Page 67 - The Case Lab Book
P. 67
Liquidity
- Cash flow
Profitability
- ineffective marketing
- ageing products
- limited markets
Ensure that symptoms are not assumed to be the problem (symptoms
should lead to identification of the problem).
Symptoms may act as important barriers to the solution of other
problems as a 'vicious circle' develops. In the above situation liquidity
problems' may prevent cash being raised to stimulate sales growth
through advertising.
Solving one problem may be insufficient to cure the firm's ailments,
especially since isolated problems tend to be relatively unimportant.
