By The Due Date Assigned Respond To The Discussion Questions

Bythe Due Date Assigned Respond To The Discussion Questions Below And

By the due date assigned, respond to the discussion questions below and submit your responses to the Discussion Area. By the end of the week, comment on your classmates' responses. Respond to the questions using the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your research using the APA format. Start reviewing and responding to the postings of your classmates as early in the week as possible.

Tasks: Answer the following questions: Because of a new product line, your company's sales over the last few months have increased significantly. As a result, the amount of cash held by the company has increased to levels never experienced before. An evaluation by the company's financial staff concludes that the company is holding too much cash. This situation is reported to the stockholders. Explain how you think the stockholders would react to this information.

Discuss the options you have to deal with the concerns of the stockholders without creating any additional risk. Just-in-time (JIT) inventory systems were first developed by the Japanese and quickly adopted around the globe by many large firms. One of the first to adopt the system in the United States was the automobile industry. In your opinion, is the JIT system a system that can and should be adopted by small, individually owned firms? Why or why not?

Would the smaller firms have any advantage in terms of their ability to use such a system? Why or why not? Describe the benefits of employing such a system in the economy. Comment on the postings of two of your classmates. Do you agree with their position?

Paper For Above instruction

The rapid growth due to a new product line can significantly impact a company's financial health, particularly its cash reserves. When a company reports to its stockholders that it is holding excess cash, the typical reaction is concern or skepticism. Stockholders often perceive excessive cash holdings as a lack of profitable investment opportunities, leading to questions about management’s strategic vision. They might worry that the cash is not being effectively utilized to generate shareholder value or that management is overly conservative, potentially undermining growth prospects (Brigham & Houston, 2019). To address these concerns without introducing additional risks, management might consider several strategies. One approach could be to initiate share buybacks, which return value directly to shareholders, potentially increasing earnings per share and stock price without committing to new investments that carry risk (Fried, 2019). Alternatively, the company could increase dividend payouts, providing immediate value to shareholders without impacting the company's investment capacity. These options can improve shareholder confidence while maintaining financial stability.

Regarding Just-In-Time (JIT) inventory systems, their adoption by small, independently owned firms warrants careful consideration. JIT reduces inventory levels, cuts costs, and enhances efficiency, making it particularly advantageous for large firms with complex supply chains, such as automakers like Toyota (Ohno, 1988). For small firms, the benefits of JIT can include reduced storage costs, lower waste, and increased responsiveness to market changes (Chiarini & Veneri, 2017). However, small firms face unique challenges, including limited supplier networks, lower bargaining power, and a higher vulnerability to supply disruptions. These factors may limit their ability to implement JIT effectively or increase operational risks (Nahmias & Olsen, 2019). Nonetheless, small firms with agile supply chains could leverage JIT to differentiate themselves through rapid inventory turnover and lower costs.

The broader economic impact of adopting JIT systems is significant. When successfully implemented, JIT can lead to reduced waste, cleaner production processes, and lower inventory costs, which contribute to a more sustainable and efficient economy (Maskell & Baggaley, 2004). Nonetheless, it requires highly reliable supply chains and robust supplier relationships, emphasizing the importance of coordination and communication. Small firms could benefit from embracing JIT, especially in niche markets where agility and quality are crucial. However, their success hinges on establishing dependable supplier partnerships and investing in efficient logistics infrastructure.

In conclusion, while JIT systems offer various advantages, their adoption by small firms must be considered within the context of their operational capacities and supply chain dependencies. Both large and small companies can benefit from JIT, provided they manage the inherent risks and develop strong supplier relationships. Policies that support small firms in building supply chain resilience could unlock the potential benefits of JIT for a broader range of businesses, fostering a more efficient economy.

References

• Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management (14th ed.). Cengage Learning.
• Chiarini, D., & Veneri, O. (2017). Just-in-time manufacturing in small firms: Benefits and challenges. International Journal of Production Economics, 193, 1-11.
• Fried, J. (2019). Corporate finance: Theory and practice. Routledge.
• Maskell, B., & Baggaley, B. (2004). Practical Lean Accounting: A proven system for measuring and managing the lean enterprise. CRC Press.
• Nahmias, S., & Olsen, T. (2019). Production and operations analysis. Waveland Press.
• Ohno, T. (1988). Toyota production system: Beyond large-scale production. CRC Press.