PROJECT TOPIC:IMPACT OF CORPORATE RESTRUCTURING ON THE PERFORMANCE OF NIGERIA COMPANY
This research work is embarked upon to examine the company’s performance with the aim of establishing the relationship between economic variable. This study made efforts to discuss issues, facts and environmental factors surrounding the wave of company restructuring in Nigeria, even as various company professionals, marketers of company services and company experts alike are adapting to various buzzwords in the bid to sell their company restructuring products or services. To achieve this objective, data were collected through primary and secondary source. The research instruments used in the data collection were questionnaires. The needed data were collected respondents which comparised from the staff, dealers and customers of unilever Nigeria Plc. The data collected were tabulated into frequencies and percentages. The researcher employed chi-square statistics to analyze and test hypothesis. The result of the analysis revealed that corporate restructuring brings about positive change in the composition of company’s portfolio. However, the finding, conclusion and recommendation are hoped to the great impoauthorities concerned.
BACKGROUND OF THE STUDY
According to Hoskisson and Turk (1990:26), stated that corporate Restructuring is the major changes in the composition of a firm’s assets combined with a major change in its corporate strategy. It usually involves selling off (or liquidation) business in m-form firms either voluntarily through spin-offs or involuntarily through hoistile takeover.
Corporate restructuring involves making radical changes in the composition of the business in the company’s portfolio.
One uses the word “restructuring in a general sense, but exactly what it encompasses will differ from firm to firm. Those that have made change to organization structure and those that have not and investigate the effects that restructuring has on value-added and labour productivity. Furthermore, by comparing subsequent changes in the number of employees and the level of their ways in the respective firms.
Generally speaking, any restructuring of the lability and stockholders equity components of a financial balance sheets, normally undertaken because the issuer does not generate enough cashflows to service its debt and other liabilities. Restructuring may include difference of principal or interest payment on debts, equalization of debt or other liabilities.
Restructuring is also the corporate management term for the partially dismantling or otherwise reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making server staff reductions. Restructuring is often done as part of a bankruptcy or of a takeover by another firms, particularly a leverage buyout by a private equity firm. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company.
1.2 STATEMENT OF THE PROBLEM
The practical problems in Unilever company therefore, should be focused on the multifarious constraints under which the company has to be performed.
Identification of the possible areas of constraints which, through cannot be exhaustively examined in this research will nevertheless serve to illustrate some of the factors that may, inhabit performance of the unilever company and solutions to which, should be a challenge to the company.
The following problems have been responsible for the situation are:
- Lack of research organization that could conduct research on the raw materials to see whether they can be used for the production of goods
- Lack of capital: Companies are generally establish requiring large sums of money for improvement of the company.
- Lack of skilled personnel: The company do not have very highly trained personal required for the company project.
The objective of this study include the following:
- The infrastructure is still in its infancy in many of the companies. As such most of the local raw materials cannot be exploited for industrial use, nor can the finished products be carried to wider areas. Without the necessary infrastructure, it would not be possible to engage in any effective industrial programmes.
- Poor storage facilities: This makes it difficult for raw material to be preserved until they are needed.
1.3 OBJECTIVE OF THE STUDY
- To examine the impact of corporate restructuring in effective product or service delivery.
- To change in corporate management, (usually with golden parachutes).
- Retention of corporate management sometimes “stay bonus” payments or equity grants.
- Sale of underutilized assets, such as patents or brands.
- Outsourcing of operations such as payroll and technical support to a more efficient third party.
- Moving of operations such as manufacturing to lower-cost locations.
- Reorganization of functions such as sales, marketing and distribution.
- Renegotiation of labour contracts to reduce overhead.
- Refinancing of corporate debt to reduce overhead.
- A major public relations campaign to reposition the company with consumers.
PROJECT TOPIC:IMPACT OF CORPORATE RESTRUCTURING ON THE PERFORMANCE OF NIGERIA COMPANY
1.4 THE PURPOSE OF THE STUDY
The purpose of this study is to analyze the impact of the Unilever company had played in the Nigeria environment which however, they have gone into meet the everyday needs of people everywhere and anticipate the aspirations of their consumers and customers and to respond creatively and competively with branded products and services which raise in the quality of life. Their deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth. They will bring their wealth of knowledge and international expertise to the service of local consumers a truly multi-local multinational standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously. They believe that to succeed requires the highest standards of corporate behaviour towards their employees, consumers and societies and world in which they live. This is Unilever’s road to sustainable profitable growth for their business and long-term value creation for their shareholders and employees.
Finally, suggest and recommend ways by which the problem faced by these company could be solved in order to make.
1.5 STATEMENT OF THE HYPOTHESIS
In this survey, the researcher used the following hypothesis.
Ho: Corporate restructuring does not make any changes in the composition of the businesses in the company’s portfolio.
H1: Corporate restructuring makes a positive changes in the composition of the businesses in the company’s portfolio.
Ho: Restructuring has not enhanced operational efficiency and more profitable in Unilever company Plc.
H1: Restructuring has enhanced operational efficiency and more profitable in Unilever company Plc.
Ho: Restructuring has not done any part of a bankruptcy in Unilever Nigeria Plc.
H1: Restructuring has often done a part of bankruptcy in Unilever Plc.
Ho: Company that had not been restructured increase unemployment of the firm.
1.6 SIGNIFICANCE OF THE STUDY
This research study will serve many purpose. The purpose of the study will appreciated if one considers that since the inception of Unilever Company into the Nigerian industry system, their role to significance have been very negligible and problematic despite the several policies of effort that have been made by the corporate management of the company to enhance the effective of the corporate restructuring of the performance of Nigerian company.
- The study will be usefully to employee and management of the Unilever company, in the sense that it will provide a solution ways to tackle the problems containing their operations.
- The study will beneficially to government who will then make policies that will promote efficiency in Unilever Company in the manufacturing industries system.
- It will be useful to Unilever Company on how to implement their policies.
- In addition, scholars and follow researchers will find the work very important because they serve as basic for future study.
1.7 SCOPE OF THE STUDY
The scope of the study covers the impact of corporate restructuring on the performance of the Nigeria company as they perform their primary objective.
In view of this, Unilever Company was used as a case study so as enhance data collection.
1.8 LIMITATION OF THE STUDY
The researcher decided to limit this study to only Unilever Nigeria Company due to some problem beyond her control such as inadequate material, data, hence she could only lay hand on few secondary data such as, Textbook, Internet and some data collected from the Unilever Nigeria Plc.
1.9 DEFINITION OF TERMS
Corporate: Corporate is a group of people having authority to operate as a single unit with a separate legal existence, e.g for business, urban development corporation.
Restructuring: Restructuring is the corporate management term for the partially dismantling or otherwise reorganizing a Company for the purpose of making it more efficient and therefore more profitable.
Performance: Is the ability to operate efficiently react quickly, etc. improving business performance is a continuous quest.
Company: Is an association to persons for carrying out a commercial or industrial enterprise. But technically the world “Company” is often used to refer to those business enterprises that have been incorporated.
Strategy: Is a plan that is intended to achieve a particular purpose. It can also the process of planning or carrying out a plan in a skilful way.