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PROCEDURES AND PROBLEMS OF INTERNATIONAL PURCHASING IN NIGERIA ECONOMY

ABSTRACT

This research project intends to explore the procedures and problems of international purchasing in Nigeria economy I deemed it necessary since this research topic is unique to industries in Nigeria, and environmental practice research was carried out on Stallion Motors transamadi Port Harcourt, which was used to generalize the project objectives.

CHAPTER ONE

INTRODUCTION 

1.1 BACKGROUND TO THE STUDY

In the present day economic challenging phenomenon, both importing and exporting organization fare a challenges either through increase competition in terms of product differentiation, price, services etc or through changing rules and regulation is political, legal, economic, social etc or through development of new technology and information techniques. There are challenges which effective purchasing and supplier manager is deemed proficiently to handle and employ profitability in order to assert its position as a planner and consultant. 

The other words, what is purchasing? Purchasing is a managerial process that goes beyond simply buying materials, it is also that department that sees that materials and services are provided at the lowest cost which is compatible with suitable quality. In that case, our main topic which is on international purchasing, the act of purchasing abroad or which mean purchasing externally those items in which you know you can not get economically in domestic market. The procedures, of international purchasing include the identification of the need to the final receipt of the goods by the user department. This includes all the processes to be done till the final stock is delivered in this research; we are going to discuss the procedures and problems of international purchasing in Nigeria Economy.

The procedures and problems of international purchasing in Nigeria Economic. A case Study of Stallion Motors Ltd Port-Harcourt.
This study is carried out in a well known company that has the similar features of representing others known as stallion motors limited Port Harcourt kia motors under the umbrella of stallion motors limited port Harcourt was founded in 1944 before, it was known as a car manufacturer, it was a car guide 123. Kia motors are South Korea’s Second largest automobile manufacturer having sold over eighteen million cars in 2010. The World Kia is derived from Korean words meaning “to arise to the world out of Asia”, with its headquarters in Seoul, the company is partially owned by the Hyundai Kia Hyouny-Keun (Hank) lee leads the company’s global operations from the headquaters in Seoul North American and European arms are operated by Kia Motors American and Kia motors Europe respectively. Since 2005, kia has focused on the European market and has identified “design as its core future growth engine” – leading to the hiring of perterschreyer in 2006 as Chief design officer and his subsequent creation of a new corporate grille known as the Tiger Nose. It has an employees of 42,000 as of November 2010 over their branches in content especially stallion motors limited Port-Harcourt (Kia Motors).

1.2 STATEMENT OF THE PROBLEM

This study try to examine the major problem involved in international purchasing in our economy. The problem includes the following:

i. There is always predetermination of price fluctuation

ii. Arbitration problem and legal procedures

iii. Non-existence of purchasing department and non-professional purchasing officer handling the department

iv. Inadequate information that will help in procurement of raw materials and goods

v. Government policy or rules and regulations regarding international business and 

vi. Language problems etc.

1.3 OBJECTIVES OF THE STUDY

This study is designed to evaluate the procedures and problems of international purchasing in Nigeria Economy. The objectives of the study are:

- To find out the methods/the company adopt in importing abroad.

- To determine the obstacles the organization face when purchasing abroad.

- To examine the nature of international purchasing in our economy

- To know the problems organization encounter when buying abroad.

1.4 SIGNIFICANCE OF THE STUDY

The significance of the study includes:

a. This study is meant for the researcher to know the significance of research work and its benefit.

b. It is also meant for the award of higher national Diploma

c. The study will help management in a company to understand the effectiveness of purchasing professionals in the profitability of the organization.

d. It is meant to understand the constraint that some companies face during the process of purchasing has contributed to the growth of the Nigeria Economy despite the challenges the importing company encounter.

1.5 RESEARCH QUESTION

a. Does your organization encounter problems in purchasing vehicles abroad?

b. Does legal restriction made by government affect your importation from abroad?

c. Does your company has a clearing officer or an agent?

d. What are the obstacles you encounter when clearing the goods at the port?

e. Do you have a qualified purchaser handling the purchasing?

1.6 STATEMENT OF HYPOTHESIS

HYPOTHESIS I

Hi: There are constraints faced by the company when importing abroad.

Ho: There are no constraints faced by the company when importing abroad.

HYPOTHESIS II

Hi: Legal restrictions affect the company in carrying out international purchasing effectively 

Ho: Legal restrictions do not affect the company in carrying out international purchasing effectively

1.7 SCOPE OF THE STUDY

This research focuses particularly on procedures and problems of international purchasing in our economy. In other words, these research would have cover the companies or industries in our economy, but because of some reasons and the level of the researcher, it was limited to stallion motors, Port Harcourt.

1.8 LIMITATION OF THE STUDY

The researcher being a student was faced with a lot of constraints in the course of carrying out the study which includes:

a. Financial constraints

b. Seasonal weather

c. Lectures

d. Lack of adequate materials

FINANCIAL CONSTRAINTS As a student, the problem lies as a result of transportation and feeding because of the scarcity of fuel and the distance, it was not easy for me to be transporting from school to the company.

SEASONAL WEATHER The seasonal condition or weather was another problem that limit to this study in the sense that some times, it was not easy for me to go under rain, coupled with heavy rain fall every day.

LECTURES This is another problem, the time use in attending to my lectures, was the time I could have use in going to this company 

LACK OF ADEQUATE MATERIALS This also posed as a constraint to the study.

1.9 DEFINITION OF TERMS

The definition of terms of the research work is as follows:

PURCHASING: (Business) the actively of buying things especially for a company

ECONOMY: Relationship between production, trade and the supply of money in a particular country. A country which you are thinking about its economic system.

PROCEDURES: A way of doing things especially the usual or correct way; the official or formal order or way of doing thing especially in business, law or politics.

IMPORTATION: The act of bringing a product or service into one country from another. A product or service that is brought into one country from another.

QUOTA: Act of reducing the volume of goods that is bring inside the country. That is a device through which government agencies restrict the quality of goods and services that the international buyer or seller can bring in and out of the country for economic reasons.

ARBITRATIONS: This is a situation where the two parties had a dispute between them and the third party (the Arbitrator) came settle the disputes.

SOURCING: Is an identification and development of suitable sources of supply.

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