INFLUENCE OF QUALITY MANAGEMENT SYSTEMS ON THE FINANCIAL CAPITAL MANAGEMENT STRATEGIES IN TRADING COMPANIES

• Main Authors: Grzegorz ZIMON, Dominik ZIMON
• Format: Article
• Language: English
• Published: Publishing House of Rzeszow University of Technology 2015-02-01
• Series: Modern Management Review
• Subjects: quality, capital, strategy, management
• Online Access: http://doi.prz.edu.pl/pl/pdf/zim/154

Trading companies which want to increase their competitiveness are forced to look for new ideas to improve the implementation of the adopted strategy. The aim of the publication is to show the role of the quality management system according to ISO 9001 to develop the strategy of working capital management in trading companies. Working capital is one of the most important elements of financial management in a company. This is an area of finance which includes management of current assets and current liabilities. The choice of the appropriate management strategy leads to high liquidity and low profitability, or vice versa. Companies managers, to meet the expectations of the owners, introduce management systems that allow for safe maintenance of liquidity. One such solution, without which the implementation of certain working capital management strategy is almost impossible is to develop appropriate standards for quality management. In the paper the requirements of the quality management system according to ISO 9001 were characterized and discussed its impact on the choice of individual strategies of working capital management. Based on the considerations it was stated that: quality management systems improve relationships with suppliers and customers and minimize the number of errors and inconsistencies in the supply and distribution strategy, aggressive management of working capital without the introduction of appropriate quality management systems leads to the collapse of companies. Its application is in some sense a buffer that protects the company from bankruptcy, at the stage of implementation of the system it is recommended to have developed strategies for working capital management and the implementation process should be adjusted to their requirements.