INFORMATION MANAGEMENT AND THE PERFORMANCE OF NIGERIAN BREWERIES PLC ENUGU (A CASE STUDY OF AMA BREWERIES 9TH MILE CORNER ENUGU)

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INFORMATION MANAGEMENT AND THE PERFORMANCE OF NIGERIAN BREWERIES PLC ENUGU (A CASE STUDY OF AMA BREWERIES 9TH MILE CORNER ENUGU)

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

            Information management (IM) concerns a cycle of organizational activity: the acquisition of information from one more sources, the custodianship and the distribution of that information to those who need it, and its ultimate disposition through archiving or deletion. This cycle of organizational involvement with information involves a variety of stakeholders: for example those who are responsible for assuring the quality, accessibility and utility of acquired information, those who are responsible for its safe storage and disposal, and those who need it for decision making. Stakeholders might have rights to originate change, distribute or delete information according to organizational information management policies (Cross, Earl 2004).

In the words of Ward and Peppard (2002), information management embraces all the generic concepts of management, including: planning, organizing, structuring, processing, controlling, evaluation and reporting of information activities, all of which is needed in order to meet the needs of those with organizational roles or functions that depend on information. Information management is closely related to, and overlaps, the management of data, systems, technology, processes and, where the availability of information is critical to organizational success, strategy. This broad view of the realm of information management contrasts with the earlier, more traditional view, that the life cycle of managing information is an operational matter that requires procedures, organizational capabilities and standards that deal with information as a product or a service.

Information management has cursory relationship with organizational performance. Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard et al. (2009) organizational performance encompasses three specific areas of firm outcomes:

(a)        Financial performance (profits, return on assets, return on investment, etc);

(b)        Product market performance (sales, market share, etc.); and

(c)        Shareholder return (total shareholder return, economic value added, etc.).

The term organizational effectiveness is broader. Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.

In Breweries Company, its performance could be measured in sales volume and sales promotion, advertising, publicity capacity, and total output this involves marketing communication mix, which consists of the sub sets of marketing tools that are primarily communicational in nature. They are tools normally classified under promotion which is one of the controllable variables of the 4ps of marketing promotional mix, is made up of advertising personal selling, sales promotional mix that is rapidly gaining additional recognition in most industries especially in the brewery industry in Nigeria is the sales promotion. It is not enough for manufacturing company mostly in developing countries like Nigeria, to merely produce and expect consumers to have aware of such products. The firm has to engage in publicity and promotional activities.

In recent years, many organizations have attempted to manage organizational performance using the balanced scorecard methodology were performance is tracked and measured in multiple dimension such as:

  • Financial performance (e.g. shareholder return)
  • Customer service
  • Social responsibility (e.g. corporate citizenship, community outreach)
  • Employee stewardship

 

Clearly, good information management is crucial to the smooth working of any organizations, and although there is no commonly accepted theory of information management per se, behavioural and organizational theories help. In modern organizations, there is information handling and decision making. One crucial factor in information handling and decision is and individuals’ ability to process information and to make decision under limitations that might derive from the context: a person’s age, the situational complexity, or a lack of requisite quality in the information that is at hand, all of which is exacerbated by the rapid advance of technology and the new kings of system that it enables, especially as the social web emerges as a phenomenon that business cannot ignore (Bytheway, 2015)… it is worthy to note that effective management of information set the pace for improved performance of the organization in terms of productivity, increase in total production and sales volume.

 

1.2       BACKGROUND OF HISTORY OF NIGERIAN BREWERIES PLC,           ENUGU

            Nigerian Breweries Plc (Ama Breweries) Enugu is located at Amaeke Ngwo near 9th mile corner in Enugu State. Is the sixth branch of Nigerian Breweries Plc in Nigeria and it was commissioned in the year 2003. The site covers total area of approximately 10 hectares. Ama brewery is designed with the best cutting edge technology and world-class standard process. The company has a production capacity of million hectoliters per annum.

