EFFECT OF FEASIBILITY STUDY ON LONG-TERM PERFORMANCE OF NIGERIA ORGANIZATIONS
(A STUDY OF EMENITE NIGERIA LIMITED)
ABSTRACT
This research work, examined the Effect of Feasibility Study on Long-Term Performance of Nigeria Organizations, a study of Emenite Nigeria Limited. The objectives of the study include to: find out how feasibility study can help determine the market share of the product of Emenite Nigeria Limited, ascertain the relationship between feasibility study and sales turnover of Emenite Nigeria Limited, determine the effect of feasibility study on productivity of Emenite Nigeria Limited and examine the effect of feasibility study on profitability of Emenite Nigeria Limited. The research method adopted by the researcher was the survey research method. The major instrument of data collection was the questionnaire. The sources of data used were the primary and secondary sources of data. The population of the study was 106 while the sample size of 104 was determined by applying the rule governing population and sampling. The major instrument of data collection was the questionnaire. The data collected were presented in tables using frequencies and percentages and analysed using the five point likert system. The hypotheses were tested using the chi-square distribution formula. The findings include that feasibility study can help determine the market share of the product of Emenite Nigeria Limited, feasibility study has significant relationship with technology available for production in Emenite Nigeria Limited, feasibility study has positive effect on total project cost in Emenite Nigeria Limited and feasibility study has positive effect on profitability of the project in Emenite Nigeria Limited. The researcher concluded that feasibility study has a positive effect on long-term performance in Nigeria manufacturing companies and it was recommended that businessmen should gather as much information as possible about their business before they go into such business because feasibility study can help determine the market share of their organizations, in carrying out a feasibility study, businessmen should consider the technology available for production, management of organizations should consider the total project cost in their feasibility study and a feasibility study should always consider the uncertain business environment, for management to make profit in their organizations.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
1.9    Operational definition of Terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework of the Study                
2.3     Empirical Review                             
2.4 Gap in the Review of Related Literature            
2.5 Summary of Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.4    Test of Hypotheses                            
4.5    Discussion of Findings                         
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
It is not easy to start a new business. This is because many factors will be considered by the prospective business owner before deciding on which business to enter into (Ile, 2010:231). Business that will not provide the challenges, opportunities, reward-financially and otherwise that is being sought, have to be eliminated. Once a choice is made, it is necessary to conduct an economic feasibility study to determine as best as possible its economic viability.
Feasibility study is an investigation carried out to assess the economic viability of any proposed business (Ademola, 2013:74). Every business establishment has a possibility of success or failure. An intended business success or failure could be determined by the amount of information that a businessman has before engaging in a particular venture. This therefore brings to the mind the issue of feasibility study. Feasibility study helps the investor to sharpen his judgment and not replace it. According to Ahmed (2013:98), businessmen are advised to know all that they are capable of knowing about the enterprise, the product or service that they want to provide and the only way of doing this is by carrying out well prepared feasibility studies.
Carrying out any technical study involves planning. Planning reduces the degree of risk in operation or organization by providing information concerning the circumstances and facts that influence success or failure of a proposed course of action. Planning is deciding in advance what to do, when to do it and who to do it. It is also a set of managerial activities designed to prepare the enterprise for the future and ensure that decisions regarding the use of people and resources help achieve the objectives of the enterprise; planning helps to reduce uncertainty within an organization.
The need for feasibility study is that for projects to be feasible yesterday at a given location does not mean that they would be so today for the same or different location given the erratic changes that occur now and then in the economy and that all projects are unique in their own ways (Okonkwo, 2012:106).
A good feasibility study seeks information to cover all aspects of the enterprise including the product, the market, manpower requirements, capital requirements, legal requirements, credit practices in the trade, service of fund, tends requirement and technical requirements. It is also important when carrying out a feasibility study to find out how profitable the business opportunity is at present.
There are so many manufacturing companies in Nigeria, and they are always in competition with one another, coupled with the uncertain business environment  (Bello, 2011:134). Hence, the need for feasibility study in the manufacturing sector in Nigeria.
Feasibility study investigates into the potential outcome of the project, but not all entrepreneurs do feasibility studies before going into business. Problems such as difficulty and complication which the process faces in assessing viable and reliable information concerning prospective business are encountered.
This study intends to examine the effect of feasibility study on long-term performance of Nigeria Organizations, with Emenite Nigeria Limited Emene, as a case study..
1.2 Statement of the Problem
The effects of not conducting feasibility study could lead to high mortality rate of Nigerian organizations. Many Nigerian organizations have collapsed as a result of not seeking information on the marketing, financial and technical aspect of the business.
Moreover, it has led to high unemployment rate as a result of the failure of Nigerian organization. Furthermore the change in the environment like the dwindling rate of Naira to dollar has financial implication of carrying out feasibility study.
1.3 Objectives of the Study
The broad objective of the study is to examine the effect of feasibility study on long term performance of Nigeria organization. However, the specific objectives include:
1.    To find out how feasibility study can help determine the market share of the product of Emenite Nigeria Limited.
2.     To ascertain the relationship between feasibility study and sales turnover of Emenite Nigeria Limited
3.     To determine the effect of feasibility study on productivity of Emenite Nigeria Limited.
4.     To examine the effect of feasibility study on profitability of Emenite Nigeria Limited.
1.4 Research Question
Based on the objectives of the study, the following research questions were raised.
1.    How does feasibility study help determine the market share of the product of Emenite Nigeria Limited?
2.     What is the relationship between feasibility study and sales turnover of Emenite Nigeria Limited?
3.     What is the effect of feasibility study on productivity of Emenite Nigeria Limited?
4.     What is the effect of feasibility study on profitability of Emenite Nigeria Limited?
1.5 Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated.
1.    Feasibility study does not help determine the market share of the product of Emenite Nigeria Limited.
2.    Feasibility study has no positive relationship with sales turnover of Emenite Nigeria Limited.
3.    Feasibility study has no positive effect on productivity of Emenite Nigeria Limited.
4. Feasibility study has no positive effect on profitability of Emenite Nigeria Limited.
1.6 Significance of the Study
This research work is very important because it examines the effect of feasibility study on long-term performance of Nigeria organizations. Businessmen will benefit from this study because it will lead to improvement in the performance of their organization. The researcher will benefit from this research work as it is a partial requirement from the award of a Bachelor of Science (B.Sc) degree in Business Administration. The universities will benefit from this research as it enriches their databank. Finally The research work serves as a reference material for further research on this topic.
1.7 Scope of the Study
The research work covered the technical, financial, marketing and socio-economic aspect of conducting a feasibility study. The organization covered is Emenite Nigeria Limited. The time scope of the study is between 2015-2017.
1.8 Limitations of the Study
The researcher encountered some impediments in the course of carrying out this research work. Among them were finance, time and uncooperative attitude of respondents.
Uncooperative Attitude of Respondents: The respondents of Emenite Nigeria Limited were economically with information, but when they found out that the research work was for academic purpose, they gave out useful information relevant for the research work.
1.9 Operational Definition of Terms
Feasibility Study: This is the analysis of the viability of a business idea.
Performance: The accomplishment of a given task measured against pre-set known standards of accuracy, completeness, cost and speed.