The O. M. Jeff & Sons Company
* Founded in 1868
* Techniques weed-free grass seed
5. Has a extremely seasonal demand for its products
2. Started suffering from rapid expansion in 1945
5. Major interior control problems
* Should S i9000 & S i9000 keep all their current trust receipt plan even though revenue and accounts receivables will be increasing as cash is definitely decreasing? * Will S i9000 & H be able to function as a countrywide firm while others dealers are acting unlawfully as wholesalers?
Option Course of Action
2. Keep trust plan with additional limitations
* Build retail stores and eliminate traders
Brief Analysis of Alternatives
If Scott Keeps the trust plan the company must add even more limitations for their policy. Essentially from their profits statement sales have increased from $30, 416, 800 in 1960 to thirty four, 331, seven-hundred in 1961 while cash decreased from $2, 328, seven-hundred in 1960 to $1, 454, 300 in 1961. T & S i9000 is having a hard time controlling inventory sales mainly because their retailers and sales reps are operating unethically.
If S i9000 & S i9000 built more retail stores they will be able to get rid of dealers and maintain track of inventory. Although, essentially from display 1 the corporation has misplaced to very much money to fund this job. In display 1 the organization kept closing sales by 1960 similar to ending revenue in 1961. Jeff sales should have stayed similar in both equally years although by looking in the example the organization can't take into account $11 million in inventory. Building more stores could take to enough time and gather more financial debt.
Recommended Course of Action
The corporation should add more restrictions to their trust receipt software because this is a fastest and easiest way to solve their current problem. Jeff should involve a third party to count inventory in each dealer's business. This way sales reps and dealers are forced to be honest00. Also S i9000 & T should not still restock shelving until the organization is purchased heir...