Sustaining Nigerian Firms Through Strategic Alliance In The Emerging Competitive Business Environment

Sustaining Nigerian Firms Through Strategic Alliance In The Emerging Competitive Business Environment

Chapter One

Preface

Background of the study

common adventure is a popular strategy used by two or further companies to subsidize on occasion or to minimize trouble. It’s a strategy that allows companies to put their coffers together in order to achieve their strategic objects. transnational common adventure involves two or further companies that put their stock and/ or other coffers together in an agreed chance to establish a attachment company in a foreign country. This strategy is used when the distinctive capabilities of the two or further companies concerned complement each other( Aloko, Odugbesan, Gbadamosi and Osuagwu, 1997). On the other hand, strategic alliance is where two or further companies come together to partake coffers and conditioning together, in order to pursue a strategic ideal. This option might be resorted to due to a number of reasons which include; high cost or capital demand for the coffers concerned, environmental factor, legal demand, specialized moxie needed by the coffers, and so forth. In Nigeria, strategic alliances have come popular as a means of surviving the ever complex terrain. Its uses cuts across sectors of the Nigerian frugality; banking, oil painting, Manufacturing, to mention but a many.

common adventure and strategic alliances have was in Nigeria since early 1980s. still, the two strategies came more egregious in recent times due to the goods or pressure of globalization on original enterprises, unfavourable battles among enterprises, global profitable meltdown and recently, minimal capital demand as demanded by nonsupervisory authorities. For case, the Nigerian Central Bank request for a minimal operating capital of 25 billion naira for marketable Banks operating in Nigeria in 2005 led to a number of strategic alliances and common adventure of a number of Banks. still, while some joined their capital and formed brand new Banks, some acquired others, while the remaining formed strategic alliances. Some transnational business literature argued that there are benefits for companies that engage in strategic alliances. These benefits according to them include advanced return on equity, investment and ameliorate effectiveness of the enterprises in the strategic alliance.

Statement of the Problem

A number of associations across the world moment are moreover dead fully or operating below their normal capacities due to some or utmost of the following challenges cross border request penetration challenges; the challenges of raising acceptable capital to acquire enough functional means, competition among enterprises producing analogous product and in the same request, while others are faced with perpendicular and/ or vertical integration challenges to minimize functional charges that accrues to enterprises that are into strategic alliances. In Nigeria, the major problem excursions competition facing most enterprises across the sectors of the frugality is the minimal capital conditions as set by the regulating bodies. For case, in 2005 the Central Bank of Nigeria fixed Twenty- five Billion naira( N25b) as the minimal respectable capital for any marketable bank that must operate in Nigeria. The policy brought a number of them into forming strategic alliances, while those that couldn’t were moreover acquired by others or went into liquidation.

Objects of the Study

This exploration work named “ Sustaining Nigerian enterprises through strategic alliance in the arising competitive business terrain with particular reference to Federal University of Technology Yola. The specific ideal of this exploration works includes the following;

1. To examine the effect of strategic alliance on the development of Nigerian enterprises.

2. To estimate the applicability of strategic alliance on the performance of Nigerian enterprises.

3. To ascertain the correlation between strategic alliance and the development of Nigerian frugality.

4. To identify the challenges of strategic alliance in Nigeria and also proffer possible results to the problems linked.

Exploration Questions

1. To what extent does strategic alliance affect the development of Nigerian enterprises?

2. How applicable is strategic alliance on the performance of Nigerian enterprises.

3. Is there any correlation between strategic alliance and the development of Nigerian frugality?

4. What are the challenges of strategic alliance in Nigeria?

Exploration Hypotheses

Ho Strategic alliance doesn’t have any effect on the development of Nigerian enterprises.

H1 Strategic alliance has significant effect on the development of Nigerian enterprises.

Ho There’s no correlation between strategic alliance and the development of Nigerian frugality.

H1 There’s significant correlation between strategic alliance and the development of Nigerian frugality.

Significance of the study

This exploration work will be of immense help to the experimenter as it’ll help him to know more on Sustaining Nigerian enterprises through strategic alliance in the arising competitive business terrain. It’ll also be of great significance to Nigerian enterprises as it’ll enrich their knowledge on the benefits and utility of strategic alliance.

This study will be of great significance to the scholars and other experimenters since it’ll serve as a reference point for the forthcoming experimenters.

Compass Of The Study

The study shall concentrate on Sustaining Nigerian enterprises through strategic alliance in the arising competitive business terrain with particular reference to Federal University of Technology Yola.

Limitations Of The Study

The experimenter in carrying out this study encountered multitudinous problems, which include

a) plutocrat One of the major factors that contributed to the limited compass of this study with regard to the population sample and distance is lack of fund. This exploration work was patronized by the experimenter and full time pupil prudence was the watch word and rather than expand the exploration it was rounded down to one company only.

b) Time The scarcest coffers of all the constraints that besieged that experimenter are time since the exploration was carried out at pupil position. The time used had to be compatible to the demand of other curses and assignments.

c) Data collection Another serious problem added to the below is the issue of information exposure, companies feel applicable aiding experimenter by furnishing acceptable information. This under- operative tendency generally keeps experimenter to coming to the institution until they’re given followership. This statistical and logistical constraints are serious limitation that hinders a work of this type in addition of security of dependable data which might be classified as top secret by the operation staff and as similar would lead to getting little or no information of significance to the study.

Despite the below constraints the experimenter were suitable to carry out expansive study on Sustaining Nigerian enterprises through strategic alliance in the arising competitive business terrain with particular reference to Federal University of Technology Yola.