Foremost, unlike the previous alternative solution, the profitability of the sports equipment manufacturer would not be negatively affected by problems in the vendor-supplier relationship.

A b) Supplier-vendor relationship

Unlike changes in the priority of payments, the contracting of a bank loan would not affect the relationship between Lawrence Sports Inc. And its purveyors. The suppliers would still receive their payments at regular dates and would therefore continue delivering high quality commodities in a timely and efficient manner. If something, the relationship would improve as more orders would be made and the company would have a better possibility of honouring its obligations to the suppliers.

A c) Ability to resolve the problem now and in the future

The immediate future could pose some threats as the company would also have to pay the bank loan. However, the additional financial resources would allow the company to further invest in their human resource...
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