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realize its growth potential, and it soon moved its manufacturing
operation to a training facility for handicapped workers.
However, this facility proved unsatisfactory because once the
handicapped workers were trained to manufacture the mattresses,
they were replaced by new workers who required training. As a
result, Cascade was manufacturing mattresses with an unskilled
workforce that it was constantly training.
After approximately 1 year at the training facility, Cascade
moved its manufacturing equipment to a building near the Kingdome
and contracted to have the mattresses manufactured. This
arrangement was unsatisfactory because much of the potential
profit on the manufacturing operation was paid to the
manufacturing contractor. Finally, in 1981, Cascade moved to its
present location by renting a small corner of the building that
it later purchased.
At the time of its final move, Cascade recognized that its
manufacturing equipment was inadequate to produce all the
mattresses that it could market. Therefore, while the mattresses
were being manufactured under contract, Cascade designed and
built larger and heavier equipment for its new location.
Cash-Flow Problems
Cascade was undercapitalized and had cash-flow problems.
Because the shareholders were uncertain of the success of the
corporation, they generally were unwilling to make personal loans
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Last modified: May 25, 2011