Introduction to Marketing Research

Introduction to Marketing Research As to its definition, Marketing Research is the process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face. It serves marketing management by providing information which is relevant to decision making. The manager or other individual initiating the research must provide guidance to the researcher in the form of a research brief. This document should state the purpose of the research, its objectives, the time by which it must be completed, the budget to which the researcher must work in developing the research design and the timing and frequency of any interim reports which the researcher is expected to make. The Marketing research Process. Marketing research is gathered using a systematic approach. An example of one follows: 1. Define the problem. Never conduct research for things that you would ‘like' to know. Make sure that you really ‘need' to know something. The problem then becomes the focus of the research. The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences. For example, why are sales falling in New Zealand? 2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group? Marketing research can classified in one of three categories: †¢Exploratory research †¢Descriptive research †¢Causal research These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories. †¢Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility. †¢Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and cross-sectional studies. Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required. Cross-sectional studies sample the population to make measurements at a specific point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long-term forecasting of product demand. †¢Causal research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments. 3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample? The sampling frame is the pool from which the interviewees are chosen. The telephone book often is used as a sampling frame, but have some shortcomings. Telephone books exclude those households that do not have telephones and those households with unlisted numbers. Since a certain percentage of the numbers listed in a phone book are out of service, there are many people who have just moved who are not sampled. Such sampling biases can be overcome by using random digit dialing. Mall intercepts represent another sampling frame, though there are many people who do not shop at malls and those who shop more often will be over-represented unless their answers are weighted in inverse proportion to their frequency of mall shopping. In designing the research study, one should consider the potential errors. Two sources of errors are random sampling error and non-sampling error. Sampling errors are those due to the fact that there is a non-zero confidence interval of the results because of the sample size being less than the population being studied. Non-sampling errors are those caused by faulty coding, untruthful responses, respondent fatigue, etc. There is a tradeoff between sample size and cost. The larger the sample size, the smaller the sampling error but the higher the cost. After a certain point the smaller sampling error cannot be justified by the additional cost. While a larger sample size may reduce sampling error, it actually may increase the total error. There are two reasons for this effect. First, a larger sample size may reduce the ability to follow up on non-responses. Second, even if there is a sufficient number of interviewers for follow-ups, a larger number of interviewers may result in a less uniform interview process. 4. How will we analyze any data collected? What software will we use? What degree of accuracy is required? Before analysis can be performed, raw data must be transformed into the right format. First, it must be edited so that errors can be corrected or omitted. The data must then be coded; this procedure converts the edited raw data into numbers or symbols. A codebook is created to document how the data was coded. Finally, the data is tabulated to count the number of samples falling into various categories. 5. Decide upon a budget and a timeframe. 6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain approval, then move on to step seven. 7. Go ahead and collect the data. 8. Conduct the analysis of the data. 9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes. 10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation. Sources of Data – Primary and Secondary There are two main sources of data – primary and secondary. Primary research is conducted from scratch. It is original and collected to solve the problem in hand. -Secondary research, also known as desk research, already exists since it has been collected for other purposes. Marketing research by itself does not arrive at marketing decisions, nor does it guarantee that the organization will be successful in marketing its products. However, when conducted in a systematic, analytical, and objective manner, marketing research can reduce the uncertainty in the decision-making process and increase the probability and magnitude of success.

Learning Team Internal and External Factors Paper Essay

Amongst today’s societies The McDonalds Corporations is considered one of many; that has successfully in so many ways used a combination of various marketing strategies and skills to become a globally known successful origination. McDonalds a global business in most countries around the world can also face a lot of challenges and issues. The McDonalds Corporations has learned and brought about changes according to the needs of its consumers per hour and should always remain flexible to changes within the environment that deals with current customer trends, government and or legal restrictions, and the development of technology. The McDonalds Corporations technology structural and also its financial assets of the company are perfect marketing positions. McDonalds without a doubt is completely abundant with many aspects in structure, finance and of course technology. To help, identify and implement majority of these assets within the proper directions towards the improvement of the corporations would be all that is needed. The McDonalds Corporations overall is producing their main product, creating items within their own kitchen, and cooking on their own grills. This means the use of equipment, certain control devices, the regulation of temperature, the business point-of sales system, inventory process, financial and communication information are all linked into different technology that impacts the corporation. Now with public awareness of technology and cultures more people are starting to become a little more health conscious, and have access to finding out about certain quality ingredients, and knowing the lack of minerals that may have an overall negative impact on what all fast foods have done to those who consume them. Along with maximizing knowledge on internal and external factors this will have a large impact on the four major function of management within a corporation. The McDonalds Corporations has goals that are reflected in its mission statement to become for some customers a favorite place to eat. There are several internal and external factor’s McDonald’s faces in the decision they made to go Global. External f actors  for the decision to go Global include the following. 1.)The growing heath trends of consumers 2.)The ability to expand into new markets such as India and China 3.)The diversification and purchase of other fast food restaurants 4.)The global growth of the fast food industry 5.)Worldwide deregulation (Salem, Abdullah, 2009) These external factors impacted the four functions of management for McDonald’s managers, by forcing management to adjust the planning function and information to include a mission that was based on a global demand and competition. The organizing function of management with in McDonalds was also affected by the decision to go global. Management now has to organize information, people, and financial resources crossed countries and cultures to achieve one common goal. The function a leading for a management changed also. Now, styles and type of leading and motiving had to be localized and customized around the culture rather than one specialized way of doing things. Controlling or measuring achievements in with in the global industry also changed as franchisees are now faced with measuring success based on others in different markets. Internal factors also played a part in McDonald’s decision to go global and those factors have also affected the four functions of manageme nt for their managers. Some internal factors include: 1.)The desire for a strong brand name, image, and reputation 2.)A large market share 3.)The desire for a global presence 4.)A stronger financial performance and position 5.)Introduction of new products 6.)Customer focus (Salem, Abdullah, 2009) These internal factors also had an effect on the planning, organizing, leading, and controlling functions of management within McDonald’s. Competing in a Global market makes managers think, act, gather and process information on a larger scale to achieve a goal. Diversity The evolution of McDonald’s Corporation toward diversity as a business objective began in the late 1970’s, when the corporation officially  established an Affirmative Action Department, which today is known as the Diversity Initiative Department (Anonymous, 2005). Numerous factors can affect the four major functions of management; this section will focus on how diversity can affect planning, organizing, leading and controlling within the McDonalds Corporation. Diversity in the workplace is more than a person’s race or ethnic background it also includes personality, gender, education, position in the organization, etc. The major obstacle for McDonald’s management continues to be age, gender, ethnic background and education. Diversity management involves a three-stage process: (Tetteh, 2014) †¢Identification Stage †¢Implementation Stage †¢Maintenance Stage McDonald’s management must identify where the diversity mixture is and decided on the appropriate action to ensure workplace harmony and productivity. This will be accomplished through proper training and communication with all employees. Learning to effectively communicate with the various groups within each location will be very important to the success of the team within each restaurant. Implementing effective processes that ensure each diverse group is accommodated is crucial to the process. McDonalds as a corporation does a great job helping and engaging their management and employee’s to ensure proper implementation by offering education and career development seminars, various gender based seminars, second language courses etc. Maintain and improving these processes will ensure that McDonald’s stays current and relevant to the groups each manager has identified within their department. McDonald’s continually re-evaluates its initiatives to ensure they are in line with their business and current employee base. McDonalds ensures diversity is properly managed within their organization by including diversity in the business planning process. This allows the company and its managers to treat diversity as an initiative rather than a program; it’s naturally incorporated into the business plan (Anonymous, 2005). Ethics When it comes the Functions of Management, you must condsider which parts may be corrupted by ethical issues. Two areas that maybe prone to be affected  are the Leading and Organizing Funtions. In building a dynamic organization you must find a diverse group of people, with different ethical baskgrouds, to fill the different postions in it. You would also want to get them up to speed with you organizations ethical views. If you take a company like McDonald’s you can find out what they do to ensure this. Now McDonald’s is committed to conducting business ethically and in compliance with the letter and spirit of the law. This commitment is reflected in McDonald’s Values. Inherent in each value is our commitment to be ethical, truthful and dependable and this is reflected through their Standards of Business Conduct, which serves as a guide to making good decisions and conducting business ethically. Each year McDonald’s employees are required to re-certify that they have read and will abide by the standards that McDonalds has set through the Standards of Business Conduct. Employees complete regular training on the Standards, anti-bribery laws, and various other laws, regulations and company-specific policies. McDonald’s and its employees in all countries must comply with the U.S. Foreign Corrupt Practices Act (â€Å"McDonalds: Standards Of Business Conduct For Employees†, n.d.). References Salem, F., Abdullah, M., (2009) McDonalds case study. http://www.scribd.com/doc/16050821/McDonalds-Case-Study McDonalds: Standards of Business Conduct for Employees. (n.d.). Retrieved from http://www.aboutmcdonalds.com/mcd/investors/corporate_governance/codes_of_conduct/standards_of_business_conduct.html Bateman, T. S., & Snell, S. A. (2011). Management: Leading & collaborating in a competitive world (9th ed.). New York, NY: McGraw-Hill Irwin. Anonymous, . (2005, November). Diversity at McDonald’s: A way of life. Nation’s Restaurant News, 1(), 92, 94-95 Tetteh, Vanessa A. (2014, January 1). Diversity in the Workplace. Research Starters, p. 1.

