The Role Of Stores Administration In A Small Scale Firm

Project and Seminar Material for Purchasing and Supply (PS)

The Role Of Stores Administration In A Small Scale Firm


This project work dealt extensively on the subject matters, the role of stores administration in a small scale enterprise (Justice Bakery Enterprise) in Owerri, Imo State. This project work started with a background study of the topic. Everything about the information are being looked for and were answered clearly so as to enable scholar who may make use this project in future so easy.

The second chapter dealt with the literature review, this chapter, power authority in stores administration activities put finishing touch to whatever stores administration is all about both in the area of lection, organization, promotions stores administration strategy, etc. Again, chapter three dealt with research methodology so as to find solution to those questions put up by the researcher.

In chapter four, data were analyzed and proper treatment was given to interpretation of various result as discovered by the researcher. Finally, the project topic was concluded with chapter five, which marketed the conclusion and recommendation.

Table Of Contents

Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of problems
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Significance of Study
  • 1.4 Scope of the Study
  • 1.7 Limitation of the Study
  • 1.8 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Views about Small Scale Enterprise
  • 2.2 Purchasing Administration Mix
  • 2.3 Product Strategy
  • 2.4 Pricing Strategy
  • 2.5 Promotion Strategy or Purchasing Administration Communication
  • 2.6 Distribution Strategy

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Method of Data Collection
  • 3.4 Population and Sample Size
  • 3.5 Sample Technique
  • 3.6 Validity and Reliability of Measuring Instrument
  • 3.7 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentations of data
  • 4.3 Analysis of Data
  • 4.4 Interpretation of Result

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendation
  • Bibliography
  • Appendix

Chapter One

1.0 Introduction

1.1 Background Of The Study

The role of stores administration in a small-scale enterprise cannot be over emphasized because it is he that holds any small-scale business in our economy. Essential, the basic role of store administration is to ensure growth in the economy, and the improvement of the standard of living of the people. In trying explain the role of store administration, Busch and Houston has propounded the gap theory.

The gap theory is based on the premise that store administration need not exist unit a social economy reaches the point where the producers of economics good are not consumers of the same goods. This situation creates a separation or gap. It is the response to the need to bridge this gap that we have as store administration, the separation between the producers that the consumers could represent as shown in diagram.

PGeographical Spatial gapC
RInformation SeparationO
DTime SeparationS
UOwnership SeparationU
EValue SeparationE

In Anderson, contributions, Adreson-woes, “Need, wants and creative stores administration” lost and profit outlook. He recognizes the separate nature of the supply and demand sector of the economy. He further pointed out that there are heterogeneous supplies in nature and heterogeneous demand the part of the society.

On the supply side are various human, technological, and material resources while on the demand side are various needs and wants store administration therefore comes into shape to diverse resources to fit society diverse needs and wants. Store Administration in order to perform it’s roles plays such function as transportation, store manager research, storage, change and others.

Store administration as earlier emphasized or is a pervasive business function. Any business entity, that believes in store administration will not find it difficult to sell its goods and services, if it adopts store administration principles and thoughts. Review of Business, trends, traditionally identify only three eras – production, sales and store administration. Production Era: This was a period of acute scarcity of goods.

The technology of facilitate production was at rudimentary stage. The problem at this point, was not how to sell but how to produce goods in that situation which emphasized on product research and development. Sales Era: This era contrasted with the production era in that it was characterized by shortage of consumers.

Lack of consumer created an oversupply situation on which threaten business survival and profitability. Business firms did not fold their hands, rather, the resorted into using sales techniques, which helped in stimulating demand for basic assumption, were:

  1. To find buyers for their products
  2. To convince buyers through high-pressure faction to buy their products.

Store Administration Era: This is an era of store orientation; It was an era during which businessmen tried to stem the fide of increasing product failures. In order to this, they had to resort to finding out with the purchase wanted before producing the products, following these principles;

  1. Companies should produce only what customer want.
  2. Management must integrate all company’s activities in order to develop programmes to satisfy those want.
  3. Long-range profit goals rather than “quick” sales should guide management decisions.

In our society today, the small-scale enterprise derives a lot of benefit from the role of Store Administration. Benefit to the Firm: Store Administration is a necessary coincident of mass production as reaping the fruits of mass production cannot be possible with mass distribution.

