AFM211 Lecture Notes - Lecture 3: Revolving Credit, Switching Barriers
16 Sep 2016
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Job is to review company and assess if they can buy/open/get new facility. Issues for manufacturing is inventory management, cost management (low/high) and financing (debt) If in the service business (little inventory so not an issue, costing is generally not an issue) Chairs, furniture consumer oriented through stores and retail outlets. Not many new products but variations on existing ones. One major customer (95%) eagle (analysis sales here) Selling cos premium labourts medium (fairly low) Is eagle happy yes want more products. Eagle contract 5 year fixed priced contract restrictions on sales outside and 60 day terms. Inefficient operator problems (poor training), inexperience, higher maintenance costs, software can"t keep up (throughput problems), coordination of scheduling. 3 ways to get money raise equity, debt, internal funding. Means she cannot raise funds through equity (she already did it) Cannot sell anymore shares as she will lose control. Is michelle knowledgeable on management: yes, has experience.
