FINANCIAL PLANNING TECHNIQUES IN TELECOMMUNICATION INDUSTRY
(A CASE STUDY OF GLOBACOM NIGERIA LIMITED)
NUMBERS PAGES: 70 RESEARCH TYPE:- PROJECT AMOUNT :- ₦2500
1.1 Background to the Study Business organizations require thorough planning and effective management in order to perform well, achieve their objectives and remain in business. On systematic approach for attaining effective management performance is financial planning and budgeting.
According to Shashant (2010) “financial planning is a process which presents before an individual, organization or even a country, the current financial position and the adjustments in the spending pattern in order to meet goals”.
This idea is to study the financial position of the firm and then in line with the objectives of the firm, set standards and make adjustment to suit such objectives. Thaddeus, (2009) explains that “financial planning process involves self evaluation through gathering of relevant financial information, setting goals and coming up with a strategy or plan on how to meet such goals given your financial situation and future plans”.
This means that financial planning involves the following: 1. Evaluation of firms current financial position. 2. Gathering of relevant financial information 3. Setting goals 4. Planning Financial planning can either be for a long period of time or for a short period of time depending on the objectives of the financial planner. ‘Most organizations have managers or professionals who plan their finances for them because of high risk involved in financial planning.
1.2 Problem Identification Most business organizations fail because of poor management. This is a basic fact which can be linked to the presence of poor managers who have no idea of how to plan the finance of such organization or manage the organization effectively or efficiently. The question now is what technique is best for financial planning? What effect does financial planning have on the performance of business organizations like telecommunication industry? How qualified can managers be to be able to plan the finance of an organization effectively? There is need to explain, to know the answers we seek and the best approach to help in sustaining telecommunication industry.
1.3 Objectives of the Study The broad objective of this study is to assess financial planning techniques in the telecommunication industry. The study thus seeks specifically to; i. investigate if telecommunication industries plan. ii. examine how telecommunication industries make their plan. iii. examine effect of financial plan made by telecommunication industry on their growth and performance. iv. know the importance of financial planning.
1.4 Significance of the Study This study will identify the different techniques of financial planning available for use as well as examining the importance of each of the techniques will be mentioned as it affects organizations. In addition to these, the study will create a good background for persons who are willing to carry out further studies on this topic or a related topic and serve as the platform to show how the techniques of financial planning can be applied.
1.5 Scope of the Study Financial planning is a process which is common with individuals, corporate organizations and other business enterprises but this study covers only the financial planning techniques adopted in the telecommunication industry. Globalcom Nigeria limited is chosen as case study because of its position in Nigeria and because it is a Nigerian owned company.
1.6 Plan of the Study Financial planning has to do with long term, medium term and short term financial plans but this study is limited to only the long and the short term financial plans because of the limited time and financial constraint.