Goodwill Management In Business Organization
(A Case Study Of Phinomar Feeds Nig Ltd Ngwo)
Effective goodwill management within a business organization is crucial for fostering positive relationships with stakeholders, enhancing brand reputation, and driving sustainable growth. This involves implementing strategies to cultivate trust, integrity, and transparency in all interactions, whether with customers, employees, or the community. Building a strong corporate culture centered around ethical practices and social responsibility can bolster goodwill by demonstrating a commitment to the well-being of all stakeholders. Moreover, actively engaging in philanthropic endeavors and supporting local initiatives not only contributes to community development but also reinforces the organization’s positive image. Additionally, maintaining open communication channels and promptly addressing concerns or issues helps to mitigate potential reputational risks and preserve goodwill. By prioritizing these aspects of goodwill management, businesses can strengthen their competitive advantage and foster long-term success.
The study of Goodwill Management came to light the need for effective management for increased productivity causes. The study provides information to in businessmen who are interested in setting up manufacturing industries, but have little or no knowledge of the importance of the establishment of Goodwill Management which can be achieved through establish reputation customer acceptance introduction of a unique service, a state management.
The resources become interested in the study after considering the pitiful situation in our country today the problem of inflation, graduate unemployment, and retrenchment, out in salaries, economy recession to mention but a few.
Most of our fresh graduates who are victims of unemployment and retrenchment will have the opportunity of setting in manufacturing industries, which they could have done, if not far lack of adequate knowledge. The manufacturing industries and needs less capital than that of other undertakings, and so the necessary information required to enable that differentiate between the cost involved in setting up manufacturing industries and that of the understandings.
This will encourage them to become self employed by way of setting up manufacturing industries.
Title Page
Approval Page
Dedication
Acknowledgement
Preface
Abstract
Table of Contents
CHAPTER ONE
1.0 Introduction 1
1.1 Background of Study 1
1.2 Statement of Problem 3
1.3 Purpose of Study 4
1.4 Research Question 5
1.5 Statement of Hypothesis 5
1.6 Significant of the Study 7
1.7 Scope of the Study 8
References 9
CHAPTER TWO
2.0 Literature Review 10
2.1 Meaning and History of Goodwill Management 10
2.2 Impact of Goodwill Management in Nigeria 12
2.3 Management of Goodwill at Phinomar Feeds Nig. Ltd 17
References 19
CHAPTER THREE
3.1 Research Design 20
3.2 Area of the Study 20
3.3 Population of the Study 21
3.4 Sample and Sampling Technique/Procedure 21
3.5 Instrument for Data Collection. 22
3.6 Validation/Reliability of the Instrument 23
3.7 Method of Data Collection Data Analysis 23
References 24
CHAPTER FOUR
Data Analysis and Presentation 25
4.1 Testing of hypothesis 37
4.2 Summary of result 40
CHAPTER FIVE
5.0 Summary of Findings, Recommendation and Conclusions 41
5.1 Summary of Findings 41
5.2 Recommendation 42
5.3 Conclusions and Suggestions for further Research 44
Bibliography 46
Appendixes 47
Questionnaire 48
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The concept of Goodwill should be critically studied and analyzed to present a proper appreciation of the study as used by most business managers who want to set up productive industries. For the purpose of this study it shall take on Goodwill in an existing productive industries (PHINOMAR FEEDS NIGERIA LTD).
Goodwill look to the future and prepare for it. One important way is to develop the firm to that they can cope with new demands, new problems and new challenges. Indeed, there must be a development programme for the Goodwill in order to challenge in barriers that might block the movements of the organization with their full potentialities.
Before, the view prevailed that through practical experience alone people would rise to managerial position. During the war need for development programme at this first line supervisory level becomes evident and concentrated effort were made to satisfy was conducted for this need but no systematic development programme in management theory. They simply were assigned to responsible with little or not formal development programme in management theory i.e the middle and upper level of production.
