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Entrepreneurial Survival Essay Example

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Entrepreneurial Survival

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First, improving the speed at which goods exchange hands with the buyer is important, because the faster a buyer purchases and pays for a good, the better it is for the company’s cash flow, even as inventory must move for cash to flow. Improved technology for faster payment and delivery of goods also helps to move inventory. Additionally, the use of information is key in improving cash flow. For instance, when delivering goods to customers, a company must track the progress of every package to ensure that it reaches the customers on time. Such will reflect good customer service that might prompt a customer to pay on time and buy from the company next time. Finally, a company should consider speeding the funds by adopting various strategies such as customer credit checks, discounts, customers to pay by cash or credit card, cash on delivery and inventory financing All these strategies will improve cash flow and ensure the profitability of a company.In the years 2008 and 2009, General Motors (GM) experienced a severe economic problem. This led the company to face a decline in its level of profitability that eventually drove the company into bankruptcy. This was the period of the financial crisis that affected the United States. The 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. GM survived through the government bailout that was accorded them. After the bailout, the company adopted different measures to prevent the happening of a similar event in the future.During the period of financial decline at GM, the market share of this company dropped to less than 19% as compared to 56% in the 1950’s. Because of the financial crisis, the motor market in the United States was negatively impacted thus sales were low. The effect of this was that sales went extremely low and GM ran into bankruptcy and high debt. The company was further challenged because most financial markets were not willing to lend the company finances that would revive it. For this reason, a government bailout became the final resort for GM. There are different factors that contributed to the severe economic situation of GM Motors during this period. GM however, cited their bankruptcy to have been brought about by the factors of high production costs, and

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Works Cited

Bullivant, G 2012, “Credit Management,” Gower Publishing, Ltd., New York.

Butler, D., Colley, M. and Fuller, T n.d, “General Motors’ Bankruptcy: The Impact on Griffin

Motors,” Journal of Business Cases and Applications, PP. 1-19, Accessed April 15, 2015 < http://www.aabri.com/manuscripts/11787.pdf>

Chartered Institute of Management Accountants 2009, “Improving cash flow using credit

management,” Accessed April 14, 2015

<http://www.cimaglobal.com/Documents/ImportedDocuments/cid_improving_cashflow_using_credit_mgm_Apr09.pdf.pdf>

Crandall, R 2009, “U.S. Industrial Policy: The Bail-out of GM and Chrysler,” Japan Center

for Economic Research, Accessed April 14, 2015

<http://www.jcer.or.jp/eng/research/pdf/crandall.pdf>

Smolinsky, J n.d, “Retooling General Motors: Defending An Innovative Use Of The

Bankruptcy Code To Save America’s Auto Industry,” Journal of Corporate and

Commercial Law, Vol. 6, No. 1, pp.103 – 137.

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preview essay on Entrepreneurial Survival
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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