THE EFFECT OF STOCK MANAGEMENT ON PERFORMANCE SMALL ENTERPRISES IN BUEA
Abstract
Despite the critical role of stock management in enhancing the performance of small enterprises, many businesses in Buea, Cameroon, continue to face challenges that hinder their operational efficiency. This study aimed to investigate the effect of stock management on the performance of Njieforbi Company LTD, a small enterprise operating in the bakery sector. The research was guided by three specific objectives and corresponding hypotheses.
A survey research design was employed, targeting a population of 100 employees and customers of Njieforbi Company. Data were collected using structured questionnaires and analyzed through descriptive and inferential statistics. The findings revealed that effective inventory control practices and accurate stock forecasting significantly enhance operational performance, leading to improved customer satisfaction and profitability.
The results indicated p-values of 0.003 for inventory control and 0.002 for stock forecasting, both below the 5% significance level. Consequently, the study concludes that robust stock management practices have a significant positive impact on the performance of small enterprises. It is recommended that Njieforbi Company invest in advanced inventory management systems and training programs to optimize stock control and forecasting, thereby enhancing overall business performance.
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Stock management, also known as inventory management, is a critical component of the supply chain that involves overseeing and controlling the ordering, storage, and use of products. Effective stock management ensures that businesses maintain optimal inventory levels to meet customer demand without overstocking, which can lead to increased costs and reduced profitability. The performance of small enterprises is often directly linked to how well they manage their inventory, as efficient stock practices can enhance cash flow, reduce waste, and improve customer satisfaction (Waters, 2019).
Globally, the importance of stock management has gained prominence as businesses strive for efficiency and competitiveness. In developed economies such as the United States and Europe, advanced inventory management techniques, including just-in-time (JIT) systems and automated inventory tracking, are widely adopted. These practices not only help in minimizing holding costs but also in improving responsiveness to market changes (Chopra & Meindl, 2016).
In the United States, small businesses are increasingly leveraging technology to enhance their stock management practices. The integration of software solutions allows for real-time inventory tracking and data analytics, which can significantly boost performance metrics (U.S. Small Business Administration, 2021). Studies indicate that effective stock management can lead to a 10-20% increase in operational efficiency, which is crucial for the sustainability of small enterprises in a competitive market (Smith & Jones, 2020).
European small enterprises face similar challenges, but the emphasis on sustainability has introduced a new dimension to stock management. Many businesses are adopting eco-friendly practices in inventory management, focusing on reducing waste and minimizing their carbon footprint (European Commission, 2020). Research shows that companies that integrate sustainable practices in their stock management report better overall performance and customer loyalty (Taylor, 2021).
In Africa, stock management practices vary significantly due to infrastructural challenges and varying levels of technology adoption. However, small enterprises are increasingly recognizing the importance of inventory control as a means to enhance performance. Studies in various African contexts highlight that improved stock management can lead to better financial outcomes and increased market competitiveness (Adetunji, 2022).
In Cameroon, particularly in urban areas like Buea, the role of stock management in small enterprises is becoming increasingly recognized. The economic landscape is marked by a growing number of small businesses that contribute significantly to local employment and economic development. However, many of these enterprises struggle with effective inventory control due to limited access to technology and training (Ndi, 2023).
Buea, the capital of the Southwest Region of Cameroon, presents a unique environment for studying stock management in small enterprises. The city’s vibrant entrepreneurial scene, characterized by a mix of traditional and modern businesses, offers an opportunity to examine how effective stock management practices can influence their performance. Local studies indicate that small businesses in Buea that adopt systematic stock management strategies report improved customer satisfaction and financial performance (Manga, 2023).
1.2 Statement of the Problem
Small enterprises play a vital role in the economic development of Buea, Cameroon, contributing significantly to job creation and local commerce. However, many of these businesses face substantial challenges related to stock management, which directly impacts their operational efficiency and overall performance. Despite the recognized importance of effective inventory control, a significant number of small enterprises in Buea lack the necessary systems and practices to optimize their stock levels. This inadequacy often results in issues such as overstocking, stockouts, and increased holding costs, which can hinder profitability and competitiveness.
Many small enterprises in Buea lack robust inventory control systems, leading to challenges such as overstocking and stockouts. These issues not only increase holding costs but also disrupt cash flow and can result in lost sales opportunities (Waters, 2019). Without effective inventory control, businesses are unable to maintain optimal stock levels, which directly impacts their profitability and operational efficiency.