However, during the 1950’s firms become aware that Goodwill indeed required special knowledge and skills that can thoughts strongly enough although the need was recognized many years age the outlook for the future is not encouraging.
According to John Miner, the United State fall a shortage of Goodwill management talent that could threaten the growth and effectiveness of management enterprises. This has created a need for Goodwill development more urgent than that of the past.
It is a known fact that in the world today, modern information system is a necessity. It is only through development programme that Goodwill hope to bridge the gap existing in the modern business organization.
Hence, it is said that theory thing in life simultaneous changing which bring about ideas, innovations and new managerial skills. The only way to cope with the changes especially in management is through development programme for the Goodwill, it is continues process and if you cannot develop do not blame them. Competent Goodwill manager would not remain competent forever. Their skill can deteriorate, technology may more than obsolete, the organization may move new areas, changing the types of jobs that exist and the skills necessary to do them this reality has not be overlooked by management. Of course Goodwill themselves can benefits from skills development efforts.
1.2 STATEMENT OF PROBLEM
As stated earlier, the manipulation is on evaluation of Goodwill development in modern business organization. The researcher should want to know the problem of Goodwill deficiency in modern business world.
(i) Some directives of business sector at times carry all sorts of protestations to back their demand in dismissing their workers.
(ii) Often these actions degenerated into full scale demonstration leading to loss in man hours and this invariably means loss in productivity.
(iii) The issue of Goodwill development programme is therefore very important in modern business organization, although the important of development programme is neglected by some business sectors directions and policy formulation of some organization. So the researcher wants to find out the actual problems and proffer a solution.
1.3 PURPOSE OF STUDY
It is the purpose of the study to examine Goodwill development in modern business organization with a view to ascertaining how they influence Goodwill to perform efficiently for increased performance.
The following are the main objective of the study;
(i) To make a critical examination and evaluation of the Goodwill development programme in PHINOMAR FEEDS LTD.
(ii) To evaluate their appropriateness with a view to ascertain. To exist a position, corrections between Goodwill management and internalized performance.
(iii) To examine the appropriateness of the management programme for the effect utilization of the available human resources in achieving their set objectives.
(iv) To investigate into the Goodwill management scheme in PHINOMAR FEED LTD so as to find whether problem exist in their programmes and ways of resolving such problems.
1.4 RESEARCH QUESTIONS
The following research question are put together;
(i) Does PHINOMAR FEEDS NIG. LTD run any production and how effective is it increasing productivity?
(ii) If any is the programme run internally and externally?
(iii) Are mangers running the programme being achieving enhancing the efficiency of the Goodwill?
(iv) What importance does PHINOMAR FEED LTD place on Goodwill development?
1.5 STATEMENT OF HYPOTHESIS
As a result of the point discusses above, the problem of this study is to evaluate the Goodwill management of PHINOMAR FEED LTD in modern business organization like industrial related matters or issue.
Ho: Goodwill management programme in PHINOMAR FEED LTD
Hi: Goodwill management programme can solves operational problem in modern business organization like industrial related matters or issue.
Ho: Goodwill management programme in PHINOMAR FEEDS LTD solves operational problem in modern business organization like industrial related matters or issue.
Ho: Management programme in PHINOMAR FEEDS LTD improve Goodwill productivity.
Hi: Management programme in PHINOMAR FEEDS LTD cannot improve Goodwill productivity
Ho: Management programme in PHINOMAR FEEDS LTD cannot vary positively with Goodwill business success.
Hi: Management Programme in PHINOMAR FEEDS LTD varies positively with Goodwill business success.
Ho: Management programme in PHINOMAR FEEDS LTD cannot evaluate their productive development.
Hi: Management programme in PHINOMAR FEEDS LTD evaluates their productive development.
1.6 SIGNIFICANCE OF THE STUDY
The study is important because is well evacuated how well management programme would lead to job performance. Also, how successful development policies are prerequisite to high productivity and job satisfaction.
