Impact of Cold Storage Facility Management Regulatory Standards on Firm’s Profit Based on Cold Storage Operations Data in the Tema Metropolitan Assembly

Abstract

The Ghana Food and Drug Authority has formulated and implemented cold storage management regulations and standards for over 10 years now, and the effects of cold storage facility firms’ in implementing the relevant standards have been fully demonstrated. In the past, research focused on whether to comply with management regulations and standards, and whether compliance or not with regulations and standards would increase the burden on enterprises. Aside from this, while systematic research on the impact of corporate profits is rare, and there is still a lot of controversies in regard to impacts of regulatory standards on cold storage operational efficiency, some scholars believe that regulators only consider customer satisfaction and not the impact on firms’ operations and argue that strict compliance with regulatory standards has a negative impact on company profits. Some scholars believe that poorly managed storage facilities and lack of proper maintenance and processing procedures may result in low-quality frozen products, which may force management to destroy or sell them at a price lower than the market price, which will ultimately reduce the profit margin of the company. Based on the above background, this study sought to discuss the impact of cold storage management regulations and standards on corporate profits, which has important theoretical and practical significance. In order to achieve this goal, this study first used the literature research method to summarize the research results of the impact of cold storage management regulations and standards on corporate profits. Based on this, questionnaire surveys and expert interviews were used to conduct research on cold storage companies in Tema Metropolis., data collection was based on the information sought from firms, Regulatory Agencies, and customers, on the impact of cold storage management regulations and standards on firms’ profits, all the data gathered were analyzed t with SPSS software and Microsoft Excel. The results showed that about 73% of people confirmed that the product quality was due to compliance with cold storage management regulations and standards. Under the circumstances, corporate profits will increase. This study also selected the profit data of 15 Tema metropolitan companies in recent years for trend analysis. The results also show that compliance with the cold storage operation supervision on standards is closely related to the firms’ profits. Finally, this study puts forward suggestions on the issues that the firms, government, and regulators need to pay attention to in the process of implementing regulations and standards for cold storage management.

Keywords: cold storage management; regulations and standards; profit; Tema Metropolis

DOI: 10.7176/EJBM/13-23-02

Publication date: December 31^st 2021