Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Lawrence Sports Working Capital Management
Lawrence Sports is a manufacturer of sporting goods facing a fiscal dilemma in the early spring of 2011. Between the months of March and April, the company would experience an impasse within the context of its Current Cash Conversion Cycle. Here, an improved strategy for working capital management is called for.
First, with respect to the cash conversion cycle, Lawrence Sports largely draws is working capital from two sources. The first of these is its partnership with Mayo, the largest retailer in the world and buyer of 95% of all goods from Lawrence. The second of these is the Central Bank, which maintains the company's account balance at $50,000 through a system of automatic loans that are invoked any time the company's cash availability slips beneath this margin. Historically, Lawrence has employed an Aggressive approach to its capital management by relying on...
This is an approach which would depend on what the simulation terms as the 'aggressive' sales styling of Mayo Account Management Robert Dent as well as on the approach of vesting all of the company's revenue on only one source.
This structure is completed on the other side with a steady outflow of cash to suppliers Murray and Gartner. These two firms are the primary collectors that round out the cash flow picture for Lawrence. At the juncture reported upon here, in the late April of 2011, this structure is producing imminent difficulty for Lawrence. The terms of its agreement with the Central Bank include interest rates that increase at different price points and a ceiling of $1.2 million in total loans. Having reached this ceiling in April of 2011, it has become evident that failure has been produced in the company as a result of the aggressive approach…
To counter this dependence, Lawrence Sports should create a three to six-month grace period before the price changes go into effect and increase marketing efforts to other retailers during this period. This will give the Lawrence Sports advance notice of any problems that might arise in implementing this plan as well as reducing its exposure to the Mayo Stores retail outlets, allowing for greater latitude in capital management. In order
This would considerably simplify matters for Lawrence Sports. Such financing methods are best suited for alimenting short-term objectives. The reason behind implementing an electronic payments system relies on the fact that the company would count on receiving and making timely payments. This alternative is also designed for simplifying the cash flow. Preparing and effective cash budget is another alternative solution that must be taken into consideration by the company's managers. The
Finance Lawrence Sports Simulation Lawrence Sports are facing a challenge; they have a single buyer for their goods and deal with two main suppliers. The firm is facing delays in collecting the accounts receivable from the buyer; Mayo, while the payments for the suppliers; Garner Products and Murray Leather Works remain due. The strategy suggested is to readjust the credit terms with Lawrence and the suppliers to reduce the pressure o the
Starbucks' Human Resource Management Policies and the Growth Challenge In recent years, there has been much interest in the notion of "high commitment" human resource management (HRM). The high commitment HRM is focused on developing self-regulated behavior among employees that is based on mutual trust rather than external sanctions and pressures. Considering this premise, this paper provides a review of the relevant peer-reviewed, scholarly and organizational. literature concerning the advantages of
Managing All Stakeholders in the Context of a Merger Process Review of the Relevant Literature Types of Mergers Identifying All Stakeholders in a Given Business Strategic Market Factors Driving Merger Activity Selection Process for Merger Candidates Summary, Conclusion, and Recommendations The Challenge of Managing All Stakeholders in the Context of a Merger Process Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and
Each onion router removes a layer of encryption to uncover routing instructions, and sends the message to the next router where this is repeated. This prevents these intermediary nodes from knowing the origin, destination, and contents of the message. 1.4. Lecture Survey. The predicted solution of the problems related to e-government administration depends on answering the following questions as brainstorming ideas to solve the problem and the features provided by the system