of Hypothesis One - - - - - 54
4.4.2 Test of Hypothesis Two - - - - - 57
4.4.3 test of Hypothesis Three - - - - 60
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Introduction - - - - - - - 63
5.2 Summary - - - - - - - 63
5.3 Conclusion - - - - - - - 64
5.4 Recommendation - - - - - - 65
References - - - - - - - - 67
Appendix - - - - - - - 69
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The
concept of marketing orientation was developed in the 1960s and early 1970s at Havard University
and at a handful of forward thinking companies. It replaced the previous sales
orientation that was prevalent between the mid 1950s and the early 1970s, and
the production orientation that predominated prior to the mid 1950 since the
concept was first introduced in the late
1960s. It has been modified, repackaged and renamed as “customer focus , the
marketing philosophy” “a market driven”, “customer intimacy” and “the marketing
concept”.
Successful
organization are those that most efficiently lies within the domain of
marketing and the development of appropriate marketing strategies. The area of
marketing strategy has received considerable attention in the last two decades
both in the marketing literature and in the business world. The reasons of this
growing interest in this area are varies, but mostly due to the drastic changes
in the several business environment (Bakar, Hart, Black and Abulet Mohson,
1986).
In
conjunction with this phenomenon there has been a movement towards thinking marketing
less as a function but more a set of values and processes that all functions
within organization participate in implementing it. In such a condition
marketing becomes everyone’s responsibility (GREYSER 1997). This is reflected
in the strategic orientation of the organization which becomes more market
orientated.
Empirical
studies indicate that the market orientation of the organization enhance their
financial performance and new product development (Cadogan and Diamanipoulos
1995, Diamantoparlos and Hart, 1993 Moorman, 1995, Narvar and Slater, 1990).
Moreover,
Hooly, Lynch and Tobber (1992) provide further empirical evidence concerning
the relationship between marketing strategy and corporate attitudes they reveal
that positive attitudes towards marketing role in marketing corporate affairs
lead to superior performance. Marketing strategy has a central role I the
business strategy dialogue (Skiter and Olsan, 2001)
Top
management should not consider decisions regarding marketing strategy because
marketing strategy is uniquely able to assess consumer used and the potential
of the organization for gaining competitively may guide the corporate or
business mission (Wind and Robertson, 1983). Market strategy provides a
business with the overall direction in its various marketplaces. This is a
broad area and it is probably the most difficult, but the most important for
the managers to get to the grips with. One set of key issues is mission
analysis, market definition, market segmentation, competitive differentiation
and positioning, and matching marketing assets with customer needs (Piercy
1992) these are the most fundamental marketing questions the ones where
typically concrete structure for planning and decision are least apparent. The
fact that these issues are difficult to work within practice does not mean that
they do not matter quite the reverse is
the case. This is almost inevitably the area the managers have to start to
develop any real movement towards market-led strategic change.
1.2 STATEMENT OF THE PROBLEM
Although
many studies have investigated the impact of SAP on the economies of developing
countries (Blackson and Appah-Adu 1998), little research exist on individual firm
adoption of the market orientation strategies in coping with the challenges of
a SAP induced business environment.
Nigeria,
the six largest oil producing nation, like many developing countries of
sub-saharian Africa, adopted the international
monetary fund’s (IMF) structural Adjustment Programme (SAP) in 1986. while many
notable Nigerian companies particularly Frigoglass company Nigeria Ltd
experienced economic operational difficulties during the SAP era, Nigerian
Breweries Plc experienced remarkably marketing growth expansion and
profitability. Introduction of SAP in Nigeria however ushered in various
environmental challenges in the domestic marketplace. These conditions and
other moderating externalities threatened market growth at the Frigoglass
company Nigeria Ltd. The company’s and competitiveness in these times required effective
operational portion of market orientation and practices. The extent to which these
challenges and other externalities have on company performance will be considered
in this study.
1.3 PURPOSE AND OBJECTIVES OF THE
STUDY
The
broad aim of this study is to analyse the market orientation on company
performance. To achieve this, the following are the specific objectives
i.
To study and understand market
orientation strategy.
ii.
To study how company performance can be
achieve from effective and efficient market orientation strategy.
iii.
To study the market orientation strategy
of the company in question.
iv.
To understand the conceptual meaning of
market orientation and company performance.
v.
To study how market orientation have
contributed to company performance.
1.4 RESEARCH QUESTIONS
The
primary objectives of this study is to further explore the existing concept of
marketing strategy and performance relationship, specifically in the context of
Frigoglass company Nigeria Ltd. The fundamental questions guiding this study
area
i.
Is there a best way of improving company
performance?
ii.
Will poor market orientation lead to
company poor performance?
iii.
Can company performance be improved
through effective and efficient market orientation strategies .
iv.
Should market orientation strategies be
used casually or constantly?
v.
What are the marketing strategies that
determine the attainment of superior performance?
1.5 BACKGROUND AND SIGNIFICANCE OF
THE STUDY
Some
critics have emphasized that performance is often to much related to sales person
productivity because service retaining and marketing functions are laboured
intensive activities (Stern and Ansary
1992) even when investment in capital is of great importance in marketing (Denttu
and Yoo 1998). On the other hand (Bush, Ortinau and Hair 1900) emphasize that
performance is more focused on micro level units than the strategic allocation
of resources on a company level.
It
is pertinent therefore to seek the relationship between market orientation and
company performance this brings to find out the overall effect of market
orientation on productivity, customer satisfaction and company performance.
1.6 LIMMITATION OF THE STUDY
The
scope of this study will be based on orientation company performance with a
particular reference to Frigoglass Nigeria Ltd.
This
study will Also be based on the managers (both senior and Junior managers)
particularly the marketing and the sales managers and other employees.
1.7 OPERATIONAL DEFINITION OF TERMS
Business Environment:
Is a set of political, economic, social and technological (PEST)
forces that are target outside the control and influence of a positive and a
negative impact on the business.
Corporate Attitude:
This is a positive attitude towards marketing roles.
Market Orientation:
This implies organization wide adoption and operationalization of the marketing
concept.
Market Segmentation:
This is the identification of portions of the market that are different from
one another.
Marketing Externalities: This
refers to several reasonable challenges coming from outside organization.
Marketing: is one of the sailent and important organic functions which
help service organization to meet their business challenges and achieve set
goals and objectives
Marketing Concepts: These are organic tasks involve in selecting a target
market in which to operate and developing an efficient and effective marketing
ingredient combination.
Marketing Strategy: is defined by ( Ulrich and Barnet 1984) as the process of
determining what an organization intends to accomplish and how its will direct
the organization and its resources towards attaining the goals set over the
coming months and years.
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