Purchasing plays a fundamental role in production processes by orchestrating the acquisition of raw materials, components, and services necessary for manufacturing operations. It serves as the linchpin in the supply chain, ensuring the timely availability of resources while optimizing costs and quality standards. Through strategic sourcing, procurement professionals evaluate suppliers, negotiate contracts, and manage relationships to secure favorable terms and mitigate risks. Effective purchasing practices encompass meticulous planning, forecasting, and inventory management to prevent disruptions and minimize excess inventory. Moreover, purchasing collaborates closely with production teams to align procurement strategies with production schedules, fostering synergy and efficiency across the production lifecycle. By integrating market insights, technological advancements, and sustainability considerations, purchasing contributes to enhancing competitiveness, fostering innovation, and driving continuous improvement within the production ecosystem.
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDEMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER ONE
Introduction
1.1 Background of the study
1.2 Statement of problem
1.3 Purpose of the study
1.4 Significance of the study
1.5 Limitation of the study
1.6 Definition of terms
CHAPTER TWO
2.0 Review of related literature introduction
2.1 What is product modification
2.2 What is a product
2.3 Why companies undertake new product development
2.4 Concept in innovation/modification diffusion and adopting process
2.5 The stages in adoption process
2.6 How can a product be modified
2.7 The trend of modification in the Nigeria economy
2.8 Modification in Nigerian breweries Plc
CHAPTER THREE
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Sources/methods of data collection
3.4 Population and sample size
3.5 Sample techniques
3.6 Validity and reliability of measuring instruments
3.7 Method of data analysis
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Presentation of Data
4.3 Analysis of data
4.4 Interpretation of result(s)
CHAPTER FIVE
5.0 Summary, conclusion and recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Bibliography
1.0 INTRODUCTION
The fundamental goal of every business organization is profitability and survivability business environment is very dynastic and unpredictable hence the business manager tries to adopt and adjust to their changes so as to provide insulation against some unforeseen situation product modification is the future of any business and without a continuous of new product such state may die prematurely. According to Oxford advances dictionary to modify means to make changes by introducing new ideas method etc.
Modification can be seen as a process of developing and introducing uniqueness in an existing way of doing things process or services.
The theory of practices of innovation is not a new concept, history records that a man like creatures was seen in Africa some tools for most of the activities. This creative which later to be referred to as homoliablic (man manipulate tool) was an accomplished tools and needed out stone modification has become a strategic tools and a door that leads from failure to success. Necessity they say is the mother of invention the depressed situation of the Nigeria economy and the harsh marketing environment therein has made it imperative for finals to innovate or ferish now product are the future of any business and without a continues flove of them the marketing system will die.
Norman (1987) defined innovation as the introduction of new though policies, products, markets, distribution, merchandising, or other deliberate changes giving that all thing be equal all product have life cycle which dictates that at some point there usefulness will define Reword et al (1977) defined product modification as the process of fitting the proposed product to the requirements and opportunities of the market, innovation is characterized by danger risk may be wasting and human resources with achieving now. The uncertainty arises as the whether the modification the success of a state in new product development require among other things the establishment of effective organization for managing the planning and execution of the process.
1.1 BACKGROUND OF THE STUDY
Umuahia main market was incorporated on 16th November 1946, under the state ordinance in 1990 when the state and accord matter act care into force, the name of the state was charged to Umuahia main market. The principle activities of state in the breading and marketing of larger bear, stout, non-alcoholic malt drink, the beverage of soft drinks. The brewery product market recorded as second year of consecutive decline with a 14% growth over 1998. after the growth came from continued price stability sequel to the removal of exercise duty on burced product 1999 as well as an increased laves of socialization due to reduced intention that come with the addent of curvive. Strong and innovation marketing support for all brands during the year always with the very enterprise divcer customers services strategies.
1.2 STATEMENT OF PROBLEM
Giving the rapid changes in taste, technology and competition is become risky for a state reply on its existing products. This is because customers taste and preference are dynamic consumers need and expect new and improved product. Again technology is both creator and a retainer of values it gradually arises an old product and usher in a new one in the same vain, the role of purchasing on the impact of competition can be adversely unfavourable to a from if it fails to pay adequate attention to it companies may launch a new product today and tomorrow discover that rival firms have flooded the market with similar products satisfying the same needs. The basis aim of a business organization is to constantly customers in the face of all these constraints by coming up with new products and ideas. Hence, the statement of the problem with which this study is concerned is the role of purchasing on the impact of product modification on the growth of a firm.
