DSpace Collection: Thesis - Business Adminstration

IMPLEMENTATION OF QMS ISO 9001/2000 CASE STUDY OF SELECTED ETHIOPIAN LEATHER EXPORTING & PROCESSING ORGANIZATIONS

Fri, 10 May 2013 07:18:30 GMT

Title: IMPLEMENTATION OF QMS ISO 9001/2000 CASE STUDY OF SELECTED ETHIOPIAN LEATHER EXPORTING & PROCESSING ORGANIZATIONS

Authors: Benyam, Atnafe

Abstract: The LLPI (Leather and Leather Products Industry) of Ethiopia generates the second major export income of the country with between 10 and 20 % of total foreign earnings. International market is sensitive to regulations and standards like, environment, safety and quality; where ISO: 9001 certification for quality management system is currently a popular requirement for the industry. It is claimed that installing quality management system not only boosts market competitiveness but enhance efficiency, productivity and profitability. This study addresses the importance, challenges, assistance and gap analysis in implementation of ISO 9001:2000 in selected organizations in the LLPI. The industry is stratified under tannery, foot wear, and leather products. 25 organizations were selected that represent 73% of the tanneries, 38% of the footwear manufacturers and 29% of the leather product manufacturers of the country. Cluster samples of Addis Ababa, D/Zeit, Nazreth and Modjo were used due to concentration on these areas. The study is descriptive and explanatory in nature where both primary and secondary data are in use. Despite the grueling requirements of the international market only two organizations has been certified. The advantages to be gained due to ISO certification includes new market entry, better price, and maintenance of customers that lead to profitability and growth of the organization. Also, productivity could be boosted with increased efficiency and effectiveness in internal management processes. The challenges faced include the cost of certification, time and effort needed to develop required documentation and infrastructure to satisfy the requirements. The lack of commitment by owners of the organizations is also a major set back observed. Even there are various support organizations working around the leather industry only few focused on the certification of ISO 9001:2000. In the gap analysis unsatisfied requirements by most of the organizations include; lack of proper QMS documentation, procedure and records, poor product realization tools, missing infrastructure, poor quality objective setting, and lack of continuous improvement tools. Hence, a lot remains by support organizations in creating awareness and devising means to eliminate the challenges faced in the certification processes. With the accreditation of the Quality and Standard Authority of Ethiopia (QSAE) for ISO 9001 certification; major part of the industry could be certified with reasonable cost and effort, by restructuring their existing documents, management system and infrastructure if the commitment of the owners of the organizations is gained.

Description: A study offered in partial fulfillment of the requirements for the degree of Masters of Business Administration

Determinants of Bank Profitability: An Empirical Study on Ethiopian Private Commercial Banks

Mon, 08 Apr 2013 08:19:11 GMT

Title: Determinants of Bank Profitability: An Empirical Study on Ethiopian Private Commercial Banks

Authors: Habtamu, Negussie

Abstract: Determinants of Banks Profitability: An Empirical Study on Ethiopian Private Commercial Banks Habtamu Negussie Addis Ababa University, 2012 The purpose of this study is to investigate determinants of private commercial banks profitability in Ethiopia by using panel data of seven private commercial banks from year 2002 to 2011. The study used quantitative research approach and secondary financial data are analyzed by using multiple linear regressions models for the three bank profitability measures; Return on Asset (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). Fixed effect regression model was applied to investigate the impact of capital adequacy, asset quality, managerial efficiency, liquidly, bank size, and real GDP growth rate on major bank profitability measures i.e., (ROA), (ROE), and (NIM) separately. Beside this the study used primary data analysis to solicit mangers perception towards the determinants of private commercial banks profitability. The empirical results shows that bank specific factors; capital adequacy, managerial efficiency, bank size and macro-economic factors; level of GDP, and regulation have a strong influence on the profitability of private commercial banks in Ethiopia. Thus, management bodies of private commercial bank should strive to strengthen the identified significant factors and government bodies should also see the adverse effect of tight polices imposed on the existing private banks as well as for the new entrants.

