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SECTION 1

INTRODUCTION

This applied management decision report is presented in

the form of a case study. The case is concerned with user

financing in distributor organizations. The requirements for,

and potential profits to be gained by a distributor thru the

operation of an inhouse user financing service are investi

The findings of the case analysis are presented in four

separate sections following this introduction. These sections

deal with (1) the organization and its current situationSec

tion 2, (2) the problem faced by the organization, together

with an analysis of the problemSection 3, (3) the description

of potential solutions to the problem, together with analyses

of the solution alternativesSection 4, and (4) the recom

mended resolution to the problem, together with a business plan

for its implementationSection 5. Appropriate sample documen

tation relevant to the consumer financing operation is included

1

SECTION 2

THE ORGANIZATION AND ITS CURRENT SITUATION

The organization examined in this study is Lincoln Con

tractors Supply, Inc. (LSC), a local distributor of construc

tion equipment and supplies in wisconsin. The company is a

fast growing distributorship that offers a full range of

services and products to its customers in the construction

industry in its local service area.

The products and services offered by LSC include the sale

of tools (from the smallest hand tools to large excavators),

...