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Management article
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Reference no. 88604
Authors: Mary Karr
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1988

Abstract

First Line was about to launch a business software product. Its distributor, Microchannels, who was recently acquired by a large outfit with deep pockets, was in a tailspin. It had made a poor acquisition of its own and had exceeded First Line''s credit limits. Still, the distributor wanted 100% credit on its new order of video games, as well as deep discounts and a liberal returns policy. Four small business experts - Leland B. Goldberg, partner at Coopers & Lybrand; Bert I. Helfinstein, chairman, president, and CEO of Entre Computer Centers, Inc.; Karen N. Horn, chairman and CEO of Bank One of Cleveland; and Harvey C. Krentzman, president of Advanced Management Associates - discuss this case and the questions that First Line faces: How can it generate cash? Should it talk to its distributor''s new owner? Should it switch distributors?

About

Abstract

First Line was about to launch a business software product. Its distributor, Microchannels, who was recently acquired by a large outfit with deep pockets, was in a tailspin. It had made a poor acquisition of its own and had exceeded First Line''s credit limits. Still, the distributor wanted 100% credit on its new order of video games, as well as deep discounts and a liberal returns policy. Four small business experts - Leland B. Goldberg, partner at Coopers & Lybrand; Bert I. Helfinstein, chairman, president, and CEO of Entre Computer Centers, Inc.; Karen N. Horn, chairman and CEO of Bank One of Cleveland; and Harvey C. Krentzman, president of Advanced Management Associates - discuss this case and the questions that First Line faces: How can it generate cash? Should it talk to its distributor''s new owner? Should it switch distributors?

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