Performance Dmeasures That Are Used to Evaluate Recommendation for Lawerence Sports
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- Date Submitted: 01/11/2011 09:08 PM
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The Lawrence Sports Simulation
Risk Assessment and Mitigation
Deciding to implement a new credit policy is the best way to ensure the business can sustain. Mayo will hopefully be accepting. If not, a reliable mitigation plan must be in place. Factoring receivables will help ensure that Murray and Gartner are paid for raw materials. “Factoring refers to the sale of a firm’s accounts receivable to a financial institution known as a factor” (Ross et al., 2005). Instead of endangering the relationship with vendors, factoring will relieve the payables problem by relinquishing approximately 4% of the invoice amount to the factor. Considering the global reach of Mayo, factoring may be the viable solution for the short term. As mentioned in the benchmarking section of this paper, Coca-cola has found a way to Lawrence Sports Problem use derivatives to hedge foreign currency fluctuations. If Murray and Gartner end the relationship with Lawrence Sports, and outsourcing becomes a cost saving alternative, the firm will turn to international suppliers for raw materials. Lawrence will have the choice of either entering into a bilateral forward contract with a commodity resource or using an exchange to establish forward prices. Depending on how well the Lawrence staff plans for the outsourcing agreement, the project could become very advantageous.
Optimal Solution
Three common elements for success in any company are strategy, financial and corporate governance. Lawrence Sports has a responsibility to initiate cash control to increase profitability in the supply chain system. This means that future competitive advantage will exist as the response to contracted policies and formalized cash management techniques. The following section is a justification of the optimal solution to help save Lawrence Sports. When the firm manufactures the raw materials and relies on a retailer, a tremendous obligation is created. The vendor offered credit to Lawrence, which then extended credit...
Risk Assessment and Mitigation
Deciding to implement a new credit policy is the best way to ensure the business can sustain. Mayo will hopefully be accepting. If not, a reliable mitigation plan must be in place. Factoring receivables will help ensure that Murray and Gartner are paid for raw materials. “Factoring refers to the sale of a firm’s accounts receivable to a financial institution known as a factor” (Ross et al., 2005). Instead of endangering the relationship with vendors, factoring will relieve the payables problem by relinquishing approximately 4% of the invoice amount to the factor. Considering the global reach of Mayo, factoring may be the viable solution for the short term. As mentioned in the benchmarking section of this paper, Coca-cola has found a way to Lawrence Sports Problem use derivatives to hedge foreign currency fluctuations. If Murray and Gartner end the relationship with Lawrence Sports, and outsourcing becomes a cost saving alternative, the firm will turn to international suppliers for raw materials. Lawrence will have the choice of either entering into a bilateral forward contract with a commodity resource or using an exchange to establish forward prices. Depending on how well the Lawrence staff plans for the outsourcing agreement, the project could become very advantageous.
Optimal Solution
Three common elements for success in any company are strategy, financial and corporate governance. Lawrence Sports has a responsibility to initiate cash control to increase profitability in the supply chain system. This means that future competitive advantage will exist as the response to contracted policies and formalized cash management techniques. The following section is a justification of the optimal solution to help save Lawrence Sports. When the firm manufactures the raw materials and relies on a retailer, a tremendous obligation is created. The vendor offered credit to Lawrence, which then extended credit...