THE APPLICATION OF PRODUCTION SKILLS IN THE MANAGEMENT OF BUSINESS ORGANIZATION TO GAIN COMPETITIVE ADVANTAGE

1.1 Introduction

Production skills entails Industries and business organization be it private or public, have one thing in common, the human workforce, this could confidently be said, that organization, will not exist without its human resources, since a business organization cannot even start without a workforce, and effective and efficient skills, will gear the ability of the organization to stand out among its competitors. Usage of these resources depends on the skills and ability of the human work force in the organization. Therefore the need for effective and skilled labour is required to stage ahead in competing with other competitors. The creation of knowledge is a dynamic and continues process.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.

1.2 Background of Study

In today's dynamic and competitive business environment, firms are exposed to challenges with meeting the increasing market demands and expectation, handling sophisticated requirements, and technological obsolescence. Thus, innovation is seen as a means of gaining sustaining performance and growth. It has been an area of intense research (Fartash & Davoudi, 2012). Abbing (2010) posits that innovation strategies are that part of strategy that deals specifically with the growth of an organization through the development of new products, services, processes or business models. An innovation strategy then becomes a plan of how to use the development of new products, services, processes or business models to achieve certain objectives. Consequently, to create growth, sustain performance and develop performance in a dynamic and changing environment, innovation becomes the way (Cottam, Ensor & Band, 2001). Also, innovation is an important tool that provides opportunities to new inventions and building of new markets, when the entrepreneurs are sure about the market, they will hold longer (Kuhn & Marisck, 2010, cited in Ori and Theuri, 2016).On this note, managing innovation depends on interrelated basic objectives of competitiveness: improving product quality and the firm's entire technological quality (Pratali, 2003). However, organisations need to differentiate themselves from other players in the market. Usually, leading companies continuously use innovative strategies to create an edge over their competitors (Goksoy, Vayvay & Ergeneli, 2013). The concern for every manager has been to achieve a sustainable competitive advantage that ensures long- term survival. Because innovation is a key driver of sustained competitive advantage and sustained business growth, the management of innovation is a central concern for these firms (Igartual, Garrigos & Hevas- Oliver, 2010). Innovation is understood in the sense of new products, new technologies, new equipment acquisitions, improved management or financial methods, the improved performance of the labour force, and the improved information system. Implementing innovation ensures competitive advantage (Lucia, 2012).

Successful companies understand that to stay in the business and achieve profitability, they need to always innovate. Organisations can successfully create new products and services that delight customers and exceed market expectations if they develop functional innovation strategy that provides organizations with the framework for success. Absence of innovation increases customers' dissatisfaction as customers will patronize the organizations that have improved products and services. Advances in information and communication technology provide substantial strategic opportunities for organizations to use innovation to gain competitive advantage which involves creating a new means of producing, selling, and/ or distributing an existing product or service. Administrative innovation refers to creation of organization design that supports production, and delivery of products and services (Hellriegel, Jackson and Slocum, 1999). The major concern for managers is how to achieve a sustained competitive advantage that ensures long- term survival. Since innovation is a key driver of sustained competitive advantage and sustainable business growth, the management of innovation becomes a central concern for all firms (Igartual et al, 2010). Innovation provides a firm with the capability to capture a substantial level of market share and create an entirely new market opportunity that enables a firm to reap supernormal profits. The slow reaction of competitors to innovation strategies of a firm will yield competitive advantage to the firm (Lim, 2010). Prestwood & Schumann (2002) posit that innovation is the means by which enterprises create values and wealth. Enterprises that can apply innovation strategy and then utilize that process of innovation will gain a competitive advantage and leverage the enterprises' creation of wealth. Thus, in a highly competitive business world, it is vital for companies to operate efficiently. It involves reducing costs in every area of business. Key areas where organizations can minimize costs are time, space, effort, and energy (Goksoy, Vayvay & Ergeneli, 2013).

Innovation strategies can be proactive and/ or passive (Dodgson& Salter, 2008). Proactive innovation strategies are applied by firms that have strong research orientation, frontline advantage, and a technology market leadership. Their knowledge access came from various sources and take high profile risks. Radical redesign of business process that change the nature of products & services and incremental, the constant technological or process changes that lead to improved performance of products and services are the types of technological innovation used in proactive innovation strategy. The techniques required to promote organizational innovation should therefore, be situational determined. This paper assesses and describes a select group of management innovation techniques that affect enterprise competitiveness in developing West Africa economies which include reengineering, bench marking, and corporate partnering.

