ABSTRACT
This study investigates the impact of
public relations practices on the market performance of the petroleum
downstream sector in Nigeria, focusing on Oando Nigeria PLC. The main objective
is to analyze how various aspects of public relations, including employee
welfare, community relations, and media relations, influence market performance
within the petroleum industry. Specific objectives include assessing the
effects of employee welfare on performance, analyzing the impact of community
relations on product patronage, and examining the effect of media relations on
profitability.
Employing a survey research design, data
was collected from a population estimated at 250 individuals, with a sample
size of 153 determined using the Taro Yamane method. Both primary and secondary
data were collected and analyzed using descriptive statistics, correlation, and
simple regression techniques.
The findings reveal several significant
insights: Oil companies in Nigeria actively engage in public relations
practices, as evidenced by responses in the questionnaire. Public relations
practices contribute to increased turnover and working capital while reducing
liquidity. While public relations activities may initially reduce short-term
profitability, they ultimately enhance long-term profitability and corporate
performance in the petroleum sector.
In conclusion, public relations practices
play a crucial role in improving company performance within the oil sector,
despite some short-term impacts on profitability. The study highlights the
importance of strategic public relations in fostering positive relationships
with stakeholders and enhancing overall market performance.
Based on these findings, several
recommendations are proposed to improve company performance and enhance relationships
with stakeholders: Businesses should prioritize customer protection and
satisfaction, providing platforms for customer feedback and incorporating their
views into decision-making processes; Oil firms should ensure responsible financial
management, meeting obligations to capital providers promptly and efficiently;
Active participation in community development initiatives and support for
government developmental programs should be emphasized; Environmental
sustainability and adherence to ethical and legal standards in oil operations
should be prioritized.
By implementing these recommendations, oil
firms like Oando Nigeria PLC can strengthen their public relations practices,
foster positive stakeholder relationships, and ultimately improve market
performance in the petroleum downstream sector of Nigeria.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Formulation of Hypotheses
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Definition of Terms
1.9
Limitations of the study
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework
2.1.1 What
Is Public Relations?
2.1.2 Public Relation In Support Of Marketing
2.1.3
Role of Public Relations
Executive In Commercial Outfit
2.1.4 Strategy
and Scope of Public Relation Programme
2.1.5 Corporate
Social Responsibility Prrogramme
2.1.6 Corporate
Identity Implementation
2.1.7
Framework Relations Program
2.2
Theoretical Framework
2.3 Empirical
Framework
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Area of Study
3.3 Population of the Study
3.4 Sampling Techniques
3.5 Sample Size
3.6 Data Collection Method
3.7 Data Analysis
3.8 Model Specification
3.9 Validity
3.10 Reliability
CHAPTER
FOUR
RESULTS
AND DISCUSSIONS
4.4.1 Testing
for Effect of Public Relations Cost on Corporate Performance
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX: QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Public Relation is the
art and science of analyzing trends, predicting their consequences, counseling
organization, leadership and implementing planned programme of action which
will serve both an organizations and public interests, (Odemulegwu, 2009). This
definition actually points out that public relations has to do with the process
of establishing and maintaining cordial relationship between an organization
and its public so as to help the organization to achieve its objectives.
(Odemulegwu, 2009).
Sam (2006), quoting the
institute of public relations (IPR) in the United Kingdom. Public relation is the sustained and
deliberation efforts to establish and maintain mutual understanding between an
organization and its public”. The editors
of relations as “a philosophy and function of management that evaluate public
attitudes, identifies the policies of an individual or firm with public
interest and execute programme of actions to earn public understanding and
acceptance.
However, there was thus
unfortunate tendency at the time among the big industries and corporations to
disregard the public interest in their role, activities, policies, procedures,
and operations. In a democratic setting,
moreover, this neglect situation could not go unrecognized. Hence, within the early periods of 20th
century, there were series of attacks on such big corporations as the
Railroads, oil steel and coal corporations for their obvious indifference to
public welfare and other ruthless tactics of their business practices (Philip,
2013).
Community relations is pivotal
to this framework. Thus, the people live
in a community and the institutions which provide the needed services to them,
are mutually dependent. What affects one
consequently touches the other; as such both should work towards establishing a
healthy productive and dynamic society.
The people who live in a community and the corporate entities and other
institutions within that community must therefore practice interdependence,
corporation, collaboration, solidarity and unification and should strive to
eschew all forms of selfishness by working assiduously towards a common goal
(Nwosu, 2004).
Peak (2006), supports
this view as he states: A basic
ingredient of every good community relations program is the necessity for
official up and down the line to know their community. Philip (2000) not only endorses the above
statement, but also points out that, if one is desirous of success, one has to
keep abreast of changes within the locality.
