Appraisal Of The Role Of Risk Management In Beverage Manufacturing Companies In Nigeria, Using The Nigeria Bottling Company (Nbc) Owerri As A Case Study

ABSTRACT

The aim of this study is to appraise the role of risk management in beverage manufacturing companies in Nigeria, using the Nigeria Bottling Company (NBC) Owerri as a case study. Four research objectives and questions were used in the study. A descriptive survey research design was used on the population of employees and management staff of Nigeria Bottling Company (NBC) in Owerri, Imo State, Nigeria. The sample size of the study consisted of employees in various departments of the company, including production, marketing, and finance. The researchers selected a total of 120 employees using a purposive sampling technique, where individuals with specific characteristics were targeted for the study. The study used a purposive sampling technique to select respondents who have knowledge and experience in risk management in beverage manufacturing companies. The questionnaire was designed to gather information from employees of Nigeria Bottling Company Imo State who are involved in the risk management process. The researchers distributed the questionnaire to a sample of 120 employees of the company who were selected using a stratified random sampling technique. Descriptive statistics such as mean, standard deviation, and frequency distributions was used to summarize the data. From the result obtained, the various risks faced by beverage manufacturing companies in Nigeria include: Economic Risks, supply chain disruptions, quality and safety concerns, regulatory compliance, competition and changing consumer preferences. Risk management strategies that are currently employed by the NBC include: Risk identification, risk assessment, risk mitigation, crisis management plan and compliance and regulatory management.The strengths and weaknesses of the risk management practices of the NBC include:comprehensive risk assessment and inadequate risk identification, strong supply chain management and lack of integration, quality control measures and insufficient resources, compliance and regulatory adherence and reactive approachand  crisis management plan and cybersecurity vulnerabilities. Strategies that NBC improve its risk management practices include: risk assessment and identification, integrated risk management, establish risk management framework, strengthen supply chain resilience and enhance quality control measures. Effective risk management will enable the company to protect its reputation, ensure product quality and safety, comply with regulations, and adapt to changing market conditions, ultimately contributing to its long-term success and sustainability.

CHAPTER ONE

INTRODUCTION

1.1     Background to the study

Risk management is a critical aspect of business operations in today’s world, especially in the manufacturing sector. The importance of effective risk management practices cannot be overemphasized, as risks can have severe consequences on business operations, including financial loss, reputational damage, and legal liabilities. In the beverage manufacturing industry, risks can arise from various sources, including supply chain disruptions, equipment breakdowns, product recalls, and health and safety concerns (Kumar and Sharma, 2018).

Several studies have highlighted the importance of risk management in the manufacturing sector, including the beverage manufacturing industry. According to a study by PwC (2018), effective risk management practices can help manufacturing companies to identify and manage risks proactively, reducing the likelihood of unexpected disruptions to business operations. Similarly, a study by Deloitte (2016) found that risk management is critical to ensuring the sustainability and long-term success of manufacturing companies.

In Nigeria, the beverage manufacturing industry has witnessed significant growth in recent years, with several companies operating in the sector, including the Nigeria Bottling Company (NBC). The NBC is a subsidiary of Coca-Cola Hellenic Bottling Company, which is one of the largest bottlers of Coca-Cola products in the world. As a leading player in the Nigerian beverage manufacturing industry, the NBC is exposed to various risks, including supply chain disruptions, product quality issues, and health and safety concerns (Ogbeide and Okoye, 2021).

The beverage manufacturing industry is a vital sector in the Nigerian economy, providing employment opportunities and contributing significantly to the country’s Gross Domestic Product (GDP). However, the industry faces numerous risks, including supply chain disruptions, product quality issues, regulatory compliance, and market competition. The Nigeria Bottling Company (NBC), a leading player in the Nigerian beverage industry, is not immune to these risks. Thus, it becomes imperative for the company to adopt effective risk management strategies to mitigate the adverse impact of these risks on its operations, financial performance, and reputation (Ezeaku and Nnabueze, 2020).

Given the importance of effective risk management practices in the beverage manufacturing industry, there is a need to appraise the role of risk management in companies operating in the sector, including the Nigeria Bottling Company. This study seeks to examine the current risk management practices in the NBC and evaluate their effectiveness in managing risks and ensuring the sustainability of business operations.

1.2     Statement of the Problem

The beverage manufacturing industry in Nigeria is exposed to various risks that can have a significant impact on the operations and financial performance of companies in the sector. These risks include supply chain disruptions, product quality issues, health and safety concerns, and regulatory compliance issues. Despite the potential impact of these risks, many companies in the sector do not have robust risk management practices in place. This lack of adequate risk management can lead to significant losses for companies in the sector and ultimately impact the growth and development of the industry as a whole. The problem, therefore, is the need to appraise the role of risk management in beverage manufacturing companies in Nigeria, using the Nigeria Bottling CompanyOwerri as a case study, to identify the challenges and opportunities for improving risk management practices in the industry.

 1.3     Aim and Objectives

Aim:

The aim of this study is to appraise the role of risk management in beverage manufacturing companies in Nigeria, using the Nigeria Bottling Company (NBC) Owerri as a case study.

Objectives

1. To examine the various risks faced by beverage manufacturing companies in Nigeria.
2. To evaluate the risk management strategies currently employed by the NBC.

• To identify the strengths and weaknesses of the risk management practices of the NBC.

1. To suggest ways in which the NBC can improve its risk management practices.

1.4     Research Questions

1. What are the various risks faced by beverage manufacturing companies in Nigeria?
2. What risk management strategies are currently employed by the NBC?

• What are the strengths and weaknesses of the risk management practices of the NBC?

1. How can the NBC improve its risk management practices?

1.4     Scope of the Study

This study will focus on the Nigeria Bottling Company Owerrias a case study for the appraisal of the role of risk management in beverage manufacturing companies in Nigeria. The study will cover the period from May to July, 2023.

1.5     Significance of the Study

1. This study will contribute to the body of knowledge on risk management in the beverage manufacturing industry in Nigeria.
2. The findings of this study will provide insights into the risk management practices of the NBC and will serve as a guide for other beverage manufacturing companies in Nigeria.

• The study will also highlight the importance of effective risk management in the success and sustainability of businesses in the beverage manufacturing industry.
  

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  Pages:  62

  Category: Project

  Format:  Word & PDF               

  Chapters: 1-5                                          

  Source: Imsuinfo                            

  Material contains Table of Content, Abstract and References.