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| Topic: |
Business
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| Number of pages / Number of words: |
14 / 3736 |
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The business relationship that has been created is one LS needs to keep. Third, the cash outflow is greater than the inflow at this time for LS. To keep the cash outflow down, LS could look at changing to a just-in-time approach. This would keep the inventory and cost of supplies down. Once, cash availability improves, LS could invest the money into research and development for newer products and marketing to find other customers so they do not rely so heavily on Mayo Stores for the majority of their income...
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Plus, they could set up a sweep program with the bank to help with investment.
Stakeholder Perspectives/Ethical Dilemmas
Since LS has fallen into a situation where the cash inflow and outflows are not balancing, LS may need to make changes to their capital policies. The problem with this is if Lawrence wants to change their policies to include penalties for late payments, they could lose Mayo Stores as their primary customer...
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