...SOLUTION: LAWRENCE SPORTS INC. Problem Solution: Lawrence Sports Inc. University of Phoenix Problem Solution: Lawrence Sports Inc. Presently Lawrence Sports has had to make some short-term decisions concerning its working capital management. In order to learn from this experience they will develop a working capital policy which will increase the predictability and efficiency of their cash. Working capital is defined as “the assets of a business that can be applied to the operations” or “the amount of current assets which exceed the current liabilities” (Answers, 2007, para. 1). Working capital management involves the “deployment of current assets and current liabilities as to maximize short-term liquidity” (The Free Dictionary, 2007, para. 1). The intent of a working capital management policy is to ensure an organization is able to continue business operations and has adequate ability to satisfy both short-term debt and upcoming operational expenses. Simply stated, “good management of working capital will generate cash, improve profits and reduce risks” (Anonymous, 2007, para. 2). Lawrence Sports, a manufacturer and distributor of sporting goods equipment, is currently facing a number working capital and cash flow management issues largely related to past due payment of their largest customer, Mayo Stores. This paper will take a closer look at Lawrence Sports’ simulation and identify the issues, goals, potential solutions, evaluate risks and define metrics...
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...Lawrence Sports Simulation Working capital management and the capital conversion cycle are keys to success in companies. According to Emery, Finnerty & Stowe (2007), this term is defined as “the management of working capital management of assets and liabilities.” Having an excellent working capital management policy can help the company to be more effective in improving profits and reducing risk most commonly associated with capital investment. Lawrence Sports is a manufacturer and distributor of sports equipment. Following will include an analysis of the issues this corporation is currently facing. A list of recommendations to the company along with an analysis of the cash conversion cycle, the working capital management policies and cash management techniques to reduce the risk associated with capital investment, trade of products in other countries and currency exchange impact will be evaluated. Dependency Reduction Recommendation The Lawrence Sport simulation does emphasize the importance of all the business partners to the cash conversation cycle of the organization. For that reason, keeping a strong business bond between all partners is very much in need. Lawrence Sports has been having issues with cash flow because of late payments from vendors and sometimes a result of no payments. Lawrence Sports should work on improving its cash flow by establishing a system of regularity which can be done by adding competition on both sides of the transaction- the sales as well...
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...2 Scope management 3 Event Timings 4 Division of work 5 The Project controls 5 Cost Control 5 Time Control 5 Strength of Training Control: 6 Participants 6 Risk management 6 The weather 7 Personnel security 7 Injuries of sports 7 Conclusion 7 Bibliography 8 Executive summary People these days are getting fatigue and losing their health. The workaholic environment and not doing physical activities are making people fatter, lazy and more open to various kinds of diseases and viruses. In order to maintain health and fitness one must do physical fitness and should take care of their intake food (Jowett 2007). The use of fast food has become more often these days and the extra amount of calories they intake are making them more expose to germs, diseases and various heart issues. In order to tackle this situation, people must carry out physical activities and should involve themselves in sports and games. Sports and different kinds of games are very important; they not only keep healthy but also fit with a sound mind in a sound body. Sports and games let us to change our daily routine and it is considered as a useful mean of entertainment. Not only sports are entertaining but it also helps us in character building, team playing and builds skills of leadership. Sports may help us in building stamina, gaining more energy and helps in mental and physical growth. Moreover, sports help in improving our capabilities, efficiency and physical looks. Sports and different...
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...Cash Management Policy Lawrence Sports can reduce future difficulties by improving productivity of cash flows and monitoring market securities. This can be done by implementing a cash management policy that will work to ensure there is enough cash for transactions and also ensure there are not excess amounts of cash. The policy will establish sound cash management practices, allowing for the efficient application of cash, consistent with Lawrence Sports company objectives. Reviewing cash balances and adjusting appropriation drawdowns will be done so on a regular basis. Market securities will be considered because they too are liquid in terms of funds and can be moved quickly and cheaply (Emery & Finnerty, 2007). A working cash limit will depict the maximum amount of cash that is necessary to meet commitments that are associated with regular payments. The financial officer will be responsible for monitoring account activity and balances so there is enough cash to meet company obligations as they become due. Reviewing balances and adjusting appropriation drawdowns will be done so on a regular basis. The policy will also work to maintain adequate financial booking hence cash related transactions will be recorded and approved by those individuals delegated for making approvals. Lawrence sports must work to process cash disbursement transactions promptly and also reconcile all cash daily. Evaluation of the Risk The learning team recommends Lawrence Sports use the cash management...
