THE EFFECTIVENESS OF PUBLIC RELATIONS PRACTICE IN THE OIL SECTOR (A CASE STUDY OF AFRICAN PETROLEUM PLC PORT-HARCOURT)
CHAPTER ONE
INTRODUCTION
- BACKGROUNDOF THE STUDY
This present dispension, a lot of companies for production and distribution of a particular type of product or services and its consequent week to week competition among companies, it has become necessary for such organization to establish at least good will and mutual understanding with their various public if actually they tend to succeed.
Though the success of Such companies does not depend on product or service quality neither does it hing on advertising done, nor on good salesmanship, responsible allocation of fund, but the success of any company depends most often on how well the company has created mutual understanding among her publics.
Cutlip, Contur and Broom in their conceptual definition states that public relation is the management function that identifies, establishes and maintain mutually beneficial relationship between a company and the various public on whom its success or failure depends.
Companies achieve this mutually, beneficial relationship by creating awareness, maintaining regular communication network, evaluating public attitude identifying their policies and programme with the public interest and executing a programme f action to earn public understanding and support.
Public relation really involves contracting the relevant targets public and convincing them of the benefits of a particular argument, to support specific issues and causes to accept companies proposal and public orientation, public relation complements marketing balance when introduced early in marketing plan can make a telling difference in product success.
Businesses are open systems, and most of what they do generate direct benefits and costs for their societies. Today society demands that business join in the urgent task of solving societal problems, corporations are more than economic institution and have a responsibility to develop some of their resources problems mainly of which co-operation helped to create.
History of force oil (African Petroleum)
Forte oil plc (formerly African Petroleum) was incorporated on December 11, 1964, after 14 years in operation, the company changed its status from a private limited liability company to a public liability company.
In compliance with the provisions of the Nigeria enterprise promotion decree of 1977, 40% of the company share were sold to Nigerian and a year later, 60% was acquired by the federal government of Nigeria in favour of the Nigerian National Petroleum co-operation (NNPC) from British Petroleum Plc. NNPC’s stake in African petroleum was reduced by 20% in march 1989 after the Federal Government sold the above percentage to Nigerians citizens, increasing their stake from 40% to 60%.in the year 2000,the Federal Government under its privatization programme diverse its remaining 4% to core investors and interested Nigerians. In may 2007, the shareholding structure took another dimension as incorporated trustees of NNPC’s pension fund divested its state to Zenon Petroleum and Gas Limited, owned by Femi Otedola making it the majority shareholder in the company.
As a result, Mr. Otedola and his afflicted entities became the core investors in the company. Under the management, African Petroleum embarked on a rebranding and restructuring programme which led to a name change to Forte oil plc in December 2010 and a rebranding of the retail outlets spread across its country.
In 2013, the company purchased a controlling stake in the 414 MW Power plant under a government level privatization programme in the power industry under the leadership of Goodluck Jonathan.
In 2015, they signed an $83 million contract with siemens upgrade the 414 MW Plant, the work is due to be completed 2016.
- STATEMENT OF THE PROLEM
African Petroleum in existence since 1954 is now one of the major markets of petroleum products in Nigeria. African petroleum plc operates few major marketing areas in Kaduna, Kano, Lagos and Port Harcourt. It has depots at (Apapa) Lagos, Jos and Kano but its main source of Petroleum Company (NNPC).
Presently the company entered into the marketing of chemical, real estate developments and maintaining of insecticides.
Coming to the ever-increasing number of competitive and continue fuel scarcity in the country the company does not folds its arms watching rather she continues to diversity and expand on its activities.
The reason being that the company tends to satisfy her numerous publics by constant supply of product, as at when needed and of course quality product, the public negative reaction would affect the nature economy. In the effort of improving the quality of its product and services as regards achieving public commendation goodwill and support, cannot in the actual sense understand how actually the publics feel about their company’s quality of services and their public relation programmes.
The research work shall do justice to adjust certain problems like:
- How far is the problem relation message of Ap Plc accessible to her publics.
- Where the right public relations media often used.
