Questionnaire
1. What is your H2 income return (profit) for?
a. June (2005) =
b. Dec (2005) =
c. June (2006) =
d. Dec (2006) =
e. June (2007) =
2. Trend in your business turnover in past three months? (pls. check).
a. increasing
b. unchanged
c. decreasing
3. The trend of the order in past three months? (pls. check).
a. above normal
c. normal
d. below normal
4. If above normal what is the possible reason for this? (can choose more than 1)
a. quality of the product
b. price of the products
c. advertisement
d. function of the product
e. demand for the product
f. price of the product
g. others (pls. specify)
5. If below normal what is the possible reason for this? (can choose more than 1)
a. quality of the product
b. price of the product
c. lack of advertisement
d. competition
e. low demand
f. others (pls. specify)
6. The trend of the customers in the business?
a. getting shorter
b. unchanged
c. getting larger
7. The percentage of the budget spends in the material cost?
a. 0%-20%
b.21%-40%
c.41%-60%
d. 61%- 80%
e. 81% – 100%
8. What is the H2 income return after the investment had made for?
a. June (2005)
b. Dec (2005)
c. June (2006)
d. Dec (2006)
e. June (2007)
9. Trend in your business turnover in past three months after the investment? (pls. check).
a. increasing
b. unchanged
c. decreasing
10. The trend of the order in past three months after the investment had made? (pls. check).
a. above normal
c. normal
d. below normal
11. The trend of the customers in the business after the investment had made?
a. getting shorter
b. unchanged
c. getting larger
12. The percentage of the budget spends in the material cost as the investment is on going?
a. 0%-20%
b.21%-40%
c.41%-60%
d. 61%- 80%
e. 81% – 100%
13. In general, is the performance of the business had increase after the investment?
a. Yes
b. No
Introduction
As we live in this world we need to have a shield to conceal us, a protection to cover us and a security to take us away from danger. Our house, the buildings, the schools and even churches these are only few examples of the constructions that protecting us in the sun, in the catastrophe that may come and even in the rain. But, do you ever think of who protects them while they are protecting us? Do you ever think that even that single piece of thing can also be damage if ever it was not protected properly? And if ever it was happened. Then, the persons who are totally affected were us as the one who protects by them. Try to take care of them properly, as we take good care of ourselves. In taking care of them we must take them away from danger that may cause them to ruin which possibly can result to decay. To avoid these, we need to protect these things to damage just like protecting from water by using a waterproof products we can prevent the cause of the damaged of our materials.
Waterproofing has been widely use throughout the world. Its not just use as a shield to the water but also it serves as a protector to prevent the product from breakage. Waterproofing is the treatment of a surface to prevent the passage of water under hydrostatic pressure, or the process where a building component is made totally resistant to the passage of water and/or water vapor. It is most commonly used in reference to building structures (basements, decks, flat roof, wet areas, etc.), watercraft, clothing or paper products (milk/juice cartons). The importance of having waterproof products is that it cleaned and maintained property to ensure it lives a long and healthy life.
One of the largest waterproofing companies in Hong Kong is the KM Waterproof Co. Ltd. It provides products that can be use not just in the in your own personal needs, not just in your house, but also in the business as the buildings and so much more. Being one of the leading waterproofing companies it is obviously to see that this company had gain a very good profit during the past years. But, if we look into it, the company is still unsatisfied when it comes to the net profit that the company gained during the past years. Aside from that, it is the goal of every business to grow, to expand, and to share to products to the other land. That is the objective of KM waterproofing Co. Ltd. invest in the Mainland China so that it will reduce material cost and to stabilize the supply which means that this move can greatly affect the status of the company’s earnings and also can affect the sales of each product. This will also take some risks in the business because there is no assurance that this business will be supported by the other nations. The company should also take two to tango in this aspect so that its goal of producing products which have low cost materials but with high quality product will be attain.
Then, this study will serve as the blueprint of the company in pursuing its objective to go to the next step of its business and to gain more profit out of the low cost materials. This company also will give the chance to think of the much more solutions in improving its products that has been based in Mainland so that this will serve as its guide for their next project. The company will also have the chance to think of the proper way in optimizing its profit while minimizing its cost and producing highly commendable products. As the KM Waterproofing Co. Ltd. is concern it should be well managed and at the same time it should have the guts in pursuing its dreams to invest its products in mainland because it will encounter so many factors in acquiring this goal since it is just the strategy of the company and the bottom line for this is to have a background and a very good knowledge to the business as the reducing of the materials and the stabilize the supply and that’s the use of this study, this will give the idea to the company of the most and widely used decisions in producing a high quality of products in the other land. This study will sought answers to the questions as to examine the financial performance of the company in the past few years. This performance will tell the trending of the company in terms of the products that had produce, the sales, the financial status of the company even if the investment had not yet done and after the investment was made, the capacity of the company to go further, to the short term and the long term the company plans. Another objective that must answer in this study is to conduct a comparative analysis of the cash flows before and after the investment, this will serve as the basis of the effectiveness of the move or the strategy that the company had done in the field where in they had fit. In this area, we will have to see the difference of the performance of the company as soon as they get involved their attached their business in the mainland. In this particular cash flow, we can determine the flow of the business including all its financial transaction and the budget that spends each transaction including all the expenditure as the cost of the materials and the product’s stability. The last thing that should be done in this study is to create conclusions and recommendations regarding the working capital requirement and the cash management on both short-term and long-term basis. This can help us to determine possible ways in improving the business and the possible ways in determining on how to get improve the business’ capital.
Generally, the purpose of this research is to study the Cash Management for KM Waterproofing Co. Ltd. in the Mainland factory investment for waterproofing material cost reduction, therefore its aim is give the owner the possible step to go on in determining the best and the most suited technique in improving and gaining such kind of business.
Background of the Study
To determine the study of Cash Management for KM Waterproofing Co. Ltd. in the Mainland factory investment for waterproofing material cost reduction, we should determine first the company’s background. KM Waterproofing Co. Ltd., established in 2002, is a specialty constructions firm providing waterproofing, caulking, and moisture protection services in Hong Kong. The business growth has about 30% increases per annum and the future is expected prosperous. However, the company’s net profit increase was not satisfied due to labor and material cost rises.
Waterproofing construction work requires waterproofing materials such as Sun-proof Acrylic Waterproofing Coating, PU Waterproofing Membrane and Transparent Waterproofing Coating. The supply was unsteady and some products were even in shortage occasionally. Management identified the issue in a recent board meeting and planned to invest in a Mainland factory that manufacturing waterproofing products in order to reduce material cost and stabilize the supply.
A research is therefore carried out to study the working capital requirement and cash management on both short-term and long-term so that management will base on the analysis to asses the implementation feasibility and perform justification. Related studies on better profits (1995), improving cash management ( 1997), gathering capital (King, Alfred M., 1994), forecasting and managing cash flow ( 1997) and optimizing the cash flow timeline and improving financial efficiency (1995) will be carried out.
The author intends to use the theoretical framework that examines whether the cash management fulfills the investment requirement.
Credit:ivythesis.typepad.com
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