IMPACT OF EFFECTIVE STORE MANAGEMENT ON ORGANIZATION PROFITABILITY:
A CASE STUDY OF WINCO FOAM INDUSTRIAL LIMITED KETU LAGOS STATE
BY
OLAWALE KABIR TAIWO
BA/ND/P13/8033
SUBMITTED TO
THE DEPARTMENT OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS AND MANAGEMENT STUDIES FEDERAL POLYTECHNIC OFFA, KWARA STATE.
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF NATIONAL DIPLOMA (ND) IN BUSINESS ADMINISTRATION
AUGUST, 2017
CERTIFICATION
This research work has been read and approved as meeting the partial requirement for the award of National Diploma (N.D) in Business Administration. School of Business and Management Studies of Federal Polytechnic Offa.
____________________ __________________
MR. M. A. JATTO DATE
Project Supervisor
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MR. R. A. BAMBE DATE
Senior Supervisor
___________________ __________________
DR. A. S. MOHAMMED DATE
Head of Department
___________________ __________________
EXTERNAL EXAMINAR DATE
DEDICATION
This project work is dedicate to Almighty God for his Guidance, Love and protection over me throughout the course of my study and also to my parent Mr. and Mrs. Olawale for their moral and financial support.
ACKNOWLEDGEMENT
My sincere gratitude goes to Almighty God for giving me the Grace, strength, wisdom, knowledge, understanding and opportunity to scale through my course of study and to complete my N.D programmed.
My profound gratitude also goes to my H.O.D Dr. A.S MOHAMMED for giving me the opportunity to scale through my course of study in business Administration at federal Offa. I pray may he see the blessing and the mercy of the hard in all his ways in the name of Allah.
I also appreciate my project supervisor Mr. M.A JATTO for making this project complete success despite his tight schedule May Almighty God bless him abundantly and make his dreams come to pass in name of Almighty Allah.
I also appreciate my senior project supervisor Mr. R. A. BAMBE for making this project complete success despite his tight schedule May Almighty God bless him abundantly and make his dreams come to pass in Jesus name.
My sincere gratitude also goes to my lecturers for their support during my N.D programmed, I pray may the lord grant them all their heart desire.
My profound gratitude goes to my parents Mr. and Mrs. Olawale for their parental, financially, morally and spiritually support, they shall reap the fruit of their Labor in Jesus name.
My acknowledgement never be completed if I fail to recognize all my course mate, families and friends, Nurudeen, Olaide, Tunde, Elizabeth, David, Sunkanmi, Taofeek, bimbo, kenny, remilekun, funmilayo, abdul rasaq, and others.
ABSTRACT
Firstly, statement of the problem, in Nigeria today Government policy has brought new dimension to managing many businesses, the fall in the value of naira, the low purchasing power of the average Nigerians increase in wages and salaries. Statement of the problem also include the objective of the study, this refers to the main aim of store management on organizational profitability to ensure effective inventorization in the use of material throughout the organization.
Secondly, this include the research methodology of population of study, this stated as the group of people objective which are similarly in one or more ways which from the subject of study in a particular survey. Methodology also involves all the document used in getting appropriate data and information.
Thirdly, findings of the project also involves that 80% of the respondents are married and only 20% are single on the education background, the dominant member of the respondents 5 width, 50% for those with tertiary, 40% and for secondary certificate are 50%.
Lastly, conclusion of the project should include the financial reports are intended to help user appraise performance and financial position thereby aiding them in their major analytical task of companion.
TABLE OF CONTENTS
TITLE PAGE i
CERTIFICATION ii
DEDICATION iii
ACKNOWLEDGMENT iv
ABSTRACT v
TABLE OF CONTENTS vi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study. 1
1.2 Statement of the Problem. 2
1.3 Research Questions. 2
1.4 Objectives of the Study. 3
1.5 Statement of Hypotheses. 3
1.6 Significant of the Study. 4
1.7 scope of the Study. 4
1.8 Definition of Terms. 4
1.9 Historical Background of Winco Foam Industrial Limited. 6
CHAPTER TWO: LITERATURE REVIEW
2.1.1 Meaning of store Management. 7
2.1.2 Historical Background of Store Management. 7
2.1.3 Organization of Stores. 8
2.1.4 Store Location and layout. 9
2.1.5 Stock Control. 9
2.1.6 Analysis and categories of stock. 10
2.1.7 Stock level. 12
2.1.8 Economic order of Quantity. 12
2.2.1 Meaning of Organization Profitability. 13
2.2.3 Important of Profit. 14
2.2.4 Reason for Aim at a Reasonable Profit. 15
2.2.5 Profitability Ratio. 15
2.2.6 Types of Profitability Ratio. 15
2.2.7 Factors that Affect an Organization Store Management . 16
2.3.0 Interrelation between store management and organization profitability 17
CHAPTER THREE: METHODOLOGY
3.0 Introduction. 18
3.1 Research Design. 18
3.2 Population of the Study. 19
3.3 Sample Size and Sampling Design. 19
3.4 Research Instrument. 19
3.5 Validity and Reliability of Research Instrument. 20
3.6 Data Collection Priceline. 21
3.7 Method of data Collection. 22
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 Introduction. 25
4.1 Response Rate. 25
4.2 Data presentation and Analysis of Bio-data. 25
4.3 Data Presentation and Analysis of Research Questions. 25
Summary of Findings 25
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary. 36
5.2 Conclusion. 36
5.3 Limitation of the Study. 37
5.4 Recommendations. 37
CHAPTER ONE
1.1 BACKGROUND TO THE STUDY
The problem of store management is one which is alternative a service alternative by the business organization. A manufacturing firm must keep physical stock of items in order to meet divided at various stage of production and distribution.
