RUNNING HEADING: LAWRENCE SPORTS BENCHMARKING
Lawrence Sports Benchmarking
Cheryl Betten, Mike Centeno, Lisa Michelle Chapple,
Eugenia Waslin, Donna Loy, Joseph Sosnowski
University of Phoenix
Phil Harris, FAC
Resource Optimization, MBA 550
September 27, 2008
Lawrence Sports Benchmarking
Changes in business arrangements with its key partners have left Lawrence Sports facing serious working capital management issues in the scenario. Mayo, the largest customer of Lawrence Sports, has recently defaulted on established payment arrangements, and Lawrence has outstanding payment obligations due to its two biggest suppliers. These factors have created a serious cash flow issue at Lawrence Sports. In the past, Lawrence has compensated for short-term cash flow problems with short-term bank borrowing. The recent events plaguing Lawrence have forced bank borrowing to reach an all-time high. At the rate events are occurring, Lawrence does not have the proper working capital management in place to survive in the long-term. Therefore, we have analyzed and researched several companies to find working capital alternatives that would be beneficial to Lawrence in its present state. Although not all the companies analyzed had favorable results, this benchmarking report gives Lawrence a roadmap for which strategies are successful to improve both cash flow and working capital management.
Overall Team Analysis
Working capital strategies to prepare for long-term opportunities working capital strategies to prepare for long-term opportunities include granting credit, credit policies, collection policies, and financing trade credit. “It is useful to think of the decision to grant credit in terms of carrying cost and opportunit ...