An assessment of working capital management practices at Obuoba Group Limited, Nkawkaw

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JULY 2015
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The main aim of this study is to assess the working capital practices of Obuoba Group Limited and determine whether such practices conform to the conventional working capital practices; which offer competitive advantage, as expounded in other literatures on this same topic. The study is purely qualitative in nature so the descriptive and exploratory designs were used. The case study research strategy was used in this study. The sample for the study comprises six (6) top officers of the company who were sampled using the purposive or judgemental sampling technique. The semi-structured interview was used to gather the data for this study which were subsequently categorised into sub-groups with similar themes. The themes were linked and inferences drawn to arrive at the conclusions made in this study. The results from the study highlighted that the kind of working capital policies adopted for an entity depends on the nature of business of that entity. As a result different policies were in place for the different Divisions of the company. The findings from the study show that working capital management practices at Obuoba Group Limited in many aspects conformed to the conventional working capital management. However, there were few deviations especially in the area of investment of its surplus cash. Consequently, it is recommended that the company should start investing in risk free securities like the treasury bills to boost the profits of the company. It was also recommended that training workshops should be organised for its personnel to prepare the grounds for the implementation of computerised accounting system which comes with numerous benefits to an organisation than the manual system.
A Thesis submitted to the School Of Business, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Masters of Business Administration,