Impact of Working Capital on Retail Profitability

This MBA assignment delves into the crucial role of working capital management in influencing business profitability within the UK retail sector. Students are tasked with researching and evaluating the relationship between effective working capital strategies and enhanced financial performance. The assignment requires students to analyze data, draw conclusions, and propose recommendations for optimizing working capital practices to boost profitability in the context of a chosen retail firm.

RESEARCH
REFLECTION REPORT
(should contain the details given
below) Please type your responses in the spaces below:
Marks
available
Research Methods
&Processes
How and why have you
chosen/decided on the research
methods and processes which you
are using/have used for the
development of your Major
Project?
How would you describe these to:
1) a reader of your Major Project
and/or
2) a future employer
(max. 275 words)
There are two research methods which are qualitative and
quantitative. Both these methods have their own set of benefits
and disadvantages. In the research, I have chosen quantitative
research methods as they are helpful enough to provide in depth
understanding and making comparison of the information that are
gathered. As per the research, there are two different aspects that
has to be considered so that proper use of which planning is made
to make use of capital management.
With the qualitative method, use of secondary methods are done
so that in depth understanding can be raised. As per the statistic, it
was identified that there are research conducted at Nigeria in
relation with this study and there are not research identified for
UK. On the other hand, quantitative method make use of
statistical tools in which findings of research is done so that in
depth understanding can be raised and this is helpful for me to
make appropriate finding in which combination of information
that can be made. In which combination of information that can
be made. Among these, qualitative method are applied as it
enables to make the business to determine the use of cost in the
growth of business.
1) In perspective of the major project, both these method has
proved to be effective enough to consider that aspects that are
included in the project and in determining the outcome that can be
identified. However, I have made use of qualitative method so
that researches that are conducted by other researchers can be
analyzed.
2) In context with the future employer, it can be stated that the
findings that are made by me will enable to consider that moral
schema that fall under social science. Through this respect, I will
be able to provide adequate information to viewers about the
aspects that are covered in this areas and will also support in
raising their knowledge in relation with the topic.
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Literature &sources
1) What are the most important
theories/I literature sources
/evidence sources which you are
using to justify your research and
You’re Major Project?
2) Why are these sources
important
And fundamental to your work?
1) In accordance with different type of researches that are
searched, it can be stated that there are many number of the
findings that are made in this areas. This way, the rate of support
that was attained by making use of secondary data is high. It
ensures or renders information about the extent to which business
unit has enough funds for meeting its short term debt obligations
and operating expenses. In the business unit, effectual
implementation of working capital management is highly required
within the company for enhancing earnings. There are many
models and theories that are developed and all these are used so
that use of working capital can be done. It includes the theory of
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(max. 275 words)
Trade-off that was most commonly used by managers in order to
take up financial decisions to enhance stakeholder’s wealth. In
order to get information in this aspect, journal written by Park,
Kamcev and Freeman in the year 2017 was helpful. There are
many journals that are taken into consideration and these are used
so that in depth understanding can be raised. I was able to identify
many of the researches and to make them use related with the
current research topic. Further, the area in which issues can be
faced is in relation with proper planning when this is not done,
then it becomes difficult to get benefited.
2) I have identified that these sources are very important as it
increases the reliability of work or searches that are made by me.
The information that is provided by these becomes authentic
when sources are used from other journals. In order to develop a
project, it is required to have proper search and use of data to be
made. When these are used, then it becomes favorable enough to
present appropriate information. When viewers go through the
data, then it becomes helpful to make them understanding the
topic clearly and making them related with the topic in
appropriate manner. Main fundamentals that are used is the
research is that the data is taken from latest data that the data can
be relied on. Further, all the research that are old are eliminated as
with time the rate of preferences could have changed with time.
Your Knowledge
What key areas of knowledge
have
you gained from undertaking
your
Research and the Major Project?
Indicate why these are so
important
toyou?
