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Though the case involved a sizable company, the analytical strategy could be the identical for the smaller enterprise. The management of an automotive-components producer recognized occasions it thought constituted the key financial flexibility problems the corporate could face. These included the obsolescence of a serious product line, substantial price cuts by competitors attempting to purchase market share, major additional necessities for research and growth, major further requirements for capital funding to attain the level of gross sales and earnings anticipated, and failure of the company’s international associates to carry out effectively.
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