Part 1: Close to 50% of the typical industrial and retail firm's assets are held as working capital. Many newly minted college graduates work in positions that focus on working capital management, particularly in small businesses in which most new jobs are created in today's economy. Select two following components of working capital management: inventory management, and credit policies.

Requirements:

1. Explain how the first selected topic impacted an organizational decision.

2. Explain how the second selected topic impacted an organizational decision.

Part 2: Over the past two decades, the economy has increasingly become global in nature. Companies have consistently been able to generate more income from overseas operations. If fact, companies such as General Electric, 3M, and Caterpillar are earning more than half of their annual revenues from overseas operations. For this Discussion, imagine the following scenario: You are the director of new business development for your company, and your vice president wants to expand into new markets overseas. Your company's core competency is in the area of constructing, staffing, and operating customer call centers. Your VP reasons that since the cost of labor is cheaper overseas, the company will automatically generate a higher rate of return by investing overseas.

Requirements:

1. What is your reaction to the vice president's premise? True? False? Why? Is it really that simple?

2. Describe other types of risk that play a role in making such a decision to expand internationally.

3. Should you always assume that foreign projects need to generate higher returns when compared with equivalent projects in the U.S.? Why or why not?

Answer rating: 100% (QA)

Part 1 1 Inventory Management Inventory management is important to every business to achieve adequate management of cash flows and higher rates of return from investments It plays a vital role in deci... View the full answer