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challenges in the business environment
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challenges in the business environment
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The business scope of the modern day economic agents is no longer that of simply selling their products and cashing in the revenues, but has become more complex. More specifically, while the ultimate objective remains that of profit registration, economic agents have changed their approach to attaining the objective. They now focus on satisfying the customers, attaining the approval of the society and creating a favorable working environment for the employees. In the context of increasing challenges, the economic agents are also presented with incremental opportunities, which aim to increase their revenues, to improve the production volumes, to increase operational efficiency through technological enhancements or to expand into new markets and serve new customers. All these efforts are completed through projects of capital investments.
Capital investment projects are extremely complex endeavors, understood traditionally as financial resources invested in an organization for the general purpose of cashing in the profits generated by the respective investment. Two particular features which need to be mentioned relative to capital investments is that these can occur within the entity making the investment, or within a different entity, and also that the capitals are generically destined to cover the purchase of fixes assets (equipments, land and so on), rather than use them to cover everyday expenses (Ward).
The success of capital investment projects varies and it is sensitive to numerous factors. A particular belief is that the failure of capital investment projects is pegged to the fact that the adjacent decisions are made in an improper manner, that the resources are poorly allocated and that the correc...
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