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Topics: Inventory, Balance sheet, Accounts receivable Pages: 14 (2708 words) Published: December 5, 2013


Name of my topic
Discuss and analyze the Working Capital Management strategies of a Manufacturing company in Vietnam My name
MSSV - 49916
Name of the
chosen company


As we know, Working Capital Manafement strategies is very important for every company or corporation. It is in the form of main factos that bring effectiveness , profit for company. A company have hight-return , that means they have a good working capital management strategy. So positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to meet the short-term debt maturity as well as the upcoming operational expenses. The management of working capital related to inventory management, accounts receivable and payable and cash. So… How does the company do to manage their working capital strategies ? What are factors cause effection to working capital ?

The effectiveness of using working capital and its disadvantage ? We are going to analyze Kinh Do Company to understand well about Working Capital Strategies. I. INTRODUCTION
I.1 – Overview the Kinh Do Company
I.2 – Theoris of Working Capital Management
I.3 – Some factors cause effection to company working capital II. CASE STUDY1.1 – Analyze Workning Capital Management strategy
1.2 – Analyze the effective of using WCM strategy with others. III. CONCLUSION
1.1 – Rewiew of two company
1.2 – Problem and resolve

1. Overview the Kinh Do Company
Kinh Do Corporation is a business group of Vietnam with an emphasis on food production, including baked goods, confections, snacks and soft drinks. The corporate group also includes companies in the fields of financial services, real estate and a retail bakery chain.Kinh Do Corporation manages a wide variety of brand names,distributes imported brand name snack and candy goods, and manufactures food for export from Vietnam. Main offices of the company are located in Ho Chi Minh City. Kinh Do Company is a leading company of producing and processing confectionery in Vietnam market. For seven consecutive years it is voted by consumers as Vietnam high quality goods. Distribution system of Kinhtraircovering 64 provinces and cities with 150 distributors and 40,000 retail outlets. Kinh products have been exported to 20 markets around the world such as America, Europe, Australia, Middle East, Singapore, Taiwan… The product of Company

AFC cracker – Cosy
Hard soft candy
Salty and sweet Bread
Kido's ice cream
Kinh Do mooncakes

2. Theories of Working Capital Management
Company hold large balances of cash, inventories or high levels of Account Receivable. Help business or company gain a low-risk
Expanding firm’s ability to survive unforeseen threats and unfavorable condition of fluctuation economy. Reducing return .
Keeping levels of current asset at a minimum. Company invest the minimum possible in cash, securities, account receivable or inventory. Put company in a situation of high risk , if management is not good, led the company to shortage cost to cover their short term debt. However, it bring high return for company. Financial shortage costs : liquidity of company is unfavorable ( even it may default if the circumstance is so bad ) Operating shortage costs : if company don’t have enough money for holding inventory and producton. It lose a opportunity to get a high return. Customer ‘s satisfaction can be damaged. The deputation is affected badly. ECONOMIC ORDER QUANTITY :

Helping manager choose the appropriate number of inventory that need to invest in the future to avoid shortage inventory of surplus inventory. EOQ =

3. The affection of some factors to Working...
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