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The importance of minimizing working capital

In 3-5 pages, write an essay in which you examine the importance of minimizing working capital and the
challenges associated with minimizing working capital. Then, complete a series of five questions and
calculations related to receivables for a hypothetical company

Sample Solution

Public awareness has increase over the period of time and now they are demanding from the companies to be more socially responsible. In UK the Non Government Organization are very proactive and playing role in influencing industries mainly involve of bringing the impacts into public knowledge which also rouse the policy debate. So, furniture designing business needs to support some charitable institutions in order for its smooth and long run growth. People even change their buying behaviour from those companies who are not environment friendly and this could hurt companies badly, so those are enforced by the community to do well for the community as a whole. This social atmosphere is also very ideal to conduct such a business as the emotional support of the community will also be with the business. v Technologic Analysis The world is moving at a very rapid speed, especially the developed countries like UK. In the UK, most of the industries declared that they are already using most hi-tech and best available technologies and further improvements are very limited but due to overnight changes in technology and continuous development, companies are forced to adopt those technologies which can help them to reduce cost and remain competitive in the market. So this also favors the furniture designing industry as they can produce the creative and innovative designs. Micro Environment (Porter’s five forces) The micro environment includes the porter five forces. Three of these forces include from the horizontal competition and two forces include from the vertical competition (Kotter, J. and Schlesinger, L.
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