The Garden Place – One Year Later Harvard Case Solution & Analysis

ANSWER TO QUESTION # 8

Mary Jane Bowers has shown the overall efficiency in running the business operations of the company as the company has incurred a profit after tax of $8,235. However, there is huge difference between the gross profit and operating profit of the company. It shows that the operating expenses of the company are very high.

Therefore, it is recommended that the Mary Jane should make effective strategies in order to control the overall operational costs of the company in order to earn high profits. In addition to this, Jane should also make effective strategies to recover the receivables of the company efficiently and effectively.

Furthermore, Jane is falling short on cash, this would create liquidity problem for her in future for running the operations of the company efficiently and effectively. Therefore, it is recommended that Jane should focus more on cash sales rather than credit sales.

Moreover, instead of incurring cash expenditures, Jane should accrue the expenses of the company. This would enhance the cash balance of the company and would allow Jane to run the operations of the company efficiently and effectively. In addition to this, Jane should decrease its receivable days and enhance its payable turnover period in order to maintain a large cash reserve.

Meanwhile, Jane should consider on acquiring assets on lease rather than purchasing them on cash as this would also enhance the overall cash balance of the company.Furthermore, Jane should expand its business as well as Jane should also diversify its product line in order to ensure a robust growth in the overall operations of the business............................

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