Managing A Co-Operative Shop As A Small Trading Venture (A Case Study Of Marketing Department Mini Supermarket In I.M.T Enugu)
This study intends to investigate the managing a co-operative shop as a small trading venture. A case study of marketing department mini supermarket (I.M.T) Enugu.
Specifically, the study tends.
To find out if best location of business automatically lead to effective management of co-operative shop.
To find out if incentive such as bonus, free gift, and discounts are properly introduced for attraction and retention of customers.
To determine the extent of which owner managers of co-operative shop use product line and product diversification for the growth of their business.
Also, in the process of executing this research work, the researcher takes adequate care to structure a simple quest once which was distributed personally to the respondent, by hand and collection was also done by hand in order to generate primary data while secondary data was gotten through the use of book, journals, magazine published by different authors.
The population for this study both for the owner / managers as nine (9) stay unstapled and for member/customers to be was given by the secretary to the marketing department as part of oral interview conducted by the researcher. However, Bowrley’s formular was applied to determine the sample size of the member /customers since the population was considered too big to handle by the researcher. Therefore, total number of completed and returned questionnaires for owner/mangers is nine (9) while for member /customers is two hundred and sixty four (264).
After throughout investigation and proper analysis of data, the researcher discovered the following to be the major findings.
– That capital is the prime factor to be considered in establishing a co-operative shop.
– That strategies adopted by marketing department mini supermarket are value, efficiency and sensory strategies.
– That location has contributed very adequate to the success of the venture.
– That incentives such as bonus, free gift and discounts were not properly used for attraction and retention of customers.
– That product line and product diversification were not used by this shop.
– That most co-operate shop, fails due to mismanagement of such venture.
However, from the findings stated above, the researcher than conclude that whoever wants to establish a co-operative shop should go ahead and do so for the fact that all the resources for effective management of the shop are put in place.
Finally, having gone through the research based on the findings and conclusions drawn above, the researcher recommends the following:
– Any group of persons wishes to establish a co-operative shop as a small trading venture should go ahead and do that.
– Substantial capital should be given priority before establishing a co-operative shop.
– The owner / managers of co-operative shop should maintained the usage of value, efficiency and sensory strategies as their survival strategies.
– The location of their business has contributed to their success therefore, they should maintain it.
– product line, product diversification, bonus free gift and discounts should strictly by used by owner / managers.
Finally, all the activities of co-operative shop should strictly be managed by owned / managers to avoid business failure.
LIST OF TABLES
The following are the list of tables used for owned manages.
Factors to consider when establishing co-operative shop
Member / customers patronage
Strategies adopted by the shop
Extent of realizing the objectives
Contribution of location to the success of the venture
Evaluation of product line and product diversification
Extent of incentive for attraction and retention of customers.
Criteria used for segmenting the market
Failure of co-operative shops due to mismanagement
Category of stay classification
Number of shop attendant
For Customers /Member
Place of purchase of grocery items
Visitation day to the shop
Awareness of incentive
Classification of incentives offered
Extent of Incentive offered for patronage
Extent of quality goods and product diversification
Usage of market segmentation
Development and growth of the nation by co-operative shop.
Seeing co-operative as a big threats to other supermarket.
TABLE OF CONTENT
1.1 Background of the study 1
1.2 Statement of the problem 3
Purpose of the study 4
Scope of study 5
1.5 Research Questions 5
1.6 Significance of the study 6
1.7 Limitation of the study 7
1.8 Definitions of Terms 8
2.1 Meaning of co-operative 11
2.2 concept of trade in business 14
2.3 Location of co-operative shop 16
2.4 Shop keeping as a small trading venture 21
2.5 Modern trading strategies 23
Strengths and weakness of small retailer 25
Summary of Literature Review 28
Research design 30
Scope of the study 30
Population of the study 31
Method of data collection 32
Method of data analysis 32
Presentation and analysis of data 34
Summary of results. 35
Discussion of result / findings 48
Implication of the research findings 50
BACKGROUND OF THE STUDY
The major policy of successive governments in Nigeria has always centered on the rapid economic development of the country. Economic development in this sense although common to whole group and not special class should be narrowed down in the context of the needs and aspiration of the majority of the population of the citizens. An average Nigerian, needs shelter food and clothing as basic need and in addition require some other things to maintain his social and psychological need.
In developing economy, such as ours the need to bridge the gap between large business ventured cannot be over employed. The focus on managing a co-operative shop as a small trading predicted on their impact and contribution to a diversified productive base as well as their catalytic effect in achieving macro objectives such as diffusion of economic power and promotion of indigenous technology.
Also a study has shown that small trading accounted for 50% of employment in the country. It has a strategic role to play in the economic development of less advanced countries. Growing recognition of these facts has stimulated interest in the problem of managing prosperous small trading ventures. Various governments have nitrated various policies designed to improve small trading. One of the policies is an economic policy that is geared towards self-reliance. Self reliance for the individual is typified by such programmes as the National Directorate of Employment (NDE) Graduate Assistance project and the Apprenticeship scheme.