(max. 200 words)
In this research, I have made use of secondary data are considered
to be most important as these are the type of data that are already
gathered by some other researcher. This is related with the theory
of Trade-off, when it is not used in effective manner, then firm
faces issues. Per the knowledge that I have gained, I have
identified that it is difficult to for the firm to carry out their
business operations in effective manner, when the rate of support
from the side of financial planning is not done efficiently. When
managers consider the financial aspects, then it allow them know
the changes that they can make so that the goals and objectives
can be attained. In this context, it was important for the manager
to consider the future requirements of the business and this can
also include training, purchases, etc. Another set of understanding
that I have learned is that main focus needs to be made on the
objectives that has to be covers as it enables to provide
information to search the journals that are relevant as research
topic. Objectives should be very specific so that all these are
covered and are able to understand them. When the information
provided is not correct, then it becomes difficult to get appropriate
outcome for the research topic. Apart from this, it is required to
have more question to be asked from oneself so that detailed
related with the research topic can be covered. From this, I have
identified that secondary data are effective enough to gather
information but the total time that is consumed by me for
gathering relevant data that will help to develop in depth
understanding.
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Your Learning
What are the most important
aspects/examples of learning
and/or skills which you have
gained from:
(1) undertaking the MBA
programme,
(2) following through your
research, and
(3) applying your knowledge and
what you have learnt in your Major
Project
(max. 200 words)
1) In all the aspects that are provided by me, I have gained lot
of information. With the help of MBA program, enables to
consider the various type of application of management and
business. This way, it can be started that the type of study that
is attained by me is helpful enough to develop knowledge for
applying them to the real world. Apart from this, there are
some of the companies that will not even consider the person
if he/she has not taken to course of MBA.
2) As per the research carried out, it is identified that main
focus of the business need to be followed for working capital
management also that all the operations or strategies that firm
is willing to implement can be carried out. This way, it can be
stated that steps that has to be taken so that all the
stakeholders know the areas in which development is to be
made and with the total cost that will be incurred. Further, in
conditions when the steps taken by management in relation
with cost is not effective, then it can cause serious losses. I
have developed my research skills and by making use of
various searches tool like Google scholar, I was able to
identify latest journals that can be used for gathering
information related with the research topic.
3) I have learned that financial resources are highly important
and they have direct impact on growth of the business. When
they fail to plan with their full efficiency, then it has negative
impact over the business and the growth of the firm also gets
negatively affected.
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Critical Thinking and your ideas
In carrying out your research, your
analysis, your evaluation of
evidence, and in identifying or
proposing conclusions, what has
been the most important discovery,
or piece of evidence, or theory, or
viewpoint, or critical idea, or
critical addition to your knowledge,
or other item of importance and
Why?
(max. 200 words)
I have identified that, need and requirement of companies
changes frequently and there are certain set of expectation
that management have for their business. When these aspects
are not satisfied, then it has negative impact over the business.
It is required to focus on the management of cost so that all
the business operations can be attained. This way, it can be
stated that proper support is required from the side of workers
so that the plan that is made by the business for growth can be
attained. There are different type of theories that are
considered by business in which planning of business is only
possible when all the barriers that arise are identified. I have
identified that proper monitoring should be carried out so that
the areas in which improvement of the business is required.
This way, it becomes favorable enough to attain the desired
goals. There are identification of leverage done in which the
debt that is faced by the company is analyzed and steps are
taken to reduce the debt. For this purpose Pecking order is
used so that the leverage can be reduced. The research stated
that with effective planning it enables to overcome the
conditions in effective manner. Further workers should be
provided with healthy environment as they are the one who
can help in reducing the waste and when waste is reduced,
then profit margin increases. When this is provided, then it
becomes favorable enough for them to perform in effective
manner. Other than this, I have also identified that that
conflicts among stakeholder within the organization occur
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when the plan made for cost management is not preferred by
others and this has negative effects on business. Management
need to take up appropriate steps to overcome them. In order
to complete the project, it took more than 4 weeks’ time and
the rate of knowledge that I have gained is effective enough to
know more about knowledge that is provided through this
research. There are many type of strategies that are applied by
the business and they do understand the important of skills
and knowledge workers.
