Business Finance
OBJECTIVE
The study sought to evaluate the effectiveness of cash management policies at Hunyani Flexible Products (HFP) using data from 2000-2010. Other objectives of the study were to identify the key processes and models in cash management; examine the impact of poor cash management on the overall company performance and come up with strategies that can lead to an effective cash management system. The descriptive survey method was used to solicit information from the respondents and a case study approach was used. The research study was confined to respondents at Hunyani. Flexible Products where a sample of forty (30) respondents was drawn. Data was obtained through interviews, administering questionnaires and by observations. From the research findings, it was established that there is a high deficiency of an effective cash management policy although some attributes of an effective management system were present. The study found that there is a positive relationship between the level of cash flow and the profitability of the company. The research concluded that, cash management is a culture that forms part of the strategy of companies and depends more on managers themselves than the characteristics of companies.
INTRODUCTION
Over the past years, Zimbabwean economy had been unstable due to a number of reasons including political instability. This instability worsened between 2007 and
2008 resulting in cash flow problems for most business organizations hence cash management challenges to corporate financial managers. The economic environment was characterized by hyperinflation with prices rising each and every second affecting the time value of money. However, the advent of the year 2009 marked an improvement with the introduction of multi-currency system as inflation was to some extent wiped out.
In business, all motives for holding cash which include transaction, precautionary and speculative seemed to be of little importance. It
The study sought to evaluate the effectiveness of cash management policies at Hunyani Flexible Products (HFP) using data from 2000-2010. Other objectives of the study were to identify the key processes and models in cash management; examine the impact of poor cash management on the overall company performance and come up with strategies that can lead to an effective cash management system. The descriptive survey method was used to solicit information from the respondents and a case study approach was used. The research study was confined to respondents at Hunyani. Flexible Products where a sample of forty (30) respondents was drawn. Data was obtained through interviews, administering questionnaires and by observations. From the research findings, it was established that there is a high deficiency of an effective cash management policy although some attributes of an effective management system were present. The study found that there is a positive relationship between the level of cash flow and the profitability of the company. The research concluded that, cash management is a culture that forms part of the strategy of companies and depends more on managers themselves than the characteristics of companies.
INTRODUCTION
Over the past years, Zimbabwean economy had been unstable due to a number of reasons including political instability. This instability worsened between 2007 and
2008 resulting in cash flow problems for most business organizations hence cash management challenges to corporate financial managers. The economic environment was characterized by hyperinflation with prices rising each and every second affecting the time value of money. However, the advent of the year 2009 marked an improvement with the introduction of multi-currency system as inflation was to some extent wiped out.
In business, all motives for holding cash which include transaction, precautionary and speculative seemed to be of little importance. It