1.3 PURPOSE OF THE STUDY
To determine the reasons for the introduction of a star bear and malting drink to determine the profitability of a star bear and malting drink to find out if modification induces substance buying response from customers how then promotion.
To identify whether there is a significant difference between the sales revenue of a product before and after if has been modified.
1.4 SIGNIFICANCE OF THE STUDY
A five is committed to innovation or adding new product to his product lines by virtue of a new demand of the market in spite of the risk attendant on venture products have life cycles. They pass through periods of growth mating and decline. A success oriented from constancy examines the product line in order to know when new or modified products are require to replace declining ones on the other hand, most produces in Nigeria have failed to sea product modification as a competitive strategy. The importance. This work is that in trying to investigate the impact of product. Modification will be thought to the awareness of marketing system, efficiency of business organization and entrance the quality of life and also help in the growth of a firm.
1.5 LIMITATION OF THE STUDY
The major limitation or constraints stated the writing of this work. The effort to collect all the needed data or information from management was not easy because of the official protocols and organizational bureaucracy the inability of the management and staff to disclose their states records affected this research study. Also some customers and deader out of more ignorance refused to answer to certain relevance question administered to them also the application of the finding of this study will be limited as a result of its scope.
1.6 DEFINITION OF TERMS
Consumers: A person who buys goods or uses services.
Modification: The development and spread new ideas and products.
Marketing: Is the behaviour science that seats to explain exchange relationships.
Marketing concept: This is the central focus of marketing activities where firm discourse what are the needs and wants of the consumers and tailors its activities towards providing them to satisfy their desires.
Product: Anything that can be effect to a market for attention, acquisition, use or consumption that might satisfy a want or need.
Research: A systematic and objective search an attempt to five chapters. Chapter one covers the literature review, chapter three deals with the data presentation analysis while chapter five covers the summary of the ie search findings, recommendations and conclusion the non-consumer, consumer this is the group that is the difficult to be interested in any thing new product, modernized or new product can satisfy a larger percentage of the customers patronage for the product and sustains it overtime. There is a maximum which says that a satisfied consumer is an assumed market.
Role Of Purchasing In Production:
The role of purchasing in production is critical for the success of a manufacturing or production-oriented organization. Purchasing plays a pivotal role in ensuring that the right materials, components, and services are procured at the right time, in the right quantity, and at the right price to support the production process. Here are some key aspects of the role of purchasing in production:
Material Sourcing: Purchasing is responsible for identifying, evaluating, and selecting suppliers who can provide the required raw materials, components, and parts needed for production. This includes researching potential suppliers, negotiating contracts, and establishing relationships.
Cost Management: Purchasing plays a significant role in cost control and cost reduction. Procurement professionals negotiate prices with suppliers to secure competitive rates and look for opportunities to reduce costs without compromising quality.
Supplier Relationship Management: Maintaining strong relationships with suppliers is essential for a smooth production process. Purchasing teams work closely with suppliers to ensure timely deliveries, quality assurance, and collaboration on product improvements.
Inventory Management: Purchasing is responsible for managing inventory levels to avoid overstocking or stockouts. Effective inventory management ensures that production has the necessary materials on hand without tying up excessive capital in excess inventory.
Quality Control: Purchasing contributes to quality control by working with suppliers to establish quality standards and ensuring that materials and components meet these standards. This helps prevent defects and production delays.
Lead Time Reduction: Reducing lead times for the procurement of materials is crucial for efficient production. Purchasing professionals work to streamline processes and collaborate with suppliers to minimize lead times.
Risk Management: Identifying and mitigating risks associated with the supply chain is another critical role of purchasing. This includes assessing supplier stability, geopolitical risks, natural disasters, and other factors that could disrupt the supply of materials.
Sustainability and Compliance: Purchasing departments are increasingly responsible for ensuring that the materials and suppliers selected align with environmental and ethical standards. This includes compliance with regulations related to environmental protection, labor practices, and ethical sourcing.
Technology Adoption: Utilizing technology such as procurement software and supply chain management systems is essential for efficient procurement processes. Purchasing professionals often manage these technologies to enhance their effectiveness.
Budget Adherence: Purchasing must operate within budget constraints and allocate resources effectively to support production goals while minimizing costs.
In summary, purchasing plays a crucial role in the production process by managing the sourcing of materials, controlling costs, maintaining supplier relationships, ensuring quality, and minimizing risks. Effective purchasing practices contribute to the overall efficiency and competitiveness of a manufacturing or production organization.