Barriers met
What were the main difficulties
and barriers which you were faced
with in:
(l) undertaking your research, and
(2) completing your Major project
(max. 200 words)
There are different type of issues that are faced me be.
However, there is one of the main problem that are faced due
to which it took me lot time to conduct the research.
1) One of the main issue faced was in relation with gathering
information. As per the research, secondary method is applied
in which is done by making use of books, journal, online
sources, etc. However, I identified that permission was
important that had to be taken by making account on the
website so that link can get accessible. Further, there are many
researches that are carried out in which the total articles
should be identified. There are also old journals and that
cannot be taken into consideration as it make the information
unreliable.
2) This way I was able to overcome the issue that was faced in
order to complete the major project.
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Your Professional Development
What are the most important
business and/or management
skill(s) or academic idea(s) or
lesson(s) which you have learnt
from undertaking your research and
Your Major Project - and why?
(200 words)
In the process of completing the project, there are different
type of skills that was developed and these were helpful for
developing my knowledge and understanding, it includes
skills like research, communication, presentation, etc. First of
all there are other members in the project as well and to
complete the work, it is required to have effective
communication. Through communication, one is able to
convey the information that are shared by others. Further, all
the members in the research, needed to identify the type of
roles that has to be played by them. In this context, it required
for me to have leadership skills so that each one can perform
their roles. Further, I was not able to make searches for the
research topic. When any search is made, then there are many
websites that provide different type of answers. However, I
was able to develop this skill in which I improve my search.
Apart from this, I was also able to develop my problem
solving skills. I was able to develop all the skills that are
required in the developing research. Further, it can be stated
that skills like problem solving, decision making,
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communication, leadership, etc. are important to grow.
Objectives
Based on your research and the
work which you have done in the
MBA Programme and its use in
your Major Project, what were and
how far have the objectives of your
major project been achieved?
(max. 250 words)
As per the research carried out, it can be stated that the
objective that are set by me have attained fully. However,
there are many areas in which research can be carried out.
With this respect, there are many firms around the work that
deliver their customers with similar type of products and
services. Profit is attained when these firms are able to
manage cost and profit margin is raised. This way, the
research can be carried out for the business in which firm can
develop strategies with the help of which the rate of profit can
be raised by managing cost for each of the operations.
Further, there are many considerations that are made from my
side in which the selected firm has many other branches on
which the research can be carried. Main objective of the
research was to focus on analyze the impact of working
capital management on business profitability in the context of
UK retail sector. From the analysis made, it is identified that
people who are involved in the management of capital cost
provide opportunity firm and in taking up suitable decision.
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Findings & outcomes
How useful and/or feasible are the
findings, recommendations,
conclusions, or outcomes of your
Major Project to you and/or to a
FutureEmployer?
You must justify your answer with
Specific examples.
(max. 200 words)
From the findings of the research was to determine that by
making use of capital management on business there is an
positive impact on business profitability in the context of UK
retail sector. Further, it is identified that the responsibility of
the managers of cost to develop an effective plan through
which decision making is done so that they can support the
firm to grow. This is only possible when there are proper
research and analysis made to identify the areas in which
development can be made and issue can be eliminated. This
way, it becomes favorable enough to determine the issues that
are faced in the business and steps are taken. When
appropriate steps are taken, then it enables to make sure that
the rate of growth is possible. Apart from this, all stakeholders
need to be provided with information regarding the changes
that they are willing to implement. For example, when
business get what they actually were expecting, then it
enables to make customers satisfied. In addition to this
monitoring of business performance should be done so that
the areas in which improve can be identified.
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TOTAL
100