Belco Global

9-211-033 REV: NOVEMBER 18, 2010 C. FRITZ FOLEY MATTHEW S. JOHNSON Bel Glo lco obal Foods In late 2009, Pa Arnold, H am Head of Glob Credit at B bal Belco Global Foods (Belc co), was deb bating how t handle a pa to articular over rdue account receivable. A Arnold, on with the oth members of the g her credit team at Bel t lco, had the t task of overs seeing risk m management a and the colle ections of acc counts receiv vable. Since its founding in 1978, Belc had quick grown to scram a leading marke co kly eter of poultr meat and other nutrition p ry, products. Mo product w sourced in the U.S. and so export to ost was n d ted more than 125 cou untries nearly the world. Thomas Quin who had become Presi d nn, ident of Belco after o super rvising sales to Russia, Asi and the Am t ia, mericas, was leading the c company tow wards the mile estone of com mpleting $1 billion in ann b nual sales. Exhibit 1 desc cribes Belcos core produc breakdown and s ct n, Exhib 2 describes its destinatio breakdow bit s on wn. Be etween 40 and 50 percent o Belcos sale were made on open acco d of es ount terms, an it was the credit nd teams job to ma ake sure systemers fulfil lled their pa ayment oblig gations. Nea arly all sales and s receiv vables were denominated i U.S. dollar Given its s d in rs.

size and the b breadth of cou untries it serv ved, at any g given time Belco could have outstan B nding accoun receivable from hund nts dreds of diff ferent custom mers spread over the enti globe. Th credit team thusly played a critical ro in ensurin the ire he m d ole ng surviv and grow of the co val wth ompany. Ind dustry tolerance for food m ns marketers we typically 2-4%. ere There efore, if even a few receiv n vables turned into bad d d debts that nee eded to be w written off, B Belcos overa profitability would suffe markedly. all y er Th fussy receivable in question was for $84,000, and it was w Kooritsa Kiev, a firm he r s with esaler based in Moscow, Russia that had been... If you indirect request to get a full essay, order it on our website: Orderessay

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