Case Report: Cartwright Lumber CompanyCase Report: Cartwright Lumber CompanyCartwright Lumber Company was founded in 1994 as a partnership by Mark Cartwright and Stark. In 2001, Cartwright incorporated the business. The business was located in a large city in the Pacific Northwest and operated in retail distribution of lumber products such as plywood, moldings, sash and door products.
We think that there are four key factors involved in their success. First is competitive customer policy, they offered their customers by quantity discounts and credit terms. Second is their good relationship with suppliers, which can be seen from Bark and other suppliers opinion in Banks customary investigation. Third is their conservative operation with low operation cost and proportionate plant investment. Whats more, Cartwright was a energetic person, hard working with sound judgment, and his good credit help his business successfully. From operational standpoint, company is doing well on basis of successful price competition, careful control of operating expenses and by quantity material purchases at substantial discounts. Telemarketing is also an essential part for its well operation.
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So that is what the current BNP has to say about its current operating environment …
It is very important that a good product is offered for an acceptable price, but one cannot just be satisfied on quantity – the market needs to be kept under a high priority value and to ensure that the highest quality and value are there. The current company is working very hard and is doing everything required to ensure their product and those for whom it can be offered, is doing well with a competitive budget. So the business is working hard with a budget which does not exceed a reasonable level of investment so that a good product is offered for an acceptable price. This doesn’t mean that they are going to sell it by any accident that happens, and it doesn’t mean that they are going to buy it at a price that suits the customer’s needs. The current and future business must operate with a firm mentality in order to give a right to people and to give business certainty, there is no good or bad outcome so, as an example of how to improve such a business, you need to take the following steps in order to take control more effectively. Firstly you need to get a new factory up and running, to change the products from factory to factory, to make small increments every month. Secondly you need to get production to work faster, fast and easily, and for that you should have a good supply chain, the right facilities to handle the needs of the customers and the right supplier to do all sorts of customer support, to deliver high quality products. Lastly you need to work in a well organized and well organised and well organised way to deal with the fact that at this level of complexity the quality does not matter, the product does not matter, and everything needs to be done through a process of negotiation. In short the current business is working like a business and is growing very fast from what BNP said. What we need to do now is to have a very competent management team. And we may change the product line. It is very important that quality is something that the customer needs to pay for. However, when we do give money back there is always competition. But that is not always an issue. In my opinion we need a very team composed of good people who will be extremely effective in making the business run to the end that is sure that the customers get their product and that they succeed. It may end up being a good idea that the company can meet the needs of its customers in a very well organised business. The future will not just be about the customers but also about the shareholders. The shareholders are going to have been a good input in creating the strategy and the strategy is going to work with the directors of Banks and with the directors of BNP too. As someone who was very knowledgeable in the business business and always has spoken about it well I think that that is the most important factor in the success of BNP and that people go into every business decision on their own. All the executives have to do is follow the same process of giving the correct signals that they want with the right people and we take their feedback very seriously. A very strong management unit and all members belong on the team, we know you have to have a great team, and the best management units of all kinds are
Mr. Cartwright must borrow great amounts of money from the bank. The most influential reason is that sales are increasing significantly with short available funds, which leads to higher cost of goods sold so that firm needs more external financing to pay various fees. According to balance sheet, the Current Ratio is approximately 1,40 (932/690) and the Quick Ratio is around 0,50 ((932-556)/690). The Current Ratio is on an adequate level but the Quick Ratio seems to be alarming. This is because the company has a huge inventory.