AirTex Aviation Essay Example | Topics and Well Written Essays - 1750 words

AirTex Aviation - Essay Example This company is rather a challenge for its new owners to put it on the right track of profitable business activities. The two owners initially managed to infuse $500,000 into the business as working capital employed to meet the company's short term debts, obligations and even the expenses that are to be paid in the current year The management of cash and accounts receivable are the most important assets of the company, but the company lacked proper recording, calculating and collecting the accounts receivable and turn them into cash efficiently Ted gave the collection of accounts receivable a new direction. It delegated the responsibility of dealing with the debtors, credit grant and collection of accounts receivable to the departmental managers themselves The company owed the bank $300,000 against the notes payable and the company would have gone for bankruptcy if the bank had called for the payment of liabilities, indicating poor liquidity position of the company. Ted met this challenge by strengthening relationship and building trust of the bank manager in the company's new management and their abilities. This made the company became eligible to get more loans and borrowings from the bank and meet any credit uncertainty. AirTex Aviation was on the brink of bankruptcy due to poor management caliber shown by its ex-owner that had lead the company to such a position Previously, all the management power and influence were rested on the single person who was an accountant for the company The company was very weak in terms of its Organisational structure and the dispersion of power and authority remained confined to a single accounting manager that hindered the free and direct flow of communication between the manager and the workers The company lacked educated and trained employees, furthermore, most of the workers in the company are reluctant to change, of any kind especially, education, training and application of new technology etc that could serve to be the greatest hindrance in its course of success Most of departmental managers were old-aged people who were supposedly less willing to adopt the new trends and technologies The two new owners of the company lacked the industry-related skills and knowledge of the business that may affect the growth of their business There had been a severe lack of communication and coordination among the managers and the workers, also the managers confront with the lack of decision-making powers and rights. After the acquisition, the revised structure of organization and decentralization of power resulted in enhanced decision making skills of the managers and an improvement of departmental education and learning The departmental level of accounting was required to be done by the