Material control on organizational profitability: a case study of Uganda Clays Limited
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Date
2012-01
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Publisher
Kampala International University: College of Economics and Management
Abstract
This report, Material Control on Organizational Profitability" was conducted from Uganda Clays Limited with specific aims of examining; the need for material control on improving profitability; the challenges experienced in material control on the profitability of the company and suggesting solutions to the challenges experienced. To comprehend the study a review of related literature was carried out on already existing information on the specific aims of this paper to enrich and supplement the study findings. The study relied on both qualitative and quantitative designs under which questionnaire and interview guide were employed as research instruments. These were administered to sample of 40 respondents. The study established the need for material control on profitability to be; reducing wastage of resources, securing materials at a low price, regulating stock levels, reducing embezzlement and making stock updates. The challenges experienced in material control on the profitability of the company were found out to be; changes in market demand, difficulties in maintaining supply and connivance among employees to embezzle materials. The study concludes that well regulated materials improve the bargaining power of company; this puts company in a better position to understand its structures thus able to minimize losses. However, solutions to these challenges were suggested to be; reducing redundancy of materials in store, avoiding unnecessary material handling, improved motivation of the workers, and proper storage of materials. The study recommends; need for strengthening the internal oversight of the company in managing materials; strengthening cooperation among the inventory team; establishing a positive control environment; establishing control activities with policies that ensure management directives; monitoring and evaluating aspects of internal control; identifying, capturing and communicating information on material control; adopting the Bin Card system and reviewing risk assessment policy.
Description
A research report submitted to the school of Business and Management in partial fulfillment of the requirements for the Award of a Degree of Business Administration (Accounting) of Kampala International University
Keywords
Material control, Organizational profitability, Uganda Clays Limited