It is in line of the economic self-reliance that marketing department mini supermarket in the institute of management and Technology (I.M.T) Enugu was established to generate accruable objectives associated to small trading ventures. However, for the enterprises to serve and achieve its purpose, continually (existing to carry on its function the venture should be effective and efficient.
Eletu Wale, (1992) in his article “managing your own business” said that the greatness problem facing small business is that its owners are unable to separate business from their personal needs. In other wide, the chances of it success and development will be difficult. So effective management of small trading venture will manage or eliminate this kind of problem.
Therefore, managing a co-operative shop as catalyst to economic development should be given every support to grow. And for it to grow, it has to continue with its day to day activities, hence the research study for its survival through the effective management of its limited resources.
STATEMENT OF THE PROBLEM
Most co-operative shops have gone down the drawn because mismanagement of such trading venture which has generates a negative impact on the side of owners of co-operative shop in meeting their set objectives.
Also it has been observed in recent times that most co-operative shop do not put their member/customers in the prime place as they are supposed to be and they are not aware of survival strategies to be adopted in meeting members demand and this has resulted in not identifying enough with the member / customers aspirations, this contributing to low patronage by customers.
Having studied business administration and management to this level, the researcher is passed to investigate how cooperative shops uses appropriate strategies such as discount, location, product line to enhance on effective and properly managed cooperative shop as a means of survival.
1.3 PURPOSE OF THE STUDY
This study intends to investigate the management of cooperative shop in marketing department mini supermarket in the institute of management and Technology (I.M.T) Enugu.
Specially, the study tends:
To find if best location and relocation of business automatically lead to effective management of small trading venture.
To find out it proper introduction of inventive such as free gifts, bonus and discount would serve as a survival strategies for the attraction and detainment of customers.
To determine to extent of which owner / managers of small trading venture use product line and product diversification for the growth of their business.
To determine if owner / manager of small trading ventures use market segmentation for better understanding of their customers needs.
1.4 SCOPE OF THE STUDY
The scope of this research covers areas of issues that relate to co0operative shop. Since there are many small trading ventures in Enugu Urban area, hence, the study is limited to only marketing. Department mini supermarket in the institute of management and Technology (I.M.T) Enugu from among other shops that comes under small trading venture.
1.5 RESEARCH QUESTION
The following research questions are formulated for effective and comprehensive research work, and these research questions would serve as a guide to finding the best solutions to this study.
What are / is the nature of the problem that pose a danger to the management of cooperative shops.
To what extent have these strategies helped to realize the objectives of the study.
What are / is the survival strategies adopted by the existing cooperative shop owner / managers.
To what extent are / is the product line and product diversification helped in the growth of cooperative shop.
To what extent have location and relocation of business site helped in successful management of cooperative shop.
1.6 SIGNIFICANCE OF THE STUDY
The resultant findings and recommendations will contribute or lead to a more effective decision making by owner / managers of cooperative shop towards continued existence and successful operations.
It can equally provide a useful guide for prospective owners of cooperative shops who may wish to close self employment as a career particularly in a depressed economy like ours.
Also, the study will reveal areas where there is need for improvement in the management, establishment and operation of cooperative shop and also prevail the way through which such improvement could be accomplished.
Finally, the study will bring out the factors that would be considered before sitting a cooperative shop and the problems encountered by owner / managers of such ventures.
LIMITED OF THE STUDY
The researcher would have love to conduct an extensive research but due to time, financial factor and for the fact that the researcher is combing both the researcher and academic exercise make it different for the researcher to achieve the deserved goal.
DEFINITION OF TERMS
MANAGING: This is the process of cooperating individual and group activity to achieve the deserve result.
Strategy: Hick and Gullet (1987: 273) defines strategy as the basic patter of purpose and policies the firm and its business. The authors stated that strategy answer such basic questions as:
What business are we in?
Who are our customers?
How do we compete?
What are we trying to achieve?
Trading: This is all activities associated which buying and selling of good and services to ultimate customers.
Market segmentation: This is the process of dividing the total market into several relatively homogenous groups with similar product interest.
Co-operative: According to Duelger, he defines co-operative as a group of persons with at least one economic interest and to meet the common need by joint action based on mutual assistance.
Owner / manager: He is the owner of a business, the capital supplier, posses the following characteristics.
need for achievement
Ani, BN (1999) Entrepreneurial Development and overview JTC Publisher Enugu.
Ani, J.O. Edoga P.N (2000) Marketing Mgt. and Practice Je. Rohi Publishers Enugu.
Dennis, O.N (2002) Business policy and strategic Management. Vo. I: J.T.C Publisher Enugu.
Eletu Wale (1992) “Managing your our Business” Daily Concord.
Small Business Administration “Chech list for Business” Small Markets Day.