Experiencing low cost traditional surgical procedures, Advanced Medical Technology Corporation (AMT) wants to broadcast this tagline by manufacturing well designed medical instrument based on a massive researching.
Taking into account the efforts and allowances spilled by AMT on its research and development aspect, and in invading new markets, it is not unexpected that it had gained an extraordinary growth and rapid expansion of its sales force for just a few years of being established. Like any other companies who were in their infancy/growth stage, it is a normal thing to put the best shoe forward in order to gain an A+ mark.
But the aggressiveness nature of the decisions made by Peter Haskins, president of the AMT, …show more content…
• April 1986, Tom Winter, vice president and loan officer of the Western National Bank of San Francisco reviewed the loan request for $8 million from Peter Haskins of AMT. May 8, 1986, Biological Labs had made its final investment of $4 million and AMT was rapidly exhausting its $6 million credit line. IV. STATEMENT OF THE PROBLEM
Advance Medical Technology Corporation (AMT) is currently having a difficulty with securing an 8million Line of Credit that is roughly needed by the company to sustain its operations and maintain its sales growth and current market position.
• The company is having a hard time securing a line of credit they needed because the Management has inefficiencies in handling the streamline operations and inventory control system.
• The mismanagement of Accounts Receivable’s Credit Policy would also be the cause of difficulty in getting a Line of Credit because it shrinks off the value of the company’s Accounts Receivable which does not meet the criteria of the quality assets warranted with higher lending limits.
V. AREAS OF CONSIDERATION
A. Management Goal The President of AMT believes that sales will continue to grow at the same rate. Therefore, his