Oscar Wilde was the fashion critic and editor of the magazine the Essay

Oscar Wilde was the fashion critic and editor of the magazine the woman's world(1887-1889). Analize this contribution to fashi - Essay Example e, which is not the case because Oscar Wilde did not completely erase the fashion issue but rather refined it by adding more content, because evidently, he only reduced the fashion section from four to two. Prior to Wilde reducing past issues in the magazine and adding up empowering content, Wilde also incorporated women authors who greatly contributed in writing the magazine (Tusan 2005, P.68). Generally, the aim of Oscar Wilde’s transformation was to create a new generation of modern woman who did not have to sit back and watch the men rule over, but instead women who embraced empowerment to battle up with the man in running the businesses of the world through education and other channels of knowledge exposure (Fortunato 2012, p. 34). Nevertheless, Wilde’s effort of empowering the 18th century woman through the â€Å"woman’s world† magazine did not send a positive note to everyone. Though majority never came up to criticize the content in the magazine, t he artists in various fields emerged to criticize the article. Surprisingly, women artists were among the critics who criticized Wilde’s view on fashion. Most of the critics had no issue with women empowerment content because what disturbed them the most was the editor’s negative stand on fashion. The fashion issue arose during transformation of the magazine where the editor reduced fashion content because he believed that it had no much relevance in the woman’s world as men usually perceive. Oscar Wilde’s stand on fashion irrelevance caught the attention of artists like Mary Eliza Haweis, an editor who authorized in connection with fashion, cosmetics, and decoration (Fortunato 2012, p. 37). She argued that fashion should not be side kicked because fashion was an essential form of art that she claims... Historically, the 18th century was an era of male dominance because men viewed women as inferior beings. The reason why women were inferior is that they could not participate in the development of the world’s progress. This was evident through vast arts that portrayed at the time that included Sydney Grundy’s play â€Å"the glass of fashion† that was produced in 1883. Another evidence of women's inferiority in the 18th century portrayed through the manner in which the â€Å"lady’s world† magazine was edited before Oscar Wilde came took over the editorship. Things changed when Oscar Wilde joined the publishing company as the editor of the magazine. The content and the appearance of the magazine never made much sense to him and that is why he transformed every bit of the magazine including its name Oscar Wilde claims that the magazine had no motivational content that concerned women because content mostly contained gossips, music, art, fashion, and ot her common issues. Oscar Wilde could be named as a renowned female reformist who undertook all the challenges in the 18th century literature field to empower the woman into modernity through intense education shunning the old fashion perception pinned on women. This did not mean that Wilde did not have any ideas in fashion and art, nor did he ignore them, because history claims that he was a frequent attended to art galleries and theater.

Stalin and Mussolini Essay Example | Topics and Well Written Essays - 3000 words

Stalin and Mussolini - Essay Example Some of the popular political leaders were Benito Mussolini and Joseph Stalin. Both leaders share the commonality of experiencing the climax of their political live between the 1920s and the 1950s. Thus, the regime was between the end of the First World War and the end of the Second World War. Their regimes show some sought of comparability though there is some difference in the way their performed their leadership roles. This research depicts the comparison and contrast of the leadership traits of Mussolini and Stalin. Each of these iconic leaders had a very promising past. For instance, Mussolini was a political journalist. His zeal to express anger through violence dates from the moments he was a young (Neville 53). His violent approach to the rest of the students is very compatible with the political life he engineered. A similar episode accrues to Stalin, a renowned dictator in Russia. His childhood was amplified by violence and brutality towards the rest of the children and students at the school. Arguably, the aspect of being dictators commences prior to the leadership regimes that get analyzed with regards to these leaders (Service 400). Initially, Mussolini was not a Fascist. His father was a socialist. Thus, his father gave him a name commemorating the Mexican president Benito. All his names came from socialists. However, his later experience of being in the Italian army must have facilitated some changes in him (Neville 132). Resuming to his earlier career as a teacher facilitated his active preaching of violent revolution. In fact, he gave praise to a communist Karl Marx. He was against any element of patriotism. It was this attitude that fostered Mussolini to start the fascist party that played a paramount role in drafting his future leadership. His initiated fascist squads performed perilous activities across the country such as killing approximately 2000 political opponents (Neville 95). They also

Addiction to Cell Phones Research Paper Example | Topics and Well Written Essays - 500 words

Addiction to Cell Phones - Research Paper Example is a nation addicted to their cell phones. However, how do we decide whether our cell phone usage is normal, or if it is a real addiction that needs to be tackled in the same way? There are suggestions that cell phone addiction is an addiction like any other, so we need to apply the same conventions to this as we would for a drug or alcohol abuse problem. These include increased tolerance (needing more cell phone time to achieve the same result), an inability to cut back on use (an inability to leave the phone at home for a day or to enter a no signal area), and a reduction in competing behaviours (Hyman, 2013). Arguably, many cell phone users do have a cell phone addiction based on these criteria, because it can be difficult to be without a phone when those around you are consistently using theirs. Additionally, there are now situations in which we rely on a cell phone for social behaviours, which should be seen as positive. This is not the same negative consequence as would come from a reliance upon drugs and alcohol. Much of the language that people are using to describe this issue is quite biased. Whilst there are some scientific sources which tackle the issue from a psychological perspective (Hyman, 2013), news sources tend to side on hysterical (Carbonell et al, 2009). Mozes (2012) describes cell phones as an example of â€Å"materialism† and â€Å"impusiveness†, which are traditionally negative traits. This article suggests that much of the problem with cell phones could be compared to the actions of peacocks when they display their lek behaviour (Jenaro et al, 2007). This is backed up with some serious fact s and figures about the issues, as over 90% of students at U.S. colleges have a cell phone, and an average of 3200 texts are now sent per month by young adults. Arguably, this does signal a problem for those who use cell phones. 3200 texts are now sent by young people a month, which means that they must spend a lot of time on their cell

LAW OF BUSINESS LEASES Term Paper Example | Topics and Well Written Essays - 2250 words

LAW OF BUSINESS LEASES - Term Paper Example The landlords often have to deal with the tenants who default on the lease or sub lease agreements. It is important that Mr. Ash takes early actions to collect the rent it always follows a very predictable pattern that starts with a series of late payments, that proceeds to paying only part of the rent and finally leading to complete default of the payment of the rent. When the tenants delay in making rent payment just like in the case of XYZ Ltd, Miss Beech and Mr. Cherry, the first option is the person that guaranteed Mr. Cherry payment to be approached Law of (Property Act 1925). This is the best strategy to be used if Mr. Ash needs to preserve the lease and the tenant has sufficient goods in premises that can cover the cost of the rent arrears. The right to rent distress is only available to the owner of the immediate reversion of the lease agreement that will end immediately he or she assign sells or transfer the reversionary interest to another party. The rest distraint involves the landlord seizing the goods that was pledge against the unpaid rent. This is basically a self help remedy that enables the landlord to take the goods of the tenants that are found on the leased premises as some form of security so that the rent arrears can be paid in full. Distress is a right of the landlord that was created under the common law defining the relationship of the tenant and the landlord (commercial credit Corp Ltd v. Harry D. Shields Ltd. (1980), 122 D.L.R. (3rd). It is important to note that the right to distress is the only right under which a landlord is allow ed to hold the goods of his tenants and can be applied upon nonpayment of any amount. The landlord has a right to use the rent distress instruments in case of nonpayment of any amount. According to Wallace v. Fraser (1878), 2 S.C.R. 522, the right of distress can be taken way or limited by the courts in lease if the landlord has forfeited the lease. This is because

Module 1 Case Assignment Example | Topics and Well Written Essays - 750 words

Module 1 Case - Assignment Example The following factors are considered as the key external factors that affect the passenger airline industry: Security: Security measures are the prime concern for the airline industry. Security directly relates to the comfort level of the travelers, pilots and their families. Since the industry has managed to overcome the hindrances in security over the last decade, airlines will surely not be evidence for recklessness with regards to security. Volatile Operational Costs: Airline industry acquires huge cost of its operations which include the cost of airplanes, equipments, salaries of staff, insurance of products and passengers that are transported, and hiring of business sites within the premises of the airport. Fuel volatility: As the only most significant cost, fuel is highly influential factor that can affect the prices and supply of fuel. The fuel policies may impact the supply decisions by suppliers, expansion of refineries by government and oil companies. This ultimately leads to rising in fuel prices and devastating effects on the airline sector. According to Sarabia (1996), segmentation is referred, as the way to identify, assess and choose homogeneous groups. Segmentation is extremely essential as it distinguishes the customers with similar characteristics and needs which make them react in the same way to product features or marketing process. (Mullins & Walker Jr., 2010, p. 180). The ways to segment the market are based on socioeconomics, demographics, personality (lifestyle), geographic location, the purchase pattern, purchase event, wanted benefits, approach towards product and spending pattern. The major market segments are: First class: This segment deals with upper class of the market only in which passengers are provided with personalized services with supreme quality and privacy. The people from this class desire to have quality services and products without considering the amount of money it can take. They are usually

Mammal research Paper Example | Topics and Well Written Essays - 2500 words

Mammal - Research Paper Example Different mammals live in different habitats, depending on the kind of food they consume. Therefore, mammals can be found in deserts, near wetlands, forests, and near water bodies. This paper presents a study research that focuses on specific mammals referred to as â€Å"Otters,† and the research is about how otters socialize. There is presentation of data, and conclusions are made from the data. Otters are mammals that live or found in water, hence referred to as marine or aquatic mammals. These are considered to be the smallest kind of mammals that live in water. In order to keep warm, otters have thick fur on their body. There are different types of otters, including sea otters, giant otters, and river otters. One of the differentiating factors of these otters is their area of habitation. Nonetheless, otters can be found in Europe, Asia, North America, parts of North Africa, and South America. A common characteristic of all otters is that they exhibit a high level of social behaviour. These marine mammals for instance hang out in groups, based on their sexes. While female otters spend time together, their male counterparts also do spend their time together in groups. The otters that are mothers to young ones spend a great deal of their time nursing the young ones, as well as grooming them. These also carry their young ones on their chests (Dickerson 2-3). For this research on otters, it was important to locate a safe, convenient and accessible place, where otters could be found easily. This is mainly because, this is a primary research study, and hence first-hand experience was essential. It was deemed appropriate to conduct the research study in the Shedd Aquarium in Chicago. This aquarium is located in Chicago, and is an indoor aquarium. In the aquarium, there are more than 30,000 marine animals, together with those that inhabit aerial and terrestrial environments (Shedd Aquarium Web). After scheduling and buying tickets, the study