- Is the public relation department of Ap rated high by her publics in terms of its efficiency.
- Does the public relations practices of African Petroleum Plc. Influence the opinion of their public in favour of Ap.
- Do the public relation consider African Petroleum Plc’s public relations as practice as adequate.
- PURPOSE OF THE STUDY
The purpose of the study are as follows:
- To ascertain the extent of African Petroleum Public message accessibility to their public.
- To know whether the right public relation media news were often used.
- To determine whether AP’s public relation practice influence the opinion of the public in favour of African Petroleum.
- To ascertain whether African Petroleum Public relations department is rated high in terms of its efficiency.
- To find out if the public of AP consider their public relations practices as adequate.
- SIGNIICANCE OF THE STUDY
Coming to the diversification and expansion of its activities, the current crisis and the ever increasing competition among oil marketing companies.
African petroleum Plc. As concerned with generating marketing information which all will help them to achieve a favorable market share and maintain its profit marketing ability it really wants to remain in business.
The researcher may after some recommendation that will help to ensure an adequate and effective use of public relations as a tool for business promotions. Moreover, this work will also serve as a working tool for chief executive and managers in the oil marketing sector.
This piece of work will actually for a basis for further development and is well contribute to the existing knowledge in the area of oil marketing.
- RESEARCH QUESTIONS
1 Does public relations messages of AP Plc. Accessible to her publics?
- Does public relation media often use?
- Does public relation department of AP rated high by her public in terms of its effectiveness?
- Does the public relations practices of African Petroleum Plc influence the opinion of their publics in favour of AP?
- Does the public relations consider African Petroleum Plc public relations practice as adequate?
- HYPOTHESIS
1 Ho: The degree of African Petroleum Public relation message accessibility to her public is unsatisfactory
Hi: The degree of African Petroleum public relations message accessibility to her public is satisfactory
- Ho: The right public relation media were not often used
Hi: the right public relation media were often used.
- Ho: The public relations practice of African Petroleum does not influence the opinion of their public in favour of African Petroleum
Hi: The public relations of African Petroleum influence the opinion of their public in favour of African Petroleum.
1.7 SCOPE OF THE STUDY
The scope of the study is focused on public relations practices in African Petroleum, Plc. And other intended extend public in Port Harcourt metropolis were studied as for the topics covered all the items is contained in the objectives of the study and hypothesis were treated.
The view of the office holders and opinion leader were brought since they constitute decision makers.
1.8 DEFINITIONS OF TERMS
- Public relations: public relations is an art and science of building and sustained a credible reputation for any organization (Nwosu 2000)
- Communication: it means the process through which needs, emotion, desires, ideas, sentiments and goals are expressed among human beings using codes, symbols and language interested by the parties involved in the process.
- Company: This can be defined as a business or an organization created to pursue profit by providing goods and services.
- Diversification: This is the financial strategy of holding different investment to reduce the risk of financial loss
- Shareholder: A person who owns some of the equal parts into which the ownership of a company is divided.
- Product: A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or a want.
- Distribution: It is the flow of title of goods and services as they move along its channel of distribution form the point of production to the point of consumption.
- Promotion: It can be seen as all the techniques sellers use to motivate people to buy a product or a service.
- Privatization: It enables the withdrawal of part or all the equity and other interest Nigeria government or her agencies has in enterprise thereby allowing private individual or corporate bodies to run such businesses.
- Competition: A company that is competing against others.
- Satisfaction: A Pleasant feeling which you get when you receive something you wanted.
- Supply: To provide something that is needed or wanted, offer in large quantities and over a long period of time.
- Manufacture: To make it in a factory usually in large quantities.
- Effective: Something that is effective works well and produce the result that are intended.
- Innovation: anything be it product, services that is new by someone.
- Corporation: A large business or company.
- Custom: Is someone who buys goods and services especially from a shop.
- Quality: A product that is of high standard.
- Market Share: A company’s market in a product is the proportion of the total sales of that product that is produced by the company.
- Services: A place that sell things such as petrol, oil and spare parts.
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