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Full Project – The Impact of Production Management on the Organization Efficiency

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The job of managing a product is one of constantly monitoring the market and adjusting the production to meet the markets needs and wants. The better the product matches the needs of its market, the more successful it is likely to be.

Today, as product and service become more, and more commoditized many organization are moving to new level ion creating value for their customer experience, whereas product are tangible and service are intangible, experience are memorable, whereas product and service are external, experience are personal and take place in the minds of individual customer organization that market experience realize that customer are really buying much more than just product and service.

For a production to successful gain acceptance in the market environment a well organized product development and management must be there production management is the process of tilling the proposed production to the requirement and opportunities, involves the process of anticipating the needs of the market place initiating action towards the identification and production of product and service which will best satisfy the needs and want of the trapped market environment. Product management is internal factor an organization. A product once, it is commercialized face the problem of management. The firm is not alone in the industry and its competitor will want to enter the market, if the product proves successful. It therefore, follows that the firm must manage it product right from the introduction state till the maturity or even declining stage (Buzzell 1966).

Production management is however, characterized by danger and uncertainties. The danger may be in wasting financial and human resources with achieve success protection and market acceptance the uncertainties arise as to whether the production will service, face much competition or die on the introduction. Anyanwu (1993).

In production management process, the production life cycle provide useful information on how to apply the principles of marketing and management in organization in carrying out those activities that will successfully market the product. If a firm fact to manage its production, it plan, to fail launching its, production.

The firm must consider and evaluate the product satisfaction acceptance in such a way that favours the consumers and the organization in general. (Anyanwu 1993) in managing a product, especially in marketing production service, the function varies from organization objective to the other. But the basic functions in managing a production are the same with the principle function of management as it is stated in the management field. But the different is that production management are guided toward developing organization a successful product that will gain acceptance in the marketing environment the following are the basic function of production management.

Planning is the first production management function on which the other takes bearing.

It refer to as forecasting the production future circumstance and requirement dealing product objective and determine production to be followed and set production standard planning in production management plays and important impact because it determine the successful of the production in the marketing environment.

HISTORICAL BACKGROUND OF THE CASE STUDY

The history of 7up

Can you walking up to store clerk and asking for a “Bib-Label Lithinated Lemonlamon Soda? Well, apparently no one else could imagine doing it either because the name of this soda was quickly changed to 7up, charless Leiper Grgg of the Howdy corporation invented 7up, or Bib-Label Lithiated Lemon-lime soda, in October of 1929. the name didn’t go over very well, and was changed to 7up Lithiated Lemon soda, and then to just 7up in 1936

Where did the name 7up come from? Nobody knows, but here are a couple of theories there are ( or were serlen ingredients in 7up. The original 7up bottle was seven dunces. Mr. Grigg saw a cattle brand that looked like 7 up, and he liked it enough to name his soda after it. Mr. Grigg named his new soda after a popular card game at the time that was also called 7up.

Just in case you were wondering, 7up did contain Lithim, a light-weight Metal, now used in treating illness card making long lasting botten) the Lithium was removed from 7up over 50 years ago, but at the time it appeared in several companies lamon lime soda. When soft drinks were first invented they often that minerals added that were found in natural springs and springs with Lithium were very popular.

Initially 7up was only available in the St. Louis area, but Mr. Grigg and the Howdy Corp. worked aggressively to make 7up a national drink. This was no easy feat, as there were no large supermarket chains, but just little mom & pop market that had to be convinced on an individual basic to carry 7up. Now remember, 7up was not only trying to become a successful nationwide soft drink, but it was also trying to do this during the Great Depression one of the techniques Grogs used to help him accomplish his goal of making 7up successful, was to sell his product to the underground speakeasies. Like dry ginger ale, 7up was a very popular mixer. In fact, once prohibition was repeated, Mr. Grigg started openly marketing his soda as a mixer. By the end of the 1930’s Mr. Grigg had made 7up one of the nation’s most popular sodas.

World war II also helped 7up grow ever further. Most soft drink companies were struggling to survive during the war because sugar rations greatly reduced the amount of product that they could produce. 7up on the other hand, required less sugar for their soft drink than other companies, and this gave them a huge advantage. 7up was also pretty smart as they used their now found profits to start a national advertising campaign. In the past advertising campaign had been directed to the local communities now, 7up started advertising in national magazines such as life, the Saturday Evening Post, and colliers. By the end of the war, 7up was the third most popular soft drink in the country.