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...Risk Assessment and Mitigation Techniques Any solution will have inherent risk, the key is to identify and explore the consequences of the risks so mitigation can be incorporated into the implementation plan through contingency plans. Lawrence Sports faces several risks in attempting to implement a working capital policy. The first risk is the extension of credit to customers. If Lawrence Sports is too liberal with extending credit they will be faced with the need to borrow money to meet the target cash balance. On the contrary, if Lawrence Sports has a strict credit policy, sales may suffer as a result. The mitigation of this risk is for Lawrence Sports to have a conservative credit policy and consistent implementation with every customer. The second risk is the implementation of the electronic payments. Lawrence Sports can not coerce Mayo Stores, Gartner Products or Murray Leather Works to convert to a new system which Lawrence Sports may implement. In addition, an aggressive attempt to implement the EFT could cause a sever rift in business relations which could cripple the company. To mitigate this risk, Lawrence Sports could communicate early on with customers and vendors about their intention to convert systems and providing explanation of the numerous benefits of implementing an electronic payment system. Lawrence Sports can also offer a higher discount on transactions for a limited period for using the electronic payment process. Cash budgeting may cause shockwaves to...
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...Cash Management Policy Lawrence Sports can reduce future difficulties by improving productivity of cash flows and monitoring market securities. This can be done by implementing a cash management policy that will work to ensure there is enough cash for transactions and also ensure there are not excess amounts of cash. The policy will establish sound cash management practices, allowing for the efficient application of cash, consistent with Lawrence Sports company objectives. Reviewing cash balances and adjusting appropriation drawdowns will be done so on a regular basis. Market securities will be considered because they too are liquid in terms of funds and can be moved quickly and cheaply (Emery & Finnerty, 2007). A working cash limit will depict the maximum amount of cash that is necessary to meet commitments that are associated with regular payments. The financial officer will be responsible for monitoring account activity and balances so there is enough cash to meet company obligations as they become due. Reviewing balances and adjusting appropriation drawdowns will be done so on a regular basis. The policy will also work to maintain adequate financial booking hence cash related transactions will be recorded and approved by those individuals delegated for making approvals. Lawrence sports must work to process cash disbursement transactions promptly and also reconcile all cash daily. Evaluation of the Risk The learning team recommends Lawrence Sports use the cash management...
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...Lawrence Sports Working capital management is very important in running a business because it involves managing all current assets and liabilities. Working capital management involves making appropriate investments in cash, marketable securities, receivables, and inventories, as well as the level and mix of short-term financing (Emery, Finnerty, Stowe, 2007, p. 639, para. 3). Currently Lawrence sports, a multi-million dollar company that manufactures and distributes sports equipment is seeking a way to better manage its’ capital, lower loan burdens, and undertake better business deals with its’ three business partners. Management can solve this issue with working capital policies that reduce future difficulties. Alternative Working Capital Policies As the newly appointed finance manager, one must be fully aware of the companies operating expenses, principal source of finance, suppliers and current financial stance and process with the lending bank. Understanding how all of these relationships can cohesively work together is key to being a success in this new role. By being properly prepared and developing successful working capital policy, the company will always have balanced receivables and payables due to working and negotiating with Lawrence Sport’s customers and suppliers. This type of communication and action plan will result in optimizing revenue, decreasing cash borrowed turn-around time, positive business relations and maintaining positive cash balance thus...
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...participating in sports. Sadly, most athletes do not report these problems in time albeit they are aware of the symptoms that accompany such sport-related health problems. Concussion is one such health problem that is affecting athletes, especially high school students. It has been reported that most of athletes tend to avoid reporting symptoms of concussion in order to avoid being sidelined from playing (Diagnosing and Treating Sports-Related Concussion, 2014). In the United States, it is estimated that up to 3.8 million athletes suffer from concussions linked to high impact sports (Diagnosing and Treating Sports-Related Concussion, 2014). There is, however, a feeling that the figure is under-estimated in the sense that most athletes as well as their coaches are not conversant with the symptoms of this particular health issue. Therefore, concussions in athletes are a serious health issue which should be addressed immediately. There is need to inform athletes and all stakeholders in the sport industry on the symptoms of concussions as well as their capability to be fatal in order to help athletes seek treatment to avoid repetitive concussions which would lead to deaths. The purpose of this paper is to inform the reader, especially athletes, on the importance of seeking early diagnosis and treatment as an effective management plan and avoiding risk factors. This paper will, therefore, discuss the persons who are at increased risk to have concussions, the risk factors associated...
