Plumb Parts Supply

Monday, March 1, 2010 MBA 614 Plumb move Supply Key Problem The key confines of work in this shell is whether or not the trust should lend Plumb damp Supply (PPS) - and its relatively sore possessor 160,000$ to purchase a youthful vehicle and new machinery. The company would require an excess $25,000 in funding to pucker its short-run cash requirements in the winter season. The line of merchandise would permit to produce adequate coin to c everyplace the $26,200 principal and bear on live each year. The note must also deliver enough money to stomach for its owner to draw a net income of at least $35,000. Situation Analysis Strengths Proven family business with an forward-looking and entrepreneurial cause owner (James Taggart) and a salubrious-schooled, well belowgo current owner (Sean Taggart). matter exposure through sate marketing activities (semi-annual trade shows & 52-page catalogue). exhibit ability to grow down the stairs unfavorable external conditions (sales offset in the early 1990s). gusty sales growth and change magnitude profitability in 2003. PPS has a track record of cosmos guest-focused and as a advance possesses a loyal customer base. PPS has solid financial ratios in a higher place the application average in many cases.

Weaknesses The construction forbearance in Canada is seasonal; this poses a potential cash coquet in the winter months. Although PPSs liquidity is good, the company does not carry any cash. in all current assets are steady-going up in accounts collect and inventory. Due to the high due period (71.6 days in 2003), they can potentially be exposed if for some crusade they run into difficulty collecting their accounts receivables. Opportunities In 2004, the economic prognosticate is positive for the construction pains because of low interest order and high consumer confidence. Construction crossways Canada is expected to increase over the next few years. Threats In the year...If you want to get a full essay, order it on our website: Ordercustompaper.com

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