Working Capital Simulation
Working Capital SimulationSanjeet Kaur RodriguezFin/571October 13, 2014William Stokes
Managing Growth Simulation
Introduction
The working capital simulation has allowed us to analyze the financials of Sunflower Nutraceuticals Company(SNC). The decisions made by the CEO increased the working capital and maximized the overall organizational growth potentially with respect to time. Moreover in addition to various details of the SNC firm we have also examined various decisions which took place in each of the phase of SNC’s simulation which has an estimated values to figure out the results. The paper also describes how SNC’s decisions are influenced with respect to their working capital followed with the final step of evaluating the general affects associated with the limited access of financial mix.
Sunflower Nutraceuticals (SNC) Background
SNC is a privately owned Nutraceuticals company and is a wide distributor which provides all the vital dietary supplements such as herbs for women’s, vitamins, and minerals for all the consumers (mainly women’s), distributors and retailers. (Harvard Business School Publishing, 2012). Once the business was initiated after 2006, SNC expanded their operations and came up with various retail outlets in the nutraceutical industry and has been successful while introducing their own brands of sports drinks, vitamins for teenagers, metabolism- boosting powders, etc and various other products from a same product line which enhance the metabolism system of humans.
Although the potential to grow as one of the major nutraceutical distributors in the, they are still struggling to break even and on more than one occasion have been forced to exceed the company’s credit line ($1,00,000) to finance the payroll and other operational needs. Because of the organization’s somewhat restrictive financing options, they are only able to use a small percentage (approx. 10%) to evaluate and invest in new business expansion which
Managing Growth Simulation
Introduction
The working capital simulation has allowed us to analyze the financials of Sunflower Nutraceuticals Company(SNC). The decisions made by the CEO increased the working capital and maximized the overall organizational growth potentially with respect to time. Moreover in addition to various details of the SNC firm we have also examined various decisions which took place in each of the phase of SNC’s simulation which has an estimated values to figure out the results. The paper also describes how SNC’s decisions are influenced with respect to their working capital followed with the final step of evaluating the general affects associated with the limited access of financial mix.
Sunflower Nutraceuticals (SNC) Background
SNC is a privately owned Nutraceuticals company and is a wide distributor which provides all the vital dietary supplements such as herbs for women’s, vitamins, and minerals for all the consumers (mainly women’s), distributors and retailers. (Harvard Business School Publishing, 2012). Once the business was initiated after 2006, SNC expanded their operations and came up with various retail outlets in the nutraceutical industry and has been successful while introducing their own brands of sports drinks, vitamins for teenagers, metabolism- boosting powders, etc and various other products from a same product line which enhance the metabolism system of humans.
Although the potential to grow as one of the major nutraceutical distributors in the, they are still struggling to break even and on more than one occasion have been forced to exceed the company’s credit line ($1,00,000) to finance the payroll and other operational needs. Because of the organization’s somewhat restrictive financing options, they are only able to use a small percentage (approx. 10%) to evaluate and invest in new business expansion which
References: Harvard Business Publishing. (2012). Working capital simulation: managing growth. Retrieved from, http://forio.com/simulate/harvard/workingcapital/simulation/?#page=dashboard. BIBLIOGRAPHY l 1033 Parrino, R., Kidwell, D. S., & Bates, T. W. (2012). Fundamentals of corporate finance (2nd ed.). Hoboken, N.J.: John Wiley & Sons.