Module

RESEARCH METHODS AND ANALYTICS FOR BUSINESS

PRACTICE

Research Title:

Impact of Supply Chain Management Process in the Brewery Industry in

Nigeria: A Case Study of Brewery Plc in Nigeria

Word Count

2160

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Table of Contents
Chapter One..............................................................................................................................4
1.0 Introduction.........................................................................................................................4
1.1 Research Aim........................................................................................................................4
1.2 Objective...............................................................................................................................4
1.3 Research Questions..............................................................................................................5
Chapter Two..............................................................................................................................6
2.0 Literature Review.................................................................................................................6
2.1 Supply Chain Definition.........................................................................................................6
2.2 Nigerian Brewery..................................................................................................................6
2.3 Factors That Contribute to Rising Alcohol Consumption......................................................6
2.4 Nigeria Brewery Supply Chain Management........................................................................7
2.5 Challenges with The Nigerian Brewery's Supply Chain.........................................................7
2.6 Supply Chain Management External Risk Factors.................................................................7
2.7 Supply Chain Management Internal Risk Factors..................................................................8
2.8 Optimisation of Network Theory..........................................................................................9
Chapter 3.................................................................................................................................10
3.0 Methodology.....................................................................................................................10
3.1 Research Philosophy...........................................................................................................10
3.2 Research Approach.............................................................................................................10
3.3 Research Design..................................................................................................................10
3.4 Data Collection Method......................................................................................................11
3.5 Sample................................................................................................................................11
3.6 Data Analysis Plan...............................................................................................................11
3.7 Ethical Considerations.........................................................................................................11
3.8 Study Limitations................................................................................................................11
4.0 Conclusion..........................................................................................................................12
References...............................................................................................................................13

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 Chapter 1

1.0 Introduction

According to NB plc (2019), the Nigerian brewery is among the world's oldest and
produces many locally popular alcoholic drinks. In Nigeria, various breweries offer a
wide range of products. The expansion of the brewing sector in Nigeria has led to a
greater reliance on agricultural commodities produced domestically. Thus, the increased
beverage consumption in Nigeria can be attributed partly to the country's vast and
young population (NB plc, 2019). Demand for alcoholic beverages has risen in tandem
with rising incomes and the rising popularity of social drinking. Nigerian breweries also
produce a wide range of low- and high-proof alcoholic and nonalcoholic beverages.
Brewing companies have seen an uptick in business due to the general public's
increased access to alcoholic drinks.

This research intends to investigate Nigerian breweries. The study's

background aims and objectives, as well as any relevant research questions, will be
covered. This research will provide a high-level summary of the brewing companies in
Nigeria. The study will also look at where internal and external risks come from in the
supply chains of Nigerian breweries and what could be done to fix them. The conclusion
will evaluate the research's methodological and ethical considerations.

1.1 Aim of Research

Specifically, this study examines the effects of supply chain management on the
Nigerian beer industry. Furthermore, the paper intends to analyse the supply chain
management risks for Nigerian brewers.

1.2 Objective
The study's objective will be:

 To evaluate the management of the brewery's supply chain in Nigeria

within a specific period.

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  To identify the factors that affect Nigerian breweries' supply chain
management strategies.
 To present recommended solutions for mitigating these risks before they
cause severe damage.

1.3 Study Research Questions

The research questions will be as follows:

 What variables influence the supply chain management process of

Nigerian breweries?
 How can the influence of risk variables on the supply chain process be
mitigated?

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 Chapter 2

2.0 Review of Literature

2.1 Supply Chain Definition

Stakeholders, including suppliers, manufacturers, distributors, and retailers, all
make up the supply chain, which is a component of business management (CSCMP,
2019). These partners collaborate by coordinating informative activities and storage and
transport networks. Furthermore, effective and efficient product lines precede the supply
chain processes. Thus, an excellent product line has the correct pricing, product,
retailer, consumer, quantity, and timing (Christopher, 2016).

2.2 Nigerian Brewery

Nigerian Breweries Plc, the country's largest brewer, is at the heart of the
country's brewing culture. In 1949, the business began bottling what was then called
STAR lager beer out of the Lagos Brewery. In 1957, the firm established Aba Brewery,
and in 1963, it established Kaduna Brewery. The corporation founded Ibadan Brewery
in 1982 and has steadily expanded. Currently, the company boasts eight breweries, all
of which manufacture high-quality products across Nigeria (NB plc, 2019).