Through store administration, the production line is prevented from being forced to a half. Benefit to Customers, Employees and Shareholders: Store administration in its integrated concept cater for the interest of consumers the employees and the shareholders like store administration also improve the standard of living. It contributed immensely in making possible the wide assortment of foods consumed today.

Store administration convenience consumers and thus seeks the total satisfaction on the consumer by offering the right product. Consumers should be fast many business, since it is often said that the most profitable business only comes where the consumer had been satisfied, which is the concept of Store Administration era and the most important role of store administration.

1.2 Statement Of Problems

This case study would not have been necessary without a problem. The role of store administration has been helping the small-scale enterprises in solving their problems, which is the root cause of this research project. Store Administration is the life blood of any organization because no organization could survive without revenue. There are formidable problem confronting small-scale enterprise/firm today.

  1. The purchase for the small-scale firm.
  2. The small-scale business understanding the role of store administration.
  3. The firm effort in monitoring changes in the purchase attitudes.
  4. Inefficient distribution of small-scale firm.
  5. Lack of basic store administration planning analysis, implementation and control of their activities.
  6. The absence of convenient network of small-scale enterprise in most rural and urban areas of the country.
  7. The service from the small-scale firms offers to the purchaser.
  8. Competitions from other small-scale firms.
  9. The capital resources of small-scale enterprise are grossly inadequate that they cannot freely undertake any business or the other.

1.3 Objectives Of The Study

  1. The objective of this work is to find out the role of store administration in small-scale firm.
  2. To help industries as a whole, to perceive that store administration is applicable to their activities.
  3. This work aims at identifying the limitations problems of store administration with a view of providing solutions to them and for overall benefits of both the store administration sector and firm, thus “maximizing profitability”.
  4. In addition to the views expressed above, this study also shows the importance and necessity of store administration and their activities.

1.4 Research Questions

  1. What is the effect of store administration in the production of justice bakery?
  2. Where does the consumers like to buy most?
  3. Is the location or site considered as a major problem in store administration justice product?
  4. Do the purchasing set their prices base on the cost of the product or according to what competitors charge?
  5. Does bakery business call for seasonal periods or there is the demand for the product all the time?

1.5 Significance Of Study

Broadly speaking, the project intends to highlight al other trend of the problem and prospects in the store administration that is the role of store administration in Imo State urban, using bakery. This project work is meant to serve two purposes; firstly, to the student research and secondly, to store keepers who are purchasers and storekeepers of product and materials in the small-scale firm, bakery.

First and foremost as not of classroom project, this study will acquaint the study with the necessary field work aspect of the store administration programme and as as result create opportunity of attempting a blend together of theoretical and practical instruction that has been given in the classroom and not an employment where mistake could cost his/her job or position. In addition to such exposure on particularly the rudiments of stores administration researcher that is the students who are afforded the opportunity of going to learning the first hand about the Nigeria.

1.4 Scope Of The Study

The role of store administration in a small firm, a small-scale enterprise is a enterprise is a wide area study. But this work, will focus attention that is the role of store administration in firms, thus the “maximizing profitability”.

1.7 Limitation Of The Study

As one of the early researcher in the field, the role of store administration in small-scale enterprise is not an easy task (a case Justice Bakery, Owerri). The researcher met many constraints where considering the variable involved, time and financial resources.

Another limitation to the research work was getting accurate records from other enterprises, lack of journals, bulletins relating to this research field was completely absent. Also, another limitation was the mobility of the researcher to carry out similar studies in other related enterprise to determine the level of store administration that exist and compare them to that in “Justice Bakery, Owerri”.

1.8 Definition Of Terms

At this stage of the research work, the researcher deems it necessary to define the following key terms employed in the research work in order to make the readers to easily understand this study.

Store House:

Store house can be defined as any space reserved and equipped for holding materials which are awaiting dispatch to customers for further processing or final consumption. It can also be seen as a place where all types of equipment, materials, components, and supplier needed for production, distribution maintenance, packaging are received, stored and issued to users.

Ware House:

Ware house can be defined as a large building where raw materials or manufactured goods may be stored before their export or distribution for sale. It can also be defined as a commercial building for storage of goods.


