Faced with a similar situation to the Kapchebet Tea case, how would you address with your client the difference between the firm's current capabilities and their desired strategic move? (you do a disservice by only telling them what they want to hear, but you also must position the approach in a way the client is willing to adopt)
A firm's current liabilities is part of a firm working capital. A firm decides it's strategic move via working capital requirements. Working capital position will decide strategic move of a firm. First of all we will make client understand his working capital requirements. And client's current position of working capital. If a firm is having a good working capital ratio then firm can take advantage of leverage. If a firm is having negative working capital or it's liabilities are heavily higher than current assets. Then a firm must focus on his operational aspects. firm should desire to get operational benefits. And a firm's move must be operational level . But operational level moves will be decided by higher authorities with strategically.
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