Q3 what is the alternative cost and benefit analysis

Q3: What is the alternative?
Cost and benefit analysis
Q4: What is the difference between trade creditor and
banker?
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A trade creditor vs. a bank
（信用销售与银行比较）

A trade creditor ’ s size up of a firm is much the
same as a bank ’ s size-up.

Trade credit is only part of the overall marketing
strategy of a firm.

The interaction of the credit and the sales
function may be a delicate balance. Lost sales
(profit) must be weighted against bad debts in
determining a credit policy.

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Analyses （分析）

Background of SRI.

Background of Macdonald

What is the Problem?

What are alternative? （选择）

Size-up of Macdonald

Alternative analysis

What is the Problem?

The Management leveraged-buy-out of Macdonald
placed a severe strain on the financial position of
the company. （杠杆收购）
- Deficit retained earnings. （负留存收益）

Relation between the companies were good prior to
the acquisition （并购） in 1993.

SRI must re-examine its position, given the risk and
possible collapse of Macdonald. （风险）
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What are the alternatives?

Case doing business with Macdonald
-
Find other distributors in the region;
-
Acquire its own distribution company in this area.

Keep doing business with Macdonald
-
Do nothing;
-
Ship goods to Macdonald on a consignment basis （委
托销售） only;
-
Work with Macdonald to reduce the inventory （存货）
of SRI’s products and the accounts receivable （应收
帐款） investments.
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Alternatives