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...I. INTRODUCTION – RISK MANAGEMENT The technique of risk assessment is used in a wide range of professions and academic subjects. Engineers "risk assess" bridges to determine the likelihood and effect of failure of components, and social welfare workers "risk assess" their clients to determine the likelihood of the reoccurrence of anti-social behavior. Risk assessment has become a commonly used approach in examining environmental problems. It is used to examine risks of very different natures. Definitions in risk assessment are all-important because of the wide range of uses of the approach, and different meanings of terms used by different groups of experts and practitioners. Hazard is commonly defined as "the potential to cause harm". A hazard can be defined as "a property or situation that in particular circumstances could lead to harm" Risk is a more difficult concept to define. The term risk is used in everyday language to mean "chance of disaster". When used in the process of risk assessment it has specific definitions, the most commonly accepted being "The combination of the probability, or frequency, of occurrence of a defined hazard and the magnitude of the consequences of the occurrence". The distinction between hazard and risk can be made clearer by the use of a simple example. A large number of chemicals have hazardous properties. Acids may be corrosive or irritant to human beings for example. The same acid is only a risk to human health if humans are exposed...
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...Lawrence Sports Simulation University of Phoenix FIN/571 Professor Helen Horton-Brown June 25, 2012 Lawrence Sports Simulation Lawrence Sports is both a distributor and manufacturer of sports equipment and protective gear. Because of the company’s size and industry, it is critical for Lawrence Sports (LS) to integrate an effective cash budget to become less reliant on short-term financing. Cash budgeting is an integral component for effective capital working policy (Emery, Finnerty, & Stowe, 2007). Establishing a cash budget is a means to observe a company’s inflow and outflow of cash, which in turn, will assist in adequate forecasting and planning, especially concerning when it comes to short-term credit (Emery et al, 2007). A high-quality working capital policy would also free up cash, which may be allocated to strategic areas for the company’s growth. LS must cease from financing shortages through credit lines with heavy reliance on selling inventory and receiving prompt payments. To understand the changes needed, a review of LS current policy will be analyzed and alternative working capital policies will be compared. Recommendations will be represented regarding which policy LS should implement. Alternative working capital policies The first alternative working capital policy is for LS to negotiate better collection on sales terms with Mayo Stores. The initial arrangement is to receive 20% collection...
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...Project Definition Report Coupled with ITPM Phases Fairlawn Fitness Center and Sports Clinic MBA 533 OL – Team 3 Summer 2015 Prepared by Team 3 | Edwin Medina - Class Lead Arif Morshed Azad -Team Leader, Integration, Time, Stakeholders' and Communication Manager Ubeda Sawda - HR, Scope and Cost Manager Shikhun Liu – Procurement and Risk Manager | Quality Assurance Manager | Md Sabbir Islam Asif- Quality Manager | Date of Publication/Revision | June 9, 2015 | Document History: Document Revision | Date | Description | 1.0 | 3/1/15 | PDR Initial Document | 2.0 | 3/11/15 | PDR Revised Document | 3.0 | 05/29/15 | Value Added PDR Initial Document | 4.0 | 06/10/15 | Value Added PDR Revised Document | Table of Contents Topic | Author | Page No. | Project Executive Summary: | Ubeda Shahira Sawda | ………......... | 3 | Project Overview : | Arif Morshed Azad | ………......... | 4 | Project Objectives: | Arif Morshed Azad | ………......... | 8 | Project Scope: | Ubeda Shahira Sawda | ………......... | 9 | Project Deliverables: | Shikhun Liu | ………......... | 12 | Organizations Affected: | Arif Morshed Azad | ………......... | 15 | Project Estimated Cost: | Ubeda Shahira Sawda | ………......... | 17 | Project Approach: | Arif Morshed Azad | ………......... | 18 | ...
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...Lawrence Sports Simulation FIN/571 Corporate Finance Prof. Ricardo Rivera Matos May 29, 2012 University of Phoenix * Lawrence Sports Simulation * The process of taking risks will define if a company will emerge from a financial situation. The business relationships will suffer, but if the high risk is in a short term basis, probably this will help both parts to comprehend why is important to keep good finance health when an emergency situation occurs. * Lawrence Sports is a 20 million revenue company that manufactures and distributes equipment and preventive gear for baseball, football, basketball, and volleyball. Mayo Stores is the principal customer of Lawrence Sport. Mayo also is the world leading retailer, with 3,000 stores with operations in United States, Canada, South America, and Europe. Lawrence sources all its materials from Gartner Products and Murray Leather Works. * Robert Dent is the Key Account Manager of Mayo Stores. He has shown an impressive track record in building and excellent and profitable relationship with Mayo. Ann-Wu Head is the head of vendor relationship. She feels that Lawrence Sports’ bargaining power with Gartner is restricted since Lawrence Sports is not a major customer for Gartner. She finds Murray the more flexible of the two vendors and she is looking for more vendors like them. She feels that Murray is likely to run deep financial troubles if Lawrence Sports stretches payment beyond a limit. * As managers we...
