The Role Of Purchasing In Multinational Companies In The Economic Development Of Nigeria

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ABSTRACT

The research topic is the influence of multinational companies in the Economic Development of Nigeria, A case study of Guinness Nigeria Plc. The research is divided into five chapters.  Chapter one contains introduction, background of the study, statement of the problem, purpose of the study, significance of the study, scope and limitation, research question and definition of terms.  Chapter two contains review of related literature, concept of multinational company, school of thoughts about multinational company, impact of multinational  company in the Nigeria Economy and some problems of multinational companies.  Chapter three contains research design and methodology, source of data, research of design, method of data analysis, sampling technique. Chapter four contain presentation, analysis, and interpretation and test of hypothesis.  Chapter five contain summary of findings, conclusion, recommendation and references.

TABLE OF CONTENTS

Title Page

Certification

Dedication

Acknowledgment

Abstracts

Table of Contents

CHAPTER ONE

1.0 Introduction of the Study

1.1 Statement of the Problem

1.2 Purpose of the Study

1.3 Significance of the Study

1.4 Scope and Limitations of the Study

1.5 Research Question

1.6 Historical Background of the Case Study

1.7 Definition of Terms

CHAPTER TWO

2.0 Literature Review

2.1 Concept of Multinational Company

2.2 School of Thought about Multinational Company

2.3 Impact of Multinational Companies on the Nigeria Economy

2.4 Some Problems of Multinational Companies

CHAPTER THREE

3.0 Research Design and Methodology

3.1 Source of Data

3.2 Research Design

3.3 Method of Data Analysis

3.4 Population and Sample Size

3.5 Sampling Techniques

3.6 Method of data Analysis

CHAPTER FOUR

4.0 Presentation, Analysis And Interpretation

4.1 Data Presentation and Analysis

4.2 Test of Hypothesis

CHAPTER FIVE

5.0 Summary, Conclusion And Recommendation

5.1 Summary of Findings

5.2 Conclusion

5.3 Recommendation

CHAPTER ONE

1.0 INTRODUCTION OF THE STUDY   

In third world countries most people associated multinational companies with non-colonialism. While the Euro-American nations described multinationals as the engine of growth in the undeveloped countries. These two opposing views about multinationals will help to examine what multinational corporations are all about.

To define multinational company Walshi L. S. made us to understand that a multinational company produces and sell at both home and abroad. In fact, the essence of multinational is international production. It involves a corporation in the establishment of subsidiaries from the foregoing, it became clear that there are several approaches in defining a multinational company.

Approach I: This approach tries the definition by emphasizing structure criteria such as the number of countries in which a firm is doing business ownership from many nation, composition of the top management being national etc. Another school of thought in this approach defines it through stressing performance characteristics such as absolute control, relative earning of shares, sales, assets employee committed to foreign operation etc.

Approach II: Different schools of thought in this approach address the issue by suggesting an evolutionary process of internationals to multinational, transitional and supranational organization, which can be diagrammed as follows.

International: An organization is classified as international when the organization engages in foreign business but has made no direct investment.

Multinational: A Multinational organization is one that allocates resources without regard to national frontiers. However, the organization is naturally based in terms of ownership and top management.

Transnational: This is a multinational organization managed and owned by persons of different nationalities.

Supranational: This is a transnational firm that is legally denationalized by becoming incorporated through an international agency. Some of these multinational companies are general motors, Guinness Nig. Ltd., Nigerian Breweries, Oil Companies, Nigeria Bottling Company, Beecham, M & B, UAC, and a host of others. These above mentioned corporations have their headquarters in the United State of America and Europe with huge capital and asset based and technical skill extended to their respective countries where their branches are located.

The local branches are mere subsidiaries and located mainly in underdeveloped countries of the world. The impact of these multinational have contributed to the improvement of the economics of such where they have their subsidiaries. These corporations are believed to be facilitating the transfer of technology to the less developed countries.

Nigeria in particular. Ake (1981) is of the view that “the multinational scarcely have the appropriate technology to transfer” while Offions (1980) admits that they are capable of contributing to development. He however argues that their malpractices wiped away any contributions that they have made. This is why we say in “Management that the multinationals blessings in disguised.

1.1 STATEMENT OF THE PROBLEM  

This study is therefore aimed at identifying problems that might hinders the efficiency and effectiveness of Guinness Plc. In performing the stated aims in Nigeria with the view to suggest strategies by which they can be enhanced to become useful to Nigerians.

1.2 PURPOSE OF THE STUDY

The aims of this is to:

1. Investigate the role of multinational corporation Guinness Nigeria Plc in the development of the country.
2. Highlights ways Nigeria could maximize the benefits from the multinational corporations and minimize their negative and anti-development objectives.

1.3 SIGNIFICANCE OF THE STUDY

Since 45 years after political independence, Nigeria still remains a mono product export economy exporting only raw materials and crude oil.

Since Guinness Plc’s aim is to develop the country, how far has it achieved this aim?

How many people acquired the technological skills which its claims to transfer to Nigerians. This study will expose to the policy makers and economic planners both at private and public sectors the negative and positive effects of the company’s activities. It will also help the government to re-structure their relationship with multinational corporations.

1.4 SCOPE AND LIMITATIONS OF THE STUDY

This study will generalize the role played by the different multinational companies but will focus attention on Guinness Nigeria Plc’s to enables the research have accurate and careful examination of the study. This study will also go a long way to high light the parts played by Multinational companies by studying how they are financed, how they make their profits and how the profit utilized the extent they have transferred their technological skills to the host country.

Finally, how they have helped in solving unemployment and other social responsibilities problems in Nigeria.

Some of the limitations that may have affected the results of this study are described below:

1. The results of this study may not be generalized since it is only one of the corporations that was studies out of the whole lot in Nigeria. However a global qualification is not necessarily.
2. The researcher had problems in obtaining relevant data. The company did not give enough data and relevant information and there is no appends Nigeria body of laws that compels them to do so.
3. The researcher had to combine full time academic study with the research work and this slowed down the pace of work.

1.5 RESEARCH QUESTION

1. To what extent does Guinness Plc helps in the development of Nigeria?
2. To what extent does Guinness transfers their technological skills to Nigerians?
3. How has Guinness help in creating job opportunity in Nigeria?
4. What constrains will hinder Guinness in their contributions to the economic development of Nigeria?
5. To what extent does the company attract government assistance?

6. To what extent does Guinness Plc re-invest their profit in Nigerian Economy rather than repatriating if abroad?

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