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ernal short term financing is secured to finance the working capital however; firms also tend to tie most of their productive funds with non-productive assets.
Family Dollar- One of the most growing retain chain stores in US provides low overhead, self service retail stores. Founded in 1959, in North Carolina, Family Dollar is now one of the leading retail chain stores in US with over 6000 stores operating all over the US. Family Dollar is also unique and fast growing retail chain stores in US in the sense that its success is largely driven from the ease and convenience that it offers to its customers. Family Dollar offers low prices everyday and is on its way to become one of the leading retail chain stores in US.
Last five years have witnessed one of the rapid growths in the history of Family Dollar as it expanded very fast and opened more than 4000 new stores during last five years. Family Dollar’s business model is based on effective and unique branding and merchandising strategy similar to neighborhood type of stores. It has collaboration with most of the major brands of the world which not only provides an opportunity to project itself as the leading brands of the world.
This paper will discuss and critically assess the strengths and weaknesses of the working capital management policies of the Family Dollar. At the end, recommendations will also be provided as to how the firm can improve its working capital policies and how these recommendations can be implemented.
Working capital requirements of every organization vary depending upon the nature of the industry as well as internal dynamics of the firm. However, roughly, it is often estimated at 25 to 40% of the total assets of the firm hence indicating a substantial amount of investment into assets which are typically unproductive in nature. (Glynn, Abraham, Murphy, & Wilkinson, 2008).
Typically, the difference between the current assets and current liabilities of the firm is called working capital
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Working Capital Management Introduction Working capital management is a complex process through which a company ensures that it maintains sufficient cash inflows in order to meet its short term debt obligations as well as operating expenses. In other words, the system of working capital management intends to establish a relationship between a firm’s current assets and current liabilities.
The study will look at the different advantages that are accrued by financial institutions in relation to their account receivables and their loan lending capacities. It will look at the financial growth and maturity of Citibank Indonesia, and the various strategies incorporated to deal with sovereign risk limits.
Increasingly few nations remain isolated in the business world. In addition to purchasing products from and selling resources to alien countries, global firms in the US presently conduct direct investment in highly incorporated activities that involve various products and services.
Lawrence Sports has two suppliers, Gartner and Murray. Gartner supplies Lawrence Sports with 70% of its materials and is therefore very important to the success of the company. Lawrence Sports is Murray's major customer comprising of 75% of sales for Murray and therefore is willing to do anything to please Lawrence Sports to keep them as a customer.
Second, the large holding of current assets, especially cash, strengths the liquidity position but also reduces overall profitability. Third, levels of fixed and current assets depend upon the expected sales, but it is only current assets which can be adjusted with sales fluctuations in the short run therefore company has greater flexibility in managing current assets.
The work was basically done in the form of small groups with the exception of Churches and Government functions. The work was mostly related to small family based set ups in farms, homes, or small shops. Hence no formal HR management role could be found in those days.
Therefore, working capital management is a routine activity and financial manager has to pay more attention to working capital than fixed assets. This paper takes a literature review of the various issues of working capital management, about which previous studies have been done.
Research philosophy describes the way I think about the development of knowledge which affects the way I go about doing research. There are three types of research philosophies: positivism, Interpretivism and realism.
My research is based on mixtures of all these