Therefore, in Nigeria Breweries Kaduna PLC where the research was carried out, the activities that was conducted is to know the Application of Production Skills in the Management of Business Organisation to Gain Competitive Advantage.

1.3 Statement of the Problem

In the past years, various issues to the effective management of industries and business organizations to gain competitive advantage over others have been noticed and highlighted as follows:

Unskilled Labour: Unskilled labour has been the major problem facing industries and business organization, this is as a result of personnel managers, not recruiting and selecting employees, base on merit, skill, and expertise, but rather on selection based on man know man, a connection of whom you know to get to were you want. Hence, the effect is having the wrong people at the right place and thereby affecting the quality of service or product to be delivered to the market.

In Nigeria today, you will be surprise, seeing somebody who read a different course entirely was employed in a different field. i.e. a mechanical engineer working in a banking sector, such the expected performance will be upturned and unsatisfactorily.

Technology: Inability of industries and business organization. To use the modern ways to get things done, effectively and efficiently, is another major problem. A supplier may be expected to produce technical, particularly during the early stages of design and manufacturing.

Late Delivery speed: Inability to make the product or deliver the service quickly “in some markets a firm's ability to deliver more quickly than its competitors may be critical. A company can offer an on-site repair service in only/or 2 hours, has a significant advantage over a competing firm that guarantee service only within 24 hours.

In-ability to cope with changes in demand: Changes its volume, in many market, a company's ability to respond to increase and decrease in demand is important to its ability to compete. It is well known that a company with increasing demand can do little wrong.

Poor product quality and reliability: Customers wants product without defects, thus the goal of process quality is to produce defect-free products and services, product and service specification, give in dimensional tolerance and/or service error rate. Define how the product or services is to be made. Adherence to the specification is critical to ensure the reliability of the product or service as defined by its intended use.

Cost or price: Is another problem when the price of any product is too high it affects its competitive strength in the market.

Scarcity of fuel/petroleum products: I find out that sometimes when the refineries are working in full capacity, the dealers and distributors of the petroleum products hoard these products and truck drivers are said to be diverting these product elsewhere.

1.4 Aim and Objectives of the Study

The main aim of this study is to determine the Application of Production Skills in the Management of Business Organisation to Gain Competitive Advantage. In achieving this aim, the following specific objectives were laid out as follows:

1. To evaluate the impact of production skills to gain competitive advantage.
2. To determine management strategies to sustain competitive advantage.
3. To find out innovative strategies for developing new products.

1.5 Research Questions

The following questions will be addressed to determine the Application of Production Skills in the Management of Business Organisation to Gain Competitive Advantage.

• What is the impact of production skills on business competitiveness?
• What is the impact of management strategies to competitive advantage sustainability?
• What is the role of innovation in business management to ensure competitiveness?

1.6 Research Hypotheses

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis I

• H0: There is no significant impact of production skills on competitive advantage.
• H1: There is significant impact of production skills on competitive advantage.

Hypothesis II

• H0: There is no significant impact of management strategies to competitive advantage sustainability.
• H1: There is significant impact of management strategies to competitive advantage sustainability.

Hypothesis III

• H0: There is no significant impact of the role of innovation in business management to ensure competitiveness.
• H1: There is significant impact of the role of innovation in business management to ensure competitiveness.

1.7 Significance of the Study

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.8 Scope of the Study

This study is on the application of management strategies to ensure competitive advantage using efficient productions skills. The study will examine businesses in Abuja metropolis, Nigeria

1.9 Limitations of the Study

The demanding schedule of respondents made it very difficult getting the respondents to participate in the survey. As a result, retrieving copies of questionnaires in timely fashion was very challenging. Also, the researcher is a student and therefore has limited time as well as resources in covering extensive literature available in conducting this research. Information provided by the researcher may not hold true for all research under this study but is restricted to the selected respondents used as a study in this research especially in the locality where this study is being conducted. Finally, the researcher is restricted only to the evidence provided by the participants in the research and therefore cannot determine the reliability and accuracy of the information provided. Other limitations include:

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.