Literary Analysis Essay Example | Topics and Well Written Essays - 250 words

Literary Analysis - Essay Example The two passages that I have selected to highlight the two forms of writing include passage four and ten. Therefore, from both passages, I have highlighted the incidences where the form of mystery and suspense is evident. The first incidence is when Mr. Oke character of shyness from the way she behaves in front of his wife. For instance, he could not talk properly in the presence of his wife but in the absence of his wife he was a fluent speaker. Nature defines that a man in a family should act as the head. It is contrary to Mr. Oke could not express the manhood in front of his wife. On the other hand, Mrs. Oke is so superstitious that she is completely obsessed with a ghostly tale that encompasses her family and ancestors. She often told stories about her ancestors who are long dead. The stories about her long ago dead ancestor bring the sense of mystery as to how her ancestor’s situation of love could reflect her. Additionally, it is mysterious to see that the same Lovelock that her ancestors went through is the same position she was facing. She tells her stories in a queer way that culminates to give an unusual atmosphere. The reasons for cherishing such stories are not highlighted giving a sense of mystery. Close relations between Mrs. Oke and her past is, therefore, evident, and it’s mysterious how she remembers the ancestral stories so vividly (Lee 130). The two passages are related because both are explaining the relationship between Mr. and Mrs. Oke is also very mysterious. Unlike the expected husband wife relationship, Mr. Oke is full of inferiority complex before her wife. He looks lowly and do not fully take the role of the husbandry. Oke inferiority complex before her wife made Mrs. Oke ever happy throughout the book while her husband remained ill and felt unease whenever his wife was present. Therefore, he started planning to kill her wife because of the strain in their relationship. Their relationship ends up according to the old

Case5.1 Essay Example | Topics and Well Written Essays - 500 words

Case5.1 - Essay Example 1. What’s your opinion regarding forced ranking performance appraisals? Forced ranking, generally defined as a curve that leadership creates by assigning credit with â€Å"certain proportions of the production to proportions of a producing population† (â€Å"Wikipedia†), would most likely be of great benefit to a floundering company. After one or two years of culling the very bottom (i.e. least productive) employees from the pack, the company ought to see substantial improvement in productivity and efficacy. Such a move, if conducted properly, should certainly be enough to set the company right and enable its continued existence. However, forced ranking is not advisable as a long-term solution. Quite simply, this is because once you have sifted all of the chaff from the wheat, all you’re left with is wheat. That is to say, if you cull effectively, eventually all you’re left with is the good stuff. By continuing to dismiss employees based on forced r anking, eventually the company would be eliminating effective, productive employees, because that would be all that was left.

Installation Art and Architecture Essay Example for Free

Installation Art and Architecture Essay Architecture has produced works that was revered, respected and something that captured the awe of the people for years. It was the source of something beautiful and even artistic. It was because of architecture that the likes of the Parthenon, as well as the other majestic palaces and cathedrals and other structures things that people have considered as artistic and beautiful was created and later enthroned in the annals of what is beautiful and what is artistic. Architecture has endured for years, but the growth of the practice of architecture also made it possible for the creation of other disciplines from which what is beautiful and artistic would be derived from. One of the things that were always placed side by side with architecture today, when it comes to the consideration of art and beauty inside space and location, is installation art. Over the years, installation art has become widespread and gained popularity. But the spread of installation art has one serious repercussion its act of intrusion in the realm of architecture, an act of intrusion that is not harmoniously creative but is sometimes destructive too. There maybe instances wherein the collaboration and fusion of architecture and installation art can produce something that exudes harmonized beauty and reflect certain artistic values and content. What captures the attention of professionals is how installation art appears to be more inclined in attacking the space and the features of architecture, either as part of its overall artistic outlook or just because this is a necessary characteristic for installation art to fully manifest itself. This has been an important point of argument since installation art has emerged. There are those who believe that the two disciplines exist in harmony together while there are those who believe otherwise. Because of this, the paper will try to discuss and analyse what the relationship is between installation art and architecture, how art invades architectural space, when and how art and architecture intersect and what will be the result of the collaboration of art and architecture. The Evolution of Installation Art Installation art, as the name implies, is all about a work of art that was installed in a particular place. It maybe a simple object or a collection of objects, that occupies very little space. It can be something a sight or visual cue that can make the audience feel as if they were transformed in another place because of the broadness of the reach, physically, of the installation art that a whole new environment was created because of installation art. There are many different components that may make up a work of art considered as installation art (since anything that can be installed in a place can be a part of installation art). From video presentations to exhibited photographs, sculpture and other artworks, these all contribute to make installation art what it is and to help installation art achieve its goal, and that is to transform a particular place in such a way that what was achieved was the experience and sensory cues that the artist(s) wanted or anticipated in the creation of installation art. Installation art, like any other art styles, genres and movements have beginnings in different countries and many places around the world proved amenable to the growth, patronage and continued development of installation art (Childs, Storry, 1999, p. 273). Considered as a genre or art movement that is still under the contemporary art era, installation art was felt as early as the seventies. A very good example of some of the earliest installation art include the latrine turned fountain by Marcel Duchamp entitled â€Å"Fountain†, a work of art that was controversial and sensational largely because of what it presented and the social taboos and conventions that it challenged during its release. Joining Duchamp as some of the earliest proponents of installation art includes Kurt Schwitters, as well as the Gutai group, an art group that was situated outside of the US and in Japan, and the American Allan Kaprow. These individuals are just some of the prominent individuals in installation art – browsing intensively through the history of installation art. Research would reveal several other individuals who participated in the establishment and growth of installation art around the world (Childs, Storry, 1999, p. 273). Kaprow was considered as one of the artists who helped guide the idea of installation art towards what it is today. He has postulated many different ideas that concretized the concept of installation art since its early years. Kaprows idea about environmental art contributed towards the development of installation art as how it is known today. By the start of the last two decades of the 20th century, installation art was already known in many parts of the world, including European countries (Childs, Storry, 1999, p. 273). The term installation art has been in common use since at least the mid-1980s and installations have become familiar sights in British museums and galleries in the 1990s (Childs, Storry, p273). Besides Kaprow, there is also the famous installation art pioneer, Ilya Kabakov, who was also instrumental in developing installation art. Together with Kaprow, Kabarov helped in bringing installation art closer to the people, as well as to the artists by using the academe and including installation art in what they teach in school so that students will understand installation art better and maybe even contribute to installation art in the future (Al-Qawasmi, De Velasco, 2006, p. 117). Two of the key coiners of installation art are Allan Kaprow and Ilya Kabakov. Both artists not only made art installation but they also introduced the practice into academia (Al-Qawasmi, De Velasco, 2006, p. 117). Kabakov and Kaprow and their role in the introduction of installation art in the consciousness of art students learning in the academe is instrumental in the growth of installation art, which , in one way brought installation art and architecture closer together. The idea behind the creation of the discipline that would be known as installation art lies on the belief of the artists that there are other ways that can be explored. The viewing experience of the people who are trying to appreciate art is something that the audience can experience, detect and maximize (Kronenburg, 2003, p. 229). The physical attributes of the place contributes in making the artistic exhibition what it was, therefore, bringing the artworks and the experience closer to the people and helping them identify with their selves better while being immersed in the art they are witnessing in installation art exhibits. Installation art attempts to reduce the boundaries between the viewer and the viewed and bring the artists ideas to a situation where they can be communicated more directly (Kronenburg, 2003, p. 229). From lifting from available materials, installation art experienced an important change when television and video recording was introduced. It allowed the artists more diversity in their works and allowed more ways and means for the artwork to be presented to the public. Because of this new technology, installation art was able to add a new dimension to itself. Today, video has been an integral part of installation art anywhere in the world. Artists, like Martin Firrell and Jenny Holzer, are some of the installation art specialists who are known to use the technologies, videos and digital presentation. Over time, the support for installation art, its ideas and the discipline, grew. Many entities like the Museum of Installation located in London, as well as the Mattress Factory in the United States, sounded