MANAGEMENT OF WORKING CAPITAL IN AN ORGANIZATION (A CASE STUDY OF GUINNESS NIGERIA PLC, BENIN CITY, EDO STATE)

ABSTRACT

This project is centered on management of working capital in an organization with special reference to Guinness Nigeria Plc, Benin City, Edo State. It is pertinent to note that working capital is considered as the life blood of any business because it is concerned with the management of the complex short term liquidity of the firm. This project comprises of five chapters, Chapter one deals with the introduction, background to the study, statement of the problems, objectives, scope of the study, significance of the study, hypothesis, limitations and operational definition of term. Chapter two comprises of the research work itself which is the literature review while chapter three comprises of the research methodology and chapter four deals with data presentation, analysis and interpretation and hypothesis testing, chapter five gives the summary of the findings, conclusion and recommendations.

1.1 BACKGROUND TO THE STUDY
This Brewery, Gunnies Nigeria Plc was cited in Nigeria at Ikeja, Lagos State in 1992. The Benin Branch was opened in 1972.
The original name on incorporation was Guinness (Nig) Ltd. It was changed to Guinness (Nig) Plc.
Guinness Nigeria Plc Benin is located along Benin-Agbor road on Oregbeni Housing Estate Ikpoba Hill, Benin City. It was very close to Bendel Brewery Limited.
The objectives of this company are:
• To provide employment for members of the company
• To contribute to the general welfare of the community by providing good quality beer and non –alcoholic malt.
• To contribute to the economic development of the economy.
One of the recent structural re-organization of the companies is the total number of full time staff of the company was 2,050. in addition about 300 casual workers are employed on daily basis.
However, 79 world class people are in the senior management level, it is not worthy to understand the expatriate’s lines who time to time come to the company to offer technical and management advice particularly when a new product is to be introduced into the market. Sixteen (16) members make up the Board of Directors.

1.2 STATEMENT OF THE PROBLEM
The overall problem in management of working capital is that of maintaining adequate level of working capital such that, the company is able to operate smoothly and earn profits without over trading in management of firm’s working capital, these questions need to be considered.
• What size of investment should the firm adopt to different forms of its current assets?
• What proportion of the current assets should the firm finance by short and long term funds?
• What proportion of the firms total assets should be in form of current assets and what factors can help in company’s bid to manage its working capital?