Lawrence Sports Generic Benchmarking
Lawrence Sports Generic Benchmarking
Lawrence Sports is a $20 million revenue company that manufactures and distributes equipment and protective gear for baseball, football, basketball, and volleyball. The world’s leading retailer, Mayo Stores, is Lawrence’s principal customer. Lawrence sources all it material from Gartner Products and Murray Leather Works. Lawrence Sports has a line of credit with Central Bank. Whenever there is cash deficit, money is borrowed automatically from the bank to maintain a minimum positive cash balance of $50,000. The agreed limit of borrowing is $1.2 million. Repayment is done during the last week of each month after retaining a minimum positive cash balance of $50,000. The interest rate increases with the increased borrowing, so the point is to keep the borrowing and the interest rate down.
This paper will bring insights of various companies’ issues and their solutions to overcoming challenges. The companies that have been researched include Apple, Merck & Co., AmeriCast Global Services, Olympic Moving & Storage, Fannie Mae, Washington Mutual, Dell, Ford, AOL, and Giant Food. Important topics to be discussed are working capital strategies, cash budgeting, cash flow analysis, practices in working capital management, risks and opportunities of working capital strategies, and the ethical implications of competing working capital alternatives. Through researching and benchmarking best practices from these companies Lawrence Sports will be able to use these ideas and solutions to help them with business decisions that they currently have and ones that they may face in the future.
Team C’s Analysis
Select working capital strategies to prepare for long-term opportunities
To prepare for a long-term business opportunity, a firm needs to effectively manage its working capital. A firm working capital includes its assets and liabilities and for long-term opportunities, the currents...
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