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CASE STUDY

Students Name: Talvir Singh

Course : ADMN1207

Course Title: Quantitative Management Decision Making

Instructors Name: Khaled Whaba

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Introduction

Midi Capital is a center of 27 companies. The headquarter of the company is

Stanford, Connecticut. After taxation, each of the company's divisions is required to earn

a profit of 20%, and if it fails, it should be questionable. Commercial transportation is one

of the 27 departments of the company. The financing of the departments by Simon

Carriers Limited to move into a contract with a manufacturing company, Johnson, H. C.

(2014). The company will not be in an excellent position to keep the running fleet

entirely if they cannot do a good employment location. Simon Carriers limited they have

financing of $ 36000 with midi capital. This one totals $ 306000.

Recommendations

In the given requirements provided, Midi Capital Commercial Transportation

Financing Division ( CTFD) donated a loan amounting to $ 250000 to Simon Limited

Carriers Limited (SLC). Simon Limited Carriers Limited (SCL) should reach the limit

and their compensation increase in qualifying for the loan. Simon Limited Carriers

Limited (SCL) should spend its whole $ 50000 to acquire the entire $ 300000 new

financing. Simon Limited Carriers Limited (SCL) should reach all the requirements to

avoid the loss of the contract. Simon Limited Carriers Limited (SCL) must investigate

commercial prospects and research the commercial possibilities somewhere else if the

contract is lost earlier than imagined. In case Simon Limited Carriers Limited (SCL) is

not in a position to settle the monthly payment, it might be pushed to place the new assets

to meet the obligation of finance.

Control and Feedback

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SCL must follow long-term business practices to protect the interests of all

stakeholders. SCL's two loan payments must be paid on schedule each month. If the

trucking firm can make its loan payments, it may look at expanding and increasing costs

by hiring additional staff. Midi Capital will examine the loan conditions with SCL at six

and twelve months to evaluate progress and correct any issues, Wamser, G. (2012). Midi

Capital will also keep a careful eye on the company's financial accounts and be alert to

any problems. The SCL should guarantee that any damages suffered by the business due

to the parties' increased knowledge of the risk of contract failure are minimized. In light

of the preceding guidelines, the company's business strategy is sure to succeed. Errors

were found in the financial analysis of Midi capital Transportation's Income Statement,

Balance Sheet, and Ratio Analysis, which means that a full financial audit of Midi's

financial statements will be performed before the loan request is granted so that the

business can move forward with a clearer picture of its future. Keeping a successful

company if money is being withdrawn quicker than generated is difficult.

Contingency plan

The business strategy might be dramatically altered. Both parties are aware of the

dangers and will take precautions to minimize such losses in the future. This means SCL

must do all in its power to keep the contract. If the contract is terminated sooner than

expected, SCL should look for other business opportunities, Wamser, G. (2012). Running

expenses should also be kept to a minimum by SCL. SCL may be compelled to sell some

of its new assets if it cannot make its monthly payments. At Midi Capital, we may look at

the prospect of temporarily decreasing monthly payments while SCL investigates other

solutions.
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References

Johnson, H. C. (2014). The Midi in revolution. In The Midi in Revolution. Princeton University

Press.

Lipponer, A. (2006). Microdatabase direct investment-MiDi. A brief guide. Bundesbank working

paper, Frankfurt.

Buettner, T., Overesch, M., Schreiber, U., & Wamser, G. (2012). The impact of thin-

capitalization rules on the capital structure of multinational firms. Journal of Public

Economics, 96(11-12), 930-938.