CHAPTER
ONE
1.0 INTRODUCTION
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.
ØThe
study is significant to the policy maker because the government to formulate
policies relating to cooperation, antitrust activities, foreign trade, takation
environmental protection.
ØAnother
significance for the study is that it will contribute to the existing knowledge
of the researcher.
ØIt
increase or sharpens the knowledge of the researcher in the area of privatized
parastatals and the implication for marketing practitioner.
ØIt
serve as source of income to the government.
ØIt
provide revenue to the government.
ØIt
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.