Lawrence Sport Simulation

Lawrence Sports Simulation

Annetee White, Elizabeth Garcia, Joseph Coleman, Loucks Kendra

University of Phoenix

Abstract

This paper will discuss several alternative working capital policies that will recue future difficulties and make recommendations that Lawrence sports will use. We will evaluate the risks that are associated with our recommendations and plan for contingencies. Performance measures that will be sued to evaluate our recommendations will be discussed along with the cash conversion cycle and how it affects our recommendations.

Lawrence Sports Simulation

An organizations working capital is their assets less their liabilities.  At the heart of working capital exists a working capital policy that helps drive business decisions to make an organization more profitable.  Being able to manage working capital according to the scenario “is not an easy task.  It requires good planning and more importantly quick responses” (University of Phoenix, 2002).  Lawrence Sports, a $20million dollar sports manufacture is not excused from the troubles of working capital management as they have hired Team D, to oversee the working capital management of Lawrence Sports to make recommendations.    

Team D has collaboratively come together to accomplish two tasks: One, agree upon three alternative working capital policies that reduce future difficulties.  The second task is to make a recommendation on which policy Lawrence Sports should adopt.  The criteria the recommendations will be founded upon include:  One, an evaluation of the risk associated with the risk associated with the recommendation and two, contingencies for the recommendation.  Third, performance measures that are used to evaluate your recommendation and four a discussion of the cash conversion cycle and how it might be affected by team D’s recommendation. And lastly, an implementation plan for our recommendation.  These aforementioned topics of discussion, will be explained in the following...