Research consultancy
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
According to Richard et al. (2009), organizational performance encompasses three core dimensions: financial performance (such as profits, return on assets, and return on investment), performance in product markets (e.g., market share), and shareholder returns (including total shareholder value and economic value added). Performance is essentially the measurable output of an organization evaluated against its planned goals and objectives (Jabareen, 2009), emphasizing both cost minimization and revenue maximization (Konke, 2003). Organizations that fail to enhance performance risk losing their competitive edge. Performance can be improved through various means, including increasing output with the same input, increasing output while input increases at a slower rate, or maintaining output while reducing input (Needham & Dransfield, 1995).
Store management refers to the systematic planning and control of storage operations (Kortz, 2003). Its primary aim is to ensure that the right materials are available when needed, in the correct condition and quantity, and at the right time (Ogbo & Onekanma, 2014). A well-structured stores department includes a receiving bay, storage area, and issuance procedures (Miller, 2010), particularly important in manufacturing settings.
The role of the store manager is critical in receiving, storing, and issuing materials as required by the production process. While stores management may not directly add value to the final product, mismanagement can result in significant costs that adversely impact organizational profitability and market share (Schonsleben, 2000). Organizations incur various expenditures in maintaining stores—such as land, buildings, equipment, labor, insurance, and maintenance costs—all of which contribute to overall overheads and affect product pricing (Ogbo & Onekanma, 2014).
At Sadoline Paints Limited, the need for effective cost control—particularly within cost centers like stores—has become increasingly crucial. The company invests considerable time and resources in managing suppliers and inventory to ensure continuity of operations. It also emphasizes strong internal controls, stock monitoring, and measures to prevent theft, misappropriation, and unauthorized disposal of materials (Ayad, 2011). These practices have contributed to improved performance in terms of profitability and market share (Mulondo, 2010). Therefore, this study seeks to assess the impact of stores management on the performance of Sadoline Paints Limited.
1.2 Statement of the Problem
Sadoline Paints Limited has recorded underperformance in key areas such as profits, sales, and revenue generation. Management attributes part of this decline to inefficiencies in stores management (Mulondo, 2010). This study thus seeks to assess how stores management practices affect the overall performance of the company.
1.3 Purpose of the Study
The main purpose of this study is to assess the effect of stores management on the performance of Sadoline Paints Limited in Uganda.
1.4 Specific Objectives
To examine the objectives of stores management at Sadoline Paints Limited.
To assess the current performance of Sadoline Paints Limited.
To analyze the effect of stores management on the company’s performance.
1.5 Research Questions
What are the objectives of store management at Sadoline Paints Limited?
What is the current level of organizational performance at Sadoline Paints Limited?
How does stores management influence the performance of Sadoline Paints Limited?
1.6 Scope of the Study
The study will be conducted at Sadoline Paints Limited and will focus on understanding the objectives of store management, the company’s performance, and how store management influences performance. The study will analyze data from 2012 to 2016 and will be carried out over four months from February to May 2017.
1.7 Significance of the Study
Stakeholders such as customers and suppliers can use the findings as a reference to understand effective stores management.
Customers may benefit from improved service delivery resulting from enhanced store management practices.
Suppliers will gain insight into the criteria and practices followed in store management.
Company management and employees will understand the challenges facing their stores operations and how improvements can be made.
Future researchers may use the findings as a foundation or literature for related studies.
