Name
Managing Growth Simulation
FIN 571
Introduction
The simulation has revealed the importance of financial information and intelligence to analyze the workings of the Sunflower Nutracuetical, or SNC Company. The simulation chronologically goes through the many decisions that have to be made affecting the working capital and organizational growth. The data and numbers in the simulation allow for the understanding of the annual growth. At each phase of the SNC simulation, a decision is made which is then analyzed for its estimated effects on working capital, and in the end an overall summary of the effects of all the phase decisions on the entire company.
SNC Background
SNC is a privately owned company that manufactures and sells dietary and herbal supplements, specifically vitamins and minerals (Harvard Business School Publishing, 2012). The market for the goods of SNC is mainly comprised of women and elderly people. The business was opened in 2006, and ever since has expanded its operations into new product markets, manufacturing and selling its SNC-branded energy and sports drinks, vitamin powder, metabolism-enhancing powders, and many other supplementary products.
The market share that SNC possesses gives it great potential to become one of the largest nutraceutical firms in the entire United States; however, it is unfortunately failing to break even and has had to go beyond its credit line to afford its operative costs. Due to this bottleneck in SNC’s financial situation, SNC is only utilizing approximately 10% of its cash flow to invest into domestic and global expansion, resembling a large loss in possible opportunities.
Phase 1: 2013 to 2015
The first phase of the SNC simulation is of a three-year duration starting 2013 to 2015. There were four possible opportunities for SNC to stimulate its growth, which include:
Removal of outdated and unproductive SNC products from the market
SNC currently sells more...