The Impact Of Effective Working Capital Management On Company Performance In Depressed Economy (a Case Study Of Unilever Nigeria Plc.)

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ABSTRACT
The project research work on “The Impact of Effective Working Capital Management on Company Performance in a Depressed Economy" was embarked on to check the profitability and liquidity problems existing in some companies that lack the working capital management acumen.
It was because of this deficiency in some companies that brought about the above quoted topic.  Taking Unilever Nig. Plc as a case study.
The need for working capital management cannot be overemphasized.  The objective of financial decision-making is to maximize shareholder wealth.  However, the objective of this study was to identify and discuss the basic determinants of working capital and to highlight areas of short-term investment of the company.  It was also aimed at suggesting ways for improving insufficient cash balances to meet current obligations.  Short-term survival and success of any firm is dependent on right financial management decision-making.  This is because working capital is one the most important aspects of financial management.
The materials used in this research work were by means of review of related literature, personal interview and observations, issue of questionnaires.  The data collected through these means were analyzed with analytical tools like percentages, descriptive tables, chi-square, and distribution tables.
All these were not achieved without hitches.  The following were limitations to this research work.  They include: Bureaucracy, delay in responding to questionnaires, errors in questionnaires returned, proximity, running cost, etc.
Conclusively, working capital management policies are practices that have significant influence on companies solvency and profitability.  Maintaining a large size of current assets improved the liquidity position of the company.
The working capital management was aimed at striking a balance by ensuring that the right combination of current assets and liabilities were held at each point in time.

 
TABLE OF CONTENTS
Title page II
Approval page III
Dedication IV
Acknowledgement V
Abstract       VIII
Table of Contents X

Chapter one
1.0 Introduction 1
1.1 Overview of the problem 1
1.2 Statement of the problem 4
1.3 Purpose of the study 5
1.4 Significance of the study 7
1.5 Scope of the study 8
1.6 Limitation of the study 8
1.7 Company profile 9
1.8 Research Hypotheses 12
References 14

Chapter Two
2.0 Literature Review 15
2.1 Introduction 15
2.2 Need for Effective Working Capital 15
2.3 Determination of Working Capital 23
2.4 Credit Policy 23
2.5 Nature and Size of Business 24
2.6 Growth and Expansion Activities 25
2.7 Operating Efficiency 26
2.8 Motives for Holding Cash 27
2.9 Cash Management 28
2.10 Cash Budget 31
2.11 Inventory Management 33
2.12 The Economic Order Quantity Model 37
2.13 Receivable Management 47
References 50

Chapter Three
3.0 Research Methodology 52
3.1 Research Design 52
3.1.1 Questionnaires 52
3.1.2 Personal Interview 53
3.1.3 Personal Observation 53
3.1.4 Library Research 54
3.2 Sources of Data 54
3.3 Data Analysis Technique 55
3.4 Validity of Response/Reliability of Data 58
3.5 Assumptions of the Study. 58

Chapter four
4.0 Presentation and Analysis of Data 60
4.1 Data Presentation 60
4.2 Data Interpretation 61
4.3 Distribution and Return of Questionnaires 62
4.4 Analysis and Interpretation of Relevant Questionnaires

Chapter Five
Summary of Findings, Recommendation and Conclusion
5.1 Summary of Findings
5.2 Recommendations
5.3 Conclusion
5.4 Suggestions for further research
5.5 Questionnaires (Introduction)
Bibliography

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(2014, 10). The Impact Of Effective Working Capital Management On Company Performance In Depressed Economy (a Case Study Of Unilever Nigeria Plc.).. ProjectStoc.com. Retrieved 10, 2014, from https://projectstoc.com/read/3787/the-impact-of-effective-working-capital-management-on-company-performance-in-depressed-economy-a-case-study-of-unilever-nigeria-plc-5771
"The Impact Of Effective Working Capital Management On Company Performance In Depressed Economy (a Case Study Of Unilever Nigeria Plc.)." ProjectStoc.com. 10 2014. 2014. 10 2014 <https://projectstoc.com/read/3787/the-impact-of-effective-working-capital-management-on-company-performance-in-depressed-economy-a-case-study-of-unilever-nigeria-plc-5771>.
"The Impact Of Effective Working Capital Management On Company Performance In Depressed Economy (a Case Study Of Unilever Nigeria Plc.).." ProjectStoc.com. ProjectStoc.com, 10 2014. Web. 10 2014. <https://projectstoc.com/read/3787/the-impact-of-effective-working-capital-management-on-company-performance-in-depressed-economy-a-case-study-of-unilever-nigeria-plc-5771>.
"The Impact Of Effective Working Capital Management On Company Performance In Depressed Economy (a Case Study Of Unilever Nigeria Plc.).." ProjectStoc.com. 10, 2014. Accessed 10, 2014. https://projectstoc.com/read/3787/the-impact-of-effective-working-capital-management-on-company-performance-in-depressed-economy-a-case-study-of-unilever-nigeria-plc-5771.

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