Nigerian Breweries Plc and Heineken International jointly own the company. It is a beverage company designed for the production of the three brands of beer lagers namely; Star, Gulder and Heineken and two brands of soft drink namely:  Amstel Malta and Maltina which are successful in production.

The company is made up of several department which are controlled by heads of department (HODs) who in turn are summarily headed by brewery managers. He oversee the general activities of the company.

The company provides different department  and their functions briefly explained below:

  • Support and Development: This department is generally responsible for the welfare and communications in the brewery. This department is the main administrative in the company since they head decision making. This department is headed by the support and development manager and he is assisted by the human resource manager that is principally involved with the computer systems operation in the brewery.
  • Finance Department: This department is headed by the regional finance manager and take care of the company’s finance which is the fundamental tool for problem solving. This department provides the information for the company to attract investors, establish lines credit and plan for the future.
  • Logistic Department: This department is responsible for the stock taking and distribution of the product to the public. They take care of the means of distribution of their products and the sales of the products. This department is headed by the regional logistics manager and assisted by the middle mangers.
  • Quality Assurance Unit: This department is in charge of maintaining the standard quality the input (raw material) and outputs product of the company.
  • Production Department/Brew House: This department is the largest development and is involved in the actual beverage making process. The brews house is designed for the production 12 brews per day and is automatically carried out.
  • Packaging and Engineering Department: This is the second largest department as incorporates all packaging, engineering, waste disposal maintenance and mechanical processes in the brewery.

The company was incorporated in 1946 is the pioneer and longest brewing company in Nigeria (16 November 1946 as Nigerian Brewery Limited) Head  office is located at Iganmu House Abebe Village Road, Iganmu Lagos State. Is owned by Heineken Brewerijen B. V.

Nigerian breweries plc, incorporated in 1964 is the pioneer and largest brewing company in Nigeria. Its first bottle of beer, star lager rolled off the bottling lines of its Lagos brewering in June 1949. Other breweries were subsequently commissioned by the company including Aba brewery in 1957, Kaduna Brewery in 1963, and Ibadan Brewery in 1982 in September 1993. The company acquired its fifth Brewery in Enugu State and in October 2003 its six brewery site at (Ameke) in Enugu. Ama Brewery began brewing on the 22 March 2003 and at 3 million hectoliters is the largest brewing in Nigeria. Operations at Enugu brewery were discontinued in 2004 while the company acquired a malting plant in Aba in 2008.

In October 2011, Nigerian Breweries acquired majority equity interest in sona systems associates Broiness management limited (Sona System) and life breweries limited from Heineken N. V. This followed Heineken’s acquisition of controlling interests in five breweries in Nigeria from sona group in January 2011.

Sona system’s two breweries in Ota and Kaduna and life breweries in Onitsha have now become part of Nigeria Breweries Plc together with the  three brand; Goldberg larger Malta Gold and operational lager Nigerian Breweries Plc now has eight operational breweries Plc now has eight operational breweries from which its products are distributed to all part of Nigeria.

 

1.3       STATEMENT OF THE RESEARCH PROBLEM

            Over the years, experience has shown that many companies in Nigeria have performed poorly in both information management and performance. As a result of these companies have found it extremely difficult to progress in business. Some of these companies have been legally declared insolvent (bankrupt).

The problems are manifested in the following: Recruitment of wrong personnel with information management, inadequate relationship between manager and personel of the same company.

Poor hierarchy personnel in an organization. Inadequate information management by the staff of the company.

The effect of organization involvement in the maintenance of efficiency in information management and its performance of firm.

 

1.4       OBJECTIVES OF THE STUDY

            The main objective of the study is to examine the effect of information management and the performance of Nigeria Breweries Plc, Enugu. Specifically this study is aimed at;

  1. examining the information management structure in Nigerian Breweries Plc, Enugu.
  2. Finding out the major problems affecting the information management in the company.

iii.        Establishing the relationship among the amount involve in staff costs, gratuity charges, pension funds and total output of Nigerian Breweries Plc, Enugu.

