Date Submitted:
03/18/2011 06:02 AM
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Lawrence Sports Benchmarking

Lawrence Sports must develop a strategic working capital plan that provides the organization the cash management needed for long-term growth.   Poor cash management can mean the failure of an organization.   Lawrence must develop a strategic plan that will offer a win-win solution for all parties involved.   Benchmarking other organization such as AT&T; Lawrence Sports will realize that sometime drastic changes must be made.
AT&T; the largest telecommunication company in the United States determined that it needed to make some drastic changes; therefore, the organization decided to benchmark other companies to determine the most sufficient ways to improve operations.   As a result AT&T; was able to “increased automated clearing house usage, increased electronic data interchange/electronic funds transfer focus, enhanced training and education, created a quality consultant position, reduced management and staffing, consolidated operations and systems, combined banking and cash management functions, simplified its banking network, and reduced its number of bank accounts” (Masonson, Leslie, 2003).   The organized realized that a merge with BellSouth and Cingular would cut cost and allow more cash for operation.   The organization realized that “through strategic investments and internal growth, we’ve significantly reshaped our revenue mix to concentrate on the industry’s best growth areas” (AT&T-New; Room).   This put AT&T; in a better cash position.   AT&T; decision to offer pre-pay services for those who they determine not to be creditworthy also played a major role in reducing cost.   AT&T; realized that the organization must take into consideration the uncertainty of who will and will not pay.   Sales stuck in collections have an adverse affect on cash flow.
Lawrence should consider merging with one of its major supplies to optimize its cash position as AT&T; did with Cingular and BellSouth.   This will allow them to cut cost and more cash will be available for internal and…

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