• Explain Each Phase Of Snc's Journey In Simulation?
Managing Growth Assignment
Name of the Student
FIN/571
Date
Faculty Name
Managing Growth Assignment
Throughout the course of study in Finance 571 class curriculum, different aspects of the corporate finance were discussed in the class and learn. This paper will discuss the analysis of Sunflower Nutraceuticals’ (SNC) journey to increase their working capital and maximized growth in next 10 years that is until 2021. In addition to that paper will also explain following
1. Explain each phase of SNC’s journey in simulation
2. How it will effect on SNC’s working capital
3. Effect of SNC’s limited access to financing
Overview of Sun Nutraceuticals’ Operation
According to the simulation synopsis Sunflower Nutraceuticals (SNC) is a privately …show more content…
Expand Online Presence –SNC is hoping to explore the new horizons to expand their reach to newer customers and retail markets. SNC is presented an opportunity to create business alliance with online nutraceuticals giant Golden Years Nutraceuticals, which has larger, and more diverse customer base. This alliance will help SNC to reduce its DSO because online sales usually collect rapidly from seven, to three, to two days during 2016-18. In addition, SNC also saw a 14%, a 12%, and an 11% increase in their sales in year over year during 2016-18. This could be beneficial for SNC, as it will help them to improve their sales without any significant effect on company’s working …show more content…
The common effects of this limited access to financing are:
1. They have to pay higher interest rates on a business credits and expansion loans.
2. Businesses are force to comply with the unnecessary, costly entry and exit procedures (Parrino, Kidwell, & Bates, 2012).
3. Limited access to finance usually limits the business expansion and growth that means company usually strive for rapid profits, SME, consumer/client base, etc.
4. It can also challenge on company’s ability to secure its own product’s intellectual property right, as procedure is complicated and expensive. Therefore, it limits their ability to claim product uniqueness.
Conclusion
This SNC simulation is excellent resource for student to learn how to manage growth and capital. Along the journey, it also provides simulated hands on experience to challenges any entrepreneurs/CEOs may face in today’s business world. As simulation describe how it becomes challenging to adhere the growth and managing capital specially when startups or company may face limited access to required business credits or loan at the reasonable rate and
Name of the Student
FIN/571
Date
Faculty Name
Managing Growth Assignment
Throughout the course of study in Finance 571 class curriculum, different aspects of the corporate finance were discussed in the class and learn. This paper will discuss the analysis of Sunflower Nutraceuticals’ (SNC) journey to increase their working capital and maximized growth in next 10 years that is until 2021. In addition to that paper will also explain following
1. Explain each phase of SNC’s journey in simulation
2. How it will effect on SNC’s working capital
3. Effect of SNC’s limited access to financing
Overview of Sun Nutraceuticals’ Operation
According to the simulation synopsis Sunflower Nutraceuticals (SNC) is a privately …show more content…
Expand Online Presence –SNC is hoping to explore the new horizons to expand their reach to newer customers and retail markets. SNC is presented an opportunity to create business alliance with online nutraceuticals giant Golden Years Nutraceuticals, which has larger, and more diverse customer base. This alliance will help SNC to reduce its DSO because online sales usually collect rapidly from seven, to three, to two days during 2016-18. In addition, SNC also saw a 14%, a 12%, and an 11% increase in their sales in year over year during 2016-18. This could be beneficial for SNC, as it will help them to improve their sales without any significant effect on company’s working …show more content…
The common effects of this limited access to financing are:
1. They have to pay higher interest rates on a business credits and expansion loans.
2. Businesses are force to comply with the unnecessary, costly entry and exit procedures (Parrino, Kidwell, & Bates, 2012).
3. Limited access to finance usually limits the business expansion and growth that means company usually strive for rapid profits, SME, consumer/client base, etc.
4. It can also challenge on company’s ability to secure its own product’s intellectual property right, as procedure is complicated and expensive. Therefore, it limits their ability to claim product uniqueness.
Conclusion
This SNC simulation is excellent resource for student to learn how to manage growth and capital. Along the journey, it also provides simulated hands on experience to challenges any entrepreneurs/CEOs may face in today’s business world. As simulation describe how it becomes challenging to adhere the growth and managing capital specially when startups or company may face limited access to required business credits or loan at the reasonable rate and