Why do firms have trouble managing their cash flow? What events cause a cash flow crisis in the simulation?

Every week, you have to consider the cash flow of your firm. This short-term financial consideration often creates serious difficulties for firms in the footwear industry. Looking at your industry to date, consider the following questions:

• Why do firms have trouble managing their cash flow? What events cause a cash flow crisis in the simulation?
• How does a short-term cash flow crisis impact a firm’s competitive strategy?
• How does a short-term cash flow crisis spiral into bankruptcy for some firms?