Working Capital

Management Analysis
CHOWKING
SM OLONGAPO DOWNTOWN

“Tikman ang Tagumpay”

 Description of the Paper Working Capital Management

Treasury Management

Working Capital Summary of

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Conclusion
 Working Capital Summary of
The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 The 305th Store of Chowking All over the Philippines

Owned by Fresh N’ Famous Foods Corporation

Opened February 2012

Working Capital Summary of

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Company Analysis tions
Conclusion
 VISION: MISSION:

To be the go-to Quick

Service Restaurant for
Chinese food that
To bring the joy of
inspires success as we
eating to everyone by
deliver superior value
serving great tasting
through our great-
food
tasting and affordable
meals

Working Capital Summary of

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Conclusion
 Respect for
Excellence the
Individual

Customer CORE Spirit of

Family and
Focus
VALUES Fun

Humility to
Honesty Listen and
and Learn
Integrity

Working Capital Summary of

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Conclusion
 Annabelle Narciso
M’Belle
(NL RBU Head)

Emy Myla Liwanag

M’ Lyla
(OD NL District 2)

ORGANIZATIONAL Joseph Talao

STRUCTURE S’ Lowee
(AM NL District)

Mae L. Gomez
M’ Mae
(RM/TQM/R&M/FSCCO

Jianine Ambuyoc Jee-Ann Candaza Joseph P. Dominguez

M’ Jhya M’Jee M’Joseph
Product Quality Sales & Marketing Service Quality
Manager/PC Manager Manager

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

The payment transaction happens in a system

called SAP (Systems, Application and Products)

Chowking company must have their SAP Account,

for them to be able to pay their suppliers, as well
as with their suppliers too

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

The daily sales of the store collects by the

bank and goes directly to the store from
Monday to Friday

The Company does not have check

payments, because all of the transactions
happens at the SAP

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

For the safety measures SAP Account Password

will automatically be Expired every 3 mos.

The store had only one (1) account which

their daily sales is deposited and NO
WITHDRAWAL is allowed

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

The store considers three (3)

policies in forecasting.

There Is basis such occasional-

based marketing

Performance differs from last year

Changing trade area

Working Capital Summary of
The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

The store considers what they called

“GRANT PULL OUT”, where the manager-
on-duty will collect money from the
cashier, which the money will be use for
the excess expense for the store due to
insufficient fund.

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

There must be a cash custodian and

recorder at the same time

During the cut-off of each cashier, the manager does

only responsible for the process until dropping of money
to the vault, and must have the signature of both cashier
and manager at the sales pack

The cash custodian handles two (2) different cash; petty cash and the
change of funds.

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

“credit sales”, happens when there is client who

orders in advance but no payment yet

The store collects account receivables

only in cash and non other than cash

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

In collecting of receivables, the

store always indicates the terms
and conditions in a contract, as
well as the allowances and
consideration in case of delayed
payment.
Working Capital Summary of
The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

Ordering Process of raw materials must be 4

days ahead but there is cut off at 11am.

Ordering unit of measures is only “per crates

and per case”

The store implemented FIFO (First In, First Out),

FEFO (First Expire, First Out).

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

In purchasing and ordering process, they

consider events and other factors that may
affect the sales and inventory as well.

For in case of inadequate stocks for a day, the

store is allowed to borrow stocks from others
such as Jollibee, Greenwich, Burger King and
with other branch of Chowking too.

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

In receiving inventory, the stores always makes

sure that the quantity, weight and appearances
of the stocks to be receive are all acceptable
and does meet what is written in the delivery
receipts.

One manager-on-duty and a stockman, receives

the stocks

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

Storage for the inventory is divided into 3 parts;

Dry, Walk-in Chiller, and Walk-in Freezer.

Dry Storage contains all the paper stocks used

for packaging, and others such wares and tools
and other food stocks that does not need to
store in a cool place

Walk-in Chiller and Freezer consists of other food

stocks which are required to be refrigerated.
Working Capital Summary of
The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

Payment Terms is provided in the SAP (Supplier Application and

Products) it is an online application which they can transact
their supplier for the needed resources in terms of the payments

Payment Process in terms of payment the company should

issued invoice attachment through SAP (Supplier Application and
Products ) online payment, the store wouldn’t responsible for
paying purchase because all payabales transactions will be
made by their main office.

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Cash Accounts Working
Inventory Payable
Management Receivable Capital
Management Management
Evaluation
Analysis Management

As per Ms. Gomez the working capital really

depends on the store, the location, the staff, certain
repairs and etc. The manager have or should have
an ideal ratio for the end capital to be okay. Every
branch has different expenses, different top sale of
products, so to keep the branch healthy at least
having a 5% working capital would be great.

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Accounts
Receivable
Management

Cash Inventory
Management
Management
Analysis

Working Payable
Capital Management
Evaluation

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Accounts
Receivable
Management

Cash Inventory
Management
Management
Analysis

Working Payable
Capital Management
Evaluation

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Accounts
Receivable
Management

Cash Inventory
Management
Management
Analysis

Working Payable
Capital Management
Evaluation

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Accounts
Receivable
Management

Cash Inventory
Management
Management
Analysis

Working Payable
Capital Management
Evaluation

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 Accounts
Receivable
Management

Cash Inventory
Management
Management
Analysis

Working Payable
Capital Management
Evaluation

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion
 We strongly recommend that based on our findings
regarding their ordering of inventory , instead of 4
days maximum before they get the stocks , should
make it 2 days maximum and the cut off time
should adjust to 3pm from 11 am

Our second recommendation is chowking

should implements the hassle free depositing
of cash

Working Capital Summary of

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Introduction Management Analysis and
Company Analysis tions
Conclusion
 Third recommendation is they should accept
payment of customer from G cash, Coins.ph,
and other digital wallets.

Fourth recommendation is under their customer

relation they should have a rebate card like in
Jollibee they have a happy plus cards

Working Capital Summary of

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Company Analysis tions
Conclusion
 Fifth is accept payment thru
Credit Card and Debit Card

Working Capital Summary of

The Recommenda
Introduction Management Analysis and
Company Analysis tions
Conclusion