Description: A Thesis Submitted to The Department of Accounting and Finance Presented in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Finance

THE EFFECT OF WORKING CAPITAL POLICIES MANAGEMENT ON FIRMS’ PROFITABILITY Evidence from Manufacturing Private Limited Companies in Addis Ababa, Ethiopia.

Thu, 04 Apr 2013 08:37:41 GMT

Title: THE EFFECT OF WORKING CAPITAL POLICIES MANAGEMENT ON FIRMS’ PROFITABILITY Evidence from Manufacturing Private Limited Companies in Addis Ababa, Ethiopia.

Authors: Nuru, Mohammed

Abstract: Research studies on the effects of management of working capital policies on firms’ profitability in developing countries, especially in Ethiopia remained an ignored area of empirical research. Thus, this study examined the effect of working capital investment and financing policies on firms’ profitability by using audited financial statements of a sample of 11 manufacturing private limited companies in Tigray region, Ethiopia for the period of 2005 to 2009. The study used return on assets, return on equity and operating profit margin as dependent profitability variables. Accounts receivable period, inventory holding period and accounts payable period are used as independent working capital investment policy variables. Moreover, cash conversion cycle and current assets to total assets ratio are used as comprehensive measures of working capital investment policy. On the other hand, current liabilities to total assets ratio is used as measure of working capital financing policy. The two traditional measures, current ratio and quick ratio, are used as liquidity indicators. In addition, the study used firm size as measured by logarithm of sales, firm growth rate as measured by change in annual sales, financial leverage and annual GDP growth rate as control variables. Both correlation analysis and pooled panel data regression models of cross-sectional and time series data were used for analysis. The results show that longer accounts receivable and inventory holding periods are associated with lower profitability. There is also negative relationship between accounts payable period and profitability measures; however, except for operating profit margin this relationship is not statistically significant. The results also show that there exists significant negative relationship between cash conversion cycle and profitability measures of the sampled firms. No significant relationship between current assets to total assets ratio and profitability measures has been observed. On the other hand, findings show that a highly significant positive relationship between current liabilities to total assets ratio and profitability. Finally, negative relationships between liquidity and profitability measures have also been observed. Managers, therefore, can increase firms’ profitability by improving the efficiency of management of working capital investment and financing policies while, also keeping in view the trade-off between liquidity and profitability.

Description: A Thesis Proposal Submitted for the partial fulfillment of Masters Degree in masters of Business Administration in Finance (MBA in finance)

Practices and Challenges of Ethiopian Social Security Agency Pension Funds Investment

Fri, 15 Mar 2013 09:21:12 GMT

Title: Practices and Challenges of Ethiopian Social Security Agency Pension Funds Investment

Authors: Hiwot, Amare

Abstract: This study was undertaken to assess the practices and challenges of pension funds investment in Ethiopian Social Security Agency. The primary data were collected from seven key informants who had specialized knowledge about the pension funds investment of the Agency. This was supplemented by secondary data. The researcher used a mixed approach study where the quantitative data show existing pension funds investment practices of the agency quantitatively and the qualitative data shows the opinion of respondents regarding pension fund investment practices at SSA and related issues. The study result show that the attainment of unsatisfactory return on pension funds investment, concentration of the funds on non- marketable and, short-term assets which yield low return, and lack of standard investment practices like, lack of investment policy, detail and exhaustive investment guideline, unable to measure performance periodically and disclose to the public, and unable to follow the existing guideline in its investment activities. The agency’s investment activities has been influencing by implicit and explicit government intervention specially, the invested pension fund in one way or another way has been used as a captive source of finance for government .In addition, underdeveloped financial market, limited expertise in the area, low market return and low understanding about the fund from officials have been challenging the investment of pension funds in SSA

Description: A Thesis submitted to The Department of Accounting and Finance Presented in Fulfillment of the Requirements for the Degree of Master of Business Administration in Finance