ABSTRACT
This project work is centered on creativity and innovation in the soft drink industry (The Study of Seven-Up Bottling Company Plc Enugu). The project work is aimed at accessing and addressing the Impact of Creativity and Innovation, Problems, and Challenges Encountered by Management in Making the Company to thrive in a Global Competitive Environment. The work employed the use of historical method, to review related literature in chapter two. In chapter three the survey research plan was used in questionnaire form concerning creativity and innovation in a soft drink industry. However, the stratified random sampling approach was adopted in selecting the sample size for the study. Furthermore, five hypotheses were formulated in line with the problems and objectives of the study. Data collected were analyzed and presented with tables and percentages, chi-square statistical test was used in testing the hypotheses, the following results emerged: that motivational incentives for creativity and innovation have encouraged the exploration of hidden talents in the work place, there is significant relationship between creativity and improvement in profit and market share, there are no relationships between creativity and loss of job in soft drink industry.. In view of the findings the following were recommended in the research work: to create enabling environment to improve employees creative ability, insulation of effective channel of communication, create a proper motivational incentive, employee to welcome change through technical training and management should give adequate support to their employees when embarking on creative process. Overall it is believed that the strict application of the recommendation would lead to further progress of achievements of organizational objectives of the soft drink industry.
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is obvious that by “creation” we generally mean the words and pictures, the sound and music, the models that are projected and may be, even associations with such sports, films and other personalities who typify such role model. This is understandable. After all, these are the most visible element of improving growth and development in organization. Creativity is an asset impossible to financially quantify a prior in an organization (Amabile, 2002:52). Before a product or service is available to the market, the number of sales of that product/service will determine whether or not money will spent or completely wanted (Sulton, 2004:4).
Generally, creativity can be understood as the only one or the only important component of generating and designing of the service development especially now that global competitiveness is trying to thrive for companies survivals. Cannon (2005:98) points out that young creative talent that aspire for jobs for manufacturing and service industries are not sufficient into the highly demanding work.
Indeed, the new products and services provided new employment opportunities and positive balance of trade by a way of protecting the nation’s standard of living. Innovation in products, services, technologies and administrative practices is also relevant to other institutional sectors besides the economy. The study of organizational innovation articulates with the significant breakthrough in science, the development of superior military weapons, and the creation of interdisciplinary programme in higher education (Bell, 1973:213).
Theoretically, research on organizational innovation opens new perspectives on number of interesting issues that have surfaced recently which include: issues of social evolution and institutional change, the dynamic of knowledge and integration of macro levels of analysis (Hage, 1992:406). He further notes that organizational innovations can make relevant contributions to various arenas of new research in economics. The most obvious one is research on national system of innovation (Lundvall, 1992:320) and Nelson (1993:220) but is
equally relevant to endogenous theories of Economic growth (Rommer
1990:60).
According to Oxford Advanced Dictionary “to create” means to “bring into existence, give rise to originate” otherwise the word creation means. “All created things products of human intelligence especially of imaginative thought” creative means “creating, able to create, inventive, imaginative, showing imagination as well as routine skill of course. Huge sum of capital are put into creativity (OECD, 2008). The reason for it is the outwork of many markets today are not only highly competitive but
Innovation they are also very transmorphicixemend of new products/services continually appear in our taste and fashion, replacing old ones. New technologies generate new problems as well as opportunities to fix them. The ability to anticipate change arising from creativity and innovation means to do something about which has more than ever became a critical factor for survival (Olujumoke, 2008:37).
Innovation has been found to be linchpin of economic growth and lies behind improvements in every aspect of modern life (Tushman and Anderson,
1996:613).
Chang (2001:64) notes that size, scale and cost positions are very important aspects of defining competitiveness which boils down to innovation. An
organization’s ability to compete in a fast changing environment/world is defined by its programme for continuous quick and inexpensive innovation. He further observed that many organizations due to short term pressure or lack of understanding about how to innovate rely instead on increase mental improvement to existing product (Chang J. 2001:40).
The dictum innovative is yet to make an impression on many organizations all over the global. As a matter of facts, poor performance on innovation has been given as one of the key reason for British industrial decline (Frain, 1992:191). The case of Nigeria for instance, appears more pathetic. In 2000, for example, the Central Bank of Nigeria (CBN) reported that manufacturing sector of Nigerian economy recorded a miserly 0-4 rise in aggregate index of manufacturing production and the level of capacity utilization was given as only
36.1 percent.
Reason adduced for this abysmal performance include weave demand for local manufacture goods and influx of imports considered relatively cheaper and perhaps better quality than locally manufactured counterparts. The ability of organizations to produce influential ideas and has been long a central issue for organizational studies. Among all organizational outputs, innovation is fundamental not only in view of its direct impact on the viability of firms but because of the profound effects on the paths of social and economic change (Sovenson, 2000:94).