their support for the growth of installation art as a separate and independent movement in the world of art. This is concretized by the growth of the artists immersed in this style. There are many installation art works to come out of England. One example is the work entitled Neon Rice Fields exhibited in 1993 by an artist from Vietnam who was already based in Great Britain named Vong Phaophanit (Childs, Storry, 1999, p. 273). This also signifies the relevance of the countries, too, that supported installation art. For example, the British prides itself with several artists, some of them are not even born in that country. However, because of the artistic atmosphere in the country, even foreign born artists are now based there because of how the country creates a local artistic community that is amenable for the art and the artists. Part of the development and evolution of installation art is the introduction of this particular art form in the academe. By being introduced to the academic world and being studied and used by professionals, it was a way of awarding installation art a sense of legitimacy in the art world, like giving it its rightful place in the world of art. And an important point in the discussion of the intersection of installation art and architecture can be seen in the discussion of installation art in the academe, although historians are not quite sure when this began (Al-Qawasmi, De Velasco, 2006, p. 117). It is difficult to trace the exact history and point of departure for using installations in architectural education (Al-Qawasmi, De Velasco, 2006, p. 117). Some observers believed that when installation art was introduced in the academe, it was placed inside the educational system for learning architecture, placing installation art as a part and not something greater than architecture. Notably, installation art was greatly embraced in the realm of architecture, even in the academic realm. Installation practice in architecture schools is growing both in undergraduate and diploma studies as well as postgraduate research (Al-Qawasmi, De Velasco, 2006, p, 117). Role of Installation Art Installation art is here because of a particular reason; one of the reasons is the role which artists believe installation art has. Often, it is the role of message-sending, addressing issues that can be as broad as socio-political issues or even personal issues; the focus is on the individual and the realization of the individual/audience after being exposed to the installation art (Al-Qawasmi, De Velasco, 2006, p. 117). â€Å"Some practice installation as urban interventions to question cultural or socio-political issues (Al-Qawasmi, De Velasco, 2006, p. 117). Here is an example. If you would one day happen to see a sculpture of an image of a polar bear sitting under a very small pack of ice placed on the sidewalk, placed there by the artist, it may mean that the artist is trying to send a socio-cultural message that is environmental in nature (i. e. tackling the issue of global warming and how the work of art represents the effects and changes that will happen to the planet if global warming remains unchecked and unresolved, and that would include the loss of natural habitats of animals in the polar regions and the displacement of animals inside locales they are not known to thrive in the first place). Another good example is the work of British artist Michael Landy. Landy became more popular after his Breakdown installation art which he held at the CA building located in London. He protested about consumerism through his art composed of installation and performance art that saw Landy bringing in his possessions on sight and burning it in front of the audience (Walford, 2001). Installation Art: Rise and Recognition The emergence of installation art as a specific discipline in the world of art has gained notable rise and earned the recognition of the authorities in the field of art. Today, there are many reputable organizations, as well as award giving bodies, that acknowledge installation art and their significance. For example, the Turner Prize shortlists have increasingly included such work (installation art) by British or British-based artists including Vong Phaophanit, Douglas Gordon and Rachel Whiteread (Childs, Storry, 1999, p. 273). These award giving bodies and the recognition that they give to installation art and the artists of installation art, helped cement the place of installation art. It also helped the artists in the local and international community, contributing to the growth of installation art. This is important in the rise and recognition of installation art. How Installation Art Invades Architectural Space Architecture thrived because there were available spaces that were transformed through the use of construction and the implementation of design and creation policies and concepts exclusive to architecture. Because of that, architecture cannot be considered as creating physical outputs that are intrusive towards existing objects that occupied space to where they would encroach. Architecture did not encroach because the buildings were made atop a land previously featureless. If there were any buildings before architectural efforts were made, it was considered as an act of improvement for the previously placed structure, which is made by architecture. Regardless of how old the type of architecture would be, still, it is architecture. The case is different with installation art because installation art places itself inside the design of architecture – designs which did not accommodate such features, and sometimes, will not accommodate such features. And when this happens, installation art invades architectural space. For example, public parks where installation arts are in place can be considered as an act of destroying the concept of what is beautiful. This is because an alien thing was added to the park, a feature that was not planned to be there in the first place, ergo giving the people the chance to redefine what a beautiful park is– was it the one with the installation art or the one without it? Even if installation artists argue that installation art has aesthetic value, design is not a simple mathematics of putting one beautiful thing inside another beautiful thing and the automatic result is a beautiful and artistic thing. Sometimes, the combination of two separate, beautiful and artistic things may not be a harmonious endeavour. The characteristic of one of the two will be affected by how the other will minimize, alter or damage the original state of the half of the two, making the union sometimes just beneficial to one and disastrous to the other. Installation Art, Architecture and Purpose An important aspect in the analysis of architecture and installation art and the times the two are intersecting each other and invading each others space is hinged on purpose the purpose of the artist and the purpose of the person who allowed the creation of the installation art or architecture (or both), which is usually the artists financier or benefactor. What is the purpose of the installation art and what is the purpose of architecture? This will take a long discussion starting with the origins of the two. Architecture was primarily created so that the creation of a functional structure (both permanent and temporary) can also feature aesthetics at the same time. However, the creation places more importance to functionality and usability than beauty and aesthetics. Installation art, on the other hand, is hinged strongly on artistic background. The focus of installation art is art itself and not functionality. Therefore, when the two collide in a single space, there is a fight between which should prevail in the space is it architecture and its functionality or installation art and it’s more artistic and aesthetic purpose? For those who give installation art a space, their main reason is its humanistic impact on the viewer art appreciation, and even detoxification from stress through the beauty in art. An ideal example is Spaceplace created by Maurice Agis and Peter Jones, which was created for its non-functional purpose and yet the artists believe that there is an important role of the installation art nonetheless. This is found in how the artwork impacts the audience, particularly in the personal level depending on how the artwork affects the audience/viewer (Kronenburg, 2003, p. 229). They are the first to admit that Spaceplace is more aesthetic than traditional functional; critics and observers believed that such was the case (Kronenburg, 2003, p. 229). The aim of Spaceplace was to create a new environment based on aesthetically controlled considerations rather than conventional functional issues (Kronenburg, 2003, p. 229). This is a clear differentiation of installation art and architecture. Spaceplace was purely installation art. The sole functionality of this is to affect the audience/people and not to be something that should be used in a manner that architectural works are utilized for their functionality. It may not be functional based on what â€Å"functional† is often understood (i. e. something that has practical use or something that is useful) but its effect on the audience/people is nonetheless important. Spaceplace is an installation that explored the relationship between simple rectangular forms in order to create abstract non-functional spaces that were related to the human body. The work was an attempt by the artists to provide a foil to the chaotic spaces of everyday human activity (Kronenburg, 2003, p. 229). The artists added that the other purpose of this particular installation art is to have the audiences sensory activity stimulated in a positive way (Kronenburg, 2003, p. 229). Often, architecture and installation art does not cross each others path. The invasion of the space allotted for the two are often separate, especially when there are spaces that are allotted for art works and there are spaces allotted for strictly architectural endeavors and works. For one, practical and functional creations are often delegated to architectural works; while installation art is often given space only inside art galleries which allots space for art forms like installation art and not to architecture. Take for example, Maurice Agiss Spaceplace it is an installation art that required the use of a large space. The art gallery gave them this space, therefore, making it unnecessary for the installation art to invade architectural spaces because they have their own space wherein they can showcase themselves. The installation therefore relied totally on the provision of a separate shelter environment in the form of gallery space (Kronenburg, 2003, p. 229). But this situation was actually met with negativity especially by the artists because the artists like Agis himself believes that confining the installation art in gallery spaces actually pushes the artworks farther from the public and the public experience, which was the main goal of the installation art in the first place.

