A chemical developing company, BBC Pvt. Ltd. (BBC), was in pressing need of funds in order to secure an important contract. BBC was able to make a product that called for low investment in the type of fixed assets. Although the merchandise was of an inferior quality owing to its cost effective generation, the organization was able to go beyond on that cost advantage to its end customers, facilitating BBC to preserve its spot in the marketplace.
bbc pvt ltd case solution
Additionally, the company sold the product chiefly on credit and was consequently a preferable alternative for buyers. BBC followed a traditional method of working capital management. The company reimbursed its creditors quickly before the credit period. However, with regard to credit management, a casual approach was followed by the business. It expanded credit sales in the type of raw material for substantial periods and its sizeable stock and finished goods resulted in excessive blockage of working capital. In this event, BBC had the chance to continue a promising contract that would necessitate substantial investment instantly. The managing director of the company's needed to make a decision about the best way to acquire and administer sufficient funds for the upgradation in order to procure its contract that BBC needed.
PUBLICATION DATE: November 29, 2012 PRODUCT #: W12346-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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