Financial resourcing in Al-Drewesh Company, Saudi Arabia

Problem identification

Financial resources drive the success of a company and its poor management increases the chances of that company failing (Yun, 2010, p. 234). A company will finance its operations through many ways and as such they need to keep a track of these resources. Therefore this research will focus on the financial resources, proper management and the methods used in resolving finances resources problems in Al-Drewesh Co.

Nasser Aldrewesh established Al-Drewesh Co in 1975. At the moment, it has three factories and many branches in different locations in Saudi Arabia. Each of these three factories in Saudi Arabia is located in different places namely; RiyadhCity, JeddahCity and Dammam. Al-Drewesh deals in household properties such as furniture and beds. Also, it manufacturers cover sheets, duvets, mattresses, pillows, pillow cases and many more. Their main target group is the entire family as their products are manufactured in different sizes; Queen Beds, King Beds, single and double beds and beds suited for children. They value their customers and as such, a customer can make an order for the size they want in Al-Drewesh products. In addition, their unique feature is that all their products are of high quality and they are made in Saudi Arabia.

Introduction

Background information

In the year 2008 Al-Drewesh Co was faced with the challenge of allocating resources. Complaints arose that the accountants did not know how to spend the company’s finances and the operations management did not know what financial resources were available to them. As a result, there was wastage of financial resources as they were misappropriated.

Problem

There are different sources of funds and the persons given the responsibility to manage these funds, often do not please the stakeholders, therefore there is a need to explore the financial resources management in Al-Drewesh Company Saudi Arabia.

Objectives

Financial resources management is essential to the company and this project seeks to satisfy three objectives.

  1. To educate on the importance of proper management of financial resources.
  2. To provide the Al-Drewesh with solutions to the misappropriations of financial resources in the company.
  3. To enlighten on proper financial resources control for the company and suggest professional accountants to manage the revenues and expenses of Al-Drewesh Company.

Limitations

The efficiency and effectiveness of this research might be affected by several difficulties that might affect the researcher during the course of the research. First, the time scheduled for the research is limited since the researcher is a student and at the same time he is an employee and this might prove challenging in the process of collecting information. Second, the availability of money to conduct the research will be a challenge as the entire process is expensive and thus the researcher will have to limit the scope of the study to one factory, RiyadhCity.

Assumptions

Respondents differ in capability, backgrounds and beliefs. Therefore, the research will be based on some assumptions. First, the research process will be effective and communicative. Second, the respondents will be truthful and will provide valid information. Third, the interviews and questionnaires will be well structured. Fourth, as the respondents provide answers they will be of sound mind and under no outside influence to give an answer that does not represent their perceptions. Lastly, the information will represent the entire Al-Drewesh population.

Research strategy and methods

The research strategy that will be used is a non-experimental design and case study that will mix qualitative and quantitive designs. This project will gather its data from both qualitative and qualitative.

Qualitative

The researcher will make direct observations and participate in the company operations. The financial resources that will be observed expect the researcher to participate in them. As such the researcher will visit Al-Drewesh Co and access the process of acquiring and managing their financial resources with the guidance of the chief accountant and the operations manager. This will be done in one factory, Riyadh City, Saudi Arabia. Also, direct observation and unstructured interviews will be used by the researcher during the period of traineeship.

Quantitative

This data will be sourced through questionnaires, formal interviews and documentary research. A questionnaire will be drawn on the specific issues that after resourcing especially financial resources in Al-Drewesh Co. likewise, the researcher will conduct a formal interview with the financial manager and the operations manager. Lastly, this researcher will analyze the documents that belong to Al-Drewesh Co such as brochures.

Data analysis

The data gathered from the quantitative sources will be analyzed by organizing, summarizing and exploring them. The researcher will edit, code, tabulate and classify the data for presentation and analysis purposes. These organizations and summaries will be based on the majority responses, the differences in the issues analyzed and presence of a relationship between the problem and the possible solutions. The resulting analysis will then be communicated through tables, graphs, statistics summary and charts.

Project Planning

As from 23 February 2011, the research will commence and it will be finalized on 16 May 2011. The project budget has been approximated at a cost of $5600. This budget will cater for travelling expenses, printing charges, telephone charges, motivational incentives to the employees during the observation in the work place, catering and miscellaneous expenses during the course of the research.

Ethical concerns

The ethical principles of deontology and utilitarianism will conflict and this might be an ethical issue for the research. The researcher will be challenged with money and time availability and thus the maximum benefits as per utilitarianism might not be achieved (Yun, 2010, p. 236). On the other hand the researcher will have to justify the means to the final result of the project thus involving the principle of deontology.

Financial budget

Particulars / Cost $ / Items
Printing / $1200 / Ball pens, ink, printing papers, printing cost, folders, organizational chart
Travelling / $1300 / Taxi expenses and car fuel
Telephone Charges / $900 / Phone bills made
Incentives / $600 / Team bonding program
Catering / $1000 / Hotel and food catering
Miscellaneous / $400 / Any expenses that might arise

References

Rusmarket.1998-2011. Business Directory. Retrieved January 23, 2011, from Rusmarket website:

Yun, Z. (2010). Analysis of the systematic risk of financial institution in modern finance evolution. International Journal of Economics, 2(3), 234-237. Retrieved from Academic OneFile database.