Page 23 - Simply Electronics Case
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Cash Conversion:
Against SE’s claim of held stock and 3-5 working days dispatch are the
impressive amounts of complaints laid at their door stretching back to its
origin in 2008.
Moreover, the use of manipulated reviews may well play a role in the business
operations of SE.
It seems that a fair part of SE’s business was being run on the cash from those
who had not been satisfied and who waited long periods before being
refunded.
Remaining Inventory & Exchanges:
If SE only purchase what they have already sold there is a risk of chargebacks,
fraud, and product exchanges/returns.
Diagram 7
