Balance Sheet Assignment
You can choose which of these three problems to solve for this assignment. You only need to solve one problem.
1. Prioritizing customers
Your company launched an upgrade to your most popular product. Demand exceeds the Inventory you have on hand.
You can supply only 50 customers. 100 of them want to place an order. That includes:
48 new clients. You have been trying to get some of these clients for the last ten years. This is your only chance to get these clients.
48 old clients. They have been with your firm since the beginning. They will be offended if they don’t get it. One of them is a buyer you see when you go watch your niece’s soccer games, she is always there.
One new client and one old client who are nice. They will understand if they don’t get it.
Whom should you prioritize? Design a strategy to deal with the situation. Please prepare your response in PowerPoint. Quantify the financial impact of your strategy
Inventory Management. Prioritizing customers.
Your company is launching an upgrade to your most popular product. You have been asked to deal with Inventory. How would you calculate how many units to have on Inventory? Design a strategy to deal with the situation. Please prepare your response in PowerPoint. See how other students calculated that in previous examples.
Accounts Receivables and/or Accounts Payables.
Due to the launch of a new product, your company is low on cash. You have been asked to reduce Accounts Receivables, increase Accounts Payable, or both.
Please design a strategy including offering cash discounts to customers who pay in advance, letting small businesses pay with a credit card (in that case, please study what would be the cost of accepting credit cards), and/or delaying payments to Suppliers. All proposals need to quantify the impact on the P&L.
Please adapt the problem to be applicable to the company you are representing.
For example, for problem number one, if you have to prioritize customers, you can adapt the situation to represent markets in your country or the world, where you are just entering the market or where you have been in the market for a while.
Examples for problem number 1
Imagine that you are Starbucks and you have launched a new product with a new formula, but there isn’t enough products for all 100 markets/countries, only for 50 of them. 48 markets/countries where you have been doing business for a while and have a strong market share want it. New countries/markets where you have just entered and are growing market share want the product also. One new market and one old market who are nice. They will understand if they don’t get it.
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