Bluewater Football Association Case Study Analysis
Cash Budget (Option 2 and 3)
The alternative solution suggest that the company should develop its financial consideration on the basis of its base cash budget with the inclusion of an increase in the registration fee and the modified equipment cost per player. The fourth option has following pros and cons:
Pros
- The option will yield highest cash flows as compared to other options.
- The investors will satisfy because of increased earning and returns.
- The raised fund would be utilized effectively in order to make a cost-efficient decision.
Cons
- The image of the company would decrease, because of this strategic optionincluding both an increase in registration fee and the per player charges.
- The welfare pf the whole society would be impacted badly.
Recommendations
After evaluating all the proposed alternative solutions with the help of quantitative and qualitative analysis, it is recommended that although, the first option will yield lowest cash flow as compared to other options, but it should be noted that other measures and key considerations also impacted the society and the profitability of the organization. It is a non-profit organization and must meet the expectation of the society by providing easy procedures and society benefits. The first option will yield positive cash flows and increased earnings as well as satisfying the society’s expectations and benefits. Thus, this option is best, because it will provide benefits to the team players viewpoint as well as yielding benefits for the society building an effective image of the organization and will ultimately help in generating more increased revenues.
Conclusion
It is concluded that Bluewater Football Association (BFA) is a non-profit organization operating in Lambton County. A detailed quantitative analysis has been performed by using a Cash Budget under various scenarios including the base case, the increase in registration fee, decrease in equipment costs and a combination of both. The first ever consideration while recommending an option is the impact of the recommended option on the stakeholders whose welfare is the objective of the organization. it is recommended that the first option is best as compared to other options, because it will maximize the company’s as well as the society’s benefits..........................
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