Akash_arny
Par 100 posts (V.I.P)
Hey i got some good shortcase studies for u all to practice. But dont ask for the solutions, as i dont have it.
case 1: ABC is a fmcg company and XYZ is one of it's distributors . After delivering the goods, ABC used to give a time of 3 months to it's distributors to make the payment. At one point of time the stock market happened to be in a boom. At that time the distributor (ABC)who happpened to be very bold ,managed to sell all the goods in the first month of delivery of a batch (of goods).He wanted to make a
quick profit and invested the money that he was supposed to pay to XYZ in the shares of XYZ.However the market was in a downturn after 1 1/2 months as a result he had a huge loss. Now he had to repay the money to XYZ.He explained the situation to the CEO of XYZ.Now how should the CEO of XYZ respond to the situation?
case 1: ABC is a fmcg company and XYZ is one of it's distributors . After delivering the goods, ABC used to give a time of 3 months to it's distributors to make the payment. At one point of time the stock market happened to be in a boom. At that time the distributor (ABC)who happpened to be very bold ,managed to sell all the goods in the first month of delivery of a batch (of goods).He wanted to make a
quick profit and invested the money that he was supposed to pay to XYZ in the shares of XYZ.However the market was in a downturn after 1 1/2 months as a result he had a huge loss. Now he had to repay the money to XYZ.He explained the situation to the CEO of XYZ.Now how should the CEO of XYZ respond to the situation?