1.2 STATEMENT OF PROBLEM
The issue of creativity and innovation has posed a serious challenge in both private and public sector organizations in Nigeria because leaders/management of these organizations has not embraced creative thinking. The complex nature of this subject matter makes it too difficult for many leaders and their staff (employees) to tackle this problem very appropriately due to the continuously increase competition and rapid change in the market shares, products/services. Manufacturing company like Seven-Up Bottling Company Plc has not utilize fully the importance of creativity and innovation style to meet the taste and demand of their customers globally and nationwide which may have lead to low profit turnover and reduction in sales volume. Leaders/staff are required to have competence and ability to create and innovate in order to survive in the next millennium.
It is against this background that the researcher envisaged the following problems militating against creativity and innovation in Seven-Up Bottling Company Plc 9th Mile Corner, Ngwo:
The rate of growth and expansion of the industry are low compare to the mission and vision (goal) statement of the company. There is inadequate innovation for expansion of plants to other areas or states, inability of creative idea in marketing strategy to meet up customer’s demand, lack of creative innovations on depots to cater for ineffective distribution network, no creative
idea to handle economic recession, inadequate restructuring and constant frequent retrenchment of workers. Other internal problem envisage by researcher include:
– There is issue of lack of creative idea on consultation of employees and management before taking decision for the company.
– Lack of innovate ideas on new training techniques and effective role in harnessing of potential talent among their staff.
– There is a poor motivational incentive or recognition by management to employees over improved performance on creativity and innovation, retrenchment of workers.
– Low creativity on development and usage of research department/centre.
– There are low creativity and innovation on access to information, restructuring, expansion and generation of new ideas, it is this problems that the researcher whishes to carry out a research on creativity and innovation in a soft drink industry in Nigeria using Seven-Up Bottling Company Plc Enugu plant as a case study.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study include:
1. To examine if motivational incentives encourage exploration of hidden talents for creativity and innovation in soft drink industry like that of Seven-Up Bottling Company.
2. To ascertain whether the profit and market share of the industry globally were improved by management due to creativity and innovation in the industry.
3. To identify whether loss of job by employees and restructuring are due to creativity and innovation in the company.
4. To evaluate the role played by creativity and innovation in improving the market strategies and global competitiveness of Seven-Up Bottling Company Plc.
5. To know whether involvement of employees in decision making process encourages new idea to spirit of team work in promoting creativity and innovation in the company.
1.4 RESEARCH QUESTIONS
The following research questions provided a firm basis for the achievement of the objective of the study.
1. How does a motivational incentive encourage the exploration of hidden talent for creativity and innovation in Seven-Up Bottling Company?
2. In what way do creativity and innovation improve the profit and market share of the industry globally?
3. Do creativity and innovation brings about loss of job and restructuring in Seven-Up Bottling Company Plc?
4. What are the roles of creativity and innovation in improving the market strategies and global competitiveness in Seven-Up Bottling Company Plc?
5. In what ways does the involvement of employees in decision making process encourage new idea to spirit of team work in promoting creativity and innovation in the company?
1.5 RESEARCH HYPOTHESES.
The under formulated hypotheses will be a guide in collection of data for this study to achieve the research objectives.
H1 Motivational incentives significantly encourage exploration of hidden talents for creativity and innovation in Seven-Up Bottling Company Plc.
H2 Creativity and innovation significantly improve the profitability and market share globally of Seven-Up Bottling Company Plc.
H3 Creativity and innovation significantly led to loss of employee’s job in Seven-Up Bottling Company Plc.
H4 Creativity and innovation significantly improve the market strategies and global competitiveness in Seven-Up Bottling Company Plc.
H5 Involvement of employees in decision making process has significantly encouraged spirit of team work in promoting creativity and innovation.
1.6 SIGNFICANCE OF THE STUDY
The study has a number of significant dimensions. The result of this study should provide information to the management of Seven-Up Bottling Company Plc on the progress so far made in creativity and innovation. The result should serve as a review of further literature for those academicians who want to embark on related work of study.
The study should be helpful to other manufacturing companies, service industries because of the growing need of creativity and innovation as to improve companies’ products/services. The study will assist the financial and non financial institutions which had gone merger and acquisitions process the methodology to handle further issue regarding financial innovation in this era of global meet down.
Finally, the study will be of more significant importance to our political class, economist on how/to plan innovation and creativity process as to suit the citizens so that they will benefit from the dividend of democracy. The policy makers, the students through this study will know how creativity and innovation create impact of the field of education.
1.7 SCOPE OF THE STUDY
The scope of the study covers a period of five years, centered on creative and innovation in a soft drink industry. It will be viewed from Seven-Up Bottling Company Plc located at 9th mile corner Ngwo. The study is restricted to Seven-Up Bottling Company Plc whose business concern is for production of assorted brands of soft drinks through the use/application of manufacturing, marketing/servicing of her innovative products to their customers throughout the whole federation. Due to several creative and innovative process that have taken place in the company on different occasion, the researcher decided to restrict the scope to the above years from 6th 2007 to 2011.
