PROBLEMS AND PROSPECTS OF AN INTERMEDIATE BUYER
ABSTRACT
This research works on the problems and prospects of an intermediate buyer with a case study of sabiz supermarket are geared towards guiding supermarket and entrepreneurs. The problems that called for this study include among others that most managements of supermarkets lack appropriate techniques for funding their businesses and competent hands are not readily employed to man the activities of the supermarkets. The objectives of the study include among others to encourage the supermarket to develop appropriate techniques for funding their business and encouraging the supermarkets in keeping proper records. The methodology used in the research which assisted in gathering data as well as oral interview. In deed the major research findings include that the self-service system of supermarket enhances purchases in the supermarket and that the accounting system of the supermarket is not excellent. It was recommended among others that management should make the supermarket roomy enough to accommodate the customers at each point in time and that the accounting system in the supermarket should be developed to excellence. It was however concluded that the supermarket sells those goods that meet the taste and demand of the location.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Over the years, most enterprises especially the Sabiz supermarket ikeja have been subjects to high level unproductively, inefficiency and unpredictability, owing to the inability of the management of such enterprises to evaluate their problem to them with a view of proffering solution to them in a way that may have wonderful prospect It was Ogu (2001:42) who maintained that “the supermarket is a large self service shop, smaller than a departmental store, which stores under one roof house hold items and foods items’. Reasoning in the same direction, Njokwu (1999:23) is of the opinion that “supermarkets are retail stores that sell only house hold goods. They usually operate on the principle of quick turnover of small profit margin. Supermarkets mainly sell household goods and goods which are on daily demand, the goods are arranged in such a way as to encourage impulse buying, properly repacked with price tags. Baskets and trolleys are also provided to assist customers in picking the goods they want to buy” Indeed, Anyanwu (2003: 68) assets that “counters are arranged in the supermarket in such a way and manner that customers are generally led back to the centre of the shop rather than to he exit door”. According to Anyanwu “supermarkets afford the customers lots of convenience as he can buy all his needs under one roof and the cheaper price offered, results not only in high turnover, but also in savings for the customers. Fewer assistants are required to run the supermarket due to its self-service system and customers are discriminated against in terms of prices charged for items bought every item has a price tag or label
However, Ibeto (1997:25) is of the view that “shop-lifting is rampant in supermarkets as customers walk around unguided and customers are denied the opportunity to ascertain alternative prices for the goods as the supermarket environment suggests one seller:”Nwachukwu (2000:60) is more interested in those factors that make impacts on the standard of management of supermarkets. according to him “management of different supermarkets do look at such factors as the location of business ability for proper demand management skills for strategic pricing and techniques for reduction of theft as well as motivation of employees” indeed, most supermarkets have the problems of financing and such problem seem to persist because the management of such business do not explore the business financing strategy available to it .Igbo (1996:24) maintains that financing of supermarket can be in form of profits, borrowing, loans, credits purchases, investments in securities and sale of assets “. Target should also be set and evaluation carried out
Ike (1998:47) listed the problems that may affect a supermarket as those of “inadequate funding, untrained employees, poor location, poor patronage, theft and robbery”. Others include “poor management and inadequate control’ it is also only when the problem of a supermarket are squarely faced that the prospects of the enterprise can be carried out to examine the problems faced by the supermarket especially the sabiz supermarket ikeja with a view to proffering or recommending solutions to them and making the future of the enterprise bright
1.1.1. HISTORICAL BACKGROUND OF CASE STUDY
Sabiz supermarket located at ikeja in Lagos was established on June 30th 2006 by Mr. Kunle fadiora. Mr. Kunle fadiora is not a graduate but a secondary school holder and he is the managing director of the supermarket. He started the business with a small amount of money, which he did not want to disclose but he gave an estimated amount of money, about a hundred thousand naira (100, 000.00) and now the business has grown to a large one.
1.2 STATEMENT OF THE PROBLEMS
A lot of problems called for the management of sabiz supermarket to develop appropriate techniques for funding. The business may have led to unproductivity due to the fact that the supermarket is not properly located and such may have caused the enterprise to loose a lot a of customers Indeed, the inability of management to employ those who are not trained may have led to poor performance and evaluation of employee. Training should adequately be carried out with a view to discourage theft. Coupled to the foregoing, the business is perceived to have not kept proper records of commercial transaction and such may have weakened the accounting system. There is also the problem of inability to stop selling redundant items and this is capable of destroying the image of the supermarket.
1.3 PURPOSE OF THE STUDY
The purpose of the study was to look into or investigate the problems and prospects of an intermediate buyer, using the sabiz supermarket as a case study. Specifically the purpose for which this research work is carried out include the following
1) To encourage sabiz supermarket to develop appropriate techniques for funding their business
2) To determine the suitability of the location of the supermarket
3) To examine whether the workers of the supermarket are trained
4) To unearth the factor that impede appraisals in the supermarket
5) To ensure that the supermarket keeps proper records
6) To encourage the supermarket to stop selling redundant items
1.4 RESEARCH QUESTIONS
The following research questions for this research work are –
1) How adequate are the techniques of the sabiz supermarket for funding their business?
