Complete Material Cost #3,000
Order for Complete Material now
Abstract
The study examined distribution strategies and business performance of agricultural firms in Rivers State. The survey design was employed. The population of this study is made up of 22 management and operating staff of selected Agricultural firms in Rivers State which include Raedial farms, Elekahia Housing Estate, Specogreeno Concerns Limited, off NTA Road Choba Port Harcourt and Aquofot Farms Limited Pipeline link Road, Rukpokwu all in Port Harcourt. The judgmental sampling technique was used to select the sample. In this study both the primary and secondary data were used. A self-designed questionnaire on distribution strategies and business performance of Agricultural firms in Rivers State was used and administered for the collection of data from the respondents. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS Version 22). The statistical tool used in the testing of the hypotheses was Pearson Product Moment Correlation Coefficient. The study revealed that direct distribution, intensive distribution and indirect distribution influences business performance of Agricultural firms in Rivers State. Based on the findings of the study, it was recommended that effort should be made to ensure continuity of supply and that the distribution channels have easy access to the company’s products as at when needed through adopting the direct channel of distribution, management should device means of negotiating with merchants especially the ones who can trades with foreign buyers. This will help in increasing the company’s sales force and help them gain competitive advantage and management should adopt the short channels of distribution that will enable the supplier or manufacturer supply through a retailer who acts as the reseller or intermediary.
Table of Contents
Title Page i
Cover Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Abstract vii
Table of Contents viii
List of Tables x
List of Figures xi
CHAPTER 1 1
INTRODUCTION 1
1.1 background of the Study 1
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.4 Research Questions 3
Significance of the Study 4
1.6 Research Hypothesis 4
1.7 Scope of the Study 5
CHAPTER 2 7
REVIEW OF RELATED LITERTURE 7
2.1.1 Concept of Distribution 7
2.1.2 Dimensions of Distribution Strategies 9
2.1.3 Concept of Sales Performance 12
2.1.4 Measures of Sales Performance 13
2.1.5 Distribution Strategy and Business Performance 16
2.2 Theoretical Review 18
2.2.1 Competitiveness Theory 18
2.2.2 Kay’s Model for Competitive Advantage 19
2.2.3 Porters Theory of Competitive Advantage 20
2.3 Empirical Framework 22
CHAPTER 3 24
RESEARCH METHODOLOGY 24
3.1 Research Design: 24
3.2 Population of the Study: 24
3.4 Sampling Techniques Used 24
3.5 Sample Size 25
3.6 Source of Data 25
3.6.1 Primary Source (s) of Data 25
3.6.2 Secondary Source of Data 25
3.7 Research Instrument for Data Collection 25
3.8 Validity and Reliability of Instrument 26
3.9 Techniques for Data Analysis/Test of hypotheses 26
CHAPTER 4 27
DATA PRESENTATION AND ANALYSIS 27
4.2 DATA ANALYSIS 28
4.3 Hypotheses testing 33
4.5 Discussion of Findings 34
CHAPTER 5 36
SUMMARY, CONCLUSION AND RECOMMENDATION 36
5.1 Summary 36
5.2 Conclusion 36
5.3 Recommendations 37
References 38
Appendix I 41
Appendix II 42
Questionnaire 42
List of Tables
4.1 Data Presentation and Analysis 27
Table 4.2: Sex 28
Table 4.4: Educational Background 29
Table 4.5: Marital Status 29
Table 4.6: 1. Direct Distribution and Business performance 30
Table 4.7: Intensive Distribution and Business performance 31
Table 4.8: Indirect Distribution and Business performance 32
List of Figures
Fig 2.1: A Conceptual framework showing the relationship between Channel management and Marketing performance. Error! Bookmark not defined.
CHAPTER 1
INTRODUCTION
1.1 background of the Study
Today’s globally distributed networks have elevated the impact of distribution strategies in organizational success. In fact, in recent years, firms are increasingly viewing the distribution process as a competitive strategy (Mentzer, 1999). In this light of this increasing importance, the over achieving goal of the distribution function is to strategically manage such crucial functions as purchasing materials management, inventory control, transportation, and customer care they will ultimately enable it to effectively move the products to end consumer in order to make sales (Mentzer, 1999).
In other words, distribution relates to meeting customer needs by effectively managing and moving products through the distribution channel. Additionally, it must also focus on eliminating waste in terms of time, effort, and inventory within the manufacturing – distribution system (Lusch, 1990). Thus, the role and impact of distribution management has expanded to include strategic responsibilities that enable the just-in-time distribution of the right quantity to the right place at the right time, hence, maximizing greater sales.
