Analysis of Lawrence Sports Working Capital
University of Phoenix
MBA 550 ? Resource Optimization
October 5, 2007
Analysis of Lawrence Sports Working Capital
Lawrence Sports is a manufacturer and distributor of equipment and protective gear for baseball, football, basketball, and volleyball. Lawrence Sports primary customer is Mayo Stores and their primary suppliers are Gartner Products and Murray Leather Works (UOP, 2004). Due to Lawrence's cash flow issues, the company will need to evaluate their current finance processes to determine the adjustments needed to improve the Company's overall cash flow issues. A tool in developing a comprehensive cash management / working capital plan will be the benchmarking of other companies to determine a alterative solution which will enable the company to improve its overall cash flows. An analysis will also be performed on the evaluation of the risks and opportunities of working capital strategies, working capital strategies to prepare for long-term opportunities, cash flow, and to identify best practices in working capital management.
Falcon Solutions
Falcon Solutions is a supplier of high-tech and electronic components that was founded in 2001. Falcon developed a financial relationship with UPS Capital to get the most out of its working capital. "Short-term, or current, assets and liabilities are collectively known as working capital." (Brealey, R., S. Myers, F. Allen, 2005, p. 1). This financial partnership allowed Falcon to "optimize its working capital, meet and exceed customer requirements, implement low risk growth strategies, and prosper in a difficult market for high-tech and electronic services"(UPS, n.d., 2). The UPS product, C.O.D. Automatic, eliminated delays in pay ...