Bruno & Company
Case number:
A10-00-0021
Abstract
This case provides insight into the issues faced by a small company producing scientific equipment that earns a significant share of its sales revenue from exports to an industrialized country. The company has no debt and wants to explore different avenues to provide it with access to working capital should sales suddenly increase. Currently they are financing exports on open account.
Teaching
The case opens with a common problem faced by a young company wanting to grow and seeing inter-national markets as a means to that end but not really understanding fully the risks involved. The problem is even more formidable when, unlike Bruno, small companies are not in as good a financial condition.
The primary objective of this case is to explore the export financing possibilities for a small exporter. Bruno & Company produces a semi-high technology product 'which is not unique, as most of the production and assembly is outsourced. It is a highly specialized product that is demanded for special purposes rather than being suitable for mass consumption. The skill and knowledge of the owners of the company is the real value in the company. The private sector or the military may use the product. Financing is key to accelerated growth of the company.
The primary objective of this case is to explore the export financing possibilities for a small exporter. Bruno & Company produces a semi-high technology product 'which is not unique, as most of the production and assembly is outsourced. It is a highly specialized product that is demanded for special purposes rather than being suitable for mass consumption. The skill and knowledge of the owners of the company is the real value in the company. The private sector or the military may use the product. Financing is key to accelerated growth of the company.
Case number:
A10-00-0021
Subject:
Finance and International Trade
Year:
Setting:
US
Length:
4 pages
Source:
Library/Field