ABSTRACT
The study was designed to determine the effectiveness of cash management on growth and survival of a manufacturing company using Nigeria Bottling Company Plc as a case study.
A descriptive survey sample design was adopted. Data was collected for funding a self developed questionnaire which was validated and tested for reliability. A total of seventeen people took part in the survey.
The random sampling technique was used to select the subjects – to answer the research questions and hypothesis raised in the investigation, percentage and chi-square were used.
The result showed that effective cash management is necessary to ensure the smooth running and survival of the company. The data collected indicated that all variable investigated do not significantly influence effective cash management on growth and survival of a manufacturing company in Nigeria Bottling Company Plc.
Recommendations were therefore made based on the findings for improvement in the communication net work. And more so it is important to consider other valuable like stock management, debtors management among others affecting management company’s growth and survival.
CHAPTER ONE
1.1 INTRODUCTION
Cash is the most important asset for business operation. It is the basic input required to start the business and essential tool needed to keep the business running on a continuous basis. Cash is also the ultimate output expected to be realized by selling the products or service on an organization. Infact, it is the lifeblood of business. Effectual management of cash is essential in maintaining the cash control of business cash flow.
While management is the process of organizing controlling, coordinating the resources of an organization in an efficient and effective manner iii order to achieve direct result.
Cash management can be defined as the art of managing (i.e. planning, controlling, organizing and co-ordinating) cash and cash equivalent in an organization to ensure the objective of the organization which might include profitability, growth and survival (Pandey I. (2004).
i. Liquidity: Having enough cash available to meet everyday demand;
ii. Profitability/Cost: Holding high balance of cash is costly in terms of cost investment interest. while unexpected deficit can be expensive if emergency funding is required.
Cash management in any organization involve the operating cash cycle which is component of the working capital. Therefore cash cannot be studied in isolation. In a manufacturing company, cash management covers the following:
i. The provision of cash as Capital for the Company initial out lay which generated from friends family or loan at bank.
ii. The procurement of raw materials
iii. The distribution of finished goods to obtain immediate cash or create debtor when goods are sold on credit term.
In practice, a carefully monitored budget will generally provide the basis for cash management.