Asian Economic and Financial Review Essay Example

indirect employment to nearly 300,000 individuals involved in ancillary services. Given the considerable contribution of brewing firms in Nigeria, the frequent shutdowns of these factories due to rising input costs, which ultimately impact their profit margins, should be concerning for Nigerians.

In order to understand the factors affecting profit in the brewing industry in Nigeria, it is essential to conduct research. This study is structured as follows: Section two reviews the literature on the relevant factors influencing profitability. Section three presents the methodological framework, which includes the sample, model, and variables. Section four provides tables and discusses the empirical analysis, statistical results, and findings. Additionally, according to Horngren, Datar, and Foster (2006), organizations are now presenting both financial and non-financial performance measures for their subunits in a consolidated report known as the Balanced Scorecard. Finally, section five presents the conclusion.

Various organizations prioritize different measures in their scorecards, but these measures are always based on a company's strategy. The balanced scorecard emphasizes both financial and non-financial performance measures. It assesses an organization's performance from four perspectives. (1)(2) The Financial Perspective includes metrics such as stock price, net income, return on sales, return on investment, and economic value added.

Customer perspective - includes assessing market share in various geographic locations, measuring customer satisfaction, and evaluating the average number of repeat visits. 742 Internal-business-process perspective. Learning and growth perspective - involves monitoring employee education and skill levels, gauging employee satisfaction, evaluating employee turnover rates, tracking hours of employee training, and measuring information system availability. To enhance the measurement of managerial performance, a responsibility accounting system is implemented. This system assigns managers responsibility for specific cost, profit, or investment centers.

Edmonds, Edmonds

and Tsay (2000) argue that managerial performance can be assessed by comparing the operating results of responsibility centres to established standards or to the results of other responsibility centres within the organization. One way to evaluate managerial performance is by comparing actual results to standard amounts. The flexible budget is a useful tool for both planning and performance evaluation. Managers can utilize it to assess the company's cash position by considering different levels of activity. Additionally, they can evaluate staffing levels, material quantities, and necessary equipment and storage facilities for various potential activity levels (Edmonds and Tsay, 2000). Similarly, Hansen and Mowen (1999) assert that financial measures focus primarily on figures that may not provide a complete picture of the company. Moreover, lower-level managers and employees may feel powerless in influencing net income or investment. Consequently, non-financial operating measures have been developed.

The text discusses the use of multiple measures, including both financial and nonfinancial, to assess a firm's performance. It mentions that the Balanced Scorecard was specifically created for this purpose. In addition, Cynthia and Birger (1991) conducted a research study on the sources of superior performance in the U.S Brewing Industry. They utilized financial performance measures to examine the creation of value in this industry during the years 1969-1979.

According to the research conducted by the International Federation of Scholarly Association of Management (2006), the study revealed that market share gains in the industry at that time were not linked to changes in value. It also found that the performance of leading firms in the industry had a high correlation. The researchers concluded that the success of strategies to build market share depends on specific

industry conditions and that gaining market share may come at a high cost if there are no fundamental shifts in the relative resource positions of firms. Additionally, the study showed that intra-industry correlations in returns may be a result of excessive competition rather than collusion.

Furthermore, the study focused on the internationalization and financial performance of multinational brewing groups. It examined the extent to which 18 major breweries had internationalized their businesses since the late 1990s and explored the relationship between internationalization and financial performance. The findings indicated that there was rapid international expansion among these breweries between 1999 and 2004, but there were still significant variations in the degree of internationalization achieved by 2004.

The study conducted by Owusu (2010) explored the differences in international engagement and corporate performance among breweries worldwide. The research specifically focused on the financial performance of Ghana Breweries Limited following its merger and listing on the Ghana Stock Exchange.