RELEVANCE OF INSURANCE POLICY IN INTERNATIONAL PURCHASING (A CASE STUDY OF UNILEVER NIGERIA PLC ABA)

RELEVANCE OF INSURANCE POLICY IN INTERNATIONAL PURCHASING (A CASE STUDY OF UNILEVER NIGERIA PLC ABA)

Abstract

The essence of this research is to ascertain the relevance of insurance policy in international purchasing with particular reference to Unilever Nigeria Plc Aba.
The study is broadly divided into five chapters. Chapter one comprises of the introductory aspect of the work, it identify the statement of problem, purpose of the study, research question and hypothesis, significance of the study etc.
Chapter two is made up of a review of literature related to the topic. It encompasses insurance, marine insurance and types, marine losses etc.
Chapter three stated the research methodology. It expresses how data were collected, sorted and used in the research work.
Chapter four is the presentation and analysis is carried out and result documented.
Chapter five is the last. It contains the summary, conclusion, recommendation and bibliography.

Table Of Content

Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Table of contentCHAPTER ONE
INTRODUCTION
1.1 General Overview of the Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Significance of the Study
1.5 Research Questions
1.6 Hypothesis of the Study
1.7 Scope of the Study
1.8 Limitation of the study
1.9 Operational Definition of Terms

CHAPTER TWO
LITERATURE REVIEW
2.2 Insurance in Nigeria
2.3 Functions of Insurance
2.4 Marine Insurance and Types
2.4.1 Cargo Hull Policy
2.4.2 Cargo Insurance Policy
2.4.3 Floating Policies
2.4.4 Value and Unvalued Policies
2.4.5 Time policy
2.4.6 Vovage Policy
2.4.7 Shop owner Liabilities Policy
2.5 Marine Insurance Losses
2.5.1 Total Loss
2.5.2 Partial Loss
2.6 Problems Associated with International Purchasing
2.7 Reasons for Purchasing Abroad

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Questionnaire Design
3.3 Sampling Method and Population
3.4 Sources of Data
3.5 Primary Source
3.6 Secondary Source

CHAPTER FOUR
4.1 DATA PRESENTATION
4.2 Analysis of Finding
4.3 Testing of Hypothesis
4.4 Decision Rule
4.5 Decision on major Findings

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
Bibliography
Appendix

Chapter One

GENERAL OVERVIEW OF THE STUDY
In any organization or industry involved in international purchasing, insurance policy is very inevitable as it protects the organization from uncertain occurrence in the course of purchasing abroad.
The relevance of insurance policy in international purchasing will no farfetch help an organization involved on the need to minimize and/or eliminate risk that are certainly involved in purchasing abroad.
According to Nweke (2000:307) because the natural instinct to survive is embedded in man, he reacts to avert such dangers threatening the successful movement of goods, this is applies to organizations involved or that are into international purchasing. This calls for an insurance policy. In addition, when goods are carried from one part to another they are exposed to risks such as cargo loss, damage, delay etc.
Nweke (2000:307) sees insurance as a device aimed at reducing the chances of a risk, when it happens, reducing the extent of its damage and providing the affected persons with compensation. The insured is indemnified when put in the position he was before the occurrence of the risk.
Madu and Chukwuma (2003: 216) defines insurance as a contract whereby a person called the insurer agrees in consideration of money paid to him called the premium by another person called the insured, to indemnify the lather against loss resulting to him on the happening of certain events. The policy is the document in which it is contained.
Insurance policy, as it relates to international purchasing, the specified extent must have some element of uncertainty about it; the uncertainty may be either as in the case of life insurance in the fact that, the happening of the event depends upon accidental causes. An insurance may be further defined as a contract where by a person called the \”INSURER\” agrees in consideration of money paid to him \”Premium\” by another person called the \”INSURED\” to pay the a sum of money or its equivalent on the happening of a specific event.
Chilaka and Amanze (2008:201) defines insurance as a system whereby the burden of financial loss due to some specified but uncertain event is reduced, insurance is all about pooling or spreading of risk. With insurance, the risk of business in international purchasing is borne by many instead of one organization or individual.
International buying and selling is faced. With legion of risk that require proper management if it is to be successful.1.2 STATEMENT OF PROBLEM
Strictly, this project is on the relevance of insurance policy in international purchasing using Unilever Nigeria Plc Aba as case study. The problems are stated thus;
1. Though the organization engage or practice insurance policy, but the appropriate department that should handle insurance policy is not there. In other words it is being handled by the finance department.
2. In addition the person currently handling insurance policy for the organization was not always, on seat to be interacted with.
3. Unilever Aba does not cover insurance policy in all supposed area of their business abroad.

1.3 PURPOSE OF THE STUDY
The general purpose of this study is to make an indebt investigation in the following areas.
a. The ascertain the effect of insurance in the operation of the organization.
b. To find out the type of contracts, or goods insured by Unilever Aba.
c. To find out the extent to which the Unilever ensures its imports.
d. To ascertain the extent of losses if any Unilever incure through damage, losses, thefts.
e. To as certain how best to reduce high losses through good documentations.