According to him, community refers not only to a group of people living
in the same locality, but to the interaction of those people. In the past, the tendency was to treat a
community as a rather simple entity, a collection of people, a “home
town”. Today, we are beginning to
recognize each community as a complex entity with which a corporate
organization can do business with. As a
public therefore, an oil firm is required to treat the host community in a way
to enhance mutual benefit erupting from oil exploration (exploitation) and the
impact of this oil business on the community’s welfare (Inyama, 2006).
1.2 Statement of Problem
Public relations
practice generally, like every other marketing activity is not done
haphazardly. Some factors are being put
into consideration. These factors range
from cost, public relations research, the environment and business ethics etc. the factors appear to be overlooked,
hence inadequacies militate against actualizing the corporate objectives of the
adoption of public relations practice by the oil firms that the researcher was
motivated to carry out this study.
However, public
oriented programmes demands that the PR practioners must deal with three major
problems.
For instance, they
must determine what the publics want and then predict the long run effect of
difficult task decision will be. This is
a very needs and aspirations that are a times mutually exclusive. On the other
hand in trying to achieve mutual understanding between the organization and its
publics, the PR practioner may achieve the opposite. For example, there may be a conflict between the
installation of pipe line by the oil firm and the adoption of environment friendly oil exploration technology, within
the ambience of petroleum and environmental laws. Thus, between the extreme desires of the
needs of the various publics of the host community, the government and business
ethics.
Lastly, many of the PR
practices have costs associated with them.
PR managers, marketers and, or practices must evaluate the extent to
which publics are willing to appreciate the public relations activities, especially
using social responsibility strategies; and the trade-offs (of how the costs
associated the PR activities) will impact
on productivity, operational and marketing efficiency.
1.3 Objectives
of the Study
The major objective of
the study is to analyze the effect of public relations practice on the market
performance of the petroleum downstream sector in Nigeria.
The specific objectives
of the study are to:
i). ascertain
the effect of employee’s welfare on employee performance
(ii) analyze
the effect of community relations on product patronage
iii). examine the effect of media relations on profitability.
1.4 Research Questions
The following research
questions will be addressed:
i).
what is the effect of employee’s welfare
on employee performance
ii).
what are the effect of community
relations on product patronage?
iii).
what is the effect of media relations on profitability?
1.5 Formulation of Hypotheses
In the process of
carrying out this research the following null hypotheses were stated:
H01: Community relations practice has no effect on company sales.
H02: Media relations practice is not significant in enhancing profitability
in the oil firms.
H03: Staff welfare has no significant effect on employee performance
1.6 Scope of the Study
The scope of the study is
focused on public relations practice in Oando Nigeria Plc. And their internal
and external publics in Port-Harcourt metropolis will be studied.
As for the topics covered
all the items as contained in the objectives of the study and hypotheses will
be tested.
1.7 Significance of the Study
Coming to the
diversification and expansion of its activities, the current crises and the
ever-increasing competition among oil marketing companies, Oando Nigeria Plc. Are concerned with generating marketing
information which will help them to achieve a favourable market share and
maintain its profit marketing ability if really wants to remain in
business. This may after some
recommendation will help to ensure an adequate and effective use of public
relations as a tool for business promotions.
Also, this research work is also
undertaken in the hope that its finding will enable marketing people to
understanding, adapt and apply knowledge of public relations in tackling their
marketing problem.
Again it is hoped that, the study and the
recommendation that will be made, will be of benefit to the Oando marketing
department in particular and the entire industry as a whole. It will contribute
to determining the strategic requirements for effective marketing and would
enable firms serve their publics more effectively and efficiently.
Lastly, if the research achieves this, it
will be a worthwhile contribution to the integration of functional specialism
(marketing) that is essential in the business world today.
1.8 Definition of Terms
The following definition
terms used in this research work are defined as follows:
1. Public relation: the act and service of achieving harmony with
the environment through mutual understanding based on truth, knowledge and full
information.
2. Communication: This means the process through which needs,
emotions, desires, ideas, sentiments and goals are expressed among human beings
using codes, symbols and languages understand by the parties involved in the
process.
3. Company:
This can be defined as a business or an organization created to pursue
profit by providing goods and services.
4. Diversification: This is the financed strategy of holding
different investment to reduce the risk of financial loss.
1.9
Limitations of the study
There are many limitation been encountered by the
researcher during the period of getting information and that has affected this
work adversely. They include;
1. cost
limitation
2. chance
limitation
3. finance
limitation
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