Running head: PROBLEM SOLUTION: LAWRENCE SPORTS INC.
Problem Solution: Lawrence Sports Inc.
Nancy Prykryl, Shauntae Suttle, Deborah Jackson, Jasmine Smith
University of Phoenix
Problem Solution: Lawrence Sports Inc.
Introduction
In this research paper, the issues of LSG will be reviewed, alternative solutions will be analyzed, risks will be mitigated, an optimal solution will be established, and end state goals will be measured.
Situation Analysis - Issue and Opportunity Identification
Lawrence Sports has many different issues in their organization. Their main issue is Lawrence Sports does not have an existing inventory management program in place. The company also does not have a supply policy. The lack of an inventory management program is also hurting the company. An opportunity for this issue would be to improve their inventory management program and like Radio Shack; the company would put in a Celerant’s Managed Control and Reporting System. This system would help Lawrence better manage their inventory and supply. One other issue is that the credit management program does not exist. The company has no terms of sale, no credit analysis, no promise to pay, and no collection policy. An opportunity here would be to implement a stronger collection policy through negotiation and to shorten collection terms to increase the likelihood of collecting accounts receivables on time.
One other issue is that cash budgeting of Lawrence has no cash inflow and outflow. An opportunity for this would be to implement a cash inflow and cash outflow for the company. The last issue here is that there is no sho ...