JACINTO, SHEY PIA

BSBA- FM 1

Required; Analyze the given case and answer the following in not less than 5
sentences.

1. What are the strengths of the company?

- Based on the situation, it is said that the revenue and profit of the company are
increasing it is because they have good quality and unique products and maybe the
staffs can give really good customer care, as the current small amount of work means
we have plenty of time to devote to customers. The strengths are; the company has
low overheads, so they can offer good value to customers. They have their business
plan to help determine where the company stood in the market and identify target
customers. They direct their attention to the core customers they already have
customer loyalty is one marketing strategy to encourage the customer to repeat buying
products in a business.

2. What are the weaknesses of the company?

- The weakness of the company is they are not responsible when it comes to their
expenses that’s why the business grow fast because they did not pay their liabilities.
Weaknesses are the reason why the company possible to stop performing at its
optimum level. They are areas where the business needs to improve to remain
working a higher-than-average turnover and high levels of debt. A budget is a forecast
of revenue and expenses over a specified future period. A cash-flow budget helps
managers determine the amount of cash being generated and exteriorize by a company
during a period.

3. What the problems of the company?

- The company has a number of issues, including a sales credit account with a 60-
day payment deadline. Year after year, payables to suppliers pile up. Loans that must
be repaid the next year. Furthermore, as client demand grows, it becomes more
difficult to obtain equipment. The company is unable to buy equipment or
manufacture due to a lack of financial resources.

4. What are the causes of such problems?

- The company's issues stem from the fact that it continues to take out loans
without being prepared for them, as well as a lack of finances for the business it
operates. They were unable to manage the company's finances and continued to
charge it to accounts, resulting in debt. The corporation also failed to pay on time,
which is why the loans continue to pile up as a result of the failure to pay, which leads
to new loans. As a result, the company's suppliers leave. The firm is heavily in debt,
and bankruptcy is a distinct possibility.

5. What can you say about the cash management of the business?

- The company's financial management is inadequate. When it comes to finances,

the management has no idea what they're doing, which has led to the company's debt.
The company's management lacks a strategy for managing the company's finances in
order to prevent debt and loans. The company's debt is piling up due to a lack of
responsibility and poor financial management. To put it another way, cash
management is lacking in terms of financial management, strategy, and
accountability.

6. What are causes of such problem?

- The company's problems originate from its continuing to take out loans without
being prepared, as well as a lack of funds for the business it operates. They couldn't
handle the company's finances and kept charging it to accounts, resulting in debt. The
corporation also failed to make timely payments, which is why the loans continue to
pile up as a result of the failure to pay, resulting in new loans. As a result, the firm's
suppliers have left. The company is deeply in debt, and it is possible that it will file
for bankruptcy.

7. Give at least 5 short term strategies to solve problems regarding their cash
management.

 Cash Planning
 Managing Cash Flows
 Request that customers pay more quickly.
 Vendors should be given more favorable payment arrangements.
 Purchase orders for finance

8. Give at least 5 long term strategies to improve their cash management.

 Keep a cash flow prediction.

 Study your cash flow patterns
 Check the conditions of your accounts payable.
 Quick payment arrangements should be negotiated.
 Spending should be reduced where possible.