• Working Capital Management Policy: Lawrence Sports Simulation
    which policy Lawrence Sports should follow. The three potential working capital policies that will be considered for the company are maturity matching, long-term conservative approach, and short-term aggressive approach. The policy recommendation will analyze the risk; contingency, performance, and...
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  • Lawrence Sports Simulation
    three working capital policies will help maintain diplomacy with all three business partners. The best working capital policy for Lawrence Sports is the aggressive approach. The contingency of having too little cash on hand can lead to the inability to meet longer-term obligations creating a...
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  • Lawrence Sprots Simulation
    suppliers, and internationally going with the bilateral netting system. There three ways to approach these policies; one is the maturity approach that is a middle of the road approach and the others are the conservative approach and lastly, the aggressive approach. Lawrence Sports at present has a...
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  • Marketing
    Aggressive Approach and Contingencies for the policy recommended Lawrence was pushed to max out on their credit line on $1.2M because of default payments from Mayo, their top customer. Mayo contributes 95% of Lawrence’s sales (Lawrence Sports Simulation, University of Phoenix, 2013...
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  • Lawrence Policy
    involved, implement contingency actions, evaluate policies through performance measures and develop an implementation plan. Finally, Lawrence Sports will develop a cash conversion cycle to determine the time between the payments of accounts. Aggressive Working Capital Policy Lawrence Sport’s...
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  • Lawrence Sports
    conditions that may deteriorate the company's capital with increase borrowing cost (University of Phoenix, 2009).     Aggressive ApproachLawrence Sports uses the aggressive approach with Gartner by stretching their payments over three weeks and with Mayo by collecting 100% of their sales...
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  • Eco/222
    . Lawrence Sports Aggressive Approach Lawrence Sports will use the aggressive approach as a policy that will reduce future difficulties for the organization. The aggressive approach uses less long-term and more short-term financing. The goal for the company is to raise profitability. Lawrence Sports...
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  • Lawrence Sports Simulation
    aggressive capital policy. Although this policy benefited Lawrence Sports in the short-term, the long-term effects were of far greater importance to its business partners. Recommended Policy Approach The recommended policy for Lawrence Sports is the conservative approach to financing working...
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  • Lawrence Sports Simulation Paper
    and should definitely take a more aggressive approach to insure less difficulty in the near future. Alternative Working Policy Recommendation The authors recommend the aggressive working capital policy to insure the future success of Lawrence Sports. Focusing on short-term financing rather than...
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  • Finance
    will discuss the risk and contingencies associated with the alternate working capital solution. Performance measures will be discussed to show it will be used to evaluate and implement Team C recommendations for Lawrence Sports. Working Capital Policies Team C will look at the following policies...
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  • Lawrence Simulation
    conservative approach, or an aggressive approach (Stowe, Finnerty, & Emery, 2007).  Conservative Approach Shortage of working capital as emergency situations arise is the most important problem in the Lawrence sports simulation. Business partners are involved in this problem. For example Mayo stores...
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  • Lawrence Sports Simulation
    Lawrence’s working capital policy in the areas of cash balance requirements, credit policies supplier negotiations and short term financing. If Lawrence Sports uses the aggressive approach with Gartner by stretching their payments over three weeks and with Mayo by collecting 100% of their sales...
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  • Lawrence Sports Simulation
    recommendations on which policy provides the most benefits to Lawrence Sports. The recommendation includes an evaluation of risk, contingencies, performance measures for evaluations, and an implementation plan (University of Phoenix, 2009). The final recommendation will include a cash conversion cycle for the...
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  • Market
    business relationships in order for Lawrence Sports to maintain a good working capital. This approach may not work with general economic conditions that may deteriorate the company’ capital with increased borrowing cost from the bank. ALTERNATIVE TWO: AGGRESSIVE APPROACH Lawrence Sports can...
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  • Lawrence Sports
    Lawrence Sport: the aggressive approach, the maturity matching approach and the conservative approach. The team identified the problems associated with each approach. An effective and efficient approach to adapt to see everyone satisfied with the results. Lawrence Sport can lose sales if they do not...
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  • Lawrence Sports Simulation
    company's capital with increase borrowing cost. Aggressive Approach Lawrence Sports uses the aggressive approach with Gartner by stretching their payments over three weeks and with Mayo by collecting 100% of their sales. Lawrence Sports was able to pay off the entire balance of their outstanding loans...
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  • Paper
    reposnes. Team D has proposed a three tier approach for Lawrence Sports to better handle working capital management at a more manageable level. • Meet with suppliers to intiiate a plan that makes the payment porcess more timely. This is an area that needs negotiation. Credit terms need...
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  • Lawrence Sports
    techniques to ensure their future success. Risks To move forward, Lawrence must achieve higher liquidity by adopting a more aggressive approach towards its accounts receivable. They need to put pressure on Mayo to pay off 100% of their purchase as quickly as possible. This is a daunting task because in...
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  • Lawrence Sports
    responsibility for broken equipment the company did not have funds face the damages. In this case Lawrence is in need to be aggressive to raise the needed funds. Contingencies for the recommendation. Implementation Plan Improvement of operational efficiencies using just-in-time (JIT...
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  • Lawrence Sports Simulation
    financing this route. The goal of financing through the aggressive approach is to increase profitability, but the firm has a likelihood of facing liquidity problems in the future. Evaluation of Risk Associated with Recommendation Lawrence Sports heavily relies upon sales revenues from Mayo as the...
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