It was not long before 7up was available at the soda function, and in the new vending machines. They also started sponsoring radio and television programs. In 1967, the seven up company went public, and this was also the same year that they began airing their famous Uncola commercial, a soda glass was filled with 7up, turned upside down, and then drank. Throughout the seventies 7up would continue to promote itself as the Uncole. My earliest memories of 7jup are of a commercial set on a tropical Island with a black man explaining the secret of 7up is the “Uncole Nut,” and he did this in a voice husky enough to all a sled (Hahahal). By the way, the black man was the great actor Geoffrey Holder, not James Earl Jones and this commercial has also been picked as one of the “50 best commercials of all time” by advertising Age.

7up released “like,” a diet lemon-Linme drink, in 1963 (seven years later it was reformulated and renamed diet 7up1. in 1987 they were one of the first U.S soft drink companies (maybe the first?) to use one –liter bottles and they accompanied the bottles with the slogan “Follow the Liter,” and it is now obvious that all the other soft drink companies did just that. In 1987, they also gave us “spot”, the ultra-cool animated character, while often happen to see on personal was pages that are devoted to coco- cola (I still haven’t been able to figure that one out).

The biggest change to 7up, since they removed the Lithium, is happening right now. Once the third most popular soft drink in the nation 7up has fallen in the standings over the last few years and had even fallen behind spirite was 4^th). Lemon and limes provides 7up with it, flavor no secret formula here. In an effort to get 7up back to the top again; the company has changed the way the lemon and lime flavour is extracted from the fruit. A new modern technique is now being employed that produces a very crisp, clear refreshing taste. They didn’t change the sweetness or the carbonation; they just intensified the flavour (in my opinion a very acceptable change).

In 1988, the Dr. pepper Company merged with the seven up company. In 1995 the Cabury Schweppes. They are now the third-largest soft drink in the world.

1.2 STATEMENT OF THE PROBLEM

Company has been making relentless effort towards the management of production. Many of the products managed have all been able to satisfy the need of their target customer. As a result of this, those products do not receive adequate patronage and resources wasted. This affects product profit negatively. Moreover, there are many hard nuts to crack in the management of product which make it difficult for management to introduce new product even when old ones lack patronage and this effects the ratio at which 7up bottle company manages product.

1.3 OBJECTIVE OF THE STUDY

The rationale be friend this study is to examine different product of the 7up bottle company are discover for they are managed.

Other objectives are as follows

1). To find out the problems in the process of production management in 7up Bottle Company

2). To determine the effect of production management on profitability.

3). To offer possible solutions/suggestion for addressing such problem and make recommendation that may lead to better product customers relationship, increase customer satisfaction.

1.4 RESEARCH QUESTIONS

If effective production management leads to organization efficiency
If effective management production increases profitability
Is there any problem encountered in the process of managing the production?
is there a cordial relationship between the management and the staff of the organization.
What are the staff views of creation of production awareness?

1.5 SIGNIFICANCE OF THE STUDY

This study will in a great way be of significance to the product managers, customers, individual wishing to engage themselves in producing business unemployed graduate, government and corporate organization in Aba.

To the government the result of the study will not only enable them find out a well defined administrative strategies and management problems of the product firms of various state, but also would act as a panel to solving similar problems of government.

To the customer, it will expose them to the various marketing strategies that will lead to optimum producing business and high problems facing the producers so to prefer a better solution, it will also expose the advantages they stand to benefit from the production service patronization.

To the corporate organization and other people or individual wishing to engage themselves into producing business, the study will enable them adopt the policy of consumer producer satisfaction as much as possible. And also the possible suitable management procedure that will help them operate at the long run, this is the motive behind every business.

To the students, the study will enlighten their minds on the great important of product to an effective and efficient marketing strategy through the roles product service plays in the finance sector.

Finally to the research, the study will enhance an in-depth knowledge of production management marketing strategy, the management and operations while to the customer, to appreciate the marketing means through which they reach them and perhaps bear with them whether they live stock of expectation to problem beyond their control.

1.6 SCOPE OF THE STUDY

This research work encourages and encompasses production management in all 7up bottle company in Aba as at date. Taking four branches of the product in Aba in Abia State as a case study.

The effort they make toward managing such product and problems they consider in doing. This study will also cover only all the production management it also cover all the employees in the 7up department.

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Full Project – The Impact of Production Management on the Organization Efficiency

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