edf40wrjww2CF_PaperMaster:Desc
Running head: PROBLEM SOLUTION: LAWRENCE SPORTS INC.
Problem Solution: Lawrence Sports Inc.
Melissa Garrett
University of Phoenix
Problem Solution: Lawrence Sports Inc.
Lawrence Sports Inc. is a major supplier of sports equipment and protective gear. Recently, they have faced several issues that have created a sort of crisis within the company. One retailer, Mayo, is responsible for the bulk of Lawrence’s commercial sales. Mayo encountered internal accounting issues that have led to their inability to pay Lawrence in the agreed manner. This unexpected slow in incoming cash flow has been complicated even further by an unexpected damaged shipment of goods. This damaged shipment resulted in Lawrence terminating their contract with the transporting company; this came with a cost of $250,000. Despite the extra expense, Lawrence will still have to find a way to cover expenses to their two vendors: Murray and Gartner. They have reached the maximum of their borrowing from the bank in the amount of $1.2 million. Cash will have to be rerouted from other assets to cover expenses and the debt from Mayo will have to be satisfied.
This problem will be evaluated and solved while keeping in mind the stakeholders in the scenario and their interests. Relationships with vendors and clients must be maintained. Also analyzed will be possible risks and ways to mitigate them in the optimal and alternative solutions. Finally, an implementation plan and evaluation methods will be established for the optimal solution. This in-depth analysis of the problem and its solution will provide Lawrence Sports with a plan of attack for their financial issues.
Situation Analysis
Issue and Opportu ...