COMPLETE SCHOOL PROJECT TOPICS & MATERIALS :
CHAPTERS: Chapter 1-5
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CHAPTER ONE
INTRODUCTION
The Nigerian banking system was at no time immune to reforms. This Was confirmed by the country’s apex bank, the Central Bank of Nigeria 48 51 53 53 55 56 (CBN). In her Annual report for the year2006, where it stated inter alias that “Reforms have been a regular feature of the Nigerian Banking System.” The report went further to justify the present reform under review as part of the broad ongoing national economic reforms.” (CBN 2006) Reforms generally, are either proactive or reactive in nature: Reactive when it is introduced in response to developments that could have adverse consequences on the system concerned, such as systemic crisis, deregulation, globalization and technological innovations”.
On the other hand, proactive reforms are mainly aimed at strengthening a system to prevent a systemic crisis, thereby strategically positioning it for better performance delivery to the various stakeholders. The proliferation of bank in the country over the past decade or two have resulted in banks developing various strategies to survive the still competition that was threatening to drag them under. This, coupled with globalization and the concomitant opening of the Nigerian banking sector to foreign investment Bank recapitalization is part of the strategy adopted by the Central Bank of Nigeria (CBN) to raise the capital base of banks in the country, with the aims of strengthening and consolidating the banking system, it is also a long term planning tool that will help in formulation of policies, achieving organizational objectives, encourage co-operation among banks, institutes corporate governance and strengthen the banks capital base, in which with hope, will help to guard against occurrence of distress in the banking industry. The role of Bank re-capitalization as an effective marketing strategy cannot be over emphasized; as it helps in defining the long-term policy of the organization.
OBJECTIVES OF THE STUDY
In Nigeria, most organization with emphasis on Banks have not lived up to expectations of providing better and adequate goods and services to their customers, they have low capital base thereby forcing some of them to fold up with people’s money and other valuable items. According to Prof. Charles Soludo the Central Bank governor, Bank re-capitalization “is intended to strengthen and consolidate the banking system as well as stem the systemic distress that has continually rocked the sector. He averred that failure to recapitalize our banks may result in several banks liquidation. These study however will at the end bring out the achievements attained in the banking industry by the use of bank re-capitalization as a marketing strategy. The objectives of the study is to highlight ways in which re-capitalization could be used as a means of effective marketing strategy in a competitive banking system. To also examine the impact of Bank re-capitalization processes as it affects the banking industry and its system.
And to examine how the Banks adopt re-capitalization coupled with the prevailing economic divinisity in order to remain viable in the competitive industry.
1.2 SIGNIFICANCE OF THE STUDY
This research work is carried out in order to ascertain the impact of Bank recapitalization as marketing strategy being adopted by Banks. The rampant distress being encountered by Banks forced the Central Bank of Nigeria and Banks to develop different strategies of re-capitalization such as mergers and acquisitions in order to meet up with the stiff competition in the industry. The study will highlight the general problems and solutions based on findings and also to justify that every Bank that wants to survive in this economy needs a very strong capital base to be successful, the study will give room for the knowledge of effective, marketing strategies that will increase organizational effectiveness and also the findings of this study will be meaningful and also useful to the owners of the Bank, competitors as well as customers.
1.3 SCOPE OF THE STUDY
This research work takes a careful look at all Banks in Nigeria generally, but for reasons of clarity, the scope of research study will cover the United Bank for Africa (UBA) PLC. It is also important to note that the study covers the operations specifically marketing performance through the use of recapitalization tolls such as increase in capital base, mergers and acquisitions etc.
1.4 STATEMENT OF THE RESEARCH PROBLEM
In the economy under the Banking sector, many Banks attempt to stimulate demand for patronage of the products and services, they are not satisfied with the mere fact that customers will patronize their services, they want their customers to put in enough confidence in their Banks and invest more thereby making them have a very strong capital base. The general problem of the study is to look at how Bank re-capitalization as a marketing strategy can be projected in such a way as to be able to convince customers to respond positively in order to enable the banks achieve their marketing objectives and also to see if Bank re-capitalization influences or has influenced the patronage of the Banks.
1.5 RESEARCH QUESTIONS
i. Do you believe in the system of Bank recapitalization strategy as adopted by UBA?
ii. What percentage of market share is UBA Plc able to meet before the adoption of re-capitalization?
iii. What are the environmental challenges that may affect business in UBA Plc. What is the role of Bank re-capitalization in UBA PLC?
HYPOTHESES
This study is set to test the hypotheses on the role re-capitalization played as a marketing strategy in a competitive banking industry. The hypotheses being tested are Null
(Ho) and alternative
(H1) hypotheses. Null
(Ho) Bank re-capitalization and its implementation is not an effective tool for marketing management. Alternative
(H1) Bank re-capitalization and its implementation is an effective tool for marketing management. Null
(Ho) There is no remarkable improvement in the services and product, since the introduction of Bank re-capitalization in United Bank for Africa (UBA) PLC. Alternative
(H1) There is remarkable improvement in the service and products since the introduction of Bank re-capitalization in UBA Plc.
1.7 LIMITATIONS OF THE STUDY
The study focuses on U.B.A. Plc because of financial constraints, clarity of purposes and time factor. The respondents were also reluctant to answer some of the questions asked because they considered some information as top secret to them. However these limitations did not in any way invalidate the research work. It is not also the aim of this study to criticize or provide once and for all solution to the marketing strategy problems of UBA Plc, rather it is designed to provide solutions and suggestions that will help the company to solve its current and future problems of marketing strategies, a lot of factors affect marketing strategies, for instance government policies change from time to time, this makes it very difficult to provide a once for all solution to the problem of any organization.
1.8 DEFINITION OF TERMS STRATEGY:
Refers to a plan designed for a particular purpose.
MARKETING: According to the American Marketing Association, is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
MARKETING STRATEGY: It’s a set of policies that guides the company’s marketing objectives.
PRODUCT/SERVICE: Anything offered to the market for attention, acquisition and use, a consumption that might satisfy wants or needs, it may be tangible or intangible.
BANK: A financial institution that people or businesses can keep their money in or borrow money from.
COMPETITORS: They are business rivals that offer similar products or services to the same market.
COMPETITIVE: A competitive activity is one in which companies or teams are competing against each other.
INDUSTRY: A group of different companies involved in the same process.