CHAPTER ONE

INTRODUCTION

1.1              Background of the Study

Organizations are set up to achieve certain goals which may be either profit or non-profit. However, most private organizations are profit oriented; the success or failure of an organization depends largely on the proper planning and development of its product. It is business assumption that only through product planning and development that company can offer a highly qualitative product to the market and can be able to complete favorably with other competitors. One of the prominent objectives requires the establishment and execution of some set of marketing strategies which may appeal to the target for favorably patronage. The marketing mix which involves designing strategies for product features.

Product which is the most visible and tangible among them carries out the function of other three elements automatically i.e. production self-promotion (high recognition due to its attributes), product self-pricing (wider price acceptance due to its attributes), and product self-placement (product dictates its distribution routes through customers demand). Therefore, focus seems to be on production for learning position among the element i.e. based on its possessed attribute that called for adherence for total quality management.

A lot of good products have failed not as a result of the price, promotion or distribution, but as result of poor planning and development. There is an adage that says “he that fails to plan plans to fail”. The success of every organisation depends largely on the effort and contribution of its management that determines the attainment of its targeted goal and objectives. But the inability of seven UP bottling company plc to give adequate reward and motivation to the quality control department has become a problem which affects the quality of its product and is responsible for low production capacity.

Therefore, profitability is among the primary objectives of all business organisations, it is vital that adequate time and resources are expanded upon product planning and development so as to fast-track product quality. And that is why the researcher sees the subject matter worthy of investigation to enable every organisation appreciate the impact of quality control on their profitability.     

1.2              Statement of the problem

Despite all emphases and outcomes from attributes of quality control, not all production produced within an industry seem to possess the entire features. Undoubtedly, that result to variation in individual organization`s profit, profit realization level with respect to product attributes of each organization to the target market.

Similarly, firms within an industry aim the same target but achieve different result, as other firms compete as market leader, others compete as market followers. Empirically, such trend shall be examined within the manufacturing industry to trace the factor responsible for this in relation to organization quality culture. 

As a reference point, the core problem of this study is the inability of seven up bottling company to give adequate attention to the management responsible for production processes, only a few solutions have been introduced so far in the soft drink industries to solve them. It is therefore, based on these existing problem that the researcher is motivated to undertake this study in order to analyze the problem and provide useful recommendation for improvement.

1.3              Research Questions

The following research question would guide the conduct of the study:

    i.                What is the effect of quality control on the profitability of seven-up bottling company plc, Kaduna?

   ii.               What are the basic features that constitute quality in 7Up product?

  iii.              What are the quality control measures put in place by seven up bottling company plc to ensure customers` satisfaction?

1.4              Objectives of the Study

The major objective of this study is to examine the impact of quality control on the profitability of seven up bottling company plc, Kaduna. However, the following are the specific objectives.

 i.                   To find out the effect of quality control on the profitability of seven-up bottling company plc, Kaduna.

ii.                  To know the basic features that constitutes quality in 7Up product.

iii.                 To identify the quality control measures put in place by seven up bottling company plc to ensure customers` satisfaction.

1.5              Significance of the Study

A study on quality control would be of tremendous importance for a developing country like Nigeria to advance her economy. The outcome of  the study would enable the company`s executives and indeed to policy makers of other bottling companies to be aware of product technological development with a view of making strategic decisions.

The study is expected to be very useful to the management of seven-up bottling company plc as it will help them to know the role of quality control on organization profitability.

This study shall be of great importance to profit oriented organizations in repositioning their production strategies. It will also be beneficial to a potential entrepreneur towards helping them to approach the production processes head on.

 Finally, it will be an invaluable tool for students, academicians and institutions, as it is intended to add to the existing body of knowledge, serve as useful reference materials and provide the basis for further research.

1.6              Scope of the Study

This research work shall assess the impact of quality control on the profitability of seven-up bottling company, regional office, Kaduna, for the period 2012 – 2017.

1.7              Limitation of the Study

Initially the researcher intended to carry out this study throughout seven-up bottling company to ensure a more comprehensive and detailed research of the subject. The researcher decided to limit herself to seven-up bottling company Kaduna due to time constraints. Academic programme of the institution are usually planned ahead and each program has its own period of execution and implementation, combing class work and making a research is not an easy task. Much time is consumed in moving from one place to another. As a result of the time constrain the research could not go beyond the extent it has gone. 

1.8              Definition of Key Terms

1.                  Quality: Kotlar and Armstrong (2001), define quality as ability of a product or service to perform its function, which include overall durable by precision case of maintenance and repair and other customer value attributes.

2.                  Control: Millar (2002), see control as process through which establish are met with its standard.

3.                  Quality control: Jura (2004) define quality control as an activity involving the coordination of effort of various groups or sector of an organization with the primary purpose of electing and preventing the occurrence of defect in a cost effective way.

4.                  Organisation: Richard (2003) sees organization as a section in a government or business that deal with a particular type of work.

5.                  Inspection: Critical appraisal involving examination, measurement testing, gauging, and comparison of materials or items. Garrie (2007).

6.                  Quality assurance: (QA) Jura (2007) sees it as a way of preventing mistakes or defects in manufactured products and avoiding problem when delivering solution or services to customers.

7.                  Sampling: is concerned with the selection of a subject of products from within a statistical population to estimate characteristic of the whole population of the product. Jura (2004).

8.                  S.Q.C – Statistical Quality Control: involved the inspection, monitoring, controlling and improving a process through statistical analysis.

9.                  Standard: a level of quality, achievement that is considered acceptance or desirable.

10.              Value Engineering: Are systematic method to improve the value of a product by using an examination of function.

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