Avis Budget Group, Inc
Avis Budget group is one of the leading and most recognized companies in the global vehicle rental industry. Avis is a leading rental car supplier to the premium commercial and leisure segments of the travel industry and Budget is a leading rental car supplier to the price-conscious segments of the industry. A majority of business stems from their $6 billion dollars of revenue stems from their onsite airport locations. On the Avis/Budget website they state, “Domestically, in 2007 we derived approximately 81% of our nearly $4.0 billion in car rental revenue from on-airport locations and approximately 19% of our domestic car rental revenue from off-airport locations, which we refer to as our local business” (2007).
In the simulation we dealt with Lawrence Sports, an industry leading sports Distribution Company. We were asked to make decisions based on the amount of loan we would have to take out from our bank in order to keep cash inflow and outflow continuous. In making our decisions we had to factor in our relationships with our suppliers as well as our customers, and all decision affected if we would have to take more or less of a loan from the bank and be charged more interest. Avis also some altercations to some of the deals it made with suppliers which caused them to have to reclassification of their cash flow of first quarter. “The reclassified amount represents cash payments received from Realogy and Wyndham for the settlement of reimbursable transactions in connection with the separation of Cendant Corporation in 2006,” as stated in the Avis/Budget May 2007 press release.
In order to rectify situation, Avis/Budget had to adjust send this press release stating where and exactly where the funds comes from in order to balance out ...