1.4 SIGNIFICANCE OF STUDY
The need for this study cannot be over emphasized. Little or no attention has been given to the relevance of insurance policy in international purchasing in our industries today. However, this study would be a source of great importance to any company undergoing insurance function and international purchasing. It will also reveal to companies not practicing insurance on the need to do/so especially those companies that are into purchasing goods from outside source(s) the work when completed would serve as reference materials to other scholars in the field of study. To the researcher this work is a requirement for the Award of Higher Diploma in Purchasing and Supply and without this research, this certificate will not be awarded to her. Also it will serve as an empowerment for the acquaintance of skills and knowledge for future research works.

1.5 RESEARCH QUESTIONS
a. Does the organization actually recognize the need for insurance policy.
b. If so what (type) of insurance policy does the organization cover.
c. Is international purchasing part of Unilever Aba operations.
d. What are the effects of insurance policy in international purchasing.
e. Are all kinds of risk associated to international purchasing insurable.

1.6 STATEMENT OF HYPOTHESIS
These hypothesis are viewed and designed towards the attainment of the organizational goal through investigation on the problems associated with it.
H0: Insurance policy is not necessary for the successful operation of international purchasing.
H1: Insurance policy is necessary for the successful operation of international purchasing.
H0: The relevance of insurance policy in international purchasing is not beneficial to Unilever Nigeria Aba.
H1: The relevance of insurance policy in international purchasing is not beneficial to Unilever Aba.

1.7 SCOPE OF STUDY
For proper appreciation of the relevance of insurance policy on international purchasing, this research would have covered all firms involved in international purchasing. This is not possible due to the fact that the researcher is a student and may not have the much needed resources to carryout such as all complex research. To this effect, the researcher decided to concentrate in the relevance of insurance on international purchasing in Unilever Plc Aba. With the believe that whatever the situation is in Unilever will be used to generalized the situation in all the firms that engaged in international purchasing.
In this regard, the researcher will interact with the purchasing, international business unit, finance and administrative units respectively.

1.8 LIMITATION OF THE STUDY
In the cause of carrying out this research work, the researcher noticed some limiting factors which constraints an elaborate work on the activities of Unilever Nigeria Plc Aba with respect to international purchasing. Some of the limiting factors are; time, finance and inadequate information.
TIME: It look the researcher serious previous time in sourcing for books to which references were made as well as time in visiting the firm understudy.
FINANCE: This is yet another limiting factor to this research because the researcher as a student who is dependent is not financially strong to meet all financial requirement that is required in gathering information for this research work, like photocopying of materials, transportation to Unilever Nigerian Plc Aba, where she needed to get most of the necessary information for the success of this research work.
INADEQUATE INFORMATION
Most of the information needed for the research work was not made available to the researcher as the company under study consider them as secretes to business operations.

1.9 OPERATIONAL DEFINITION OF TERMS
a. INSURANCE: This is a contract where by a person called the \”Insurer\” aggress in consideration of money paid to him called \”Premium\” by another person called the \”Insured\” to indemnify the later against loss resulting to him on the happening of certain events.
b. POLICY: A Policy is a predetermined guide established to provide direction in decision making.
c. INSURANCE COMPANY: An insurance company is a company where individuals or organization go and insure their business or other things against uncertain occurrence.
d. RISK: Risk is defined as the probability of an unfortunate occurrence.
e. INSURER: This is a person or company to which the insured insures himself or his business.
f. INSURED: This is a person insuring himself or his business.
g. PURCHASING: This is a process where by an organization defines that need for goods and services, identify and compare supplies and suppliers available to them, negotiate with the source(s) of supply, make contracts and place order and finally receive inspect and pay for the goods and services delivered.
h. INTERNATIONAL PURCHASING: This is the sourcing and purchase of goods and services from another country.
i. INSURABLE RISK: These are those risk that can be insured against.
j. UNINSURABLE RISK: These are those risk that cannot be insured.

Chapter Five

SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 INTRODUCTION
This is an intellectual demanding part or chapter of any research work. This is because all the other chapters are this summarized under it. It therefore requires that the researcher to be very intelligent in ensuring that no chapter or part of the research is missed out. In view of the fact that problem statement and solutions are stated, the researcher took reasonable care in summarizing, recommending and drawing conclusion.5.2 SUMMARY
In chapter one of this research work, sections highlighted and explaned are the introduction of the subject matter which is the relevance of insurance policy in international purchasing, it brought out. The general overview of the study, statement of problems, significance of the study, research questions, statement of hypothesis, scope of the study. Lamination of the study and the operational definition of terms.
Chapter two deals with the literature review of well known authors of relevant books used in this study.
He chapter three deals with the research methodology and procedure employed in this work. This includes, the research design, questionnaire design, population/sampling selection, sources of data, data collection techniques and the method of data analysis.
The chapter four of this work deals on the data presentation and analysis, testing of hypothesis, decision rule and the discussion of major findings.
Finally the chapter five which is the last chapter of this research work deals on the summary, recommendation and conclusions.

