The impact of financial planning and control a key to management efficiency

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The impact of financial planning and control a key to management efficiency 


The financial function has always been important in management irrespective of any difference in structures, Ownership and size. The financial organization of any business enterprise ought to be cable of ensuring that various aspects of its financial activities including planning and controlling are carried out at the highest possible degree of efficiency. The profitability and stability of a company depends on its accounting and cost control system; the efficiency of its staff and the management’s adherence tot eh internal control system as well as to the general financial policy of the company.

Most of the studies conducted on business finance have laid more stress in comparing financial results of public and private sector undertaking vis–a–vis profitability. The “Fiscal approach has often over shadowed the fundamentals of internal financial management while it is obvious that factors in the financial market, social, economic, political and other external consideration significantly influence internal decisions, it is desirable that we focus attention upon “means” and not the “result” alone. Profitability is the result of the means and methods employed in planning controlling various functions of business.

Dynamic profit planning and control is a broad approach to accomplishing the management efficiency, and management function, its development and usefulness have significantly increased in recent years. It is especially significant in that the functional areas of management are bought into focus, a broad mutual enrichment of function between management and accounting that is a vital feature in the successful life of progressive enterprises. However, it full potential is frequently eclipsed in public enterprises by the gap between the mechanics of the system and conceptual and pervasive attitude towards public undertaking and Nigeria Breweries in particular.

Historical Background of the Company Nigeria Breweries Plc

Nigeria Breweries Plc was established in Lagos in 1946 with the visionary leadership of Heineken International and Unilever of London with other distributive firms operating in Nigeria. It has since realized operational excellence and has become a model corporate citizen of Nigeria. In 1949, it launched Star Lager Beer, Gulder, in 1970, Legend Extra Stout in 1992, Maltina in 1979, Amstel Malta in 1998 and current Heineken in 1996. It builds and opened its Lagos brewery in 1949, Aba Brewery in 1957, Kaduna Brewery in 1963, Ibadan Brewery in 1982 and Enugu Breweries in 1994. In Enugu presently it has expanded its brewery plant in what will become the largest brewery in African. The overall purpose of Nigeria Breweries Plc is to put a smile on every face, to spread refreshment and enjoyment to all Nigerians. Also to enable people relax after a hectic days job, to avoid producing a nation full of stressed people given our numerous problems of traffic jams, no NEPA, no water, no money, no jobs with a lot of dependents etc. Nigeria Brewery Plc takes this mission of bringing enjoyment to all Nigerians, also to look after your health but actually to go beyond that and just have plain fun. There is a well. Known adage that says: all work and no play makes Jack a dull boy.

Having known the historical aspect of the establishment of the Nigerian Brewery Plc it is therefore worthy to touch on its organization set–up; and its financial functions in line with this study being carried out in the area of the company’s profit planning and control for aiding management in accomplishing the objectives within the social and economic constraints.


Financial mismanagement and weak control have been a problem of many public and private establishments. The problem of financial management and poor financial control by an organization impedes its growth and development. The present trend of “get rich quick” has made many Nigerian breweries’ workers in positions of trust to abuse their trust and misappropriate or embezzle the company’s funds. These misappropriations of funds manifest itself in different forms such as falsification of receipts and invoices; carting away of stock material without proper documentation, etc. The problem of poor control has led to the increasing rate of loss of company’s resources; the company operating below targeted figure with minimal profit margin; and making poor returns.

Brief Summary of the Problems

Mismanagement of resources as a result of poor financial control in the organization has impeded its growth and development.

The present trend of “get rich quick” has made many Nigeria breweries’ worker in positions of trust to abuse their trust and misappropriate the company’s funds.

Misappropriation of funds materials itself in different forms such as falsification of receipts and invoices, carting away of stock materials without proper documentation.


The primary aim of this study is three folds;

To examining the existing financial control in Nigeria breweries Plc

To investigate the present system of cost control and material management of the company.

The researcher will make recommendations that will help the company to eliminate waste and better the chances of achieving its goals. The study also strives to bring into light such weaknesses which in future are likely to impede the growth and development of the company. It also searches out the means which will enable the organization to achieve its socio economic objectives with minimum cost.

The study of this manner also will take into account public and company’s policy. It recognizes the fact that the socio-economic changes that already occurred and other changes that are under way will make the task of financial planning and control more important in future. The expected changed may include: structural changes in the economy; increasing number of the organizational departments associated with comparatively rapid expansions of the company; continually rising price levels and variations in the types of financial institutions will required the use of sophisticated techniques.


The study is based on the information collected from the key officers of the company. Explicit in the exposition, however, is the realization that a profit planning and control programme must tailor – made to fit each particular situation and that real essence of financial management is flexibility. Mean and ways of eradicating fund mismanagement, profit planning and adequate control measures are emphasized upon in the study to facilitate the inter-relationship of the areas concept and techniques

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