UofP - MBA550 - Team Assignment - Sikes - 05-06-06

UofP - MBA550 - Team Assignment - Sikes - 05-06-06 -...

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Problem Solution 1 Running head: BENCHMARKED SOLUTIONS: LAWRENCE SPORTS Benchmarking and Research to Define Solutions: Lawrence Sports Robert Sikes University of Phoenix
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Problem Solution 2 List of Problem Statements The problem statement for Lawrence Sports must include opportunities, enable many possible solutions, be motivational, and clear (University, 2006). Therefore, the statement prepared for Lawrence Sports is presented below: “Lawrence Sports seeks to maximize cash flow management and decrease short-term financing with attentiveness to growth sustainability by implementing long-term financial best practices.” While this problem statement is a generalization of several issues and challenges, it allows for the development of multiple solutions to address the opportunities and supports the vision and culture of Lawrence Sports. List of Topics to be Researched Since the future end state for Lawrence Sports includes better management of short-term assets and liabilities, the company must implement a fiscally responsible finance plan. This planning will help Lawrence be consistent with the work needed to reach its goals for growth, investment and financing (Brealey, 2005, p. 801). A creative element of this finance plan is capital management—specifically, sale-leaseback financing. A form of off-balance-sheet financing, the major benefit of sale-leaseback financing is unlocking the capital bound by real estate ownership. It can be a lucrative option for companies who are (1) looking to finance growth, (2) paying down a debt, and (3) reallocating capital into more productive use. Therefore, identifying best practices in capital management is the purpose of this report. Benchmarking Results Capital Management—Sale-Leaseback Financing
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Problem Solution 3 Corporations are in constant turmoil on how to raise, allocate, and maintain capital. Corporate-owned real estate can be costly and erode profits; however, real estate can be used to unlock shareholder equity (Mesirow, 2006). Bell Atlantic—now known as Verizon—unlocked shareholder equity by implementing several sale-leaseback transactions as an alternative method for raising capital during its existence (Lenrock, 2006). PREFCO, a unit of Pitney Bowes Capital Services, is a leading source of real estate financing and advisory services to Bell Atlantic and other corporations
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UofP - MBA550 - Team Assignment - Sikes - 05-06-06 -...

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