PROFIT MAXIMIZATION: A STRATEGIC TOOL FOR SURVIVAL
ABSTRACT
As we all know the objective of any business venture is to maximize profit. Hence all the decisions with respect to new projects, acquisition of assets, raising capital, distributing dividends e.t.c are studied for their impact on profits and profitability.
Profit maximization theory is based on profits and profits are a must for the survival of any business. Therefore, this research work focused on the effectiveness of profit maximization on Dangote Cement Plc as a case study.
The data used was gathered with the aid of a questionnaire and Chi-Square
(x2 ) method of data analysis was applied in analyzing the data.
Based on the findings, the research reviewed that profit maximization occurs with efficient and effective use of resources by the employees in an organization. It also brings to the fore an organizations Strengths, Weaknesses, Opportunities and Threats in an attempt to be relevant and meet customer needs.
It was also discovered that cost volume profit analysis is the technique that is being used at Dangote Cement Plc when planning for profit cost. Hence, it is recommended that Business owners and Organizations interested in maximizing profit must review their cost structure regularly, must be diligent in cutting frivolous cost and boost productivity amongst employees. Furthermore, they must ensure that they make adequate provisions for contingency funds to help control risks and external factors that could hinder the progress of the business.
TABLE OF CONTENTS
Pages
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Content vi
CHAPTER ONE:
Introduction
1.0 Background of the Study 1
1.1 Statement of the Problem 2
1.2 Objective of the Study 3
1.3 Research Questions 4
1.4 Statement of Hypothesis 4
1.5 Significance of the Study 5
1.6 Scope of the Study 6
1.7 Limitation of the Study 6
1.8 Organization of the Study 6
1.9 Historical Background of Dangote Cement Industry 8
1.10 Definition of terms 9
CHAPTER TWO:
Literature Review
2.0 Introduction 13
2.1 Current Literature Review 14
2.2 Meaning of Profit 11
2.3 Types of Profit 16
2.4 Approaches to Profit Maximization 17
2.5 Theory of Profit 18
2.6 Profit Maximization in Business 24
2.7 Limitation of Profit Maximization as an Objective in Business25
2.8 Importance of Profit 27
2.9 Justification of Maximization in Business 28
CHAPTER THREE
3.0 Introduction 31
3.1 Restatement of research Questions and Hypothesis 32
3.2 Research Design 32
3.3 Characteristics of Study Population 33
3.4 Sampling Design and Population 33
3.5 Source of Data 35
3.6 Method of Data Collection 35
3.7 Administration of Data Collection Schedule 36
3.8 Procedure for Processing Data 36
3.9 Statistical Method 37
3.10 Justification of Statistical Tool 37
3.11 Limitation of Methodology 38
CHAPTER FOUR:
Data Presentation Analysis and Interpretation
4.0 Introduction 39
4.1 Presentation of Respondents Bio-Data 40
4.2 Presentation of Research Questions 43
4.3 Test of Hypothesis 49
4.3.1 Statement of Hypothesis 1 49
4.3.2 Statement of Hypothesis 2 52
CHAPTER FIVE:
Summary, Conclusion And Recommendation
5.0 Introduction 55
5.1 Summary 55
5.2 Conclusion 56
5.3 Recommendation 57
Bibliography 59
Questionnaire 61
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF STUDY
The ultimate goal of every firm in business is profit i.e. (Profit Maximization) and cost minimization in order to maximize shareholder wealth.
