Dsc Communication Corporation Case Solution & Answer

Dsc Communication Corporation Case Solution


DSC reporting Corporation is a major producer, developer, maker, and purchaser of digital change, communication, acquired, and private flow network items for the over all information technology market. Head office in Plano, Texas, DSC has potential and consumers throughout the US and also in the world.

DSC previously was known as the high-definition change company, detects its history to 1976, when two engineers and two financers from the Washington, D.C. area and connected forces. Their purpose was to use developing on line advancement to build a new changing network for the domestic telephone firm’s head offices.

The first 5 y of the DSC firm were disorganized and disturbed. Among other things, the two main engineers who left the brokerage firm that took online Switch domestic, John Muir &firm, soon went debtors; the records were in disorder. To right the firm, the board of directors made different positive and tough administration changes. But by early 1981, it became obvious to the members that they needed a president with professional experience.

DSC also became the first producer to sell into the Japanese domestic telephone system which, like the American market, was being opened to competitiveness. The first big global sale of online switching instruments was to Daini-Denden.

What are the industry risks that the bank will face if they’re going to choose that they’re going to participate in this working capital facility?

Working capital is a very crucial part of any business operating. A firm must make sure that they can accurately control their resources so that they don’t become bankrupt when their cash flows are not working well. Good working capital planning would help the firm to know how much cash is coming and how much is going out. This will help the bank from being distracted from having more loans and will also help them to have better assets management.

When a business looks for a bank to loan them working capital, they must know what the bank is doing when it comes to managing their capital. It is also important that business owners know what they can expect the bank to do if the bank becomes unable to pay out the funds requested. Many times, banks provide very little information to businesses. They either pretend or know that they do not need the information or they simply won’t give it. By looking for a bank that has been in business for some time and has a good track record, one can get a better sense of what the bank will do if things do not work out the way planned.

The danger to the banking industry of having less working capital is very crucial for a firm. If a business is not generating a good amount of income, the owner can choose to sell the assets and cover those losses with another firm. The bank has two option either to close their business or try to continue them Here are some of the pros and cons:

Pro –Selling the assets would be a big loss for the company as assets are very crucial for a business. They are resources from which the bank/ company starts the business. It is important to know that by selling the assets of the company the business can still be operated. A business thinking of closing the business will need to improve its working capital because without working capital the survival is not possible.

Con:  the chance of the increase in the interest rate is also an important factor for the company to consider because if the interest rate rises then the company would also have to pay a higher interest rateonce interest rates rise, it becomes important to look at asset management. If the assets are not being properly managed then those assets will be at the risk of loss for the company.

2.What are the major company-specific risks?

There are some of the most important and important factors that form the financial status and position of the banks. Banks take a big range of various risks involved as well, ranging from interest rate risks to credit risks. To cover these as well as other risks, they have developed their framework, which they use to control the risk.

Customer Credit Risk: This is the most crucial risk faced by banks across the board, in terms of customer money spending. The customer has several various options when it comes to making money. While they may enjoy decreased interest rates from a bank there are also choices such as credit cards and loans……………………..

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