First, iproving the speed at which goods exchange hands with the buyer is important, bcause the faster a buyer purchases and pays for a good, te better it is for the company’s cash flow, een as inventory must move for cash to flow. Iproved technology for faster payment and delivery of goods also helps to move inventory. Aditionally, te use of information is key in improving cash flow. Fr instance, wen delivering goods to customers, acompany must track the progress of every package to ensure that it reaches on time.
Sch will reflect good customer service that might prompt a customer to pay on time and buy from the company next time. Fnally, acompany should consider speeding the funds by adopting various strategies such as customer credit checks, dscounts, cstomers to pay by cash or credit card, csh on delivery and inventory financing All these strategies will improve cash flow and ensure the profitability of a company. I the years 2008 and 2009, Gneral Motors (GM) experienced a severe economic problem. Tis led the company to face in its level of profitability that eventually drove the company into bankruptcy.
Tis was the period of the financial crisis that affected the United States. Te fall of GM would have an adverse effect on the economy of the United States considering it is among the top companies in the country’s motor industry. G survived through the government bailout that was accorded them. Ater the bailout, te company adopted different measures to prevent the happening of a similar event in the future. Dring the period of financial decline GM, market share of this company dropped to less than 19% as compared to 56% in the 1950’s.
Bcause of the financial crisis, te motor market in the United States was negatively impacted thus sales were low. Te effect of this was that sales went extremely low and GM ran into bankruptcy and high debt. Te company was further challenged because most financial markets were not willing to lend the company finances that would revive it. Fr this reason, agovernment bailout became the final resort for GM. Tere different factors contributed to the severe economic situation of GM Motors during this period.
G however, cted their bankruptcy to have been brought about by the factors of high production costs, ad.. .
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