CHAPTER ONE
INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
CHAPETR TWO
2.0 LITERATURE REVIEW
CHAPETR THREE
3.0 Research methodology
3.1 sources of data collection
3.3 Population of the study
3.4 Sampling and sampling distribution
3.5 Validation of research instrument
3.6 Method of data analysis
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS AND INTERPRETATION
4.1 Introductions
4.2 Data analysis
CHAPTER FIVE
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
Appendix
Abstract
This study is on the role and importance of purchasing as a business activity in an organization. The total population for the study is 200 staff of Dangote group of company, Lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, procurement managers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
CHAPTER ONE
INTRODUCTION
- Background of the study
Successful business management rely mostly on well co-ordinated function of activities, these include finance, personnel, production, marketing and purchasing. All of these functions form this activities that makes up a business organisation, however if one these functions is weak, it will definitely affect the overall efficiency of the other functions. Purchasing which is one of the business activities is as old as the birth of business enterprise itself and it is considered to be the basic function of activity in an organisation. Purchasing is the attempt by business organizations to acquire goods or services or materials needed in order to accomplish the goals of the enterprise. This can be viewed from two perspective namely as a function and as a system. Purchasing as a function is that aspect of business enterprise which ensures the uninterrupted flow of needed materials into the organisation having in mind profitability and economy, while purchasing as a system involves the acquisition of materials, equipment goods and services which are essential for the operations of a business organization. Unfortunately, since top management historically had focus on Marketing, Finance, Research and Development and Production, purchasing which is a basic function was not given much recognition, it was seen as a minor function and this led to the recruitment of clerks who were not skilled in the profession as purchasing officers. These created a lot of quality problems to the firms and led to the closure of some, but the Second World War, industrial revolution and the emergence of competition created a problem of scarce resources, then there was the need for tactical purchasing, this was when management started given more recognition to purchasing. Purchasing simply mean procurement and this include some processes which are sourcing, preparation of purchase order, expediting, receiving and inspection of order, invoice audit and invoice settlement, all of those will depend on the purchase requisition sent by the needing department to the purchasing department. The purchasing department is the heaviest spender of the organisation resources and contributes directly to the profit of the organisation through purchase discount and efficient buying. The purchasing department is charged with the purchasing functions and any purchase made by this department is known as organizational purchasing.
- STATEMENT OF THE PROBLEM
Purchasing is seen by today’s successful organizations as an activity of considerable strategic importance. However not all businesses see purchasing as a function best undertaken by a specialized department there are those who see the activity more appropriately performed close. It is appropriately performed and it is probably true to say that a majority of larger organization employs the service of a dedicated team of purchasing and supply specialist (Bailey, 2005). The readily available of supplies is a strong indicator of the quality of service offered. The management of the procurement and supplies function is a crucial determinant of the organization efficiency. Purchasing department is functionally organizes to facilitate efficiency at health institutions, however there are several undesirable outcomes from these formal structures at the factory, these include inefficiency in operations, increase in scrapes and incompetence of employees
1.3 OBJECTIVE OF THE STUDY
Objectives of the study are;
- To ascertain the role of purchase in an organizational activity
- To develop an integrated set of activities that constitute purchasing involvement in product development, which can help firms to implement, improve and to audit the involvement of purchasing in product development
- To ascertain the factors that determine the extent to which the activities can be carried out in organization
- To ascertain whether the role play by purchasing help in organizational growth
- RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: there are no factors that determine the extent to which the activities can be carried out in organization
H1: there are no factors that determine the extent to which the activities can be carried out in organization
H02: there is no role play by purchasing in organizational growth
H2: there is role play by purchasing in organizational growth
1.5 SIGNIFICANCE OF THE STUDY
The study will give a clear insight on the role and importance of purchasing as a business activity in an organization. The study will be beneficial to students, organizations and the general public. The study will also serve as a reference to others researcher that want to embark on this topic.
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers the role and importance of purchasing as a business activity in an organization. . The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
- c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 DEFINITION OF TERMS
PURCHASE REQUISITION: This is a precise document generated by an internal organization to notify the purchasing department of items needed or the items it need to order.
PURCHASE ORDER: This is a commercial document issued by a buyer (i.e Purchasing department) to a seller (i.e Supplier) indicating types, quantities and agreed prices for products or services the seller will provide to the buyer.
ORGANIZATION: An organization is an entity comprising multiple people, such as an institution or an association that has a collective goal and is linked to an external environment. The word is derived from the Greek word organon, which means “organ”
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study