Lays A Potato Chips And Company Marketing Essay

Lays A Potato Chips And Company Marketing Essay Lays established in India in 1965 and introduces international and Indian flavours in Indian market.Lays introduces pure vegetarian flavours in Indian market.The most famous flvours are Lays Spanish Tango,Classic Salted,Lime , Indias Massala Masti,American style Cream and Onion and Indian Magic Massal(http://www.dillogical.com/lays.html) According to Business dictionary SWOT analysis is a situation analysis of an organization to find out internal strengths and weaknesses and external opportunities and strength of company to make a strategy. Lays is a multinational company who has strong distribution network. Its easily available to everywhere. Although Lays has a strong distribution network, they are trying to expand their network in all areas of the country. Lays has a strong brand value itself but there are some differential advantage which makes Lays above then its competitors and that advantage is Pepsico.Lays is a brand of Pepsico company who has strong reputation in the world.Frito-Lay sales forces enjoys excellent reputation over its competitors(Marketing Management,p325) Market sementation means division of a market into different segments of buyers with different wants and behaviours,wo wants different products or marketing mix.The companies used different methods to segment the market and develops profiles for those segments.(Principles of Marketing 4th European Edition,P 391)

Analysis on the Bank Performance of Nigerian Banks

Analysis on the Bank Performance of Nigerian Banks The provisional title of this research project is: Consolidation and bank performance; analysis of Nigerian Banks 2004 to 2006. The choice of this topic emanates from the fact that the current credit crisis and the transatlantic mortgage financial turmoil have questioned the effectiveness of bank consolidation programme as a remedy for financial stability and monetary policy in correcting the defects in the financial sector for sustainable development. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solutions in sight to bank failures and crisis. The paper attempts to examine the performances of government induced banks consolidation and macro-economic performance in Nigeria in pre-consolidation and post-consolidation period. The paper analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance. The CAMEL analysis is chosen because of its optimal properties, simple computational procedures and is suitable for an empirical work such as the present research project work. Against the findings that would emerge from the intended empirical investigation of this work, appropriate recommendations that are likely to better enhance the effectiveness of banking sector reforms in Nigeria thereby restoring confidence in the system. CHAPTER 1 1.1 Introduction The Nigerian banking sector over the past 20 to 25 years has experienced boom and bust in a cyclical pattern. After the implementation of the structural adjustment program (SAP) in 1986 and the deregulation of the financial sector, new banks proliferated, mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007). Prior to the deregulated period, financial intermediation never took off and even declined in 1980s and 1990s (Capirio and Kligbiel 2003). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo (2005) noted that there are ten Nigerian banks that control more than 50% of the aggregate assets of the banking sector; more than 51% of the aggregate deposit liabilities and more than 45% of the aggregate credits. The sector was characterized by small sized banks with high overheads; low capital base averaging less than $10million; heavy reliance on government patronage and loss making. Nigerias banking sector was still characterized by a high degree of fragmentation and low levels of financial intermediation up until 2004. In the light of the foregoing, banks are compelled by the Central Bank of Nigeria to raise their capital base from N2 billion to 25 billion on or before 31st December, 2005. Most banks resorted to mergers and acquisition as a survival strategy, which saw a reduction in the number of banks from 89 to 25. This study contributes to the concept of bank recapitalization by critically examining the impact of bank consolidation on the performance of banks using a sample of randomly selected Nigerian banks. It is the intention of the researcher to give more validity to empirical evidence that have been obtained by previous researchers on the subject matter. Relevance of the study The earliest set of studies evaluates the effects of bank consolidation through mergers and acquisitions comparing pre- and post- merger performance by measuring performance using either accounting or productive efficiency indicators.The results from both indicators have varied and at sometimes been contradictory. This can be explained by performance-influencing variables like size, brand name, diversification and cost reduction, there is still no reconciliation between these indicators. I intend to contribute to the determinants of bank performance by evaluating the possible performance impact of bank consolidation on banks. Consolidation is the key to improving the performance of banks with low capital base, without which they are bound to fail. 1.3 Background of study Aside being the highest contributor to the market capitalization of the Nigerian stock exchange and smooth and stable income provision to money and capital market, banking industry is capable of attracting potential investor which is a source of every economic development. Financial institutions generally, and banking sector in particular play a crucial role in the development process of mobilizing fund from the surplus sector of the economy to the deficit sectors of the economy. Banks help in increasing the quantum of national savings and investment. Consequently, the volume of goods and services produced in the economy increases overtime through the multiplier effect. Banks enhance stable and smooth income to attract potential investors in line with Modigliani and Miller (1958) theory that investors generally have preference for smooth and stable income. According to sloan and Arlond (1970) consolidation is a fusion of the assets and liabilities, in whole or in part of two or more business establishment. Consolidation represents the idea of investment and the coming together of firms; it can also mean larger sizes, larger shareholder bases and larger number of depositors. According to Adamu (2005) bank or corporate consolidation could be achieved by way of mergers/acquisition and recapitalization. It is more than mere shrinking of number of banks in any banking industry. According to Hall (1999) consolidation is a global phenomenon, which started in the advanced economies of the world. For example, the enactment of Riegle-Neal Act, which allows interstate branch banking beginning from 1997 this led to increase in bank mergers in the USA (Akhavin et al and kwan 2004). Consolidation allow a mega bank to enjoy higher profit, increase revenue and low problem loans. Japanese banking industry also experienced consolidation in the 1990s which resulted to economies of scale (Fukuyama, 1993; Mckillop et al 1996). When banks go bust, their capital base is called to question. Cases of bank failures have motivated researchers to investigate the activities of banks in relation to performance in terms of returns. A view is that consolidation has increased the capital base and size of Nigerian banks but does not necessarily bring about higher performance. Criteria Selecting Nigeria Study Consolidation is a term used by the central bank of Nigeria (CBN) to describe the coming together of some banks within the country to become one bank and be able to meet CBNs requirement for capitalization to a minimum of N25billion. When this happens, it is expected to improve services rendered by the banks. In July 6, 2004, a day now referred to as black Tuesday in banking sector of the economy, the CBN Governor, professor Charles Soludo made an obviously unexpected policy pronouncement. The highlight was the increment of the earlier N2billion to N25 billion, with full compliance deadline fixed for the end of the year 2005. In a bid for banks to meet up with the new requirement, some Banks are exploring the option of inviting foreign investors to buy into Banks. Others are looking at the possibility of getting investors to shore up their capital, and some are looking at the capital market option, while others are considering mergers and acquisition. If the process of consolidation is properly implemented the ongoing consolidation of banks in the country will surely improve the banking sector in Nigeria and translate to better banking services and cheap funds.   More importantly, the public will not have fear of distress in any bank, since the consolidated bank will have enough funds. The need to understand the impact of bank consolidation on Nigerian banks either negative or positive necessitated the use of Nigerian banks as sample for this study. 1.5 Aim To analyze the effect of consolidation on the performance of Nigerian Banks 1.6 Objectives To examine the consolidation process of Nigerian banks. To Asses the performance of Nigerian banks before and after consolidation. To evaluate the impact of consolidation on Nigerian banks. CHAPTER 2: Literature Review 2.1 Introduction This chapter attempts to gain an in-depth view into what is already known in connection with the research topic being studied. It therefore brings to light the different theoretical and methodological approach to the research area, helps develop a practical analytical framework, considers inclusion of variables that may not have been thought about from the inception of the research work and in the long run learning can be gained from mistakes of previous researchers and avoidance of such mistakes would be achieved (Bryman Bell, 2003). The scope of the research is narrowed down through successful study of literature review that was continuous all through the research process. Further, the review of literature will incorporate a wide range of materials sourced from journal articles, corporate websites, government websites, multilateral organisations, text books and online databases which include: Wiley, Science Direct, Emerald and Business Source Premier. Reforms are predicated upon the need for reorientation and repositioning of an existing status quo in order to attain an effective and efficient state. There could be fundamental bottle-neck that may inhibit the functioning of the institutions for growth and the achievement of core objectives in the drive towards enhancing and sustaining the economic and social imperatives of human endeavor. Carried out through either government institutions or private enterprises, reform becomes inevitable in the light of the global dynamic exigencies and emerging landscape. Consequently, the banking sector, as an important sector in the financial landscape, needs to be reformed in order to enhance its competitiveness and capacity to play a fundamental role of financing investment. Many literature indicates that banking sector reforms are propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial architecture; and involve a banking sector that is consulting with regional integration requirements and international best practices. The nexus between consolidation and financial sector stability and growth is explained by two polar views. Proponents of consolidation opined that increase size could potentially increase bank returns, through revenue and cost efficiency gains. It may also, reduce industry risks through the eliminations of weak banks and create better diversification opportunities. On the other hand, it is argued that consolidation could increase banks propensity towards risk taking through increases in leverage and off-balance sheet operations. Advocates Furlong (1994) stated that an early view of consolidation in banking was that it makes banking more cost efficient because larger banks can eliminate excess capacity in areas like data processing, marketing, or overlapping branch networks. Cost efficiency also could increase if more efficient banks acquired less efficient ones. Though studies on efficiency in banking raised doubts about the extent of overcapacity, they did point to considerable potential for improvement in cost efficiency through mergers. Banking reforms involves several elements that are unique to each country based on historical economic and institutional imperatives, for example, in Hungary. Evidence show that the reform in the banking sector was due to high under-capitalization of state owned banks, weakness in the regulation and supervision and deficiencies in corporate governance behavior of banks. Craig and Hardee (2004) conducted investigation on bank consolidation and concluded that as the banking consolidation continues, relationship lending is becoming increasingly rare. As credit scoring and formal, formulaic methods are used more and more, specifically by the large banks, many small businesses may find out that they do not fit the model, especially those enterprises with negative equity. Thus, small businesses may be filling the financing void that is being created by the bank consolidation with non-bank sources of funds. Hughes and Mester (1997) provide evidence to suggest that there are scale economics in banking, bank managers are risk averse, and banks use the level of their financial capital to signal the level of risk. This is an area of interest in Nigerian banking, especially when the return on equity is calculated in another two to three years and then compared with the historical industry average. Rhoades(1996) reported that American banks consolidated in response to the removal of restriction on bank branching across states, while Hughes, J.P; W. Lang; L.J. Mester; C.G. Moon(1998) concluded that the economic benefits of consolidation are strongest for those banks that engaged in interested expansion, and in particular the expansion that diversifies macroeconomic risk. From the literature, it has been observed that well-spaced and implemented financial reforms have the ability to boost financial development indicators. Detractors Hughes J.P; Mester, L.J; and Moon, C.G (2000) also provide evidence that scale economies exist in banking but they fail to account for risk. Thus, scale economies that result from consolidation and diversification do not produce better performance in banking, unless choice makes the banks management more conscious risk and moderates its decisions and actions appropriate larger scale of operation that leads to diversification only reduce liquidity and credit risk under the ceteris bus assumption, and they argued that this is not always the case. The examination of merger and acquisition in European banking and found that industry consolidation was beneficial (by providing social benefits) in the first economic integration stages, but could damage welfare in the more advanced stages as the few big banks safeguard price agreements to forestall foreign competition. The other side to European mergers and acquisitions was because of the possibility of failure. This, of course, ignores the fact that no bank can ever be too big to fail. All it takes for a bank to fail is for bad news? about a bank to get to its stakeholders (especially depositors) and they all walk in at the same time to take their funds! For such bank to survive, it must have sufficient liquid assets to meet all maturing and long-dated obligations (Igangiya, 2006). 