• Home   /  
  • Archive by category "1"

Harvard Business Publishing Working Capital Simulation Managing Growth Assignment

MANAGING GROWTH 2 Sunflower Nutraceuticals (SNC) is a privately owned distributor in the Miami, Florida area. SNC continues to operate and expand their market and product line however they have continued to break even in sales growth and total revenues annually. It is the goal to advise SNC on investing in growth and cash flow improvement opportunities. By assisting in the decision making process through Phases1 - 3 on opportunities such as taking on new customers, capitalizing on supplier discounts, and reducing inventory, it may aide SNC in a more lucrative financial position. “SNC started as an internet-based, direct-to-consumer distributor and retailer of dietary supplements.” The market included vitamins, minerals, and herbs for women and 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, the relative affluence of the working population, and increasing societal awareness of preventative medicine.” Tapping into these markets will be

MANAGING GROWTH ASSIGNMENT 2 Managing Growth Assignment Throughout the past six weeks, this class has given the tools to analyze all the financial statements for Sunflower Nutraceuticals with accuracy and use them to make educated decisions in the working capital simulation. The following are decisions that were made during each phase and how they influenced the final outcome. Along with how they affected SNC’s working capital and what general effects are associated with limited access to financing. Background information of Sunflower Nutraceuticals (SNC) Sunflower Nutraceutical (SNC) is a privately owned company. They are wide distributor of all the vital supplements such as herbs for woman’s vitamins and minerals for all consumers (mainly women’s), distributors and retailers (Harvard Business School Publishing, 2014). The business was started after 2006, where SNC expanded their operations and opened various outlets. They have been overly successful in producing their own brands of sports drinks, vitamins for teenagers, metabolism-boosting powders, and other products that enhance the metabolism system of humans. SNC is open to the potential of growing into a major nutraceutical distributor, but they have been struggling to breakeven which have forced them to exceed the company’s credit line to $300,000. They are only able to use a small percentage 12% to evaluate and invest in new opportunities that could result in a good return. Phase 1 Years 2013-2015 The first phase presented four opportunities that could be helpful in growing the company. 1. Acquiring a new client – SNC acquired Atlantic Wellness a health food giant to their product line. This decision increased the companies EBIT approximately $260,000

One thought on “Harvard Business Publishing Working Capital Simulation Managing Growth Assignment

Leave a comment

L'indirizzo email non verrĂ  pubblicato. I campi obbligatori sono contrassegnati *