Beside that to help Alpha …show more content…
Another thing can suggest if to increase demand for the product is to offer a sales promotion to increase the amount of inventory that leaves the warehouse in a given period of time. Alpha is also advice to optimize the supply chain supplier will enable supplier to deliver materials in a timely, low cost fashion. This would allow Alpha to minimize the inventory and cost of materials while elevating your supplier’s competitiveness as a business. Other than that establish partnering relationships with customers, can enable Alpha to make demand for products more predictable thereby allowing Alpha to minimize finished product inventory without failing to meet the customers needs for volume and …show more content…
Alpha is also recommended to balance its source of capital so that it can lower the company’s dependency on long-term debt to grow the business.
The earlier discussion also indicate the Alpha earnings per share (EPS) were fluctuate which will affect the future investor interest reduce. Thus, there are several ways that possible to suggest growing the EPS. Alpha is advice to ensure the management is doing a better job at running the company. This will be the main tasks that need to remind to the management.
Other than that the possible way is undertaking a share buyback to reduce the number of shares on issue is a great idea providing the shares are selling at below what they are worth when they are bought back. The other alternative which is not really a good possible solution is to buy other companies. But if Alpha decide to do this, there are a lot of management analysis and decision making process that need to go through as many acquisitions do not achieve what they set out to achieve. These may not necessarily improve profitability, but they may help Alpha to increase the EPS and further attract future