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Running head: PROBLEM SOLUTION: LAWRENCE SPORTS INC.
Problem Solution: Lawrence Sports Inc.
Karen M. Isabella
University of Phoenix
MBA550/Resource Optimization
February 10, 2008
Problem Solution: Lawrence Sports Inc.
The financial officer of a company must maintain the cash budget in order to keep the profits steady. Analyzing cash budgets on a regular basis is the key, especially in the case of Lawrence Sports, Inc. (LS). The main problem is LS has relied on one customer for its profits and this one customer has defaulted on 80% of its payments, causing LS to delay payments to its suppliers. In the following paragraphs, the decision for LS to enforce capital/collection policies will be discussed, along with the creation of a new method of production, development of new products by the Research and Development team (R&D), and the need for finding new customers by the Marketing team will be explored. The issues that have occurred and opportunities available will be discussed. There will be a review of the stakeholders, how this plan has affected them and what ethical dilemmas there may be regarding them. Next, the problem will be reviewed, along with the end vision for the company, and the alternative solutions with the risks associated with them will be explored. The final optimal solution will be discussed along with how the plan will be implemented and how the results will be evaluated.
Situation Analysis
Issue and Opportunity Identification
“Lawrence Sports (LS) is a $20 million revenue company that manufacturers and distributes equipment and protective gear for baseball, football, basketball, and volleyball,” (Simulation, 2007). 90% o ...