"The chief executive of a small yarn-creation business in India must work out an unexpected cash shortage. The task for the student will be to rate the reasons for the deficit (using an accomplished "base-case" outlook given in the case) and measure the utility of various potential remedies suggested by managers. The business is unable to liquidate a seasonal working-capital loan for an issue arising from two classic causes the necessary 30 days each year: secular growth of the organization and declining profitability. Possible treatments include reducing inventory through more efficient transportation and warehousing, reducing credit terms to customers, changing from seasonal to level production, improving profitability, decreasing dividends, and reducing sales growth."
PUBLICATION DATE: February 04, 2013 PRODUCT #: UV6600-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING