Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/11463
Title: Inventory Management and Profitability of Companies in Kampala: A Case Study of Mega Standard Supermarket
Authors: Nambasa, Martha
Keywords: Inventory Management
Profitability
Companies
Mega Standard Supermarket
Issue Date: May-2014
Publisher: Kampala International University, College of Economics and Management
Abstract: The major aim of this research was to find out the relationship between inventory management and profitability of companies. The research topic was "Inventory management and profitability of Companies in Kampala" A Case study of Mega Standard Supermarket. The objectives of the study were; to examine the inventory management practices used in Mega standard Supermarket, to examine the factors affecting profitability of Mega standard Supermarket and to study the relationship between inventory management and profitability of Mega standard Supermarket. Cross sectional and correlational research designs were used. The researcher applied purposive sampling on 70 employees from Mega Standard Supermarket who constituted the survey population. To achieve the objectives, the researcher collected data from both primary and secondary sources. Primary data was obtained from respondents through questionnaires and interviews while secondary data was obtained using existing literature like books, magazines, brochures, journals and internet. Data from the field was analyzed using frequencies and percentages. The data was also edited, coded and well arranged in order to ensure accuracy and completeness. According to the research findings, the researcher discovered that most factors examined had a negative impact on profitability of the company. The factors included cost of acquiring raw materials, tax liability on the profits and cost of production. Profitability of Mega Standard Supermarket was mainly affected by high costs of acquiring raw materials, high tax liability on profits, low productivity per employee and increasing cost of production. It was also established that there is a positive relationship between inventory management and profitability of companies. This implied that the more effort Mega Standard Supermarket channels towards improving the inventory management practices, the higher will be its profits. One of the recommendations was that management of Mega Standard Supermarket should understand all the factors that affect profitability of the company and then come up with feasible measures and solutions for each. This will help to maintain high profits in the company.
Description: A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of the Bachelors Degree in Business Administration of Kampala International University
URI: http://hdl.handle.net/20.500.12306/11463
Appears in Collections:Bachelor of Business Administration (BBA)

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