Going for growth by investing in people, products and plant 2 Essay

Going for growth by investing in people, products and plant 2 - Essay Example Question 1 Before making an investment, it is prudent that one possesses an effective understanding of the market of operation. This is important in making an informed investment move. The process of studying the market and developing an understanding of the same is collectively referred to as investment appraisal. It involves a series of market evaluation through a number of mechanisms which result in the comparison of the business’ key objectives which are profitability under the existent market forces (Willey, 2012). There are a number of investment appraisal methodologies including net present value which investigates the ability of the market to repay the investment given the numerous present market factors such as inflation. One of the most preferred of these methods is the direct payback method in which the investor calculates the number of years it may take the business to return the initial investment. Some other investment appraisal method is the accounting rate of r eturn which bases its assessment of the market on its ability to earn profit to the investment. Despite their different approaches to the appraisal, the methods safeguard the interest of the business by trying to determine its profitability and above all its longevity. The life of a business is of great importance to the investor since the longer a business stays viable, the more the investor earns. The company makes an extensive capital investment with the sole aim of achieving the business objective. Capital investment is the amount of money that the enterprise invests in fixed assets which are directly used before implementing its investment plan. In this case, the Hazelwood Sandwiches Company carries out an extensive market research and investment appraisal thereby ensuring that their company stays relevant in the evidently dynamic market (Tabbush, 2011). This includes enhancing the production process such as the machinery and the production plant. The company does this after st aying in operation for some time; it therefore has an understanding of the market. Its decision to make such an expansive capital investment arises from the understanding that it has for the market. The company, just as any other desires, to stay active in the industry for as long as it takes. It therefore collects adequate information about the market and has its market facts right (Thomas & Michael, 2001). After determining the market size, the company determines its market share which is indeed the largest. The subsequent investment therefore arises from the desire to retain the position thus safeguarding both the profitability and the longevity of the company. The company has therefore mapped out its capital investment plan in phases to ensure that it does not become bankrupt in the process since such as scenario might have stifled the production process thereby either incurring debts or resulting in the eventual closure of the company. While purchasing fixed assets and improvin g the scale of production, the company also increases its working capital which is also part of capital investment. Question 2 The investment decision technique is synonymous to the investment appraisal method. The three discussed in the article are the playback method, the net present value, and the account rate of return (Alexander, 2010). Despite the fact that they all lead to an appropriate investment decision, they are different in their provisions and therefore possess unique advantages and disadvantages. The net

How the introduction of a new technology can assist an organisation in Dissertation

How the introduction of a new technology can assist an organisation in achieving its business objectives (Apple Company) - Dissertation Example The organization that will be the centre of the research is Apple Incorporation with focus on their iphone and ipad products. This study is significant in view of the fact that Apple Inc is considered as the leading organization in computing and mobile information innovation (Shi, 2011). Apple Inc is ranked 35 in Fortune 500 of 2011, 21 ranks higher compared with last year (www.fortune.com). The company’s increased in rank is visible manifestation not only of increased revenue, but it is also a show of the company exists expanding market and its capacity in creating new ones. Furthermore, in order to address the topic of the research, a look into the objectives of the Apple Inc., as well as, the company’s performance in the market will be performed. 1.2. Reasons for the Topic Chosen Fast phased developments in technology are an essential attribute of the contemporary period, especially in the business world (Andersen, 2001). The reasons behind why this topic has been chosen are because 1) Integral in the survival of contemporary organizations is it response to the challenges and demands of new technologies (Thomas 1994, p. 235). As such, the research believes that understanding the alignment between objectives and new technologies can further the knowledge necessary in apprehending the business environment of organisations. 2) Apple Inc is considered as one of the most innovative organizations in computer and mobile technology in the world (Voice of the Innovators, 2004). An insight regarding how the company keeps its leadership in technological innovation while pursuing its objectives helps in gaining an understanding regarding how new technologies can help organisations attain its goals. 3) The researcher views the alignment of new technologies and business objectives of the organisation can be considered as a powerful strategy that companies may utilised as they compete in the global market. In this regard, the experience of Apple Inc. affirms this view. Since, the company is not only