2.2 Role of banks In the Economy Banks have an important role to play in an economy, as they are intermediaries between people with shortages and surpluses of capital. The products they offer will include savings, lending, investment, mediation and advice, payments, ownership, guarantee and, trust of real estate. (Bouma et al, 2001). This aspect is critical to this research study as the role of banks in any economy cannot be undermined therefore, the need to explore the effectiveness of their actions and how this ultimately affects the economy. The macroeconomic environment within which firms exist and, operate has an impact upon their activities and governments and other agencies operating at different spatial levels and it can shape behavior and their environment. (Worthington et al, 2001). According to Bouma et al, (2001), as a financial intermediary between market players, a bank has four important functions: First it transforms money by scale. The money surpluses of one person are mostly not the same as the shortages of another person. Banks transform money by duration. Creditors may have short-term surpluses of money, while debtors mostly have a long-term need for money. Banks transform money by spatial location (place). Finally, banks act as assessors of risk. As a rule, banks are better equipped to value the risks of various investments than individual investors who have surpluses available. Also, through their larger scale, banks are more able to spread risks. The major objectives of the banking system are to ensure price stability and facilitate rapid economic development; regrettably, these objectives are still yet to be realised in Nigeria as a result of some infrastructural deficiencies such as basic power, energy, and transportation. Also, the lack of a workable contingency planning framework which provides detailed policy actions to limit crises. The reforms of the banking industry will have an influence on the functions, as it ultimately shapes the way they handle their operations. The reform of recapitalisation and consolidation could mean a larger platform for banks to better carry out their tasks. This literature review takes a look at commercial banks in Nigeria when faced with the reformation of the banking industry, core competences needed by the banks to be successful and the effect on the macroeconomic indicators of the country. 2.3 The concept of capital base The recent call for recapitalization in the banking industry has raised much argument among the bank regulators, promoters and depositors as if shoring up of banks capital base is a new phenomenon in Nigeria. Historically, the failure of pioneer 1930s and 1940s brought about the enactment of banking ordinance of 1952. Banking ordinance of 1952 prescribed an operating license and emphasized on minimum equity capital for all banks (Omoh, 2007). Since then, raising of bank capital has become the hallmark response policy of the Nigerian monetary authorities. Capitalization is an important component of reforms in the banking industry, owing to the fact that a bank with a strong capital base has the ability to absorb losses arising from non-performing liabilities (NPL). Attaining capitalization requirement is achieved through consolidation, convergence as well as the capital market. Thus, banking reforms are primarily driven by the need to achieve the objectives of consolidation, competition and convergence. (Deccan Herald,2004), in the financial architecture. 2.4 The Concept of Bank Consolidation Consolidation is viewed as the reduction in the number of banks and other deposit taking institution with a simultaneous increase in the size and concentration of the consolidation entities in the sector (BIS, 2001:2). It is mostly motivated by technology innovation, deregulation of financial services, enhancing intermediation and increased emphasis on shareholder value, privatization and international competition (Berger et al, 1991). The process of consolidation has been argued to enhance bank efficiency through cost reduction and revenue in the long run. It also reduces industrys risk by eliminating weaker banks and acquiring the smaller ones by bigger and stronger banks as well as creates opportunities for greater diversification and financial intermediation. The pattern of banking system consolidation could be viewed in two different perspectives, namely; market-driven and government-led consolidation. The market-driven consolidation which is more pronounced in the developed countries sees consolidation as a way of broadening competitiveness with added comparative advantage in the global context and eliminating excess capacity more efficiently than bankruptcy or other means of exit. On the other hand, government-led consolidation stems from the need to resolve problem of financial distress in order to avoid systematic crises as well as to restrict inefficient banks (Ajayi, 2005). One of the general effects of consolidation is to the reduction in the number of players, moving the industry more toward an oligopolistic market (Adedipe, 2007). 2.5 Prospect of Bank consolidation In Nigeria The initial public offering by banks through the capital market when completed is likely to increase the level of financial deepening as evidenced in the upsurge in the volume and value of trading in stock market. The reform in the banking industry has been able to attract more foreign investment inflow, especially in the area of portfolio investment; this development if sustained will boost the level of economic activity especially toward non oil sector. The consolidation of banks is likely to attract a significant level of foreign banks entrance into Nigeria which will become a feature in the industry over time. This will bring about more confidence by the international community of the banking sector thereby attracting more foreign investment into the country. As the level of financial intermediation increase, interest rate is likely to fall and increase lending to the real sector that will generate employment and booster growth. 2.6 The Process of Bank consolidation In Nigeria Before any bank can be said to consolidate through merger and acquisition in the Nigeria industry, it must first seek and obtain the approval of the following regulatory and supervisory authorities in the industry. They include the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigeria Stock Exchange (NSE) and the Corporate Affairs Commission (CAC) (CBN, 2004). Chapter 3: Research Methodology Introduction This chapter sets out the method employed in conducting the research. The choice of method was made based on the nature of the research problem. The purpose of this research is to discover, if any, the impact of bank consolidation on bank performance. Effort would be made to ensure that the methodology and conceptual framework adopted in the research are as relevant to the findings as the concepts and theories of the study. This is because the validity and reliability of conclusions are largely influenced by the research process itself. 3.2 Research Design This study is a causal or explanatory analysis since it seeks answers to questions related to the causes and determinants of bank performance. The research adopts a deductive approach. It outlines theories of director relationship to firm performance and draws hypothesis from them. These hypotheses are then tested using empirical social data to either confirm or reject the contentions. 3.3 Quantitative Versus Qualitative Data A clear distinction must be emphasized between quantitative and qualitative data. The former is concerned with the compilation of the results of research in a standardised mathematical form with the analysis conducted by means of statistics. (Saunders et al, 2003, p.378). Here variables are measured on a selection of scales and can then be arranged in order of arithmetical rigour. Conversely qualitative research is subjective in its approach of examining and reflecting on perceptions of understanding social and human activities (Hussey and Hussey, 1997). Qualitative research is inductive and researchers rarely know the specifics of data analysis when they begin a project (Neuman, 2006). It is concerned with the assemblage of data in a non-standardised, descriptive form, with the examination conducted through the use of theoretical models. 3.4 Data Type Raw or summarized data which has already been collected and stored for other purposes aside from that of the research in question is referred to as secondary data (Saunders et al, 2007). This research will make use of multiple-source secondary data collected from bank financial reports and CBN statistical publications available on the CBN, Guaranty trust and zenith banks websites, some paper source of data will also be used. The data/study will be restricted between the period of 2004 and 2006. The year 2004 is the pre-consolidation, 2005 consolidation while 2006 is the post-consolidation periods. The choice of data type is based on accessibility, cost saving and authenticity factors. Sample Selection The representative sample of the Nigerian banking sector to be used as a sample of the population under study is Guaranty Trust Bank PLC and Zenith Bank PLC. CAMEL ANALYSIS CAMEL is derived from the five components of a banks condition which include Capital adequacy, Asset quality, Management, Earnings, and Liquidity. Ratings are assigned for each component, and a composite rating is assigned for the overall condition and performance of the bank. These component and composite ratings are assigned on a scale of 1 to 5, with 1 representing the highest rating (strongest performance) and 5 representing the lowest (weakest performance) (Hirtle and Lopez, 1999). The camel analysis will be used to analyse the performance of banks during the pre-consolidation (2004) and the post-consolidation (2006) periods. Limitation The major difficulty that is likely to be encountered during the course of carrying out this research is the dearth of information, which is usually associated with emerging economies (including the Nigerian economy). Deliberate efforts would therefore be made to obtain information necessary to enhance the quality of the present research. 