Inadequate stock forecasting is another significant hurdle. Small business owners often rely on intuition rather than data-driven analysis to predict demand, which can result in misalignment between inventory levels and actual customer needs (Chopra & Meindl, 2016). This discrepancy can lead to excess inventory during periods of low demand and insufficient stock during peak sales periods, ultimately affecting customer satisfaction and business performance.
Moreover, the lack of efficient supply chain management practices exacerbates these issues. Many small enterprises in Buea do not have established relationships with suppliers or effective logistics strategies, leading to delays and inefficiencies in stock replenishment (Ndi, 2023). This fragmentation in the supply chain not only hinders the ability to respond swiftly to market changes but also increases operational costs. Therefore, this study aims to investigate the specific effects of stock management practices on the performance of small enterprises in Buea, identifying the key challenges they face and exploring potential solutions to enhance their operational effectiveness.
1.3: Research Question
1.3.1: Main Research Question
What is the effect of stock management on the performance of small enterprise, case of Njieforbi company LTD Buea?
1.3.2: Specific Research Question
- How does inventory control practices influence the operational performance of small enterprises case of Njieforbi company LTD Buea?
- What role does accurate stock forecasting has on the operational performance of small enterprises case of Njieforbi company LTD Buea?
- In what ways does supply chain management strategies affect the operational performance of small enterprises case of Njieforbi company LTD Buea?
Check out: Transport & Logistics Project Topics with Materials
Project Details | |
Department | Transport & Logistics |
Project ID | TnL0042 |
Price | Cameroonian: 5000 Frs |
International: $15 | |
No of pages | 60 |
Methodology | Descriptive |
Reference | yes |
Format | MS word 7 PDF |
Chapters | 1-5 |
Extra Content | table of content, questionnaire |
This is a premium project material, to get the complete research project make payment of 5,000FRS (for Cameroonian base clients) and $15 for international base clients. See details on payment page
NB: It’s advisable to contact us before making any form of payment
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THE EFFECT OF STOCK MANAGEMENT ON PERFORMANCE SMALL ENTERPRISES IN BUEA
Project Details | |
Department | Transport & Logistics |
Project ID | TnL0042 |
Price | Cameroonian: 5000 Frs |
International: $15 | |
No of pages | 60 |
Methodology | Descriptive |
Reference | yes |
Format | MS word & PDF |
Chapters | 1-5 |
Extra Content | table of content, questionnaire |
Abstract
Despite the critical role of stock management in enhancing the performance of small enterprises, many businesses in Buea, Cameroon, continue to face challenges that hinder their operational efficiency. This study aimed to investigate the effect of stock management on the performance of Njieforbi Company LTD, a small enterprise operating in the bakery sector. The research was guided by three specific objectives and corresponding hypotheses.
A survey research design was employed, targeting a population of 100 employees and customers of Njieforbi Company. Data were collected using structured questionnaires and analyzed through descriptive and inferential statistics. The findings revealed that effective inventory control practices and accurate stock forecasting significantly enhance operational performance, leading to improved customer satisfaction and profitability.
The results indicated p-values of 0.003 for inventory control and 0.002 for stock forecasting, both below the 5% significance level. Consequently, the study concludes that robust stock management practices have a significant positive impact on the performance of small enterprises. It is recommended that Njieforbi Company invest in advanced inventory management systems and training programs to optimize stock control and forecasting, thereby enhancing overall business performance.
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Stock management, also known as inventory management, is a critical component of the supply chain that involves overseeing and controlling the ordering, storage, and use of products. Effective stock management ensures that businesses maintain optimal inventory levels to meet customer demand without overstocking, which can lead to increased costs and reduced profitability. The performance of small enterprises is often directly linked to how well they manage their inventory, as efficient stock practices can enhance cash flow, reduce waste, and improve customer satisfaction (Waters, 2019).
Globally, the importance of stock management has gained prominence as businesses strive for efficiency and competitiveness. In developed economies such as the United States and Europe, advanced inventory management techniques, including just-in-time (JIT) systems and automated inventory tracking, are widely adopted. These practices not only help in minimizing holding costs but also in improving responsiveness to market changes (Chopra & Meindl, 2016).
In the United States, small businesses are increasingly leveraging technology to enhance their stock management practices. The integration of software solutions allows for real-time inventory tracking and data analytics, which can significantly boost performance metrics (U.S. Small Business Administration, 2021). Studies indicate that effective stock management can lead to a 10-20% increase in operational efficiency, which is crucial for the sustainability of small enterprises in a competitive market (Smith & Jones, 2020).
