Target costing implementation and competition: A case study of breweries industry

Kenneth Enoch Okpala

Abstract


Purpose: Keen competition among producers in the breweries industry had led to the search for production strategy and cost management technique to survive and outwit competitors. The relationship between target costing and competition among firms in Nigerian breweries industry was investigated in this study as a means of addressing the above issue.

Methodology: A case study research design was employed. Six organizations with 1,451 senior staff members. Among them were Chief Accountants, Management Accountants, Marketing / Sales Managers Production Managers, Purchase Manager, Maintenance Engineers and Supervisors in their respective organizations were used as the study’s population. Total enumeration was used. 1,242 usable copies of the questionnaire were collected and analyzed representing 86% response rate. Four hypotheses formulated were tested using regression analysis with the aid of SPSS. 

Findings: The result of the analysis indicated that there were significant impact among the independent sub-variables and their aggregate on the variables of the dependent as follows: Value engineering on cost of production (R = .571, R2 =.497, p = < .05); Lean manufacturing on customer satisfaction (R =.687, R2 =.610, p =. < .05); Supply chain management on efficient product delivery (R =.751, R2 =.698, p = < .05); Kaizen philosophy on continuous product quality improvement (R =.534, R2 =.478, p = < .05). The result obtained was in line with a priori expectation.

Research limitations: This study concentrated on the breweries industry which is in the amanufacturing subsector of the Nigerian economy. This is due to the level cut throat computation among firms and the importance of the sector to the manufacturing industry in Nigeria. It was suggested that other researchers should conducted further studies to replicate and confirm the results in other manufacturing sub ectors. This would enable the integration of these results with a view to establish the general impact of costing on the completion in Nigerian manufacturing industry. The study will provide a platform for comparative analysis and industry decisipon template.

Practical implications: The four hypotheses tested indicated that the independent variable had significant impact on the dependent variable. Therefore the study concluded that target costing had reliably predicted competition in the breweries industry in Nigeria.

Originality/ Value: Previous researches reviewed shows that some of the sub variables influencing target costing and competition were omitted while those studied were not deeply examined. To the best of the researcher’s knowledge, little or no study was conducted on the impact of target costing on the level of competition in the breweries industry in Nigeria. Therefore, this study was carried out to bridge the indentified gaps in the body of knowledge.

 

Key words: Target Costing, Competition, Breweries Industry, Nigeria.

 

 

[PT]

Título: "Implementação de custos-alvo e concorrência: um estudo de caso da indústria cervejeira"

Resumo

Objetivos: A forte concorrência entre os produtores da indústria de cervejarias levou à busca de estratégia de produção e técnica de gerenciamento de custos para sobreviver e superar os concorrentes. A relação entre o custo-alvo e a concorrência entre as empresas do setor cervejeiro nigeriano foi investigada neste estudo como um meio de abordar a questão acima.

Metodologia: Foi utilizado um projeto de pesquisa de estudo de caso. Seis organizações com 1.451 funcionários seniores. Entre eles, contadores principais, contadores de gerência, gerentes de produção / gerentes de marketing / vendas, gerente de compras, engenheiros de manutenção e supervisores em suas respectivas organizações foram utilizados como população do estudo. A enumeração total foi usada. 1.242 cópias utilizáveis do questionário foram coletadas e analisadas representando 86% de taxa de resposta. Quatro hipóteses formuladas foram testadas usando análise de regressão com o auxílio do SPSS.

Resultados: O resultado da análise indicou que houve impacto significativo entre as subvariáveis independentes e seus agregados sobre as variáveis do dependente da seguinte forma: Engenharia de valor no custo de produção (R = 0,571, R2 = 0,497, p = <0,05); Lean Manufacturing na satisfação do cliente (R = 0,687, R2 = 0,610, p = 0,05); Gerenciamento da cadeia de suprimentos na entrega eficiente de produtos (R = 0,751, R2 = 0,698, p = <0,05); Filosofia Kaizen sobre melhoria contínua da qualidade do produto (R = 0,534, R2 = 0,478, p = <0,05). O resultado obtido foi alinhado com a expectativa a priori.

Limitações: Este estudo concentrou-se na indústria de cervejarias, que está no subsetor de fabricação da economia nigeriana. Isso se deve ao cálculo da garganta cortada entre as empresas e à importância do setor para a indústria de transformação na Nigéria. Sugeriu-se que outros pesquisadores conduzissem estudos adicionais para replicar e confirmar os resultados em outros subsetores de fabricação. Isso permitiria a integração desses resultados com o objetivo de estabelecer o impacto geral dos custos na conclusão da indústria manufatureira nigeriana. O estudo fornecerá uma plataforma para análise comparativa e modelo de decisão da indústria.

Implicações: As quatro hipóteses testadas indicaram que a variável independente teve impacto significativo na variável dependente. Portanto, o estudo concluiu que o custo-alvo previa de forma confiável a concorrência no setor de cervejarias na Nigéria.

Originalidade/valor: pesquisas anteriores revisadas mostram que algumas das sub-variáveis que influenciam o custo-alvo e a competição foram omitidas enquanto as estudadas não foram examinadas em profundidade. De acordo com o conhecimento do pesquisador, pouco ou nenhum estudo foi realizado sobre o impacto do custo-alvo no nível de competição no setor de cervejarias na Nigéria. Portanto, este estudo foi realizado para colmatar as lacunas identificadas no corpo do conhecimento.

 

Palavras-chave: Custeio Alvo, Concorrência, Indústria de Cervejarias, Nigéria.


 


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