Jamie Bailey, owner and president of C.R. Plastics, has successfully grown his business every year since 1994 when he began producing recycled plastic outdoor furniture. This rapid growth has provided its own challenges in terms of financing that is obligated by summer 2010, Bailey was desperate for a fresh source of cash. He later auditioned to be on Dragon's Den, a television show where entrepreneurs can pitch their business to a group of venture capitalists, who may then choose to invest their own cash in exchange for a share of the company.
Bailey has to make a difficult forecast, with a week lingering before he has to present his closing pitch: How much cash will he need to convince the demand that is mounting into 2011? Complicating his evaluation are competing propositions to fundamentally change how production is managed. In addition to reconfiguring labour allocation, one method demands substantial investment in gear while the other increases inventory during the off season. Which option will permit the enterprise to keep a larger share of the equity when he pitches his company to the Dragon's Den panel?
PUBLICATION DATE: December 08, 2011 PRODUCT #: W11581-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
Related Case Solutions & Analyses:
The Tip of the Iceberg: JP Morgan and Bear Stearns (A)
CARD Group: Mutually Reinforcing Institutions
Innovative Health Service Models for the Developing World
What Can a Mosquito Do to an Elephant (C)
Saito Solar – Discounted Cash Flow Valuation
Deutsch Bank
A Project Dilemma at Canadian Shield Insurance
Northampton Group Inc.: How to Increase Shareholder Value
Braddock Industries, Inc.
International Economics, 5. Politics, Globalization, and the State
