The Financial Management Practices of Telco Stores in Metro Manila

Abstract

The study aimed to assess the financial management practices of Telco Stores in Metro Manila. The researcher used a descriptive design wherein a modified questionnaire was employed. The questionnaire was divided into 4 categories: Financial Planning, Working Capital Management, Financial Control, and Financial Risk Management. The gathered data were subjected to statistical treatment.

The data revealed that Globe Stores in Metro Manila were effective in the identification and declaration of risks in the preparation of financial and budget plans, maintaining cash balances in its optimal level, reporting of discrepancies in cash collections, and safekeeping of cash in a secure location and surrendering such to banks on a regular fashion. While rated effective though, there are opportunities in terms of accurately predicting delivery and replenishment of supplies (e.g. handsets, SIM cards), as well as the adequacy of supplies (e.g. handsets, SIM cards) to cater the needs of new and re-contracting customers.

The research revealed though that there was no significant difference in the respondent's assessment on the level of effectiveness of financial management practices in terms of Financial Planning, Working Capital Management, Financial Control, and Financial Risk Management when they were grouped into Age, Sex, Highest Educational Attainment, and Tenure.

One of the recommendations of the researcher is to adopt a standard inventory management system such as Economic Order Quantity (EOQ) or Vendor Managed Inventory (VMI) in order to improve on how inventory is forecasted and replenished. This will create better customer experience as customers get the handset they need at the time they need it.