5.3 RECOMMENDATION
The researcher after thou roughly survey yed the activities and operations, problems and short comings of the relevance of insurance policy in international purchasing of Unilever Nigeria Plc Aba, he made remarkable recommendation which if adhered to by Unilever Aba will be very beneficial in their purchasing operations bother within and especially outside the country.
He recommended the follow:
1. In order to take care of risk when they occur, it is necessary for the company to continue with the process of insurance policy.
2. There should be qualified and experience buyers in the company so as to ensure that purchasing activities goes on very smoothly.
3. The company should ensure that every international protocols relating to international dealings are well followed. If this is done all legal, right to do business abroad is assured.
4. The company should see the effect of insurance policy in their international dealings as beneficial to their operations.
5. Qualified experts should be employed in the company to handle insurance matters and should ensure that all their business abroad is insurance covered. This is because the business environment is filled with the uncertainties and sometimes cannot be predicted on how bad it could be on the operation of the company.
6. The would is becoming a smaller place, or so we are frequently informed by the air travel industry. Undoubtedly the volume of international trade has increased significantly, but also there is an ever-increasing range of products which are available from many parts of the world. This situation will always be changing in line with the industrial and economic development of the individual nations.
7. Quality is more often than not involved in the decision to source abroad. The items may be available locally but the quality of the foreign made item is better. Since the buyers prime consideration in any purchase is quality, he sources abroad to obtain the right quality.

5.4 CONCLUSION
In inclusion, if insurance policy is allowed to rein in the company, the problems of facing risk without any form of recuperating damages asspuated with items outside can be adequately solved.
The smooth operations of international purchasing in the presence of prevailing risk and uncertainty depends on the company appreciating the relevance of insurance policy in purchasing abroad as well as getting involved or engaged in it.
The result of the first hypothesis tested stats that insurance policy is necessary for a successful operation of international purchasing while the result of the second hypothesis tested states that the relevance of insurance policy in international purchasing is beneficial to the company under study.
It is impossible to talk of business in manufacturing industries without bearing in mind risk of any kind. Therefore the relevance of insurance is inevitable as long as business is concerned.
Unilever Nigeria Plc should give the relevance of insurance policy in international purchasing a normal position in its operations.
Insurance which is a provision an individual or an organization, even as institution makes for a possible recovery of unexpected financial loss, that are likely to happen in future.
Unilever Nigeria Plc will no doubt save themselves from unexpected loss that us likely to occur in international purchasing if only they appreciate and practice insurance policy.
International purchasing or trade is fraught with legion of risks, which must be checked if international purchasing trade is to be successful.
The company can improve its efficiency in insurance policy if it establishes an insurance policy department with specialist to handle matters on insurance.
When a company is engaged in insurance policy, it is indemnified when put in the position he was before the occurrence of the risk.

Work Description
Chapter One of Relevance Of Insurance Policy In International Purchasing. Order and download complete “Relevance Of Insurance Policy In International Purchasing” project work if you need chapter one to chapter five of this work. Chapter One of Relevance Of Insurance Policy In International Purchasing contains: Introduction, General Overview Of The Study, Statement Of The Problem, Purpose Of The Study, Significance Of The Study, Research Questions , Hypothesis Of The Study , Scope Of The Study, Limitation Of The Study And Operational Definition Of Terms
Chapter Two of Relevance Of Insurance Policy In International Purchasing is available. Order and download complete “Relevance Of Insurance Policy In International Purchasing” project work if you need chapter two of this work. Chapter Two of Relevance Of Insurance Policy In International Purchasing contains: Literature Review, Insurance In Nigeria, Functions Of Insurance, Marine Insurance And Types, Cargo Hull Policy, Cargo Insurance Policy, Floating Policies, Value And Unvalued Policies, Time Policy, Vovage Policy, Shop Owner Liabilities Policy, Marine Insurance Losses, Total Loss, Partial Loss, Problems Associated With International Purchasing And Reasons For Purchasing Abroad
Chapter Three of Relevance Of Insurance Policy In International Purchasing is available. Order and download complete “Relevance Of Insurance Policy In International Purchasing” project work if you need chapter three of this work. Chapter Three of Relevance Of Insurance Policy In International Purchasing contains: Research Methodology, Research Design, Questionnaire Design, Sampling Method And Population, Sources Of Data, Primary Source And Secondary Source
Chapter Four of Relevance Of Insurance Policy In International Purchasing is available. Order and download complete “Relevance Of Insurance Policy In International Purchasing” project work if you need chapter four of this work. Chapter Four of Relevance Of Insurance Policy In International Purchasing contains: Data Presentation, Analysis Of Finding, Testing Of Hypothesis, Decision Rule And Decision On Major Findings
Chapter Five of Relevance Of Insurance Policy In International Purchasing is also included in the full work. Order and download complete “Relevance Of Insurance Policy In International Purchasing” project work including chapter five. Chapter Five of Relevance Of Insurance Policy In International Purchasing contains: Introduction, Summary, Conclusion Recommendation, Bibliography And Appendix

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