AN EVALUATION OF WORKING CAPITAL FOR
THE SUCCESSFUL MANAGEMENT OF HAMDALA HOTEL, KADUNA
Chapter one
Introduction
A firm usually evaluates its working capital
management whether small or medium. The sole motive of every business is to
make profit.
Many organization can be seen to have bee forced
out of business simply because of inadequate or excessive management of working
capital.
This could be as a result of overtrading, under
trading, lack of a careful appraisal of the procedure of organization of
business and probably due to future to review the effectiveness or other wise
of existing system of control.
In this chapter, the concept and general principle
of working capital in relation to choosing organization of study, there is no
company required, but it is an obvious fact that its current assets are
insufficient to meet current liabilities, that is there is no working capital.
The organization will be unable to satisfy the requirement of its customers and
will not be in a position to settle its debts as they arias and will be at the
mercy of creditors who might enforce its liquidity.
1.1
background
of the study
Kaduna
Hotels company limited (Hamdala Hotel) Kaduna, the only premier Hotel in the
north and one of the three in the whole name is a wholly owned subsidiary of
new Nigeria development company (NNDC) and by extension the government of the nineteen
(19) northern states.
The
hotel became fully operational in the year 1963. From the in caption of the
hotel to the year 1998, the hotel developed to company limited, this makes
Hamdala autonomous and is headed by a managing director along with a team of
management staff. The Hotel has a total of seventy eight (78) skillful and
trained personnel both senior and junior.
Hamdala
Hotel has over the year built a good image for itself due to good facilities
and services delivery.
1.2
statement
of the problem
it
appears that some company (s) have the problem of managing their working
capital. This has resulted to the poor capital. This has resulted to the poor
working capital in many organization. Hence,
it is because of this phenomenon that this study tries to examine the
evaluation of working capital for the successful management of Hamdala Hotel
1.3
objectives
of the study
The
objective of the study are as follows:
1. To
examine the problems of working capital management of the orgnaizatiopn.
2. To
examine how working capital would be managed.
3. To
ascertain it working capital management capable of solving the problem of the
organization.
4. To
highlight how the problem could be evaluated and managed within a well
structured framework.
1.4
Significance
of the study
The
researcher work would be of great benefit to the researcher as part of the
fulfillment of the requirement of the award of Higher National Diploma in
Business Administration and Management. Also managers, working capital
administrators, government and students would benefit as it provides and
impetus for future study on effective working capital management
For
greater productivity in organization the researcher also highlight the
attendant consequences of poor capital management on productivity and the way
forward ion achieving optimum result.
1.5
Research
question
1. What
is the problem of working capital for the successful management of an
organization.
2. How
working capital would be managed.
3. Does
effective working capital solve the problem of
a company.
4. How
the problem of working capital would be solved.
5. What
is the prospect of working capital of enterprises in Nigeria.
1.6
Scope
of the study
The
researcher study will primarily focus on the problems of working capital
management of Hamdala Hotel Kaduna,
Kaduna North Local Government Council. The researcher is constrained by certain
factors which prevent the exhaustive discussion of the research topic, such
factors includes;
i.
Inability to lay
hands on proper document because such or some of the documents were tagged
confidential that is, going through them might be an intuition in their
privacy.
ii.
Unavailability of
funds hinders the ability to go deep into the research work.
iii.
Inability to have
physical interaction with the manager of the company.
iv.
Most impartiality,
most publication may not present the actual state of affair thereby, giving
misleading information to any researcher that come across such publication.
1.7
Limitation
of the study
There
are some basic problems and hardship that were encountered in the process of
collecting the data. Lack of disclosure of some vital information to the
researcher hampered the study in no small measure. Strict adherence was served
on some of the study and all information supplied in the conduct of the study
were kept confidential.
Time
factors, semester work load and financial constraints also proof great problem
to the researcher.
1.8
Definition
of terms
This
segment will be use to define various terminologies used in this research.
Working capital:
Is a financial metric which recusants the amount of days by day operating
liquidity available to the business.
Evaluation:
Is the systematic acquisition and assessment of inflammation to provide useful
feedback about some object.
Working capital
Management: Involves the relationship
between firms short term assets and its short term liabilities.
Success:
Success can be defined as the gaining of what is aimed at or can be defined as
the achievement of desired goals and objective.
Management:
Management can be defined as the coordination of all the resources of the
organization through the process of planning, organizing, directing and
controlling towards achieving the organizational goals and objective.