Financing is usually tricky for businesses. Usually, small to medium companies don't like bringing in investors to help financially. When investors are introduced into the company, gradually, they take over the business. I used to work for an insurance company that finally got bought by the investors who were floating their cash. The second perspective recognises that managers make systematic mistakes which markets do not fully correct, such as overinvestment (Malmendier & Tate, 2005). Investing in quality raw materials is laudable because it will give them leverage to charge more. No business can escape the threat of losing customers or having no funds to run the business. Regular data collection will help C&S know what is happening in the industry and find solutions to problems. What are your thoughts?

Malmendier, U., & Tate, G. (2005). Does overconfidence affect corporate investment? CEO overconfidence measures revisited. European Financial Management, 11(5), 649-659. https://doi.org/10.1111/j.1354-7798.2005.00302.x