THE MARKETING IMPLICATION OF PRIVATIZATION OF GOVERNMENT PARASTATALS (A CASE STUDY OF AFRICAN PETROLEUM)
TABLE OF CONTENTS
TITLE PAGE i
TABLE OF CONTENTS vi
1.0 Introduction 1
1.1 Background History of Privatization 3
1.1 Statement of problem of the Study 5
1.2 Aims and Objectives of the Study 5
1.3 Significance of the Study 6
1.4 Scope of the Study 7
1.5 Limitations of the Study 7
1.6 Definition of Key Terms 8
CHAPTER TWO : Literature Review
2.1 Marketing Concept and Definition 9
2.2 Petroleum Marketing Defined 16
2.3 Pricing Policies and Strategy of Petroleum 18
2.4 Channel of Distribution of Petroleum Product 25
2.5 Implication of Privatization of Marketing of
Petroleum Product 36
2.6 Advantage and Disadvantage of
Privatization of Petroleum Product 38
3.1 Research Design 40
3.2 Population of the Study 40
3.3 Sampling Technique 41
3.4 Data Collection Method 41
3.5 Method of Data Analysis 42
DATA PRESENTATION AND ANALYSIS
4.1 Brief History of African Petroleum 43
4.2 Data Presentation 46
4.3 Analysis of Data 54
4.4 Discussion of Findings 66
5.1 Summary of Findings 68
5.2 Conclusions 69
5.3 Recommendations 71
Privatization is the systemmatic and programmed withdrawer of government from those business activities which private person of companies could much effectively.
The government within the context of Structural Adjustment Programe decided that it would take step to take itself away from involvement in enterprises in which it has interest. Such investment has to make them more self sustaining and independent of continue government sustenance.
Therefore, privatization is process by which the size of an inefficient and ineffective public sector is reducing by transferring some of its function to a relatively more efficient private sector.
Privatization also mean the relinquishing of part of all of the equity and other interest by the federal military government.
Bureaucratic and monolithic structure of government argued by many analyst that the performance of public cooperation is quit so poor relatively to the investment with them.
The general problem that have been attributed to this are:
a. It offer scope for political interference and nepotism, budget which reduces the likelihood of independent financial control.
b. Problem of inefficiency is the order that is the public enterprises failed to achieved efficiency, because they little encouragement to their workers who in turn respond poorly to customer demand, quality, quantity and other characteristics of good and services provided by the enterprises.
1.1 BACKGROUND HISTORY OF PRIVATIZATION
The word privatization entered popularly usage only recently and the activities with which privatization has become most closely associated the, the sales of public sector asset is a distinct of the 1980’s.
The growing appears of privatization especially in industrialized countries can in part be trace back to economic development of the mid 1970s. Rapid public sector expression in the 1960’s and early 1970s at that time was seen as major contribute not only economic growth but also to social and political stability.
In addition, substantial social benefit were expected to drive from the cleation of public enterprises. In many developing countries, public production as viewed as essential given the under developed nature of resources and market. However, the situation change drastically in the mid 1970s, when the inability of economic to adjust to external prices, in particular the first round of price increases by the organization of petroleum exporting countries led to a market determination in macro economic performance.
Subsequent recovery was slow, and part of the blame was leveled at large public sectors. Sector activities began to be seriously questioned in the industrialization countries.
Today, the developing countries as well where loss making public enterprises have been a drain on government resources. Strongly enough, numerous efforts have been made successive Nigeria government to diagnose the ills afflicting public enterprises and find remedies for them. A lot of recommendations were actually implemented but they seems to have had little positive impact on the performance of the organization.
Privatization as a final solution to the problem of some of the public parastatals.
The federal government has eventually promulgated a decree giving large backing to its privatization and commercialization policy and its manpower, the government to privatize partially holding in commercial enterprise.
1.1 STATEMENT OF PROBLEM OF THE STUDY
The following problems are identified for the study:
Lack of proper plan and coordination
Inadequate or incorrect marketing strategies.
1.2 AIMS AND OBEJCTIVES OF THE STUDY
⦁ The aims of the study is to examine the marketing implication of privatization of government parastatls.
⦁ To achieve this aim, the following objectives shall be pursued:
⦁ To examine the adequate marketing strategy
⦁ To discover marketing strategies to miligate the challenge within the environment.
1.3 THE SIGNIFICANCE OF THE STUDY
If the recommendation of this study is adopted by the African Petroleum, it will improve the economic efficiency and ineffective of this enterprises.
⦁ The study is significant to the policy maker because the government to formulate policies relating to cooperation, antitrust activities, foreign trade, takation environmental protection.
⦁ Another significance for the study is that it will contribute to the existing knowledge of the researcher.
⦁ It increase or sharpens the knowledge of the researcher in the area of privatized parastatals and the implication for marketing practitioner.
⦁ It serve as source of income to the government.
⦁ It provide revenue to the government.
⦁ It also serves as secondary data for further study on marketing.
1.4 SCOPE OF THE STUDY
The project cover the marketing implication of privatization of government parastatals.
The African petroleum at Ilorin Service Centre was the case study. The study was conducted within January to April of year 2012.
1.5 LIMITATION OF THE STUDY
Some factors have limited the study within the confines of the study scope covered these are:
⦁ The response of the people interviewed.
⦁ The limited financial resources to carryout the research.
However, some staff of the company gave necessary information that help to solve the problem.
The time factor was solve in sense that the researcher schedule her time like Monday to Thursday for lectures, Friday for field work on the project, Saturday for writing the project and Sundays for assignment and resting.
The financial problem was also solved through some uncles of the researcher that sent money to her.
1.6 DEFINITION OF KEY TERMS
The following word phrase are explained in the sense in which they are used in the research study:
APPEALS: It must be attractive or interesting to create attention of customer.
ADVERTISING BUDGET: Sum of money set aside for sending on an advertising campaign. It is the total amount of that marketer set aside for specific period..