Distribution strategies is concerned with the effective channel and arrangement used to make goods and services available to customer, also intermediaries and marketing channel structure to be selected to move product in the most competitive and effective manner to satisfy customers’ needs and want, which will in turn lead to sales (Achison, 2002).
In today’s business activities, despite the fact that many manufacturing industry in Port Harcourt have recognized the impact of distribution strategies on its sales, majority have not yet consider it as important issues. The whole essence of producing products is to make sales in order to maximizing profit and increase productivity. But without distribution strategies, sales cannot be made because it is only when goods get to the consumer at the right quantities, right time and place that sales can be made.
Performance has been the most important issue for profit and non-profit organization. Barney (2001) asserts that researchers have different beliefs and thoughts about organizational performance but it still remains a controversial issue. Performance means quality, condition or function. Non-profit organizations view their performance in terms of how they meet their missions and goals. Performance refers to the degree of achievement of the mission at work place that builds up an employee job. Researchers mostly use performance to express the range of measurements of transactional efficiency and input and output efficiency (Stannack, 1996).
Gordon (2010) posited that performance is a branch of people management that deals with the workplace. It most commonly refers to whether a person performs their job well. Despite the confusion over how it should be exactly defined, performance is an extremely important criterion that relates to organizational outcomes and success. Upon this premise, the research is aimed at examining the relationship betweendistribution strategiesand business performance of agricultural firms in Rivers State.
1.2 Statement of the Problem
In today’s business world, competition is increasing as new manufacturing companies are been established. Agricultural firms are striving very hard to surviving, this they do by coming up with innovative products in order to attract consumers and make sales while little attention is given to distribution. It is pertinent to state that the production process cannot be said to complete until the goods reach the final consumers, so as for sales to be made. The distribution strategies have resulted to decrease in sales, unavailability of goods and losses which in turn leads to closing down of some manufacturing companies, hence effective distribution is indispensable to the sales performance of manufacturing industry. Hence, the study seeks to examine the relationship betweendistribution strategiesand business performance of agricultural firms in Rivers State.
1.3 Objective of the Study
The objective of the study is to examine the relationship between distribution strategies and business performance of agricultural firms in Rivers State. The specific objective includes;
1. To examine the extent to which direct distribution influence business performance of agricultural firms in Rivers State.
2. To examine the extent to which intensive distribution influences business performance of agricultural firms in Rivers State.
3. To examine the extent to which indirect distribution influences business performance of agricultural firms in Rivers State.
1.4Research Questions
The Research questions postulated for this study include the following:
1. To what extent does direct distribution influence business performance of agricultural firms in Rivers State?
2. To what extent does intensive distribution influences business performance of agricultural firms in Rivers State?
3. To what extent does indirect distribution influences business performance of agricultural firms in Rivers State?
Significance of the Study
The study is investigate the relationship between distribution strategies and business agricultural firms in Rivers State.This study will also help direct the attention of agricultural firms on the need to come up with distribution strategies so as to increase their performance, sales and profitability. It will also serve as a reference material for future researchers in the same field.
1.6 Research Hypothesis
For the purpose of this study, the following hypotheses will be treated.
H01: There no significant relationship between direct distribution and business performance of agricultural firms in Rivers State.
H02: There no significant relationship between intensive distribution and business performance of agricultural firms in Rivers State.
H03: There no significant relationship between indirect distribution and business performance of agricultural firms in Rivers State.
1.7 Scope of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between distribution strategies and business performance of agricultural firms in Rivers State. The dependent variable is business performance, measured by profitability, sales volume and market share. While independent variable is distribution strategies measured by direct distribution, intensive distribution and indirect distribution.
Geographical Scope:This study is delimited in Port Harcourt Metropolis with reference to selected agricultural firms in Port Harcourt. The study limits scope to selected agricultural firms in Port Harcourt which include Raedial farms, Elekahia Housing Estate, SpecogreenoConcerns Limited, off NTA Road Choba Port Harcourt and Aquofot Farms Limited Pipeline link Road, Rukpokwu all in Port Harcourt.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of the selected agricultural firms the time of the study.
1.9 Definition of Terms
Distribution: The actual movement of goods and services from the sources of supply or manufacture to the ultimate consumer.
Strategies: These are methods or plans chosen to bring about a desired future, such as achievement of a goal or solution to a problem.
Business performance: is the outcomes achieved in meeting internal and external goals of a firm.
Sales Growth: It is the amount by which the average sales volume of a company’s products or services has grown, typically from year to year.
Profitability: It is the ability to make profit from all the business activities of an organization, company, firm, or an enterprise.
Market Share: It is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period.