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...LIMITED 2012 Annual Information Form February 21, 2013 ANNUAL INFORMATION FORM CANADIAN TIRE CORPORATION, LIMITED TABLE OF CONTENTS 1. 2. Corporate Structure Description of the Business 2.1 Retail Business 2.2 Financial Services Business 2.3 Seasonality of the Business 2.4 Intangible Properties 2.5 Economic Dependence 2.6 Lending 2.7 Financing of the Business 2.8 Risk Factors 2.9 Employees 2.10 Social and Environmental Policies General Development of the Business 3.1 Retail Business Developments 3.2 Financial Services Business Developments 3.3 Other Business Developments Capital Structure 4.1 Description of Capital Structure 4.2 Market for Securities Dividends Security Ratings Transfer Agents and Registrars Directors and Officers Interests of Experts 1 1 2 10 11 12 12 13 13 13 15 15 16 16 21 21 23 23 24 25 26 27 27 32 32 33 i 3. 4. 5. 6. 7. 8. 9. 10. Legal Proceedings and Regulatory Actions 11. Additional Information ANNEX A – Audit Committee Mandate and Charter Certain brands mentioned in this report are the trade-marks of Canadian Tire Corporation, Limited, Mark’s Work Wearhouse Ltd., FGL Sports Ltd. or used under license. Others are the property of their respective owners. CAUTIONARY NOTE REGARDING FORWARD LOOKING INFORMATION This Annual Information Form, and the documents incorporated by reference herein, contain forward-looking information that reflects management’s current expectations related to matters such as future financial performance and operating...
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...Lawrence Sports Problem Solution University of Phoenix MBA-550 January 19, 2008 Liquidity must become a primary focus for any business hoping to create sustainable growth. Lawrence Sports, a fictional company, is presently in need of capital management analysis and methodology overhaul. Included in this paper is a discussion of the issues, opportunities, values and solutions that the firm should be considering. The 9 step problem solution model is the format used to take the reader through critical identification, evaluation and implementation of elements that will transform a problem into new growth opportunity. Lawrence Sports is a $20 million dollar revenue company that assembles and distributes sporting goods. The focus of the scenario is to provide the opportunity for the student to develop solutions to trade off issues, thus establishing stability for the firm. Mayo, who is a retailer responsible for 95% of sales, is hindering Lawrence from paying raw materials suppliers. Unfortunately, this cash positioning problem is direct result of the Lawrence credit policy and the Mayo request to delay payment until the week of April 14-20. Borrowing money to deal with supplier payables is not an option, due to the $1.2 million dollar maximized bank limit. Therefore, this paper will strategize from the perspective of a financial manager who will turn a working capital problem into the chance to design a new credit policy, implement cash management models and introduce...
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...Company Background • Sport Obermeyer designs and merchandises high-end skiwear from its Aspen, Colorado headquarters. • The products are sold in U.S. department stores and specialty ski shops. • Although it has a global supply network, most production is done in Hong Kong and China by its partner, Obersport. Sport Obermeyer Supply Chain Management MGT 690 June 5, 2010 2 Obersport The Supply Chain Shell Fabric • Established in 1985. • It is a joint venture between Sport Obermeyer and a Hong Kong based partner. • Obersport handles the raw materials and production for all of Sport Obermeyer’s production in the Far East. • Production is done in independent subcontractors located in Hong Kong and China. Lining Fabric Insulation Materials Cut/Sew Distribution Center Retailers Snaps Zippers Others Textile Suppliers Obersport Obermeyer Retailers 3 4 Planning Cycle Planning Cycle Cont. • Design begins in February of the year before the garments will appear in stores. • As soon as designs are finalized, samples are produced and shown to retailers during the Las Vegas show. The show is usually held in March. • Concurrently, materials and components are ordered for the initial production order. • Usually receive 80% of the annual order volume the week after Las Vegas show. • During June and July the garments are transported to Obermeyer’s Denver warehouse. This takes approximately six weeks...
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