CAUSES OF BUSINESS FAILURE AND POSSIBLE
SOLUTIONS(A CASE STUDY OF UJU
PRINTING PRESS, KADUNA)
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Business is absolutely a complex
activity. This is because it involves a lot of technicalities ranging from the
task of planning to control of such plans in order to achieve the desire
objectives of profit maximization. It is in view of this, that this study is
mainly centered on the floating of a business to a stage where it finds it
difficult to keep it’s head above water.
In the late 70s business was in its
period of boom, the economy was doing well at that point in time and the
exchange rate was appreciable within this period. International trade was easy
as a result of lesser trade restrictions and foreign exchange control.
During this period, Uju printing press
was a beneficiary of the prevailing policies such as the importation of papers
and other printing materials. These goods were usually tax free by the agencies
concerned, as a result of the significance the government attaches to the
publishing sector and the clearance procedures at the port were effective and efficient
then.
In the late 80’s as a result of the
military take-over, various decrees and policies came into place. The economy
became unbearable for the citizens and their purchasing power became very low,
thereby forcing business not to live up to their required billing. What
followed was that industries started operating on short run, and later
businesses started folding up.
The various trade restrictions, VAT
policies on goods imported did not help matters. The result effect of all
these, was folding up of businesses. Against the business affected was then
within our locality the -Uju printing press. The concerns shown people in the
locality spearheaded an agenda to resuscitate the company and prevent it from
total collapse.
The process of doing this proved
difficult due to the extent of funds require to source for foreign exchange
needed for the importation of raw materials there were other problems that seem
intractable. But the people and company unite make persistence efforts to
resuscitate the company but the more difficult problems that resulted,
Motivated an interest to study the problems of business failure and the
possible solutions.
1.1 HISTORICAL BACKGROUND OF UJU PRINTING PRESS
Uju printing press is a sole proprietorship business. It
is own by Chief Gabriel O. Uju. It was established on 20th August
1969 and was situated at V.V.I Lagos/Keffi Street, Kaduna.
Uju printing press was set-up with the objective of
providing the best quality printing jobs to customers at affordable prices and
at the due appointed time. At the early life of the press, it started with
letterpress and binding machine. Namely:
Adana, Letterpress Heidelberg and Cutting Machines.
In the course of expansion, the press relocated to
N.C-.3 Oshogbo Road, Kaduna in 1979. The press increased its machineries by
purchasing Rota prints, plate maker, camera, and kond. During this period the
press has increased its area of specialization from letter press to offset
printing.
In 1985, the press moved to J.11 main street Badarawa
Kaduna and finally relocated to its permanent site V.V. 15 Nassarawa Road,
Kaduna in June 1993. in its present site, it has acquired additional machines
such as multilith 1850, Stitching
machine, computers and Ruling machines.
This organization is engaged in the publishing of
companies Annual reports, text-books, invoices, Receipts calendars, invitation
cards, Business cards e.t.c. Uju printing press is an organization worthy to be
emulated, Judging by its achievement within the period of its existence. The organization
has render a lot of its services to prominent companies & government
parastatals within this country, among them are: Nitel Headquarters- Lagos,
National electric power authority Kaduna, Kaduna state water board, Ahmadu
Bello University Teaching Hospital, Kaduna, Bayero University Kano, Nice Top
papers industries Kaduna etc.
Below is a sample of what Uju
printing press Organizational chart should look like.
Managing
Director
Press maintenance
Manager manager/ engineer
Production
Cashier
Cashier Receptionist
Lithographer
printing section Finishing
section
With And And
Apprentices Apprentices Apprentices
Drivers Gate men
1.2 STATEMENT OF THE PROBLEM
Business entrepreneurs today are making a lot of efforts
in order to make their investment a perpetual going concern. Every means
available at their disposal are being made available terms of capital base
sophisticated equipments etc so as to meet-business demands and sustain the
completive market environment.
How ever inspite of these tremendous effort businesses
are still failing and these are owing to various factors that pose myriads of
problems.
1.3 STATEMENTS OF HYPOTHESIS
The following hypothesis has been formulated to serve as
a guide for this study:-
1.
That efficient management
of resources could not lead to business failure of _Uju printing press
2.
That inefficient management
of resource could lead to business failure in Uju printing press.
1.4 OBJECTIVES OF THE STUDY
This study intends to achieve the following objective
i.
To find out how Uju
printing press should operate to avoid failure.
ii.
To examine the implications
of government economic policies on the survival or failure of Uju printing
press.
iii.
To find out and how to
avoid business collapse with reference to Uju printing press
iv.
To examine the use and
control of resources in Uju printing press.
1.5 SIGNIFICANCE OF THE STUDY
This study is significant in that its will also identify
possible mistakes if any, which could lead to business failure.
It will also point out possible solutions to business
failure with reference to Uju printing press, Kaduna. It will be also
investigate some important factors to be considered before setting up a
business and those that will be implemented in the course of business.
Finally, the study will be useful to the management of
Uju printing press, Kaduna as it will help in tackling the problems militating
against the operations of the company.
1.6 SCOPE AND LIMITATIONS OF
THE STUDY
This
study is untaken to find out the fundamental obstacles of business failure and
possible solutions for a sustainable economic development with a case study of
Uju printing press Kaduna. The study is concerned in the first place with the
source of funds available for printing press firms and then their management
system i.e its efficiency; it will appraise these two factors and provide
possible solutions.
The selected firm is a small printing press, it however
engages in different types of activities ranging from supplies, printing
contacts and binding.
The limitations of this study are many, though not
unfamiliar, as every project work deals with such limits, it includes the
following:-
i. The
time limit for the submission of this project will not be sufficient. this is
due to the compressed academic calendar that makes up a semester during which
the research work is being made.
ii. In
adequate finance.
iii. Lack
of full co-operation from officials/workers of Uju printing press whose views
are important to this topic. Despite these difficulties it is the hope of the
researcher that this study will be of value to future researchers and also
printing (private) operators.
1.7 DEFINITIONS OF TERMS
This
is an attempt which is aimed at explaining and defining of terms and
abbreviations used according to the meaning of the contexts. Such terms
includes the following:-
a. LIQUIDATION:- This is a process where a company can no longer
Maximize profit and is being forced to wind up.
b. OVERHEAD COST:- These are the cost incurred as a
result of involvement in production of goods and services.
c. WORKING CAPITAL:- This is the amount set aside for the
running of
the business.
d. MANAGEMENT:- The authorities that are concerned with
decision making
e. CASH BOOK:- This is a principal book account
used for
reading
business transaction.
f. CAPACITY:- Ability to hold, contain, get
hold of, learn Things, qualities
ideal etc.
g. EFFECTIVE:- Is the ability to produce good
result, the
power
to achieve desire goal or objectives
h. EFFICIENT:- All the means or ways use in
producing a desire to
satisfactory result.
i. ENTERPRISE:- A business unit that needs courage on
that offers
difficulties.
j. PROBLEMS:- Difficult situation, question, a
question
proposed
for solution or discussion.
k. OBJECTIVE:- Are the goals, aims, and missions,
desire targets
that an organization must accomplish in other to stay in
business.
l. PLAN:- Forecast, an action,
method or programme worth out
before hand. To draw or desire a plan for Generally plan are goals and
objectives which in organization
seeks to seeks not to achieve
which an organization seeks to achieve
in executions of its responsibilities.
m. RULE OF
THUMB”- Something that is the usual
practice habit.
n. MOTIVATION:- Incentives that propel or arouse one
to put in more effort.