THE CONTRIBUTION OF INVESTMENT STRATEGIES ON THE FINANCIAL PERFORMANCE OF RETAIL PHARMACEUTICAL COMPANIES IN RWANDA

Abstract

The research purpose was to examine the “The contribution of Investment Strategies on the Financial Performance of Retail Pharmaceutical Companies in Rwanda. The study used a cross sectional analytical quantitative study design in which both qualitative and quantitative techniques were utilized. Target population of the study comprised 809 managers (pharmacists) of retail pharmacies, sample size is 267 managers of retail pharmacies carrying pharmacy business activities managing retail drug shops, selected by a simple random sampling technique countrywide. The data was processed by use of a statistical package for social sciences (SPSS) version 22.0 to analyze the data collected through the questionnaire. The relationship between variables was established by use of correlation model. The findings based on objectives which reliability of data from the respondents strongly disagreed with monitoring of the inventory level and customer demand simultaneously as one of benefit from implementing the investment strategies, (2.2%) of the respondents disagreed with the monitoring of the inventory level and customer demand simultaneously, 5.2% of the respondents remained neutral with it, while 46.4% of respondents agreed with the monitoring of the inventory level and customer demand simultaneously as one of benefit from implementing the investment strategies and 42.3% of the respondents strongly agreed with monitor the inventory level and customer demand simultaneously as one of benefit from implementing the investment strategies. The majority of respondents said that the monitoring of inventory levels and customer demand simultaneously is crucial for retail pharmacies to ensure efficient operations, minimize stock outs, and meet customer needs effectively by effectively monitoring both inventory levels and customer demand simultaneously, retail pharmacies can optimize stocking decisions, improve customer satisfaction, and enhance operational efficiency. The research findings indicated that prior to the implementation of investment strategies, the retail pharmacies in Rwanda experienced a very low growth which resulted in insufficient knowledge about the investment strategies, while facing the fixed cost to cover and this may be the reason why a number of pharmacies closed their businesses, and others shifted from one location to another or changed the ownership.