UofP - MBA550 - Individual Assignment - Paper - 05-13-06

UofP - MBA550 - Individual Assignment - Paper - 05-13-06 -...

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Problem Solution 1 Problem Solution: Lawrence Sports Robert Sikes MBA550 Dr. June Maul May 13, 2006
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Problem Solution 2 Problem Solution: Lawrence Sports This paper will illustrate the overall situation with Lawrence Sports identifying challenges and opportunities, stakeholder perspectives and ethical dilemmas, problem statement, and end-state goals. It will further validate and analyze alternative and optimal solutions, risk assessment and mitigation, implementation plan, and provide a gap/estimated costs analysis. Situation Background Lawrence Sports is a $20 million revenue company that manufacturers and distributes various sporting goods equipment. Presently, Lawrence Sports’ business partners include Mayo Stores, Gartner Products, and Murray Leather Works. Mayo Stores—Lawrence Sports’ principal customer—contributes 95 percent of its sales and is a retail leader in the United States with global expansion efforts underway (University, 2006). Gartner Products and Murray Leather Works provide raw and finished materials to Lawrence Sports and depend on timely payments in order to sustain financial health. However, Mayo Stores has defaulted on its payments, which has caused Lawrence Sports to draw from its line of credit account in order to meet financial obligations to Gartner Products and Murray Leather Works. In the interim, Lawrence Sports has hired a finance manager who must assess and analyze the current situation and, subsequently, propose a new financial strategy to the Chief Financial Officer (University, 2006). Issue Identification Lawrence Sports is confronted with handling day-to-day cash—collections, bad debts, disbursements, future revenues, borrowing, and loan repayments—as well as other challenges and inherent in positioning the company for growth sustainability including—but not limited to: Short-term financial solutions. Limited customer base. Working capital management.
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Problem Solution 3 Stakeholder value opposition. As organizational change can be difficult, inventory management and alternative capital management strategies—sale-leaseback financing and forward/future contracts—are integral components toward Lawrence Sports identifying opportunities and potential solutions. Opportunity Identification Just in Time (JIT)— Big 5 Sporting Goods Big 5 Sporting Goods (Big 5) is the leading sporting goods retailer in western United States, operating 324 stores in ten states. Big 5 provides a full-line product offering at compelling values including athletic shoes, apparel and accessories, as well as a broad selection of athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding, and in-line skating (Big 5, 2006). Sales results and inventory turn are imperative for Big 5. Fortunately, they have enjoyed
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UofP - MBA550 - Individual Assignment - Paper - 05-13-06 -...

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