This 5 page paper examines this case study presented by a student. Issues pertinent to cash flow, corporate finance and reputation are addressed. Bibliography lists 3 sources.
Name of Research Paper File: RT13_SA603cse.rtf
Unformatted Sample Text from the Research Paper:
is the current owner as well. The firms history suggests a focus on custom furniture, but as the company would grow, its most popular works would be sold to retailers
which pushed Chads into a very different niche. While there was attention to cutting corners to meet the needs of the retailers, Chads did remain a custom designer for the
majority of its sales. While the standard line has increased quite a bit, when corners had to be cut, it seems that priority was given to custom work due to
higher profit margins. While this is good practice, it does not resolve the dilemma presented in this case study. According to the case study, problems arose because while standard pieces
are very popular, the profits are not good. Why? There are hidden costs associated with the standard line as money is being tied up in inventory and much had been
set aside to purchase raw materials. Delivery times, as a result of expansion, had been increased. In other words, while in the past delivery times were not a problem, it
has been of late. It is noted in the case that capacity is being pushed to the limit and there is no room for expansion at the plant. Chad Thomas
decides to give the issue a look by examining the entire operation. Many questions are attached to this case study analysis. What issues does Thomas have to address in terms
of business operations? Why are these critical to performance? How should he go about resolving each of the issues? How did sales and marketing affect operations when the firm began
to sell standard pieces to retail outlets? Finally, how has the move to standard production affected the companys finical structure? In terms of issues that Thomas has to address in