Store management system are designed to Answer such question as what level of inventory to order? What minimum stock to order? How often should re – order be raised? What quality to order? With the aims of ensuring that stock out case are controlled.
Due to the inter – relationship of inventory with almost all facts of the business environment the inventory problem are more complex as the best of our department or section of the organization frequency is determined by the output of other sectors for example, while prompt service to his customer , the production is interested in conquering manufacturing runs for lower cost and steady employment. The financed management at the same time is interested in the effect of large venture draining of the cash which could be used for investment.
The above condition point to the need for management and control store, planning of invent ovies, well involve forecasting the future of determent for a company products with the aim of inventing in inventories to meet such damand. Control of inventories basically entails the determination of how much inventory to carry and how to order or more material. The problem of above store management and control inventories basically entails the determination of the inventory management and control is one that has been facing many business organization as they either fold up or close down. It is in the light of this fact that we intend to reach on this topic on “WINCO FOAM LTD” as the case they
1.2 STATEMENT OF THE PROBLEM
In Nigeria today government policy has brought new dimension to managing many business. The fall in the value of naira leads to low purchasing power of average Nigeria.
Increase in wage and salaries, bold- high interest have had all tremendous effect on the ability to operate profitability consideration. The fact that success in the business involve as efficient store management, so as to avoid stock – out problem, frequency breakage and demand and at the same time to avoid high capitals down in stock.
1.3 RESEARCH QUESTIONS
At completion of the research work, the following question must have been answer. The question asked are entered on the overall activities of store management, from procedure which consist of insurance and receipt to the aspect of stock accounting and auditing.
Below are the questions asked in the data collection for this case study, the question ask as the practical requirement of the standard and have been designed in such a way that an owner can be given from option available while some question required a phrase or sentence and yes/no answer
i. How does the store management system contribute to the development of WINCO FORM INDUSTRIAL LIMITED?
ii. How does the store management system create employment opportunity to a nation?
iii. To what extend does the surprise stork checking is the proper invitation way to preventing pilferage of materials?
iv. What is the significant different between centralization of materials procurement and company policy?
1.4 OBJECTIVE OF THE STUDY
The overall aims of the study of store management organization profitability are to find out the method of store management and control being used at WINCO FOAM IND LTD with a view to determine the strength and weakness in particular s, an attempts will also be made to established the following.
i. To identify the relationship between the store management and profitability ratio in an organization.
ii. The main objectives is to examine the present status of the control of the quality product in WINCO FORM INDUSTRIES LIMITED, so that the strength and weakness and not also the factors affecting development can be determined so as to provide a sound base for a more positive future approach.
iii. It will help review and store some dominant materials or item which will help item, produce products at that are satisfactory, adequate dependable and economic, also it will help the company to realize and achieve the fullest potential of programmes in the company.
iv. It helps in restoring of products that is ready for distribution before the distribution time the finished products.
1.5 STATEMENT OF HYPOTHENSIS
The listed are the formulated theories based on the observed fact on this case study.
H0: There is no significant relationship between centralization of material procurement and company policy.
1.6 SIGNIFICANT OF THE STUDY
The study is useful since a development community with limited wealth, Nigeria needs maximize the different utilization of its resource and on way of achieving the fact is to change manage and control investment on the business.
1.7 SCOPE OF THE STUDY
The study will focus profitability of store management system of WINCO FOAM IND. LTD. Toward affecting the fall implementation if the basic concept of store management particularly as it concerns procurement storage and physical policy of the needed operation it to be the various department on the company study. It will also cover the role of the department and sadiron of unite of WINCO FOAM IND. LTD as regards initiating request for operation items up to procurement and physical that compliment it duties the study also cover area of operational difficult in the conduct of the application of the concept of store in management most especially in WINCO FOAM IND. LTD.
1.8 DEFINITION OF TERMS
Store management can be defined as an integrated management approved to planning purchase, warehousing store keeping allocation and movement of need material from source to user departments
IDENTIFICATION: this is systematic process of ordering act describing all stock iterm through the preparation of a store code of vocabulary. It is however the
adopting of material specification and the introduction of a degree of standardization.
INSPECTION: This is the cross examination of incoming good or consignment to ensure that they confirm with terms of the contract.
RECEIPT: This is the process of accepting all source all material source, all material such as equipment machine, part of tools furniture and stationary which are used in the organization.
ISSUED AND DISPATCH: this is the process of receiving demands and requisition selecting the items required and handling and including over to users.
STOREACOUNTING: This is the operating of continuos arrangement of receipt to support the forecast rate of consumption.
STOCK TAKING: This is the process of physical verification of the quantities and condition of goods.
STORAGE: This is the arrangement of store house and stock yard the operation of handling and storage equipment and safe custody and protection of stocked from pilferage determination and obsolesce scence.
INVENTORY: this quantity of goods commodities to other economic resource that are stored or take at given period of time. It included raw material works in progress and finished goods.
STORE KEEPER: this is a person charged with the responsibility of taking adequate care of stores.
1.9 HISTORICAL BACKGOUND OF CASE STUDY WINCO FORM IDUSTRY LIMITED
This is to private limited industry incorporated on March 18th 1983, and authorized store of 1000,000,00 (one million Naira). The organization started with a small scale of production by using privatives foam box machine. The present state of act continuous foaming machinery factory was later installed in 1990. This modern factory product foam product for Lagos, western and eastern Nigeria as well as the Republic of Benin. The company production included foam mattress cushion, pillow, bed sheet, shoulder pads, underly and bound foam their main input are (store Polyrol, Silicon Oil, Stamous, Mathelebe Chloride, Goid Print Cloth, Nylon Cloth Tape and Foam Labels).
WINCO FOAM IND. LTD. Maintain central store that is centralization on buying and handling of store Download Full project Here