PROBLEM IDENTIFICATION:
The main problem that EPO is facing right now is the shortage of its liquid cash reserves. The top management of the company has rejected the offer of Black hole as the management of the company was unwilling to negotiate the term sheet conditions.
In addition to this, Carla Ferreira, CFO of EPO was also unable to figure out that whether the company has a potential to survive and sustain in the market as well as she was also unable to formulate effective strategies in order to enhance the overall customer base of the company.
In addition to this, the top management of the company is also concerned whether how to finance the operations of the company efficiently and effectively. The management of the company is also considered about how to project its financial data efficiently and effectively.
Furthermore, Carla has recently received an offer of CFO at a private university of Lisbon. She is unable to determine to that whether she should continue her job as a CFO at EPO where she is offered a 10% holding @50,000 pounds, or should she join the private university of Lisbon as a CFO.
ALTERNATIVE DEVELOPMENT:
The following alternatives are available which could address the primary problems of the company.
Alternative # 1
The management of the company should develop effective marketing and selling strategies in order to attract customers towards the company. In addition to this, the management of the company should also consider aggressive marketing of its products and services in order to attract the customers towards the company.
Moreover, the management of the company should also consider issuing its shares in public in order to enhance the overall cash reserves of the company. This would allow the company to finance its operations efficiently and effectively as well as this would also allow the company to aggressively spent on the marketing department of the company.............................
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