European small enterprises face similar challenges, but the emphasis on sustainability has introduced a new dimension to stock management. Many businesses are adopting eco-friendly practices in inventory management, focusing on reducing waste and minimizing their carbon footprint (European Commission, 2020). Research shows that companies that integrate sustainable practices in their stock management report better overall performance and customer loyalty (Taylor, 2021).
In Africa, stock management practices vary significantly due to infrastructural challenges and varying levels of technology adoption. However, small enterprises are increasingly recognizing the importance of inventory control as a means to enhance performance. Studies in various African contexts highlight that improved stock management can lead to better financial outcomes and increased market competitiveness (Adetunji, 2022).
In Cameroon, particularly in urban areas like Buea, the role of stock management in small enterprises is becoming increasingly recognized. The economic landscape is marked by a growing number of small businesses that contribute significantly to local employment and economic development. However, many of these enterprises struggle with effective inventory control due to limited access to technology and training (Ndi, 2023).
Buea, the capital of the Southwest Region of Cameroon, presents a unique environment for studying stock management in small enterprises. The city’s vibrant entrepreneurial scene, characterized by a mix of traditional and modern businesses, offers an opportunity to examine how effective stock management practices can influence their performance. Local studies indicate that small businesses in Buea that adopt systematic stock management strategies report improved customer satisfaction and financial performance (Manga, 2023).
1.2 Statement of the Problem
Small enterprises play a vital role in the economic development of Buea, Cameroon, contributing significantly to job creation and local commerce. However, many of these businesses face substantial challenges related to stock management, which directly impacts their operational efficiency and overall performance. Despite the recognized importance of effective inventory control, a significant number of small enterprises in Buea lack the necessary systems and practices to optimize their stock levels. This inadequacy often results in issues such as overstocking, stockouts, and increased holding costs, which can hinder profitability and competitiveness.
Many small enterprises in Buea lack robust inventory control systems, leading to challenges such as overstocking and stockouts. These issues not only increase holding costs but also disrupt cash flow and can result in lost sales opportunities (Waters, 2019). Without effective inventory control, businesses are unable to maintain optimal stock levels, which directly impacts their profitability and operational efficiency.
Inadequate stock forecasting is another significant hurdle. Small business owners often rely on intuition rather than data-driven analysis to predict demand, which can result in misalignment between inventory levels and actual customer needs (Chopra & Meindl, 2016). This discrepancy can lead to excess inventory during periods of low demand and insufficient stock during peak sales periods, ultimately affecting customer satisfaction and business performance.
Moreover, the lack of efficient supply chain management practices exacerbates these issues. Many small enterprises in Buea do not have established relationships with suppliers or effective logistics strategies, leading to delays and inefficiencies in stock replenishment (Ndi, 2023). This fragmentation in the supply chain not only hinders the ability to respond swiftly to market changes but also increases operational costs. Therefore, this study aims to investigate the specific effects of stock management practices on the performance of small enterprises in Buea, identifying the key challenges they face and exploring potential solutions to enhance their operational effectiveness.
1.3: Research Question
1.3.1: Main Research Question
What is the effect of stock management on the performance of small enterprise, case of Njieforbi company LTD Buea?
1.3.2: Specific Research Question
- How does inventory control practices influence the operational performance of small enterprises case of Njieforbi company LTD Buea?
- What role does accurate stock forecasting has on the operational performance of small enterprises case of Njieforbi company LTD Buea?
- In what ways does supply chain management strategies affect the operational performance of small enterprises case of Njieforbi company LTD Buea?
Check out: Transport & Logistics Project Topics with Materials
This is a premium project material, to get the complete research project make payment of 5,000FRS (for Cameroonian base clients) and $15 for international base clients. See details on payment page
NB: It’s advisable to contact us before making any form of payment
Our Fair use policy
Using our service is LEGAL and IS NOT prohibited by any university/college policies. For more details click here
We’ve been providing support to students, helping them make the most out of their academics, since 2014. The custom academic work that we provide is a powerful tool that will facilitate and boost your coursework, grades, and examination results. Professionalism is at the core of our dealings with clients.
For more project materials and info!
Contact us here
OR
Click on the WhatsApp Button at the bottom left
Email: info@project-house.net