4.0 CONCLUSION In summary, the research tries to establish that bank consolidation helps in shoring up investment capital, enhances shareholder value, and protects creditors and depositors as well as strengthening banks capacities to attract funds at lower costs enhancing their liquidity positions. An efficient banking system tends to be one of the greatest focuses of the Central Bank of Nigeria since its establishment in 1959. Thus, sufficient capital base has largely constituted the Banks reform policy focus over the years. Hence, it may not be out of place to conclude at this material time that the ongoing reform policy is essential for the attainment of overall macroeconomic stability on a sustainable basis. Accordingly, the Central Bank of Nigeria is admonished to intensify its present efforts geared towards restoration of confidence in the banking system. The research work analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance BIBLIOGRAPHY Bernerd, B.P., (2006), The effect of recent changes in the financial sector development in Nigerian, Paper presented at the 15th General Assembly of the African rural and agricultural credit association (AFRACA), Bukina Faso. CBN., (2004), Guidelines and Incentive on Consolidation in consolidating Banking Industry. Charles, C.S. (2004) Consolidating the Nigerian Banking Industry to Meet the Developmental challenges of the 21st century. Paper presented at a meeting of bankers committee Abuja 6 July 2004. Larry, U; et al., (2004) Issues in Financial Institutions Surveillance in Nigeria. A seminar paper by CBN training centre Lagos. Eshodaghor, D.V., (2006), Impact of distressed banks in depressed Economy, Prospects for survival and growth. Bank failure in Nigeria, causes and dimension pp. 17 â€Å" 22. Ezeudusi, F. U., (2002) Marcus, G., (2003), An approach to the consolidation of Banks Merger Issues by regulators., A south African case business paper (4), NDIC Annual Report and Statement of Account . Oviemuno, A.O., (2006) Banking Consolidation in Nigeria and the strategies for Generating better returns. Ogunleye G.A. (2003) The regulatory imperatives of the Universal Banking concept in Nigerian NDIC quarterly, (11) No. (2), pp.20-30 Ochojele, D. I., (2003) The Nigerian banking industry, a review seminar paper. Osaije, E., (1992), Structural adjustment programme in Nigerian economy Victor, Ezeaku., (2003), Consolidation of Nigerian Banking Sector, CBN publication. Analysis on the Bank Performance of Nigerian Banks Analysis on the Bank Performance of Nigerian Banks The provisional title of this research project is: Consolidation and bank performance; analysis of Nigerian Banks 2004 to 2006. The choice of this topic emanates from the fact that the current credit crisis and the transatlantic mortgage financial turmoil have questioned the effectiveness of bank consolidation programme as a remedy for financial stability and monetary policy in correcting the defects in the financial sector for sustainable development. Many banks consolidation had taken place in Europe, America and Asia in the last two decades without any solutions in sight to bank failures and crisis. The paper attempts to examine the performances of government induced banks consolidation and macro-economic performance in Nigeria in pre-consolidation and post-consolidation period. The paper analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance. The CAMEL analysis is chosen because of its optimal properties, simple computational procedures and is suitable for an empirical work such as the present research project work. Against the findings that would emerge from the intended empirical investigation of this work, appropriate recommendations that are likely to better enhance the effectiveness of banking sector reforms in Nigeria thereby restoring confidence in the system. CHAPTER 1 1.1 Introduction The Nigerian banking sector over the past 20 to 25 years has experienced boom and bust in a cyclical pattern. After the implementation of the structural adjustment program (SAP) in 1986 and the deregulation of the financial sector, new banks proliferated, mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007). Prior to the deregulated period, financial intermediation never took off and even declined in 1980s and 1990s (Capirio and Kligbiel 2003). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo (2005) noted that there are ten Nigerian banks that control more than 50% of the aggregate assets of the banking sector; more than 51% of the aggregate deposit liabilities and more than 45% of the aggregate credits. The sector was characterized by small sized banks with high overheads; low capital base averaging less than $10million; heavy reliance on government patronage and loss making. Nigerias banking sector was still characterized by a high degree of fragmentation and low levels of financial intermediation up until 2004. In the light of the foregoing, banks are compelled by the Central Bank of Nigeria to raise their capital base from N2 billion to 25 billion on or before 31st December, 2005. Most banks resorted to mergers and acquisition as a survival strategy, which saw a reduction in the number of banks from 89 to 25. This study contributes to the concept of bank recapitalization by critically examining the impact of bank consolidation on the performance of banks using a sample of randomly selected Nigerian banks. It is the intention of the researcher to give more validity to empirical evidence that have been obtained by previous researchers on the subject matter. Relevance of the study The earliest set of studies evaluates the effects of bank consolidation through mergers and acquisitions comparing pre- and post- merger performance by measuring performance using either accounting or productive efficiency indicators.The results from both indicators have varied and at sometimes been contradictory. This can be explained by performance-influencing variables like size, brand name, diversification and cost reduction, there is still no reconciliation between these indicators. I intend to contribute to the determinants of bank performance by evaluating the possible performance impact of bank consolidation on banks. Consolidation is the key to improving the performance of banks with low capital base, without which they are bound to fail. 1.3 Background of study Aside being the highest contributor to the market capitalization of the Nigerian stock exchange and smooth and stable income provision to money and capital market, banking industry is capable of attracting potential investor which is a source of every economic development. Financial institutions generally, and banking sector in particular play a crucial role in the development process of mobilizing fund from the surplus sector of the economy to the deficit sectors of the economy. Banks help in increasing the quantum of national savings and investment. Consequently, the volume of goods and services produced in the economy increases overtime through the multiplier effect. Banks enhance stable and smooth income to attract potential investors in line with Modigliani and Miller (1958) theory that investors generally have preference for smooth and stable income. According to sloan and Arlond (1970) consolidation is a fusion of the assets and liabilities, in whole or in part of two or more business establishment. Consolidation represents the idea of investment and the coming together of firms; it can also mean larger sizes, larger shareholder bases and larger number of depositors. According to Adamu (2005) bank or corporate consolidation could be achieved by way of mergers/acquisition and recapitalization. It is more than mere shrinking of number of banks in any banking industry. According to Hall (1999) consolidation is a global phenomenon, which started in the advanced economies of the world. For example, the enactment of Riegle-Neal Act, which allows interstate branch banking beginning from 1997 this led to increase in bank mergers in the USA (Akhavin et al and kwan 2004). Consolidation allow a mega bank to enjoy higher profit, increase revenue and low problem loans. Japanese banking industry also experienced consolidation in the 1990s which resulted to economies of scale (Fukuyama, 1993; Mckillop et al 1996). When banks go bust, their capital base is called to question. Cases of bank failures have motivated researchers to investigate the activities of banks in relation to performance in terms of returns. A view is that consolidation has increased the capital base and size of Nigerian banks but does not necessarily bring about higher performance. Criteria Selecting Nigeria Study Consolidation is a term used by the central bank of Nigeria (CBN) to describe the coming together of some banks within the country to become one bank and be able to meet CBNs requirement for capitalization to a minimum of N25billion. When this happens, it is expected to improve services rendered by the banks. In July 6, 2004, a day now referred to as black Tuesday in banking sector of the economy, the CBN Governor, professor Charles Soludo made an obviously unexpected policy pronouncement. The highlight was the increment of the earlier N2billion to N25 billion, with full compliance deadline fixed for the end of the year 2005. In a bid for banks to meet up with the new requirement, some Banks are exploring the option of inviting foreign investors to buy into Banks. Others are looking at the possibility of getting investors to shore up their capital, and some are looking at the capital market option, while others are considering mergers and acquisition. If the process of consolidation is properly implemented the ongoing consolidation of banks in the country will surely improve the banking sector in Nigeria and translate to better banking services and cheap funds.   More importantly, the public will not have fear of distress in any bank, since the consolidated bank will have enough funds. The need to understand the impact of bank consolidation on Nigerian banks either negative or positive necessitated the use of Nigerian banks as sample for this study. 1.5 Aim To analyze the effect of consolidation on the performance of Nigerian Banks 1.6 Objectives To examine the consolidation process of Nigerian banks. To Asses the performance of Nigerian banks before and after consolidation. To evaluate the impact of consolidation on Nigerian banks. CHAPTER 2: Literature Review 2.1 Introduction This chapter attempts to gain an in-depth view into what is already known in connection with the research topic being studied. It therefore brings to light the different theoretical and methodological approach to the research area, helps develop a practical analytical framework, considers inclusion of variables that may not have been thought about from the inception of the research work and in the long run learning can be gained from mistakes of previous researchers and avoidance of such mistakes would be achieved (Bryman Bell, 2003). The scope of the research is narrowed down through successful study of literature review that was continuous all through the research process. Further, the review of literature will incorporate a wide range of materials sourced from journal articles, corporate websites, government websites, multilateral organisations, text books and online databases which include: Wiley, Science Direct, Emerald and Business Source Premier. Reforms are predicated upon the need for reorientation and repositioning of an existing status quo in order to attain an effective and efficient state. There could be fundamental bottle-neck that may inhibit the functioning of the institutions for growth and the achievement of core objectives in the drive towards enhancing and sustaining the economic and social imperatives of human endeavor. Carried out through either government institutions or private enterprises, reform becomes inevitable in the light of the global dynamic exigencies and emerging landscape. Consequently, the banking sector, as an important sector in the financial landscape, needs to be reformed in order to enhance its competitiveness and capacity to play a fundamental role of financing investment. Many literature indicates that banking sector reforms are propelled by the need to deepen the financial sector and reposition for growth, to become integrated into the global financial architecture; and involve a banking sector that is consulting with regional integration requirements and international best practices. The nexus between consolidation and financial sector stability and growth is explained by two polar views. Proponents of consolidation opined that increase size could potentially increase bank returns, through revenue and cost efficiency gains. It may also, reduce industry risks through the eliminations of weak banks and create better diversification opportunities. On the other hand, it is argued that consolidation could increase banks propensity towards risk taking through increases in leverage and off-balance sheet operations. Advocates Furlong (1994) stated that an early view of consolidation in banking was that it makes banking more cost efficient because larger banks can eliminate excess capacity in areas like data processing, marketing, or overlapping branch networks. Cost efficiency also could increase if more efficient banks acquired less efficient ones. Though studies on efficiency in banking raised doubts about the extent of overcapacity, they did point to considerable potential for improvement in cost efficiency through mergers. Banking reforms involves several elements that are unique to each country based on historical economic and institutional imperatives, for example, in Hungary. Evidence show that the reform in the banking sector was due to high under-capitalization of state owned banks, weakness in the regulation and supervision and deficiencies in corporate governance behavior of banks. Craig and Hardee (2004) conducted investigation on bank consolidation and concluded that as the banking consolidation continues, relationship lending is becoming increasingly rare. As credit scoring and formal, formulaic methods are used more and more, specifically by the large banks, many small businesses may find out that they do not fit the model, especially those enterprises with negative equity. Thus, small businesses may be filling the financing void that is being created by the bank consolidation with non-bank sources of funds. Hughes and Mester (1997) provide evidence to suggest that there are scale economics in banking, bank managers are risk averse, and banks use the level of their financial capital to signal the level of risk. This is an area of interest in Nigerian banking, especially when the return on equity is calculated in another two to three years and then compared with the historical industry average. Rhoades(1996) reported that American banks consolidated in response to the removal of restriction on bank branching across states, while Hughes, J.P; W. Lang; L.J. Mester; C.G. Moon(1998) concluded that the economic benefits of consolidation are strongest for those banks that engaged in interested expansion, and in particular the expansion that diversifies macroeconomic risk. From the literature, it has been observed that well-spaced and implemented financial reforms have the ability to boost financial development indicators. Detractors Hughes J.P; Mester, L.J; and Moon, C.G (2000) also provide evidence that scale economies exist in banking but they fail to account for risk. Thus, scale economies that result from consolidation and diversification do not produce better performance in banking, unless choice makes the banks management more conscious risk and moderates its decisions and actions appropriate larger scale of operation that leads to diversification only reduce liquidity and credit risk under the ceteris bus assumption, and they argued that this is not always the case. The examination of merger and acquisition in European banking and found that industry consolidation was beneficial (by providing social benefits) in the first economic integration stages, but could damage welfare in the more advanced stages as the few big banks safeguard price agreements to forestall foreign competition. The other side to European mergers and acquisitions was because of the possibility of failure. This, of course, ignores the fact that no bank can ever be too big to fail. All it takes for a bank to fail is for bad news? about a bank to get to its stakeholders (especially depositors) and they all walk in at the same time to take their funds! For such bank to survive, it must have sufficient liquid assets to meet all maturing and long-dated obligations (Igangiya, 2006). 