Introduction
Since The Conservatory Company PLC is going through a successful phase with a 25% growth in sales, it faces problems matching the pace of demand. This includes a slow production process, increased pressure on machinery, and low incomes due to constant overtime payments.
Discussion
Expanding by renting the warehouse is also becoming an issue, the need for which is not yet fully clear in the context of the complication of making a profit. In the described situation, long-term financing will be the most successful solution. Here the general tendency to decrease the company’s dependence on short-term debt and increase the dependence on long-term ones manifests itself (Çam and Özer, 2021). The sponsorship of a campaign in order to expand and consolidate a place in the market can be provided by corporate bonds. Since the basis for the bonds is the company’s ability to repay debt, the company’s good performance will contribute to obtaining capital (Chen, 2020). Such a method presents sustainable development and simultaneous reduction of threats and mitigation of the main factors of deterioration (Sumaila et al., 2021).
The issue for consideration in this report will be the complexity of updating the equipment. The topic is important for the company because it will be able to prevent unexpected downtime and shutdown of the workflow (CMM, no date). The most profitable recommendation is to continue the policy of attracting external investment. Direct investments can be used for business development, regardless of the company’s level (Avazov and Maxmudov, 2019).
Conclusion
Since the company is well covered in the media and is popular among investors, it keeps shareholders on the board of directors and does not spoil its reputation in the market. Thus, the established policy should be continued and concentrated on solving practical problems of maintaining machinery.
Reference List
Avazov, N. and Maxmudov, N. (2019) ‘Investment as a source of financing’. Archive of scientific research, 12(67), pp. 75-77.
Çam, İ. and Özer, G. (2021) ‘The influence of country governance on the capital structure and investment financing decisions of firms: An international investigation’. Borsa Istanbul Review, 22(2), pp. 257-271.
Chen, J. (2020). Corporate Bond. Web.
Sumaila, U.R., Walsh, M., Hoareau, K., Cox, A., Teh, L., Abdallah, P., Akpalu, W., Anna, Z., Benzaken, D., Crona, B. and Fitzgerald, T. (2021) ‘Financing a sustainable ocean economy’. Nature communications, 12(1), pp. 1-11.
The Importance of Manufacturing Equipment Maintenance (no date). Web.