A firm is a group of persons, with production tools, located in some premises, who with work, transform raw materials.


A small-scale business is a business which is owned controlled by one or few persons, with direct owners influence in decision making and having a relating small market share and low capital requirement.


A product can be defined as an article or substance that is manufactured or refined for sale. It is the result of the manufacturing process, to be offered to the market place to satisfy.


This can be seen as a way in which something is shared out among a group or spread over an area. It also the process of moving a product from its manufacturing.


It is the movement of people, cattle, animals, and goods from one location to another. It can also be a means of getting somewhere cars, planes, trains, bikes, motorcycles, horses are kind of transportation.


Purchasing can be defined as the process of exchange of goods and services for money. It can also be a means of defining organizational needs, selecting suppliers, agreeing on terms, placing orders and receiving the goods and services.

Lead Time:

It can be described that period interval between the initiation of a given material need and this need is fulfilled.


This can be defined as the process or activity of running a business organization. Administration of a business consists of the performance or management of business operations.

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Introduction

This chapter is aimed at showing what the procedures have been used to arrive at the end of the project writing.

It contains detailed explanation of the task and techniques used to draw the conclusion of the research writing.

The general presentation is carried out under the following sub-heading summary, conclusion and recommendation.

5.2 Summary Of Findings

In this last chapter, the researcher presented and analyzed the data collected. In this chapter, it is important to give a clear and concise account of the findings, based on the analyzed data. From the analysis carried out from the company, there was effect of using purchasing administration on Justice product. This is indicated in table 1 (one) which shows that out of 40 respondents, 25% said yes using purchasers in purchasing administration helps to make the customers know about the product. This is evident by 75% of the respondents which confirmed the assertion in table 3.

Table 2 revealed that the product call for seasonal period or a demanded product. This was proved by the 75% respondents who said yes. Table 4 revealed that it is right to have special training to keep the production going. This was proved the 75% respondents who said yes. Table 6 revealed that the purchasers offered special discount to their special customers; this was proved by the 100% respondents who agreed.

Overall, the need for purchasing administration on production cannot be over emphasize it. It ensures growth in the economy and the improvement of the standard of living of the people.

5.3 Conclusion

The existence of cordial co-operation between the purchasers of any manufacturing company and indeed, the Justice Bakery Enterprises, Owerri, Imo State and the firm purchasers is very important. Lack of such co-operation between the two parties usually reduces the degree of performance of the firms and its purchasers. The research observed that there is adequate cordial co-operation among the staff, worker and its purchasers in the Justice Bakery Enterprise. This result from the fact that the staff and workers in the firm was headed by qualified personnel, which made them perform better and know when orders should be placed. Motivation was equally accorded its priority. These days, the purchasing administration department of any firm can only perform above average and in this case, the purchases cannot perform unless when fully motivated by the firm’s profit.

Also, it is good for the purchasers to have full confidence in the firm in order to bring about the overall growth.

Above all, the purchasing administration plays a big role in the growth of economy of the country vis-a-vis the existence of small-scale industries by:

  1. Faster employment generation
  2. Development of indigenous entrepreneurship
  3. Mobilization of domestic saving
  4. Provision of training ground for management and semi-skilled workers.
  5. Utilization of local resource.

5.4 Recommendation

The following recommendation by the researcher can go a long way to bring about a formidable and long-lasting co-operation between the purchasers and the entire staff of the firm.

  1. Showing interest in purchasers by way of constantly interacting with them and knowing their problems.
  2. Letting the purchasing know that they are not being fooled in all dealing with them, they should be open-minded.
  3. Giving t hem gifts or bonus should be considered as essential especially in the firm’s annual calendar, almanac or special wears produced by the firm.
  4. Impartiality should be the watch-work. That is, avoidance of discrimination between the purchasers and the entire staff of the firm. This will create a sense of belonging and make the purchasers think or feel that their services are important.
  5. Orders for purchasing administration of production should be made very specific to specification so that products from purchasers should always be accepted.

For Justice Bakery to achieve the above recommendation in his firm, there is need for help from the government, which includes;

  1. Subsidy on raw materials imported especially flour.
  2. Technical assistance.
  3. Purchasing administration.
  4. Financial aid.
  5. Cost control and reduction.
  6. Logistical support.

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