THE FINANCIAL PROBLEMS OF NIGERIAN BREAD INDUSTRY

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The performance of Bread Industries in Nigeria has been viewed by many from, different perceptivity. Assets, quality and managerial efficiency have been seen by many as determinants of Bread Industries performance, while a reasonable percentage of identified capital adequacy, as critical for Bread Industry performance. Other factors have also been seen, as determinants of industry performance like Bread Industry liquidity. A service is any act or performance that one party can affet to another that is essentially intangibility of a service makes it mandatory that the recipient must hold on to something which he/she will term to be quality so as to encourage patronage and patronage can only be enhanced when the recipient is catisfied with the services resaved. (See love lock 200 – 300).

DAVELOPMENT OF FREEDOM BAKERY INDUSTRY ENUGU –NGWO. Freedom Bakery Industry was licensed in Enugu – Ngwo in Enugu – State on 20thDecember 1972 to carry on currently capitalized at N5,000,000 million. The Industry is firmly believes that getting the right people and the correct operating philosophy as essential in setting a part or bakery in a dready competitive Nigerian bakery industry. The bakery Industry is a private industry with seven members in its board of directors, headed by Chief Ozokwo Isreal A. as the owner. It has I branch, Enugu State.

The objective / mission of the bakery industry is “TO CREATE A UNIQUE NATIONAL, BAKERY MARKETING BUSSINESS FOCUSED ON PROVIDING CREATIVE SOLUTIONS TO CUSTOMERS BUSINESS PROBLEMS WITH AN ABSOLUTE COMMITMENT IN QUALITY”. The bakery also has a vision and it is “A SOLD BAKERY INDUSTRY WITH EFFECTIVE PRESENCE IS IN NIGERIA – ENUGU STATE.

The Bakery Industry has objectives and they geared towards developing a good working relationship based real understanding of the need of the clients through efficient and responsive customer service.

The services offered include:-

i. Sales and Supply.

ii. Supermarkets.

iii.Caterers.

iv.Public Relationship.

v. Supply of Labour.

vi.Industrial Materials.

vii.Poultry.

viii.Farm and Crops Promotion.

1.2  STATEMENT OF THE PROBLEM:

This research work is designed to identify Financial Problem of bread industry in Nigeria, using freedom bakery Enugu – Ngwo as a case study.

1.3  OBJECTIVES OF THE STUDY

-Basically to find out whether payment of salary is one of the financial problem.

-To find out if raw materials constitute into financial problem.

-To find out whether N.E.P.A. power is one of the financial problems.

-To find out if fuel contribute into financial problem.

-To find out if transport is one of the financial problem.

-To find out if transport is one of the financial problem.

-To find out if taxes are constituent of financial problem.

1.4    RESEARCH HYPOTHESES.

Ho: Transport cost is < Personal cost in bakery industry.

Hi: Transport cost is not less than personal cost in bakery     industry.

Ho: The profit made in a bakery is constituent profit.

Hi: ll The Profit made in a bakery is not constituent profit.

1.5  SIGNIFICANCE OF THE STUDY.

The need for this study arose as a result of the increasing rate of financial problems in Nigerian bakery which seem to be threatening the very existence of the bakery industry with consequent implications to the economy.

An effective and efficient bakery system free in financial problem signifies a viable economy. Foreign and domestic investors are encouraged to diversity their investment portfolio this in-turn leads to industrial bakery expansion, reduction in unemployment and inflation, restores public and general, social and economic growth.

Given thiese scenario, there is need to empirically establish the free in financial problem in bakery: nature, implications and effect on the Nigeria economy and the survival of the bakery industry generally.

1.6  SCOPE OF THE STUDY

This study is restricted to freedom Bread Industry main branch office at Ngwo, Enugu State.

The reason for this is because of the bakery industry system of service which allows for a singular focus of the bakery industry within a given territory to achieve the set objectives of the industry.

1.7   DEFINITION OF TERMS.

Financial problem:In financial difficulties in short of money.

Bakery: Place where bread is baked for many people.

Industry:Branch of (Trade or manufacture contrasted with distribution and commerce).