Working Capital Strategies Work sheet
MBA550
University of Phoenix
Working Capital Strategies Work sheet
Introduction
The global marketplace requires companies continuously to improve in order to remain competitive. One of the essential tools for improvement is the ability to establish optimal working capital strategies and practices. Working capital practices include the management and delicate balance of accounts receivables, accounts payables, inventory levels, sources of short term borrowing and cash flows. The working capital manager at Lawrence Sports finds the company in an intricate position following defaults and delays on receivables from the Mayo Stores that have directly affected their working capital practices, namely debt payment. The result for such delinquent behavior on the part of the May stores: a corresponding cash flow deficit forced on Lawrence Sports which has forced the company to take out large bank loans with high interest payments, loans which they are sometimes not able to pay in a timely manner. Some opportunities are available to Lawrence Sports that may aid in rectifying the current situation. The company can restructure the working capital policy to best meet cash budgeting issues. A useful aid in making these decisions can come from benchmarking other companies that have faced similar challenges. Analyze the previous experiences of companies like Amer Sports, California Axle, EMC Corporation, General Electric, Keep It Green Landscaping, Regions Bank, Serigo’s Pool and Spas and Volt Information Services; Incorporated can assist Lawrence Sports in making an educated decision.
Keep It Green Landscaping
Keep It Green Landscaping is a mid-size landscaping company ba ...