Working capital simulation managing growth

This phase presents the opportunity for the leverage supplier discount selling its herbal nutraceutical line to Atlantic Wellness enabled growth.

After reviewing how the numbers for SNC will be affected if the incorporate Atlantic Wellness this leads to decline the decision of to decline the Super Sports Center due to the fact that it will affect the account receivables. This phase presents the opportunity for the leverage supplier discount selling its herbal nutraceutical line to Atlantic Wellness enabled growth. Managing Growth Simulation Introduction The complete course has reveled us the great idea to influence our trends and intelligence while analyzing the entire details of Sunflower Nutraceuticals SNC company followed with all the decisions of the company which tends to increase their working capital and maximizing the overall organizational growth potentially with respect to time, as we have figured out the data and change in numbers below which reflects the growth annually. The global expansion however helped the SNC grow its top of the line with the new customer Viva Familia. Below I will point out how and why I made each decision. This simulation alone has taught me one of the many risks of doing business with any company. Tighten accounts receivable in Phase 1 2. The limit of access to finances also hinders the process to develop and own their own brand of products. The company considered and accepted the Atlantic Wellness contract as it allows them to increase company sales almost doubled for 2mm. Harvard SNC Synopsis In phase 2, I chose to expand the online presence as well as develop a private label in one simulation and the second simulation I just chose to expand on line.

Acting as CEO in the first phase of the new business opportunity, SNC has the position to increase the net income and the working capital. This may position SNC in a more lucrative financial positions.

The results of acquiring a high-risk customer increase the sale, but had a dramatic affect on the receivables.

working capital simulation managing growth sunflower nutraceuticals solution

In some situations they changed whether it dropped or risen, and others they were completely stagnant with their movement through each phase. After running the simulation you will write a brief analysis in report format that explains for each opportunity presented: 1.

hbr working capital simulation for sunflower nutraceuticals

If this were a sole proprietorship, it would really be stressful to handle all by their lonesome. Once the business was initiated afterSNC expanded their operations and came up with various retail outlets in the nutraceutical industry and moreover 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 enable to enhance the metabolism system of humans.

first complete step 1 prepare of the hbr working capital simulation for sunflower nutraceuticals

Develop a private-label product in Phase 2 7. It is a really difficult task to try and manage a company as well as keep up with the market. As I went through each simulation more than once to see what affects the decisions had on cash flows, sales and EBIT.

The purpose is to assist the decision making process through the phases 1 to 3 on opportunities such as taking on new customers, capitalizing on supplier discounts and reducing the inventory.

Looking at the comparative Balance Sheet, the accounts receivables have been declining from As being an online company it is very important to maintain their website making it user friendly to increase their sales. Renegotiate supplier credit terms in Phase 3 9.

Acting as CEO in the first phase of the new business opportunity, SNC has the position to increase the net income and the working capital. Since SNC is an online business is imperative that these area works perfectly that is friendly user. This also counteracts with the accounts receivable and inventory balances after phase one. Drop poorly selling products in Phase 1 3. Harvard SNC Synopsis The results of tightening up the accounts receivable were that sales have declined but the receivables improved which freed up cash. Reference: Harvard Business Publishing. Develop a private-label product in Phase 2 7. Renegotiate supplier credit terms in Phase 3 9. References Harvard Business Publishing. Pursue big-box distribution in Phase 2 8. Expand online presence in Phase 2 6.
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Working Capital Simulation: Managing Growth