  1. Determining the relationship among the amount involved in staff costs, gratuity, pension funds and the total profit of Nigerian Breweries Plc, Enugu.
  2. Making recommendations on how to improve information management for improved performance in Nigerian Breweries Plc, Enugu.

 

1.5       SIGNIFICANCE OF THE STUDY

            This research work is significant in many ways. This work is designed to enlighten policy makers and students (who may come across this work) on the information management and the performance of Nigerian Breweries Plc, Enugu.             Moreover, organizations, firms, and public sectors may use this work to review their decision on policies making. The study also increases the literature available on the subject matter.

Finally, this research work serves as a reference material to researching students and other scholars who may investigate on this similar area of study for further uses.

 

1.6       RESEARCH QUESTIONS

  1. What is the nature of information management structure in Nigerian Breweries Plc Enugu?
  2. What are the major problems affecting information management in Nigerian Breweries Plc, Enugu?
  3. Is there any relationship between the amount involved in staff cost, gratuity charges, pension funds and total output of the company?
  4. What relationship exist between the amount involved in staff cost, gratuity charges, pension funds and profit of Nigerian Breweries Plc, Enugu?

 

1.7       RESEARCH HYPOTHESIS

  1. HO: There is no significant relationship between the amount involved in staff cost, gratuity charges, pension funds and total output in Nigerian Breweries Plc, Enugu.

            HI: There is a significant relationship between the amount involved in staff cost, gratuity charges, pension funds and total output of Nigerian Breweries Plc, Enugu.

  1. HO: There is no significant relationship between the amount involved staff cost, gratuity charges, pension funds and total profit of Nigerian Breweries Plc, Enugu.

            HI: There is a significant relationship between the amount involved in staff cost, gratuity charges, pension funds and total profit of Nigerian Breweries Plc, Enugu.

 

1.8       SCOPE OF THE STUDY

            The scope of this research work is limited to one company owned by Nigerian Breweries Plc. Ama Breweries Enugu. It has been chosen as a case study.

The study covers information management structure of the company, problems affecting information management in the firm, cost in involved in staff cost, gratuity charge, pension funds , total output and total profit from 1970 to 2014. Data from the company’s statement of account, periodic review and internet sources are used in  this work.

 

1.9       ORGANIZATION OF THE STUDY

            The research work is classified into five chapters. Chapter one covers the introduction, preamble, brief history of Nigerian Breweries, statement of the problem, objectives of the study, significance of the study, research questions, research hypotheses scope of the study, organizational of the study of the study and definition of key terms as used in the study.

In chapter two review of related literature is made comprising the theoretical framework, conceptual framework, meaning of information management, informational management structures in an organization, and definition of key terms as used in the study.

Chapter three presents the research design and methodology, it includes; research design, area of the study, population of the study, sources of data, methods of data collection, problems of data collection, model specification and tool of analysis. Chapter four covers data presentation analysis and interpretation. Chapter five summarizes the study, make recommendations and draw conclusion.

 

1.10     DEFINITION OF THE KEY TERM AS USED IN THIS STUDY

Management: Means an act of managing or being managed. It is a process of allocating at organization inputs (human and economic resources) by planning organizing, directing, co-coordinating and controlling for the purpose of producing output (goods and services) desired by the customers so that organization’s objectives are accomplished (Drucker, 2004).

 

Effective:  means being able to bring about the result intended, making a striking impression (Oxford Advanced Dictionary, 6th Edition).

Information Management: Application of management technique to collect information communication within and outside the organization and process it to enable managers to make a quicker and better decisions (Wigand, et al, 2007).

Performance: The accomplishment of a given task measured against preset known standard at accuracy, completeness, cost and speed in a contract performance is deemed to be the fulfilment of an obligation in a manner that releases performer from all liabilities under the contract (Wigand, et al, 2007).

Hectoliter: A metric unit of volume or capacity equal to 100liters. In co-operated united or combine into a whole formed into or organized and maintained as legal corporation (Mackenzie, 2008).

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