2.3 Factors That Contribute to Rising Alcohol Consumption

The Nigerian population reached two hundred million in 2018 and continues to
rise (National Population Commission, 2019). Daily consumption of beer and other
alcoholic beverages increases as the population grows. Even though the economy has
been slowing down recently, a report from the International Monetary Fund (IMF) shows
that Nigerians' incomes have increased; there has been an 8.3% increase in per capita
income. On social occasions, Nigeria's most socially active ethnic groups consume
excessive beer (IMF, 2018). Furthermore, growing populations naturally lead to higher
demand. For example, the average age of Nigeria's population is nineteen, and the
average life expectancy is 50 (National Population Commission, 2019). Thus, the best
age group for the brewery business is young adults.

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 2.4 Nigeria Brewery Supply Chain Management
The Nigerian brewery's supply chain management begins with procuring its vital
raw materials, sorghum and maise. Local farmers (67%) harvest most sorghum and
maise, whereas 33% comes from imported sources. Next, a truck transports the
supplies to the factory for manufacture. Following production, the beverages get stored
in their warehouses. Finally, the drinks move from the warehouses to the sales offices
or depots, where retailers can purchase them (Akinyoade et al., 2016).

2.5 Challenges with The Nigerian Brewery's Supply Chain

Few people in Nigeria know how to consume beer responsibly, and the country's
infrastructure is shoddy at best. Corruption is also a problem, as is the widespread lack
of education (Sanni, 2019). Uncertainty worries have persisted, with the supply chain
taking the brunt of the criticism. Risks impede receiving of raw ingredients to selling
finished products (CIPS, 2019). Issues with suppliers, procedures, laws, intellectual
property, political constraints, and economic hazards are all potential stumbling blocks
in any company's process and supply chain. As a result, Nigerian breweries face the
same supply chain risks as any other company. Finally, internal and external risks exist
(Igwe, Robert, and Chukwu, 2016).

2.6 Supply Chain Management External Risk Factors

External risk factors come from outside an organisation's supply chain and are
beyond its mitigation ability, however, they can devise plans addressing the potential
threats. Following are examples of such external threats:

Environmental Risk: natural disasters such as hurricanes, floods, and

tornadoes can completely wipe out the business's infrastructure. Economic Risk:
companies are subject to economic risk in diverse ways. This risk factor is
uncontrollable, but its impact on the brewing sector is likely to be substantial. When the
economy of Nigeria collapsed between 1986 and 1997, the country's brewing industry
took a significant hit. Production was expensive, and exchange rates were poor. It leads
to higher unemployment, lower manufacturing output, and lower beverage consumption
(Malomo, 2015). Inflation is an additional risk that cannot be averted. Price increases

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increase the cost of labour, maintenance, raw materials, and other factors affecting the
company as a whole (Waters, 2009). Thus, according to Yusuf et al. (2009) the most
significant external element influencing the supply chain is inflation; it decides how easy
it is for the buyer to purchase. Political Risk: Unpredictable political issues will always
pose a threat. This risk element includes war, the imposition of additional taxes, and the
government taking over a business. Given military obligations, barley imports decreased
throughout the middle to the late eighteenth century, which encouraged the substitution
of sorghum in the production of beverages (Akinyoade et al., 2016).

2.7 Internal Risk Factors in Supply Chain Management

Internal risk factors are those that originate within a company's supply chain. In
other words,  according to Bode et al. (2013), these are risks over which the
organisation exerts control. The internal threats are as follows:

Mismanagement: Another significant internal risk is the inefficient administration

of the company's resources (financial, human, manufacturing, and promotional). Thus,
there is a risk to both financial and human resources. Incentives: are frequently the
most overlooked aspect of supply chain management's internal risk, yet they have
consequences (Business Day Online, 2009). For example, those employees who do not
receive incentives will outperform those who are well-motivated. Stability: the effective
administration of one's financial resources is synonymous with financial stability. For
example, a corporation that controls its resources effectively grows. Organisation
Structure: this according to Hsiao et al. (2008) affects the company's performance; a
good workflow enhances performance and makes monitoring and controlling jobs
easier.

