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COST MINIMIZATION STRATEGIES - AN EMPIRICAL INVESTIGATION OF THEIR IMPACTS O.N MANUFACTURING FIRMS IN NIGERIA
THE ENTERPRISE INTERNATIONAL RESEARCH JOURNAL FOR DEVELOPMENT (2004)
  • Chukwumah Lawyer Obara, Dr
Abstract

TIlis study examines cos t min imizat ion strategies adop ted by manu facturin g firms in Nigeria . The study is fundamentally pred icated on primary data obtained from questionnaire administered on principal officers of Lever Broth ers (one of the leading manufacturin g firms in Nigeria) who occupy strategic position at various cos t centers of the company. Eight areas of cost that cut across the three ' major cost clements, namely; labour, materials and overheads were identified in the company. Data obtained from pr incip al officers occupying strategi c position s 31 these centres were used to evaluate the impact of the company's various cost minimi za tion strategies on the unit cos t in such areas, From the findings, of thi s study, we conclude that manufacturing firm s in Nigeria are familiar with a number of COSt minimization strategies that ;.IfC in vogue within thc system. COSl minimiza tion strategies such as variety redu ction, work-study, organization and method, value analysis and j ust-intime (lIT) are used by manufactur ing firms in Nigeria. But the choice of each strategy is contingent UII factors such as: familiarity. cheap ness, effectiveness and recommendat ion by consu lta nts. Based on :hc findings of this study, we recommend that manufacturing firms in Nigeria should intensify their effort in backward integratio n strategies (0 enabl e them invest in the pro duction of their basic raw materials as a rel iabl e source of cost minimization. And should structure their raw material procurement processes to involve better purchasing terms that will take advantage of discount concession.

Keywords
  • COST MINIMIZATION,
  • STRATEGIES,
  • EMPIRICAL INVESTIGATION,
  • IMPACTS,
  • MANUFACTURING FIRMS,
  • NIGERIA
Disciplines
Publication Date
2004
Citation Information
Chukwumah Lawyer Obara. "COST MINIMIZATION STRATEGIES - AN EMPIRICAL INVESTIGATION OF THEIR IMPACTS O.N MANUFACTURING FIRMS IN NIGERIA" THE ENTERPRISE INTERNATIONAL RESEARCH JOURNAL FOR DEVELOPMENT Vol. 6 Iss. 2 (2004)
Available at: http://works.bepress.com/chukwumah_obara/15/