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Managing Growth

In: Business and Management

Submitted By nickletalida
Words 970
Pages 4
Working Capital - Managing Growth
FIN/571
07/07/2014
JOHN KUSHNER

WORKING CAPITAL- MANAGING GROWTH
Introduction
Working capital management plays an essential role in keeping a business running and producing wealth for its shareholders. While analyzing the entire data details of Sunflower Nutraceuticals (SNC) Company, we can identify which decisions will increase the company working capital and maximize the company growth. We can also examine how changes take place in each phase of the simulation and finally evaluate in the final step the general affects associated with the limited access of financial mix.
SNC background
SNC is a privately owned distributor of vital dietary supplements such as herbs for women, vitamins, and minerals for all the consumers (mainly women), distributors and retailers. Created in 2006, SNC was able to extend their business and opened various retail outlets making a name for the company in the industry by introducing their own brands of sport drinks, vitamins for teenagers, metabolism- boosting powders, and other products.
The company has a great potential for growth, but it is still struggling to break even and several times had to exceed the company’s credit line to finance the payroll and other operational expenses. Due to restrictive financial options, they are only able to use a small percentage to evaluate and invest in business expansion which could boost great opportunities.
We will analyze the changes in sales, EBIT, company value, net income and free cash flow, during each phase, choosing to accept all the opportunities presented by the simulation.

Phase 1 – Years 2013-2015
Four opportunities were presented which could help the company maximize growth: 1.) Acquire a new customer – SNC acquired a new customer – Atlantic Wellness; decision increased sales by $4 million per year and EBIT $260,000.00; net…...

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