Planning and control have become part and percel of our daily ;lives. We may no like it and we may even recent to when it is imposed but we have come to realize that is an essential factor in nation, business and private live. This project “financial planning and control – A key to management efficiency aims at finding how our financial planning ad control has helped management of large-scale organisation achieve their efficiency.
Moreover, the project also delved into the consequences of the present economic recession in Nigeria on financial planning and control of many industries. Nigeria Breweries Plc vis-a vis other industries in Nigeria was discovered to be having problems like those of finance, raw materials , spare part, foreign exchange etc.
The project also covered the prudence of financial manager under this economic to carry out their activities of financial planning and control.
PROJECT PROPOSAL
The topic is this project is “financial Planning and control – A key to management efficiency in large scale organisation.
This project aims at finding out how financial planning and control has help management of large scale organisations achieve efficiency.
We will see in this project the general introduction of what financial planning and control is all about, the purpose and significance of the study, the research problems and reasons for the limitation of the study to only organisation in Nigeria.
We will also see in this project the review of related literature to the topic in question. It is divided into local and foreign literature and is made up of reviews of different text books, journals magazines and newspaper publication form which topics which provide as framework for planning the firms growth and the development of financial control for its efficiency were reviewed.
We will also see the research methods used in obtaining data for this work.
The presentation, analysis and interpretation of data collected form Nigerian Breweries Plc will be seen in this project. It relates the historical development of the organisation and also considers its budget system and decentralized operations through which the management controls and co-ordinates their activities.
Finally, we will see the numerous conclusions drawn for the findings and recommendations will based on these conclusions.
TABLE OF CONTENTS
1.1 Background of the study
2.1 Review of the Nigeria Economy
3.1 Survey Instrument
4.1 Data Representation, Analysis and Interpretation
5.1 Summary of Findings
Bibliography
1.1 BACKGROUND OF THE STUDY
“It s something of a truism that we are living in an era of planning and control. Whether it be the housewife with her house keeping allowance or the industrialist with his responsibilities to shareholders, planning and control are a part and percel of our daily lives and it is an essential factor in national business and privet life”
In a competitive world where the key factors are costs, price turnover and profit planning and control enable every individual to have a sound appreciation of the financial implications of his plans and actions, financial planning and control can be used by any size of type of organisation and in degree varying form a complete system, covering decentralized departments to organisation with only a single procedure. As a tool of management, it can increase the efficiency of the organisation as a whole since all the departments are involved.
Moreso, no business can prosper unless all functions accounting finance, marketing, personnel and so forth are fully staffed with competent individuals.
The efficiency and effectiveness of any organisation therefore depends on a number of factors which may be categorized as clarity of purpose, management, planning, control and communications. There is need to have a knowledge of the objectives of the organisation otherwise it will not be possible to identify goals set targets for their achievement in form of planning control and management of it finance.
According to Eugene F. Brigham & B .J compesy, “Finance Management involves planning for, acquiring and utilizing funds in a way that maximizes the efficiency and value of the firm”. Most especially finance is the evaluation and acquisition of productive assets, procurement of funds and disbursement of funds. It involves four basic issues which are the functions of the financial officer. These functions are:
The financial manager’s duty is to implement the acquisition, allocation and management of these resources. Finance therefore spreads into all segments of a firm’s activities thus, its function must be understood by all the managers in the firm.
Having known the future financial needs of a firm and its financial policies the question then is, how are these financial or funds raised ? This required the knowledge of the financial markets form which funds are drawn. It also required a knowledge of how to make sound investment decisions and to stimulate efficient operations in the organisation. These are alternative choice in financial decisions.
The choice includes the use of internal or external sources, According to U. N Harper, “before looking outside a firm for fund, the possibility of providing such funds internally should be examined.”
This source is mostly used for the firms expansion and should not be overlooked when planning finance.
They are generated from the operations of the firm and is mostly made up of undistributed or retained profits, depreciation provision, tax provision and reduction in current assets. The external sources on the other hand are made up of two main types namely short-term funds and long-term funds.
SHORT TERM FUND: These consists of trade credits bank overdrafts, bank loans and promissory notes etc.
LONG TERM FUNDS: These refer to funds obtained either form loans with a maturity data several years in the future or from the owners of the business. They consist of two broad types viz. equity funds and debt funds.
Equity funds represent the total interest of the owners o the business in the form of original share contributions plus subsequent additions either by way of additional investment or by ploughing back profits or reserves into the business. Debt funds are the long term debt obligations of the business and its usually made up of secured and unsecured debentures and bonds. The main sources of these long term funds are the banks and the capital markets.
The need for financial planning therefore arises because financial resources are limited and costly and even where the resources are available the areas into which they could be applied profitably are diverse. Moreover, planning and control are the essence of profit planning and act as a device that enables management to anticipate change and adopt to it. No business exist without some form of this Siamese twin concept and success in business is proportionate to its planning and the skill with which it is controlled.
According to B. C Lenke and J. O. Edwards, financial planning and control can therefore be said to be the name given to a system which is being used to increase overall management efficiency.”
It is concerned with planning for allocation of resources, monitoring the usage of these resources to assist in achieving the objectives of effectiveness and efficiency both large and small scale organisation.
Major Problems:
This project will attempt to determine the extent to which financial planning and control enables management to achieve its set objectives efficiently.
Sub Problem:
A successful organisation can be said to be an organisation that knows what it wants to achieve, success in achieving these goals and does so without having to take a sledge hammer to crack a nut. Most organisation however take the sledge hammer to crack nuts while trying to achieve their goals. This study will therefore try o answer such questions like:
future ?
Planning and control are essential ingredients of successful management at all levels. Their proper exercise is often the key to managerial efficiency and growth.
The purpose of this study therefore will be to develop a realistic picture of how financial planning and control can help make an organisation more efficient, effective and successful since it helps managers to know the financial implications of their plans and actions.
In a competitive world, the key factors are costs, price, turnover and profits and these are factors which no manager can ignore. Moreover, no business can survive for long time unless it makes an adequate profit, otherwise the investors who supply the capital will take steps to winds it up and place their money elsewhere. Profit therefore remains then overall measure of efficiency and the sign of success. The importance of this study will lie in the development of methods of using financial planning and control to help management in making relevant policy decision which if well applied will increase their efficiency and effectiveness. This will in turn help create an opportunity for the firm to achieve their maximum profit which will be beneficial to the shareholders, employee, future project writers , and the community.
Hi: The present economic situation ids not the major
problems that affects the implementation of financial
planning and control system in the company.
affects planning and control in the company.
Hi: The attitude of fund ma
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