1.8 LIMITATIONS OF THE STUDY
Every human polity has its inherent weakness and strengthens. As well every researcher used to inference with caution. This study is not without limitations nor is it without some inherent pitfalls caused by extraneous variables. The major constraint on the researcher is that the study limited the scope on Seven-Up Bottling Company Plc 9th Mile Corner Ngwo. More so,
there has been no much literature in this area and based on the fact, that the writer made use of both direct and indirect adopted materials for the study.
Also incomplete response and some misleading information from the respondents constituted another limitation of the study. The writer was so objective as possible in analyzing the data generated because coverage of some key departments in the company were not possible due to time lag, some staff and employer of the company refused to disclose some of the vital information as regards creativity and innovation perspectives. Finally, the researcher encounter problems in the area of financial resources coupled with combining academics with office duty was not an easy task to come by. The above limitations nevertheless, considered a serious threat as to affect the study.
1.9 PROFILE OF SEVEN-UP
Seven-Up Bottling Company Plc in Nigeria began in 1926, when the Company’s founder and former Chairman, Late Mr. Mohammed El-Khalil first came to Nigeria. He founded the company in 1959 and on October 1, 1960, Nigeria’s Independence Day, the first set of bottles rolled out of the first plant then located at Ijora. History has it that on that same National Day, “that is 1st
October 1960”, Nigeria lowered and furled the British Union Jack and happily hoist the Green-White-Green in celebration of liberty and attainment of sovereignty. Seven-Up Bottling Company Plc, then a Private Limited Liability Company sent out 14 precious cases of its freshly bottled 7up Soft Drink into Lagos streets for 336 Nigerians to savour.
The chronicle of Sheik Mohammed El-Khalil reveals that of a little beginning with a giant step in 1959, which lead to the establishment of a plant at Ijora. From that humble beginning, the Chairman set out solid policy guidelines that even today are part of corporate culture of the company. Those guidelines include strategic planning, careful implementation of ideas and gradual growth. These coupled with a closely knit “family feeling” enabled the staff to pursue their objectives and of course like any other growth-oriented company, continued its non-stop search for greater opportunities.
Seven-Up Bottling Company Limited was quoted on the Nigerian Stock Exchange and went Public in 1984. In the early 1980s, Seven-Up Bottling Company really began the greatest period of growth with the Ibadan Plant in
1980, Ikeja Plant in 1981, the Kano Plant in 1989, the acquisition of John Holt Soft Drinks with the kaduna Plant in 1989 and Ilorin Plant in Late 1989 also. Aba and Benin Plants were also opened between 1989 and 1992. The latest of all the plants are Enugu and Abuja Plants opened in 2003 and 2005 respectively.
With the single flavour of 7up that was released on Independence Day, Seven-Up Bottling Company Plc has grown to a rich bunch of flavours for the picking. There was Orange Crush, introduced into the market in 1984. The company has since rested that franchise in 1989; it secured the franchise for Pepsi from Pepsi-Cola International of New York USA. At the moment, Seven- Up Bottling Company Plc thirst busters include:
Pepsi Cola
Teem Lemonade
Mirinda (Orange, Soda Water, Tonic, Fruity, Lemon, Pineapple, Blue
Spice)
PET , CAN and lastly
Aquafina (Water) which has just been introduced to the Nigerian market. The marketing strategy of Seven-Up Bottling Company Plc on the other hand continues to build their distribution network across the Nation, penetrating areas where their products were hitherto not available. This is done through depots and clustered across the Federation to feed the far reaches of the country. In order to create a favourable climate for business, the management had to become involved with the community. Seven-Up was the first to introduce wrestling in Nigeria by sponsoring the Late Mike Bamidele who went to win a world title.
As the Mission Statement of the Company suggest “To Refresh and Inspire a Youthful Lifestyle”, the Company is into a talent-hunt of future football stars in the country through its Pepsi Football Academy with the sole aim of developing young boys and girls who are talented in the game of soccer
– the world most popular sport.
The Vision of Seven-Up Bottling Company Plc is “To be the most Admired and Innovative Company in Nigeria by the Year 2010’.
The Enugu Plant like the others is structured into segments, which operates as a team to achieve the company’s goals and objectives – to satisfy their customer “YOU”. These segments are grouped as departments headed by a manager with subordinates.
1.10 DEFINITION OF TERMS
1. COMPETENCE: This is referred to as person’s ability to perform a task to an externally agreed standard, whether set by the organization or third party (Frain, 1992:94).
2. MOTIVATION: Anderson (1996:113) defines motivation as the process both instinctive and rational which occurs in an individual when seeking to satisfy perceived needs and wants.
3. ORGANIZATIONAL DEVELOPMENT: According to Cole (2002:5) defines organizational development as a long or strategic approach to change involving the whole organization.
4. EMPOWERMENT:– In view of Sulton (2004:10) defines empowerment as a situation where employees are allowed greater freedom, autonomy and self control over their work and the responsibilities for decision making.
5. CREATIVITY: – According to Damanpoar (2004:24) creativity is defined as the appreciation of imaginative thought which result in innovative solution to many problems.
This material content is developed to serve as a GUIDE for students to conduct academic research
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