In addition research work are not only to achieve personal satisfaction but to advance knowledge by the provision of empirical facts for the good of man.
This study, therefore will expose the various affecting the programme in modern business organization. This study is concerned significance in that, the information it will provide will be wonderful to managers, business executives, shareholders, management, academics, the Nigerian Institute of Management and the general public in respect to the poor achievement derived from the and practical knowledge of management.
1.7 SCOPE AND LIMITATION OF THE STUDY
The focus of this research is base on the Goodwill management programme of PHINOMAR FEED LTD Enugu Ngwo since it is on a modern business organization. The manufacturing of modern intercity use to meet the needs of the people made it a modern business organization. This study is limited to the factors likely to affect the management programme designed for the Goodwill in modern business organization.
In the study of this kind, one would like to accumulate data from every areas. But in view of the length of time allowed for the research, such a wide range sample study is extremely difficult. The researchers therefore, concentrated on PHINOMAR FEED LTD as the case study in Enugu Ngwo.
SHARE PROJECT MATERIALS ON:
Goodwill Management In Business Organization:
Goodwill management in a business organization is a crucial aspect of financial and strategic management. Goodwill represents the intangible value of a business that goes beyond its physical assets and can include factors like brand reputation, customer loyalty, employee skills, and relationships with suppliers. Effective goodwill management can have a significant impact on a company’s success, financial performance, and long-term sustainability. Here are some key aspects of goodwill management in a business organization:
- Identification and Valuation: Goodwill must be properly identified and valued. This is typically done during the acquisition of another business or when a business is being evaluated for its worth. Goodwill is calculated as the difference between the purchase price of a business and the fair market value of its identifiable net assets.
- Recording on the Balance Sheet: Goodwill is recorded as an intangible asset on the balance sheet. It’s important to keep track of any changes in the value of goodwill, which may require regular revaluation and impairment testing.
- Amortization and Impairment: In the past, goodwill was amortized (gradually expensed) over a period of time, typically 15 years. However, accounting standards have evolved, and as of my knowledge cutoff in September 2021, goodwill is no longer amortized but is subject to impairment testing. If the fair value of the reporting unit (a segment of the business) falls below its carrying amount (including goodwill), the goodwill must be written down to its fair value, reflecting a loss on the income statement.
- Disclosure: Publicly traded companies are required to disclose information about their goodwill in their financial statements. This includes details on the valuation, impairment tests, and any impairment losses.
- Strategic Management: Goodwill is often a reflection of a company’s reputation and relationships. Managing goodwill strategically involves maintaining a positive public image, delivering quality products or services, and fostering strong relationships with customers, suppliers, and employees. Missteps in these areas can erode goodwill.
- Customer and Employee Satisfaction: Happy and loyal customers and employees contribute positively to goodwill. Therefore, it’s essential to monitor customer and employee satisfaction, address their concerns, and continuously improve products and services.
- Branding and Marketing: Effective branding and marketing strategies can enhance goodwill. Building a strong brand that is associated with quality, reliability, and positive values can increase the intangible value of a business.
- Mergers and Acquisitions (M&A): When acquiring or merging with another company, it’s crucial to assess and account for the target company’s goodwill. Managing and integrating acquired goodwill can be challenging, and success often hinges on post-merger integration efforts.
- Legal and Ethical Considerations: Adhering to legal and ethical standards is vital in maintaining goodwill. Legal violations, scandals, or unethical behavior can quickly damage a company’s reputation and goodwill.
- Regular Assessments: Regularly assess the value and status of goodwill. This should be part of ongoing financial and strategic planning to ensure that goodwill is adequately reflected in the company’s financial statements and that it aligns with the overall business strategy.
Effective goodwill management requires a holistic approach that combines financial and strategic considerations. It’s not just about accounting treatment; it’s about nurturing the intangible assets that contribute to a business’s long-term success. Keep in mind that accounting standards and regulations can change, so it’s important to stay updated on the latest guidelines regarding goodwill accounting and reporting.