Fox is right of course, this is how one runs a business today. However it is possible that this modern way of running a business will be shown to be too vulnerable to random external shocks. One of the outcomes of this recession might be a return to more conservative business practices.[TW]Fox;13148239 said:That is exactly how you run a business. Under normal circumstances, you pay your creditors as late as you possibly can. The money is better off with you than it is with your creditors. The later you pay, the more working capital you have, and working capital is the lifeblood of any business.
Maybe YOU should go back to uni and learn how to run a business?
I've always thought that Jessops would be okay as they have such a dominance on the highstreet. If significant demand for photography kit exists a lot of people will only want to buy on the highstreet and Jessops is and will remain one of the best choices for this.well, I work for jessops...
Can't really belittle Tesco like that. Yes Walmart are number one, but Tesco are world number four and growing faster than Walmart.
Tesco has a net income of £2.13bn compared to Walmart's $12.73 (£8.66bn). No one's about to be snapped!
I seem to recall watching a video in Business Studies about Tesco's expansion to America. They had some Wal Mart Directors on saying that they were concerned since Tesco's had such good marketing strategies and profit margins.
How exactly could they?
Fox is right of course, this is how one runs a business today. However it is possible that this modern way of running a business will be shown to be too vulnerable to random external shocks. One of the outcomes of this recession might be a return to more conservative business practices.
How exactly could they?
What do you mean by more conservative?
M&S are the next in trouble.
[TW]Fox;13148239 said:That is exactly how you run a business. Under normal circumstances, you pay your creditors as late as you possibly can. The money is better off with you than it is with your creditors. The later you pay, the more working capital you have, and working capital is the lifeblood of any business.
Maybe YOU should go back to uni and learn how to run a business?
Fox is right, but the length to which some business (tesco as an example) squeeze their smaller suppliers is detrimental to the working capital of small businesses. And as you said, it is the lifeblood of any business.
This aspect needs to change.