The Case of the Virgin Development Company
Essay by Pierre Raph Patriana • November 18, 2017 • Lab Report • 412 Words (2 Pages) • 959 Views
THE CASE OF THE Virgin Development Company
POV: Dr. M.R. a owner of Virgin Development Company
STATEMENT OF THE PROBLEM: DR. M.R. had a problem of collecting their Account receivable
OBJECTIVES: To be able to collect their Account receivable in order for Dr. M.R. to continue to expand and operate.
AREAS OF CONSIDERATION:
- Strength
- Dr. M.R had guts to take the risk of having a new business that he don’t have experience on it.
- Dr. M.R. had many sources of income.
- Weakness
- Dr. M.R. had difficulty to organize his businesses.
- Dr. M.R. had a loan that tied up for his expansion which means that if something will went wrong his business will have a problem.
- Opportunities
- Dr. M.R has a big Opportunity to have a big Company, because his is willing to take the risk. And have a big opportunity to be successful to his business as long us hi will constantly monitor his business.
- Threat
Dr. M.R will have a big trouble of defaulting his loan if he will not solve his problem of collecting his Account receivable to his client and in addition his other loan that he wants to apply will be disapprove. And worst case scenario his company will be down.
ALTERNATIVE COURSES OF ACTION:
- Strict of collecting the Receivable to the client.
Because of having strict in collecting the Receivable the client will force to pay and you will not have a problem on cash and you can continue to expand and to operate to the company. And it will have big chances to approve the loan.
- Stop the expansion now and continue if you will now collect the Receivable.
By stopping the expansion you will not worrying of cash to continue the expansion and if you
are already collected the Receivable you may now continue the expansion so that your problem will not worst.
RECOMMENDATION:
Strict of collecting the Receivable to the client.
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