A Dissertation Submitted in Partial Fulfillment of the Requirement for the
Award of Masters of Science in Procurement and Supply Chain
Management of Mzumbe University
The central focus of this study assesses the effect that procurement risk management
has on organization's performance. The specific objectives were to identify risks
sources that affect organizational performance of a company in a manufacturing firm,
to determine the influence of Procurement risk identification process on organization’s
performance and to examine the influence of company’s mitigation strategies on
organizational performance of manufacturing firms. The study adopted case study
research design at Coca Cola kwanza limited, Dar es Salaam with a sample size of 77
respondents. Data was obtained primarily through questionnaire administration and
interview, while journals and organizational reports were used as secondary
source.Descriptive statistics as well as regression model were used to analyze the
quantitative data obtained while qualitative data were analyzed using content-based
data.The study has revealed that risk identification process had significant effect on
organization performance according to the findingswhich indicated that there are
sources of risk that affect organization performance which include: Technological risk,
organizational and societal risk, market risk, financial risk, and regulations risk. Third,
respondents highly agreed risks tolerance and cost benefit analysis act as the best
strategy on mitigating risk to a very large extent. Also the uses avoidance strategy
improves the performance of the organization with a regression significant value less
than 0.05 signifying statistically significance. The study therefore recommends that
management of organizations need to take cost-effective measures to identify risks in
a timely manner, effectively mitigating the risks. Companies need to adjust their risk
management of the procurement. This will ensure Coca Cola Kwanza Limited meets
international standards and is competitive globally.It is critical that the organization
proactively recognizes and addresses the risks. It is necessary to evaluate, identify the
main mitigation measures along the process of the distribution chain and the
procurement process