An evaluation of value analysis as a corporate strategy in the attainment of organizational objectives in Nigeria
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Date
2008
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Department of Business Administration, University of Ilorin, Ilorin.
Abstract
The focus of corporate performance had been on reporting higher profits rather than shareholders’ wealth maximization. The ability to report such higher profit was a reflection of corporate efficiency even to the detriment of other crucial organizational objectives ranging from customer retention through improved product quality to employee satisfaction. All these are expected to be achieved within the framework of the industry regulation. Today, profitability alone had been adjusted as an inadequate measure of corporate efficiency. This therefore calls for a more pragmatic approach of producing goods/services at lower costs without a reduction in value (value analysis). The efficiency of this approach supersedes the traditional approaches of cost reduction and cost control in achieving other organizational multifarious objectives. This study evaluates the applicability and extent of practice of value analysis in comparison with traditional approaches to achieving organization objectives in Nigerian Manufacturing companies, using Cadbury Nigerian Plc; as case study through interval estimates method of analysis. The study revealed a fairly satisfactory level of practice of value analysis in spite of the company’s major focus on traditional techniques. It equally revealed a sharp customers response to price-quality relationship and recommends a more dedicated efforts towards improving the practice of value analysis.
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Keywords
Value, Corporate strategy, organisation objective, value analysis
Citation
Olaniyi, T. A. & Adewale, A. A. (2008): An evaluation of value analysis as a corporate strategy in the attainment of organizational objectives in Nigeria. Advances in Management. 7 (1); 114- 123