Running Header: Lawrence Sports Benchmarking
Lawrence Sports Benchmarking
Krisann Humphreys
Michael Wnek
Heather Varner
Dhriti Chatterjee
Yelena Keele
University of Phoenix
MBA/550: Resource Optimization
Lynn Duffner
November 10, 2008
Lawrence Sports Generic Benchmarking
Lawrence Sports is a manufacturer and distributor of sports equipment and protective gear. The company generates $20 million revenue annually and counts the world’s leading retailer, Mayo Stores, as its number one client. Mayo Stores accounts for about 95% of the company’s overall revenue so when Mayo defaulted on a substantial payment Lawrence’s cash budgeting problems were exposed. The company was forced to choose between borrowing money at a significant interest rate and stretching
Ultimately, the goal of any firm is to maximize the wealth for its shareholders; this is accomplished when resources are utilized effectively. Benchmarking is a powerful tool that decision-makers can use to determine the best and most profitable course of action for their firms. The results of this paper are based on benchmarking research that is found in the synopses at the end of the paper. Evaluation brief synopses of companies used for evaluating the decisions facing the various companies within the scenario. Each synopsis will identify the issue in the scenario that is also facing the researched company, how the company responded, and finally the outcome of its decisions.
This paper will begin by selecting working capital strategies that will help Lawrence prepare for long-term opportunities; next, it will describe the purpose of cash budgeting and how it relates to the current issues facing the company. The author’s will then provide an analysis of the company’s cash flow followed by the identifications of selected best practices in the industries outlined. The risks and opportunities related to different working capital strategies will be evaluated and the...