Sunflower Nutraceutical (SNC) is a distributor in the Miami, Florida area is a privately owned company. Sunflower Nutraceutical is a business that started as a direct –to-consumer distributor and retailer in products related to supplements that include vitamins, minerals and herbs for women, and all ages. This company has successfully and ambitiously expanded their business and SNC continues to operate and desires to expand their business to plans to operate and expand their market and product line. SNC has continue to have a break even in sales growth and annual revenues. It is the goal of SNC and to advise them in terms of investing for growth and cash flow improvement opportunities. The purpose is to assist the decision making process through the phases 1 to 3 on opportunities such as taking on new customers, capitalizing on supplier discounts and reducing the inventory. This may position SNC in a more lucrative financial positions. SNC has currently expanded into launching several private label brands “Although health food companies have been around for ages providing such products, this is new for SNC. Research shows that the target audience for the company to thrive in industry growth will be “increase in the elderly population, the rate of growth in chronic diseases, and the relative affluence of the working population, and increasing societal awareness of preventative medicine.”
The Business plan on Eastman Kodak Company Film Business Photographic
Eastman Kodak Company is one of the world's largest manufacturers of photographic equipment. It develops, manufactures, and markets photographic and chemical products for both amateur and professional photographers. The company's other products include X-ray films, pharmaceuticals, copier-duplicators, acetate fibers, polyethylene, polypropylene, polyester, and videocassettes. Kodak also provides ...
For SNC entering into this new market will be monumental step for the entity to posiblly succeed in growth and increased revenues. Looking at the comparative Balance Sheet, the accounts receivables have been declining from 2010-2012. The Income Statement shows that sales have been consistent the cost of sales has shifted causing the EBIT to drop in 2011 and to rise in 2012. Acting as CEO in the first phase of the new business opportunity, SNC has the position to increase the net income and the working capital. (See Balance Sheet and Income Statement).
For the first phase, phase 1 SNC encounter the decision to include a new client Atlantic Wellness. When working around this decision of incorporating the new customer the sales increased significantly but at the same time the accounts receivables and inventory balances increased. After reviewing how the numbers for SNC will be affected if the incorporate Atlantic Wellness this leads to decline the decision of to decline the Super Sports Center due to the fact that it will affect the account receivables. By declining the Super Sports Center will improve the account receivable and improve the cash flow due to the fact that increases the accounts receivables and the inventory balances and in return it decreases the cash flow because it increases the EBIT earnings before interest taxes partially offset by increased EBIT due to the favorable contract negotiated with Ayurveda Naturals.” (phase 1 Balance Sheet and Income Statement)
In the Phase I the decision to include the client Atlantic Wellness, the result shows that the new customer increases the sales significaly but it results in higher accounts receivables and inventory balances. SNC has to decline to incorporate Atlantic Wellness because it affects the account receivables, by declining it helps to improve the AR and the cash flow. This phase presents the opportunity for the leverage supplier discount selling its herbal nutraceutical line to Atlantic Wellness enabled growth. However while growth increased in accounts receivables and inventory balances, the drain on cash flow was partially offset by increased EBIT due to the favorable contract negotiated with Ayurveda Naturals.” (Phase 1 Balance Sheet and Income Statement).
The Essay on The Decision Making Process How Communication Is Important
Good decision making is an essential skill for career success generally, and effective leadership particularly. If you can learn to make timely and well-considered decisions, then you can often lead your team to spectacular and well deserved success. However, if you make poor decisions your organization can tumble. Regardless of the size of business you are in whether a large corporation, a small ...
In the phase 2 there is the decision of expanding online and developing the private label. As being an online company it is very important to maintain their website making it user friendly to increase their sales. Since SNC is an online business is imperative that these area works perfectly that is friendly user. This activity increases their sales and has little impact on the working Youth Spas increased the EBIT, the accounts receivable and the inventory slightly… (See Phase 2 Expand online presence) as this implementations are considered sales will continue to increase which is favorable for the EBIT and the Net Income. At the conclusion of phase 2 the company continues to progress financially, sales continue to increase after the sales did not showed improvements for that period. (See Phase 2 Balance Sheet)
Finally for phase 3 the company has to continue on with the implementation and the decision taken to provide that financial advantage that SNC wants to obtain without having to worry about cash flow or even payroll. The decision to adopt Global Expansion shows to be financial advantage versus taking Viva Familia as a new customer. The later ones has to be decline due to the fact the there is a slight increase of cash but more inventory to maintain. (Phase 3 Balance sheet Income Statement) . After evaluating the decisions on how to adquire financial advantage this are the metrics:
Sales: $12,048
EBIT: $1,024
Net Income: $584
Free Cash Flow: $614
Equity Value: $1,355
Total Firm Value: $3,899
SNC will continue to progress as long as the decisions are implemented and monitored the company will not have any problem with their cash and working capital. It is attractive for business to incorporate and increase their corporation , but companies have to analyze closely how this will impact the financial situation of the entity.
References
Parrino, R., Kidwell, D. S, & Bates, T. W. (2012).
The Essay on Strategic Sale Disinvestment Companies Sold
Other than Modern Food Industries (India) limited, only minority stakes in different PSEs were sold before the year 2000. The Government has since modified its policy to emphasise on strategic sales. The disadvantages of sale of minority stakes by the Government have been found to be as follows: Lower realisation's because the management control is not transferred. Moreover, it signals lack of ...
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Hoboken, NJ: Wiley.
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WORKING CAPITAL SIMULATION:MANAGING GROWTH. Retrieved from HARVARD BUSINESS, FIN/571 CORPORATE FINANCE website.
