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1724 Words Apr 20th, 2015 7 Pages
Managing Growth Simulation

FIN/571

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. Moreover in addition to various details of the SNC firm we have also examined various decisions which took place in each of the phase of SNC’s simulation which has an estimated
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Additionally, acquiring Atlantic Wellness as a client will help increase SNC’s sales significantly, but those increase sales does not come without a cost as the increase sales will come at the sacrifice of inventory and accounts receivable. Sacrificing inventory and accounts receivable is not a good deal for SNC because of their current cash position as SNC must keep a minimum of $3 lakh on hand to meet their company’s operational needs. However, there is a positive lining for SNC as the risk of inventory and accounts receivable could be balanced by negotiating a profitable deal with merchant Ayurveda Natural.

IV. Limiting their Receivable Accounts – Since Super Sports Centers account for 20% of SNC’s sales figures, those receivable accounts takes the company approximately 200 days to pay and those 200 days is well above the normal 90-day average. To resolve this issue, SNC could drop Super Sports Centers and improve their DSO number, but that come at a cost as SNC’s sales would drop $2mm.

Phase 2 of SNC’s Simulation (Years 2016-2018)

During phase two of the simulation, SNC was presented with three different opportunities and those opportunities include:

I. Expansion of SNC’s Online Presence –Since SNC would like to expand their operations into new retail markets its company was presented with an opportunity to partner with Golden Years Nutracueticals so that they could reach a larger, more diverse consumer base.From 2016-2018, this
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