Brief Outline

This Brief outline forms part of Section 2 of the Project Portfolio for BSBCRT611 Apply critical thinking
for complex problem solving.

Worlducation Solution Brief

Author: Senior Financial Date: 05/03/2023 Department: Finance

Analyst

Issue being addressed:

Worlducation's cashflow is under pressure. The projected growth in revenue is expected to require
a significant investment in working capital (both inventory and debtors) and this combined with an
expected decline in profit margin is projected to result in significant cash flow pressure in the latter
half of 2020.

Proposed solution:
Offer discounts for customers to pay early. Assuming the manufacturing capability has been
addressed, the board of directors agree that sales will increase with the discount and offset the
revenue lost in the discount. This is the only solution that meets all success criteria within the set of

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BSBCRT611 Apply critical thinking for complex problem solving
 constraints.

Advantages:
Advantages to this solution include stable customer and supplier relationships, maintaining bank
covenants, meeting budget and sustainable liquidity. This solution does not counter any legislation
or organisational policies and procedures and support the company's vision.

Risks:
Risks include unplanned manufacturing challenges that influence supply and a lack of demand
from customers despite the discount.

Resources:
Resources include staff from the sales and marketing team to oversee the distribution of marketing
material.

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BSBCRT611 Apply critical thinking for complex problem solving