2) How adequate is the location of the supermarket?
3) How trained are the workers of the business?
4) Are there factors that impede performance appraisal in the supermarket?
5) How adequate are the records of the supermarket?
1.5 RESEARCH HYPOTHESIS
A hypothesis is a declarative hunch which gives every event a fair and equal chance of occurring. It can also be said to be an intelligent guess which assumes that one of two possibilities is true until finally proved. The hypotheses for this research work are:
HYPOTHESIS 1
Ho: - sabiz supermarket is not properly funded
Hi: - sabiz supermarket is properly funded
HYPOTHESIS II
Ho: - The supermarket is not located at a proper site
Hi: - The supermarket is located at a proper site
HYPOTHESIS III
Ho: - sabiz supermarket does not keep an up to date record
Hi: - sabiz supermarket keeps an up to date record
1.6 SIGNIFICANCE OF THE STUDY
This study is significant in its attempt to allowing supermarkets to know how best to solve their business oriented problems. The findings of this study will extend the knowledge of the sabiz supermarket in analyzing business problems, forecasting and planning for purchases and profitability The findings of this study will yield data on how best the supermarket could assist their customers in getting the best of their services ¬Finally, the findings of this study should yield data that could help researchers in the area under study and this could make the work too useful especially in the review of related literature and methodology of researcher.
1.7 SCOPE AND DELIMITATION OF THE STUDY
This study was restricted to the problems of an intermediate buyer. It was restricted to those areas that hinder the growth and profitability of the supermarket and no attempt was made to go outside them. For instance there are other areas that should have been looked into, but no attempt was made to include them in the study.
1.8 LIMITATION OF THE STUDY
A lot of problems were encountered by the researcher in the course of carrying out this research work
1.8.1 FINANCIAL PROBLEMS
The researcher did not have enough funds to face the challenges posed by this academic exercise. In other words the research would have been better and more developed had there been adequate funds to support the research
1.8.2 TIME CONSTRAINTS
It was quite difficult for the researcher to combine class room work with field work. The time it consumed was much. Consequently few lectures were sacrificed at the alter of the research work.
1.8.3 DISTANCE
The distance of the case study also contributed to the poor performance or could have a negative impact on the work of the researcher due to transportation.
1.8.3.1 POOR ATTITUDE OF MANAGEMENT TO PROJECT
It was not too easy to obtain information from the staffs of the case study firm as they considered certain information too confidential.
1.8.4 UNAVAILABILITY OF READING MATERIALS.
Sufficient materials were not available to better the research.
1.9 DEFINITION OF TERMS
1) Management – This is the use of use of human resources to achieve set goal
2) Performance – It is the degree of accomplishment either high or low of staffs of the business.
3) Personnel – These are the human resources of the enterprises
4) Rent – An amount of money that is regularly paid so that a house can be regularly used especially for business
5) Self-service – The practice of the customers serving themselves especially in a supermarket arrangement.
6) Supermarket – A large shop/store that sells food, drinks and goods used in the homes with a self-service system.
7) Price Tags – A piece of document indicating the specified amount as attached to the specific item. Thus allowing customers to know the price of each item
8) Provisioning – This is the process of determining in advance required materials and stocks or items that needs to replaced
9) Stock-taking – This could be said to be checking of materials or items in the supermarket with a view of checking the balances as shown in the records
10) Supervision – the constant supervision of customers in the supermarket should be maintained by well trained staff so as to reduced the risk of theft
11) Packaging – This involves the clothing, wrapping and boxing of some items which provide the necessary protection for commodities and yet beautifies the product.
12) Customer service – This is the kind of services offer to support sales that have already been made also to encourage buy back or repeat purchase.
13) Available Quantity – The quantity of an item in the supermarket expected to be available at the end of a time period, to meet demands of customers in succeeding periods
14) Business plan – A statement of an organization’s overall level of business activity for the coming six to eighteen months usually expressed in terms of naira volume of sales for its various groups
15) Company Wide Quality Control – A management philosophy and set of activities characteristics by mobilizing the entire work force in the pursuit of quality by statistical thinking and by preventing errors
16) Controlling – Activities that assure the actual performance of the supermarket is in accordance with the planned performance
17) Procurements costs – costs of placing an order, set up costs if ordered items are manufactured by the firm
18) Gang-way – A specified measured space in the supermarket which allows customers to pass through while searching for their desired products
19) Multiple sampling – Accepting sampling bases on many small samples mostly carried out by most supermarkets in order to try first time items.
20) Purchasing – Activities relating to procuring of materials either by the management
21) Queue – The process by which customers queue to pay for the products picked
22) Training – this is a situation whereby employees and staffs undergoes a serious training exercise where they are being equipped with the skills and knowledge with discipline inclusive on how to run the supermarket effectively.
23) Counters – This is a shelve like structure where items to be bought are placed
24) Trolleys – This is an item with wheels that assists customers carrying items picked with the intention of buying them
25) Planning – An activity that established a course action and guide future decision making.