2.8 Network Theory Optimisation

It is a great strategy when planning a production line's flow of commodities. It
entails assessing the supply network from supplier to customer. It makes it possible for
the company and its products to do well in the market (Oh and Monge, 2016). Thus,
using network theory, it is possible to identify the most efficient way to share data
between departments. Flowcharts can visualise the Nigerian brewery and then be
studied accordingly (Folorunso, 2015). Following are some characteristics of this theory:
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Lowering supply chain costs: efficiencies consider all the unique designs and costs.
Young et al. (2016) highlighted that this allows for setting up the best way to manage
the supply chain. Increase in profit: with this architecture, the business can analyse
every aspect of its supply chain, from labour costs to those associated with production,
sourcing, and transportation. In addition, rationalising capital assets and maximising the
product and customer mix raises the company's profit (Munksgaard & Medlin,
2014). Enhancing the planning process for sales and operations contributes to
meeting supply and demand.
Additionally, it facilitates the efficient use of existing resources (Forsgren & Johanson,
2017). Efficient Risk Management in the Supply Chain: the best use of the supply
chain will result in better resource management and risk reduction. By applying
optimisation theory, a company can analyse and simulate contingencies, determine
their impact, select practical responses, and set up contingency plans. Stimulation of
shifting business conditions: the principle of network optimisation relies on "what-ifs".
As a result, it enables robust decision assistance to create challenging strategic
business decisions. What-if analysis allows the speedy study of different scenarios,
currency changes, supply networks, and distribution acquisitions (Lew et al., 2014).

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 Chapter 3

3.0 Methodology
The methodology section of a study lays out the approach taken and explains
how the data for the study will be collected and analysed. In addition, secondary
research methods and quantitative data mined from previous studies and the
corporations' annual reports will be utilised in this study.

3.1 Research Philosophy

The two types of research philosophies, per Creswell (2007), are ontology and
epistemology. Fieldwork examines the problem in epistemology research philosophy,
whereas Ontology study does not relate to fieldwork. As part of this study, in addition to
the researcher's commitment, fieldwork will be conducted to analyse the problem. As a
result, the supply chain management process's impact on Nigeria's brewing industry will
be assessed using the epistemology research philosophy.

3.2 Research Approach

Inductive and deductive methods are the two primary classifications of research
methodologies. In a deductive approach, data is collected for problem analysis.
Additionally, the deductive research method does not involve the development of
theories for analysing the research problem or setting hypotheses to explore the
research problem. In contrast, inductive research consists of the design and testing of
hypotheses. Therefore, an inductive method will be applied to determine what factors
affect the effectiveness of supply chain management strategies in Nigerian breweries.

3.3 Research Design

The most widely used research methods are surveys and case studies (Yin,
2013). Research projects that hope to collect only a tiny amount of evidence to probe
the research problem can benefit from the case study approach. The survey gathers
information and data from a population subset and then extrapolates those
characteristics to the entire population. Data collection for this project will centre on

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Nigeria Brewery Plc., a stand-in for the Nigerian brewing sector. As a result, given the
limited amount of evidence, this research study will employ a case study.

3.4 Method of Data Collection

Data collection can be primary or secondary. Semi-structured interviews with
workers at Nigeria Brewery Plc will serve as this study's primary source of information.
The majority of the questions will take the form of open-ended questions. Similar to
primary sources, secondary sources like previous research articles, blogs, publications,
literature, and tabloids collect secondary data. In addition to primary sources, secondary
sources will also contribute to the research study.

3.5 Sample
Non-probability and probability sampling methods are the two primary
classifications of sampling procedures (Bryman & Bell, 2015). In the probability
sampling method, there are equal odds of selecting the sample. Non-probability
sampling selects population respondents non-randomly. This research used the
probability sampling method, as the sample was randomly selected. The study samples
ten high-level executives from Nigeria Brewery Plc, including the company's CEO,
managers, and marketing manager.

3.6 Data Analysis Plan

This study will use thematic analysis to analyse the qualitative data from primary
and secondary sources.

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 P.O.E.M

Paradigm Ontology Epistemology Methodology

Subjectivist
Interpretivist Relativist Case Study

Semi-structured The interview.

interview. Reaction papers.
Interview ten
managers at
brewery Nigeria Plc.
Transcribed data
using NVivo
software.

Fig 1: P.O.E.M (by paper author)

3.7 Ethical Considerations

There will be full disclosure of all references to secondary data sources. The
sample information will only be used for statistical analysis, and this will be kept
confidential.

3.8 Study Limitations

A complete sample respondent profile will help analyse and address the study's
problem. However, erroneous information may mislead the research. The research is
limited to a single brewer. In resolving the study objectives, this sample's inherent

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challenges and issues will apply to all Nigerian brewers; moreover, this may not reflect
the actual impact on the population.

4.0 Conclusion
Low levels of education, inadequate infrastructure, corruption, and a general lack
of understanding of the benefits of moderate beer drinking have all hurt Nigeria's
beverage business. The supply chain is subject to both internal and external threats.
The environment, the economy, politics, inflation, and competition are all examples of
what are known as "external risk elements." On the other hand, internal risk factors
affect things like politics, rewards, inefficiency, organisational stability, and available
resources. Network theory's implementation will significantly lessen supply chain risk,
allowing for lower supply chain costs, higher profits, enhanced sales and operations
planning, less efficient risk management, and the stimulation of dynamic market shifts.

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