2.2 Role of banks In the Economy Banks have an important role to play in an economy, as they are intermediaries between people with shortages and surpluses of capital. The products they offer will include savings, lending, investment, mediation and advice, payments, ownership, guarantee and, trust of real estate. (Bouma et al, 2001). This aspect is critical to this research study as the role of banks in any economy cannot be undermined therefore, the need to explore the effectiveness of their actions and how this ultimately affects the economy. The macroeconomic environment within which firms exist and, operate has an impact upon their activities and governments and other agencies operating at different spatial levels and it can shape behavior and their environment. (Worthington et al, 2001). According to Bouma et al, (2001), as a financial intermediary between market players, a bank has four important functions: First it transforms money by scale. The money surpluses of one person are mostly not the same as the shortages of another person. Banks transform money by duration. Creditors may have short-term surpluses of money, while debtors mostly have a long-term need for money. Banks transform money by spatial location (place). Finally, banks act as assessors of risk. As a rule, banks are better equipped to value the risks of various investments than individual investors who have surpluses available. Also, through their larger scale, banks are more able to spread risks. The major objectives of the banking system are to ensure price stability and facilitate rapid economic development; regrettably, these objectives are still yet to be realised in Nigeria as a result of some infrastructural deficiencies such as basic power, energy, and transportation. Also, the lack of a workable contingency planning framework which provides detailed policy actions to limit crises. The reforms of the banking industry will have an influence on the functions, as it ultimately shapes the way they handle their operations. The reform of recapitalisation and consolidation could mean a larger platform for banks to better carry out their tasks. This literature review takes a look at commercial banks in Nigeria when faced with the reformation of the banking industry, core competences needed by the banks to be successful and the effect on the macroeconomic indicators of the country. 2.3 The concept of capital base The recent call for recapitalization in the banking industry has raised much argument among the bank regulators, promoters and depositors as if shoring up of banks capital base is a new phenomenon in Nigeria. Historically, the failure of pioneer 1930s and 1940s brought about the enactment of banking ordinance of 1952. Banking ordinance of 1952 prescribed an operating license and emphasized on minimum equity capital for all banks (Omoh, 2007). Since then, raising of bank capital has become the hallmark response policy of the Nigerian monetary authorities. Capitalization is an important component of reforms in the banking industry, owing to the fact that a bank with a strong capital base has the ability to absorb losses arising from non-performing liabilities (NPL). Attaining capitalization requirement is achieved through consolidation, convergence as well as the capital market. Thus, banking reforms are primarily driven by the need to achieve the objectives of consolidation, competition and convergence. (Deccan Herald,2004), in the financial architecture. 2.4 The Concept of Bank Consolidation Consolidation is viewed as the reduction in the number of banks and other deposit taking institution with a simultaneous increase in the size and concentration of the consolidation entities in the sector (BIS, 2001:2). It is mostly motivated by technology innovation, deregulation of financial services, enhancing intermediation and increased emphasis on shareholder value, privatization and international competition (Berger et al, 1991). The process of consolidation has been argued to enhance bank efficiency through cost reduction and revenue in the long run. It also reduces industrys risk by eliminating weaker banks and acquiring the smaller ones by bigger and stronger banks as well as creates opportunities for greater diversification and financial intermediation. The pattern of banking system consolidation could be viewed in two different perspectives, namely; market-driven and government-led consolidation. The market-driven consolidation which is more pronounced in the developed countries sees consolidation as a way of broadening competitiveness with added comparative advantage in the global context and eliminating excess capacity more efficiently than bankruptcy or other means of exit. On the other hand, government-led consolidation stems from the need to resolve problem of financial distress in order to avoid systematic crises as well as to restrict inefficient banks (Ajayi, 2005). One of the general effects of consolidation is to the reduction in the number of players, moving the industry more toward an oligopolistic market (Adedipe, 2007). 2.5 Prospect of Bank consolidation In Nigeria The initial public offering by banks through the capital market when completed is likely to increase the level of financial deepening as evidenced in the upsurge in the volume and value of trading in stock market. The reform in the banking industry has been able to attract more foreign investment inflow, especially in the area of portfolio investment; this development if sustained will boost the level of economic activity especially toward non oil sector. The consolidation of banks is likely to attract a significant level of foreign banks entrance into Nigeria which will become a feature in the industry over time. This will bring about more confidence by the international community of the banking sector thereby attracting more foreign investment into the country. As the level of financial intermediation increase, interest rate is likely to fall and increase lending to the real sector that will generate employment and booster growth. 2.6 The Process of Bank consolidation In Nigeria Before any bank can be said to consolidate through merger and acquisition in the Nigeria industry, it must first seek and obtain the approval of the following regulatory and supervisory authorities in the industry. They include the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigeria Stock Exchange (NSE) and the Corporate Affairs Commission (CAC) (CBN, 2004). Chapter 3: Research Methodology Introduction This chapter sets out the method employed in conducting the research. The choice of method was made based on the nature of the research problem. The purpose of this research is to discover, if any, the impact of bank consolidation on bank performance. Effort would be made to ensure that the methodology and conceptual framework adopted in the research are as relevant to the findings as the concepts and theories of the study. This is because the validity and reliability of conclusions are largely influenced by the research process itself. 3.2 Research Design This study is a causal or explanatory analysis since it seeks answers to questions related to the causes and determinants of bank performance. The research adopts a deductive approach. It outlines theories of director relationship to firm performance and draws hypothesis from them. These hypotheses are then tested using empirical social data to either confirm or reject the contentions. 3.3 Quantitative Versus Qualitative Data A clear distinction must be emphasized between quantitative and qualitative data. The former is concerned with the compilation of the results of research in a standardised mathematical form with the analysis conducted by means of statistics. (Saunders et al, 2003, p.378). Here variables are measured on a selection of scales and can then be arranged in order of arithmetical rigour. Conversely qualitative research is subjective in its approach of examining and reflecting on perceptions of understanding social and human activities (Hussey and Hussey, 1997). Qualitative research is inductive and researchers rarely know the specifics of data analysis when they begin a project (Neuman, 2006). It is concerned with the assemblage of data in a non-standardised, descriptive form, with the examination conducted through the use of theoretical models. 3.4 Data Type Raw or summarized data which has already been collected and stored for other purposes aside from that of the research in question is referred to as secondary data (Saunders et al, 2007). This research will make use of multiple-source secondary data collected from bank financial reports and CBN statistical publications available on the CBN, Guaranty trust and zenith banks websites, some paper source of data will also be used. The data/study will be restricted between the period of 2004 and 2006. The year 2004 is the pre-consolidation, 2005 consolidation while 2006 is the post-consolidation periods. The choice of data type is based on accessibility, cost saving and authenticity factors. Sample Selection The representative sample of the Nigerian banking sector to be used as a sample of the population under study is Guaranty Trust Bank PLC and Zenith Bank PLC. CAMEL ANALYSIS CAMEL is derived from the five components of a banks condition which include Capital adequacy, Asset quality, Management, Earnings, and Liquidity. Ratings are assigned for each component, and a composite rating is assigned for the overall condition and performance of the bank. These component and composite ratings are assigned on a scale of 1 to 5, with 1 representing the highest rating (strongest performance) and 5 representing the lowest (weakest performance) (Hirtle and Lopez, 1999). The camel analysis will be used to analyse the performance of banks during the pre-consolidation (2004) and the post-consolidation (2006) periods. Limitation The major difficulty that is likely to be encountered during the course of carrying out this research is the dearth of information, which is usually associated with emerging economies (including the Nigerian economy). Deliberate efforts would therefore be made to obtain information necessary to enhance the quality of the present research. 4.0 CONCLUSION In summary, the research tries to establish that bank consolidation helps in shoring up investment capital, enhances shareholder value, and protects creditors and depositors as well as strengthening banks capacities to attract funds at lower costs enhancing their liquidity positions. An efficient banking system tends to be one of the greatest focuses of the Central Bank of Nigeria since its establishment in 1959. Thus, sufficient capital base has largely constituted the Banks reform policy focus over the years. Hence, it may not be out of place to conclude at this material time that the ongoing reform policy is essential for the attainment of overall macroeconomic stability on a sustainable basis. Accordingly, the Central Bank of Nigeria is admonished to intensify its present efforts geared towards restoration of confidence in the banking system. The research work analyses published audited accounts of two (2) out of twenty-five (25) banks that emerged from the consolidation exercise and data from the Central Banks of Nigeria (CBN). We denote year 2004 as the pre-consolidation and 2005 and 2006 as post-consolidation periods for our analysis. In doing this, efforts would be made to examine empirically how bank consolidation through recapitalization has affected the performance of Nigerian banks during the period covered by the research. The data for the work are from secondary sources and would be obtained exclusively from the Central Bank of Nigeria and bank publications, both electronic and paper form. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance BIBLIOGRAPHY Bernerd, B.P., (2006), The effect of recent changes in the financial sector development in Nigerian, Paper presented at the 15th General Assembly of the African rural and agricultural credit association (AFRACA), Bukina Faso. CBN., (2004), Guidelines and Incentive on Consolidation in consolidating Banking Industry. Charles, C.S. (2004) Consolidating the Nigerian Banking Industry to Meet the Developmental challenges of the 21st century. Paper presented at a meeting of bankers committee Abuja 6 July 2004. Larry, U; et al., (2004) Issues in Financial Institutions Surveillance in Nigeria. A seminar paper by CBN training centre Lagos. Eshodaghor, D.V., (2006), Impact of distressed banks in depressed Economy, Prospects for survival and growth. Bank failure in Nigeria, causes and dimension pp. 17 â€Å" 22. Ezeudusi, F. U., (2002) Marcus, G., (2003), An approach to the consolidation of Banks Merger Issues by regulators., A south African case business paper (4), NDIC Annual Report and Statement of Account . Oviemuno, A.O., (2006) Banking Consolidation in Nigeria and the strategies for Generating better returns. Ogunleye G.A. (2003) The regulatory imperatives of the Universal Banking concept in Nigerian NDIC quarterly, (11) No. (2), pp.20-30 Ochojele, D. I., (2003) The Nigerian banking industry, a review seminar paper. Osaije, E., (1992), Structural adjustment programme in Nigerian economy Victor, Ezeaku., (2003), Consolidation of Nigerian Banking Sector, CBN publication.