ABSTRACT
Competition has become the normal of the day in modern economy. The world has become a global village. With modern technology and sophistication, business competition has blossom in out present age. Modern business organization does not only compete with local industries but also foreign industries. While on one hand, it has given room to increase varieties of goods available to consumers and improved quality of the products, on the other hand, strive competition has led to the failure of many business enterprises. Thus, business survival and growth in the midst of competition has become the pivot goal of the management of every organization.
The study deals with corporate survival and growth strategies being employed in Karrington Limited, a printing and advertising company located in Gbagada, Lagos state of Nigeria.
Necessary information we obtained through structured
questionnaire administrated on the direct clients and
advertising agent’s o the company. A special questionnaire was also designed for Karrington staff. The survey involved
55 clients and staff. The corporate survival and growth strategies of the company and their limiting factors were identified.
The result indicates that the growth of the company can be hinged on the quality control and modern technology. This has given the company a competitive hedge over its competitors loyalty over a long period of time.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Business firms operate in a society to satisfy individual and social needs through the production of goods and services. Their decisions influence and are influenced by what is happening in the sorictey. The social economic and political institutions that make up a society constitute in a broad sense the environment of business enterprise and the way they work, affects the operations and fortunes of every business unit.
The motivating factors for the entrepreneur to go or venture into business, is to make profit. The objective of a business firm however goes beyond profitability only; it includes growth in sizes, increases in market share, innovation and social objective. The realization of these objectives will be determined largely by the happenings in the environment. Specifically, the environment of a business comprises those activities that can hinder or facilitate the
technology, social infrastructure, economic system and competitors. our focus in this study therefore is on the impact of the activities of the competitors on a business frim. Customers have a choice to go elsewhere if a particular firm’s products or service do not meet their needs. They can go to the competitor who may claim they can do better or better still who satisfies their needs. This means that the activities of competitor in the same industrial sector as a company also affect a firm’s prospects and operations. The type and quality of products that competitor offer, the price they charge for their products or services, their sizes, locations, reputation, distribution channels and usual stock level maintained, are some of the things about competitors which shape the operations of a business. No business firm can ignore the actions and decisions of its competitors in a modern economy characterized by competitions.
FIERCE BUSINESS COMPETITION IN MODERN
ECONOMY
competitions thrive, increased competition is being driven by many factors, including the emergences of a global marked place, the increase number of firms, new technology that makes it easier for firms to enter new markets and ever- increasing pressure from securities market to raise shareholder value. In particular the frenetic atmosphere of mergers and acquisitions, coupled with the increased number of arge institutional investors, has meant that firms that do not cut costs and improve financial performance face swift action in equity markets. This competition has meant that companies are less able to insulate workers or invest in public goods such as research or employer training. For instance, in U.S.A in 1992, three fourth of 531 corporations surveyed identified economic pressure form competitors as one of the primary factor motivating their restructuring efforts (Nation Policy Association, 1997). In 1965 IBM faced
2.500 competitors for all its markets. By 1992, it face
50,000. And IBM is not alone in feeling outside pressure,
competition such as telecommunication now faced growing competitors in Nigerian telecommunication marker such as MTN, ZAIN, Gobacom, Starcomm, Vodaphone etc. Stable industries have become dynamic. For example insurance was once a stale industry in Nigeria with a distribution system of local insurance agents, now its undergoing significant change, with competition emerging from foreign companies, banks selling insurance etc.
Adesina, (2003), noted that competition ensures that we change our ways of doing things. It ensures that we raise our quality bar to international standard. Again, it can also be said that fairs and equitable competition helps achieve appropriate pricing level. As a result of fierce business competition in the market, the number of firms being born and dying every year ha grown. As les innovative and efficient companies die or contract more innovation, efficient companies take place. While firms can grown fast, they can go out of business or downsize just as quickly.
companies are constantly developing new producst and service in order to gain new market, consumers benefit because their needs are more specifically addressed and met.
Advertising and Sales promoting play major role in competition in Nigeria. It can determine the fortune of nay company. A company that fails to advertise will remain in obscurity and may find it difficult to grow and expand, this account for the reason why many multinationals wil as indigenous companies which are regarded as market leaders such as coca-cola Guinness (Nig) Plc, Nigerian Breweries Plc. Nigeria Bottling Company Plc, MTN communications, West Africa milk company Plc, First Ban of Nigeria Plc, etc, Budget Millions of naira annually on advertising and sales promotion, many advertising companies and agencies have spring up recently in Nigeria to meet the challenges in the market. This has also brought competition to advertising in
industry itself.
Researching therefore into the strategies adopted by the lending advertising companies in Nigeria to survive and grow is crucial considering the strategies rols played by advertising and sales promotion in the survival of any company in modern economy.
