Determinants of Profitability in the Nigerian Breweries Industry

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CHAPTER 1: INTRODUCTION3

1.1 Outline of the Study3

1.2 Background3

1.3 Rational of the Study3

1.4 Problem Statement4

1.5 Purpose and Aim4

1.6 Structure of the Proposal4

CHAPTER 2: LITERATURE REVIEW6

2.1 Nigerian Brewery Industry6

2.2 Profitability Perspective of Nigerian Brewer Industry6

2.2.1. Financial Perspective of Profitability7

2.2.2. Customer Perspective of Profitability7

2.2.3. Internal business Process Perspective of Profitability8

2.2.4. Growth and Learning Perspective of Profitability8

2.3 Key Determinants of Profitability9

2.3.1. Access9

2.3.1.1. Dimension of Time9

2.3.1.2. Dimension of Place10

2.3.1.3. Dimension of Acquisition10

2.3.1.4. Dimension of Use10

2.3.1.5. Dimension of Execution11

2.3.2. Environmental Consumption11

2.3.3. Desire for Uniqueness12

2.3.4. Satisfaction and Quality12

2.3.5. Involvement and Connection with the Community13

CHAPTER 3: METHODOLOGY14

3.1 Research Style14

3.2 Research Questions and Link with Literature15

3.3 Variables for Analysis16

3.4 Data Sources16

3.4.1 Primary16

3.4.2 Secondary17

3.5 Representation of Data17

SECTION 4: DATA ANALYSIS18

SECTION 5: ETHICS, VALIDITY AND PRESENTATION19

REFERENCES20

APPENDIX24

Work Plan- Gantt Chart24

CHAPTER 1: INTRODUCTION

1.1 Outline of the Study

This study will be based on the topic “Determinants of profitability in the Nigerian Breweries Industry”. The first chapter will provide an introduction to the topic including the purpose and aims of the study. The second chapter will present a review of relevant literature, highlighting the previous research carried out in this field. The third chapter will cover the methodology for this study. The expected results are given in chapter 4.

1.2 Background

The brewing industry is one of the fastest growing industries in Nigeria. It accounts to 28% of the MVA and brings a direct employment for 30000 individuals (Okwo,2012). Many major producers are already present in both the soft and alcoholic drink markets, keeping competition and product innovation levels high. Despite encouraging growth, per capita soft and alcoholic drinks consumption remains low. Nigeria's regulatory environment is notoriously poor, with counterfeit products a serious concern (Congress,2006).

1.3 Rational of the Study

This study is conducted to not only facilitate the business industry but also the economic and the social bodies since it provides a comprehensive review of the profitability situation in the breweries industry. This research is important in understating how well the Nigerian brewery industry has been making the most of the potential in the business and how profits are directly proportional to industry growth.

1.4 Problem Statement

Currently, the Industry's liquidity position measured by the current ratio remains questionable. The liquidity ratio, cash ratio, cash assets ratio or current ratio gauges the ability of the company to deal with short-term maturing financial obligations. It is believed that the more cash available to the company the merrier and easier to manage. The reason is the high cost of inputs which influence the product margins and are of great concerns to the Nigerians. Therefore, this research is necessary to analyze the detriments of products in brewing industries in Nigeria.

1.5 Purpose and Aim

The study aims to examine the profitability in the Nigerian Breweries Industry. The study will focus on the search for the local substitutes for the imported barley and how it affects the profitability. The study will see how these changes affect profitability of the industry. Now, most of the successful organizations use sorghum and maize in the production of ...