Several Chains Of Business & Advising On Better Performance - 825 Words

Majestic Wines: Several Chains Of Business And Advising On Better Performance (Case Study Sample) Content: MAJESTIC WINESStudents NameName of ProfessorName of institutionCourse NameDateMajestic Wines is a conglomerate of four different lines of business operating in different countries. The following dot points highlights the different lines of businesses and the country they operate in: * Majestic Wine Warehouses Ltd which has the main retail office in UK with branches in England ,Argentina, Australia, Austria, Canada, Lebanon,Chile, France, Germany, Italy, New Zealand, South Africa, Portugal, Spain and USA * Lay Wheeler has offices in Spain, Italy, Australia, New Zealand, South Africa, Argentina, Chile and USA * Les Celliers de Calais mainly based in UK with two stores in northernFrance * Naked Wines, a customer funded, international online wine retailer based in the UK with offices in USA and Australia.Managing risks for a multinational company can be challenging because knowing exactly what, where and how connections can affect the business of a company is a daunting task. A number of strategies can help a company efficiently manage these risk and at the same time boost on returns. * Focusing on the supply and distribution channel and an efficient supply management system is one of the best mechanism a company can leverage on to efficiently deliver output. Supply chains have become pivotal through which companies can boost their business. Supply chains should be used to commercially deliver local gains with the locality of operation. * Applying different approaches to supply chain benefits so as to optimize on benefits. In this case the company can choose to broadly categories its products to expand procurement so as to help boost local economic development. The company can opt to procure through main-suppliers, sub-contractors as well as consolidators after putting i...

Working capital management - 275 Words

Working capital management (Essay Sample) Content: Working Capital Management Author Name InstitutionIntroduction Working capital management is an essential part in financial management of a company. Working capital is the current assets net of current liabilities. Current assets refer to accounts receivables, inventory and cash and equivalent. Working capital management, therefore, is applying financing and investment decisions to the management of the current assets. It can also be referred to as managerial strategy of accounting. The strategy focuses on maintaining an efficient level of current assets, working capital and current liabilities. Working capital management ensures that the company has enough cash flows. Efficient working capital management ensures that the company is able to meet its short term debt obligations as well as its operating expenses (Pass nature or type of business. Manufacturing based companies have a higher level of working capital compared to service based companies. The volume of sale is also another factor. The higher the sales the higher the amount of working capital is required. Seasonality affects the working capital in that the peak seasons demand higher working capital. Also, a longer operating and cash cycle increases the working capital level (Gitman, 2008). Working capital approach/policies Because working capital management is essential in a business, firms need to formulate policies. These policies should be concerned with the working capital components. Firms should have these policies to manage cash, inventory, short-term investments and trade receivables. The policies will help managers make decisions which are in the interest of a firm. The decisions may include investments that are needed in current assets. The policies set should also consider the nature of business. The policies are different to different business because each business requires different capital requirements. For example, a manufacturing company needs to invest heavil y on components and spare parts. The customers might owe the business large amounts of money. A food retail shop will need large inventories for resale but have few trade receivables. Therefore, a manufacturing company policy should emphasize on management of receivables. The food retail shop should limit their credit facilities (Afza the current management is not effective to meet customers need. They experience shortage of working capital to support business expansion and operational requirements. Companies face challenges in managing working capital due to pressure of growth. These pressures may include market segmentation or new product acquisition (Pass & Pike, 1984). Working capital management can be optimized by supply chain management strategies and financial strategies. The supply chain management is essential because it optimizes the working capital. Firms may improve the forecast accuracy and also find other routes to optimize the inventory. Companies also need to make t he right decisions on how much inventory to stock. The lead time also need to reduce to optimize working capital. Companies should also strive to improve their collaboration with the supplies. Collaborating with supplies usually has a direct impact on working capital requirements. The most essential financial strategi...