1.2 STATEMENT OF HE PROBLEM
He economic circumstances characterized by recession and competition are now threatening the survival of many Corporate establishments and such establishment need to wake up from their present state if they must survive in the next millennium. Prior to industrial revolution, producers were regarded as kings and could produce anything since there were ready markets for them, irrespective of quality, price etc. after the industrial revaluation however, productivity increased beyond measure and competition became tensed. As a result, the royal crown of producers disappeared foreign hem o be at he mercies of consumers.
sufficient o give a company a competitive edge over other but polices and strategies put in place to achieve market leadership in view of the rigorous competition that has characterized the economic system. It was with total actual and potential opportunities. Formulation for became a must in order to survive.
In additions of great activities in the world today place under conditions of great risk uncertainties and intense competition. It is no longer possible to rely on an “invisible hand” o regulate business operations and place any firm in a position of relative advantage in he market place (Adeoyeji
1983).
The greatest challenge for a successful organization is change. Many good ideas about which products and service should be offered, ho hey shold be produced and delivered has suddenly become obsolete in the face of change. Many organizations find I difficult to cope with changing customers
up or are taken over by more aggressive competitions.
Business failures and near failures are frequent occurrences, often the plights of a failing firm come as a great surprise to managers and shareholders alike. What may result in constant business failures therefore is inability to recognize opportunities and not so much the non- resistance of opportunities in any business line of any sale whatever. Business failures like all mundane failure are never divine.
Therefore in recognition of the above problems this research has undertaken to critically look at the causes of business failure and suggest practical business strategies for survival and growth in the a competitive business environment in Nigeria.
1.3 OBJECTIVE OF HE STUDY
In view of the above, the objective of study will include:
of a company (business firm) in spite of market competitive.
2 To identify the limiting factors hindering the growth
strategies significantly involves efficient and promplt service delivery.
3 To find out whether corporate survival and growth strategies significantly involves efficient and pomple service delivery.
4 To determine the effects pf modern technology in enhancing corporate survival and growth strategies in a competitive business environment.
5 To find out whether advertising and ale promotion
play a major role (determines the future of a company) in a competitive market.
6 To determine the major roles played by advertising and sales promotion in a competitive market.
1.4 RESEARCH QUESTIONS
The research questions for this study are as follows:
corporate survival and growth strategies in a competitive business environment.
2 Does modern technology enhance corporate growth
and survival?
3 Do you think adverting and sales promotion play a major role in competition in Nigeria?
4 What are the motivating factors for the entrepreneur to venture into a business?
5 To what extent can equitable competitors help ton achieve appropriate pricing level?
6 How do the operations of competitors in the same industrial sector affect a firm’s prospect activities?
7 To what extent are customer’s addressed when there is competition.
8 What in your opinion are the factors responsible for the growth of a company over the years?
9 How do you rate the company in term of efficient
and prompt service delivery?
technology?
11 Can be growth and survival of a company be achieved through enhancing its competitive strategies?
1.5 HYPOTHESES OF THE STUDY
Ho: Corporate survival and growth strategies do not significantly involve ensuring the provision of quality service.
Hi: Corporate survival and growth strategies significantly involve ensuring the provision of quality service.
Hi: Corporate survival and growth strategies are not significantly enhanced with the use of modern technology
Ho: Corporate survival and growth strategies are significantly enhanced with the use of modern technology
achieved through the enhancement of the competitive strategies.
Hi: The growth and survival of a company can be achieved
through the enhancement of the competitive strategies.
1.6 SCOPE OF THE RESEARCH
The research covers the corporate survival and growth strategies in a competitive business environment. Our focus shall be the printing and outdoor advertising in Nigeria.
The attitude and compliance disposition of the current management of our studied company to an extent represents the industry.
1.7 SIGNIFICANCE OF THE STUDY
This study is aimed at achieving the following goals
1 To enlighten the corporate organizations on the reality of competition in the modern world.
2 To spur the management of corporate organization on the need to be proactive and not reactive to competitors actions an decisions.
shares to competitors on how to recovers it back.
4 To assist new business firm confronted with intense competition from the established firms on how too survival and growth in the midst of competition.
5 To reduce the rate of business failure due to competition in Nigeria.
6 To expose the entrepreneur to alternative survival and growth strategies aimed at improving the profitability and stability of establishment.
1.8 PLAN OF THE STUDY
The study is essentially divided into five chapters. Chapter one introduces us to the body of the work and its purpose, the scope and limitation of the research work.
Chapter two takes us to an in-deth review of relevant literature on the topic. In it, we shall look at the causes of corporate failure, the importance of strategies management, market competition and business growth and survival strategy.
highlighted to consist of the approach to the solution of the problems, method of data collection and data analysis.
In chapter four, an anticipated analysis of the data
collected in the course of this research study is undertaken by means of statistical tools. The interpretation of how the result was arrived at was analysed.
Finally, chapter fiv focuses on the summary of findings, recommendations and conclusions on how corporate organizations can survive and growth in a highly competitive business environment.
This material content is developed to serve as a GUIDE for students to conduct academic research
CORPORATE SURVIVAL AND GROWTH STRATEGIES IN A COMPETITIVE BUSINESS ENVIRONMENT
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