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Betty Ford Centre should therefore focus on making treatment prices stable by bringing down the speculations pertaining to Betty Ford Centre stocks. Stability in stock prices can encourage more investors to invest in the firm.
Betty Ford Centre faces problems as far as inventory management is concerned and therefore should revisit its inventory management practices. Betty Ford Centre should prepare separate inventory plans for peak seasons. Arrangements should be made for back up supplies to be made available in time in case demand shoots up. Betty Ford Centre can use a lead time inventory management system for that purpose. Certain drugs which have high and routine demand should be maintained in ample quantitative. At the same time overstocking of certain drugs have also lead to issues pertaining to increased storage costs and wastage in terms of expired medicines (Betty Ford, 2010).
Due to high amount of receivables, Betty Ford Centre must either make adequate provisions for doubtful debts or must consider cutting down on receivables. This business practice...
Failure to make adequate provisions can result in overstating current assets and may also lead to cash flow problems if unexpected bad debts occur.
In order to avoid exchange rates fluctuations to implicate on the company's financial statement, all transactions should be made in single currency that is U.S. dollar. Since online shoppers across the world use online payment system, their payments can be automatically converted into U.S. dollars and all intercompany transactions and accounts must be recorded and prepared in single currency.
In order to avoid future taxation risk, Betty Ford Centre must consider revisiting its pricing strategy. Margin must be made to provide room for adjusting sales tax in the retail prices beforehand to avoid competitive disadvantages in future.
References
Racine, S. (2010). Accounting Principles. USA.
Betty Ford Center (2010). Betty Ford Center. Retrieved from < http://www.bettyfordcenter.org/betty-ford-tribute-book/index.php>
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