PRACTICES AND CHALLENGES OF UNCONTROLLED CREDIT SALES MANAGEMENT IN THE PETROELUM INDUSTRY IN ETHIOPIACASE OF; NILE PETROLEUM CO.LTD

Abstract

This descriptive study is done on the practices and challenges of uncontrolled Credit Sales Management as a Major challenge in the Petroleum Industry in Ethiopia considering the case of Nile Petroleum Co. Ltd. The purpose of the research study steams from the current problem of the uncollected proceeds of the company. Such organizational crises are observed all over the oil companies in general and specifically Nile petroleum Co. Ltd. due to practices and challenges of credit sales mismanagement. Although credit sales is a major means of business transaction in the industry but when it is not guided by strong policies and procedural system, it affects the organization adversely. A descriptive type of research method used in conducting the study. This study is a descriptive survey because it adopts the use of questionnaire and secondary data aimed at finding the practices and challenges of uncontrolled credit sales management is a major challenge the overall organizational performance. The result of this study indicated that out of the major challenges of Nile Petroleum Co. Ltd proved to be its uncollected proceeds created by its uncontrolled credit sales transactions. Therefore, the research came up with some suggestions to tackle such uncontrolled credit sales practices and challenges in the industry out of which are: proactive collections of credit sales proceeds, sticking on credit sales management policy such as having credit sales limit and credit period frames, encouraging cash base sales transactions and safeguarding credit sales transactions by having strong third party guarantees.