Jacob Zimmermann has seen its revenues and profits declining over the past three years after MegaRols entered his local market and reduced sales of its proposals Rolex watches in his Midwest retail store. Bonne Chance has been selected to offer the Swatch line, which may be able to revive sales in the upcoming holiday season and in 2011. Bank loan officer covered the last overdraft, but it will not extend credit. Already behind on some old bills, money is very tight, and within 30 days, Zimmerman, to come up with the first payment on the harvesting equipment Swatch. He has several options to increase sales and eliminate inventory to meet its upcoming purchase, not Rolex inventory. Each of them has an impact on its cash flow and should be carefully evaluated against the reaction of his long time clients, Rolex and MegaRols.
With competitors nipping at his heels, his bank is reluctant to close the last overdraft, Jacob Zimmerman is considering expanding its Midwest retail jewelry business by bringing in a new line of watches Swatch, a larger high Rolex offers. Only 14 weeks until the end of the year, he revises the timing of its cash flows and the impact that various options for promotion will have on its ability to deliver an initial order for Swatch inventory and deal with this crisis. "Hide
by James M. Sharpe, John O. Whitney Source: Harvard Business School 11 pages. Publication Date: Aug 03, 2012. Prod. #: 813049-PDF-ENG
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