Company Culture and Making the Investment Decisions Assignment

Company Culture and Making the Investment Decisions - Assignment Example It may also affect the performance of the organization. However cultural considerations are taken into account more in case of productive physical resources rather than financial investments. Product/Service Quality This is an essential factor to be taken into consideration while making any investment decision. The quality of the invested capital resources has a direct effect on the quality of the products or services of the organization. The least extensive investment resources would be yielding the lowest quality of products or services for the organization. The manager requires balancing between the quality and the cost for maximizing the cost-effectiveness of the investment. In a similar manner let us consider another example- purchase of the lowest quality of vehicle for the on-site workers would result in the interruptions in fluent or efficient services due to vehicle breakdowns or other related problems. If Laurentian Bakeries Inc. purchases lower quality equipment, it would result in the preparation of low quality food products. Thus the company requires finding a balance between the cost and the quality in order to increase the efficiency of the investment. ... It is very important for the manager of Laurentian Bakeries Inc. to consider the impact that the capital investment decision possess in the environment (Albrecht, 2011). Implementation of strategic plans The strategic plans for the first year of the project are identified to be the operating plan for the same. The operating plan is supported by a detailed list of capital projects which are proposed earlier and thus, becomes the basis for the capital allocation of the project. Initiatives are taken to improve the strategic plans and the benefits associated with the company (Jennings, 2006). The managers are also trained in such a way that they can give out proper instructions to their employees and thus, balance the operation efficiently (Porter, 2011). The corporate strategies are also evaluated in order to acquire the successful projects. The companies are evaluated with regard to the challenges that are being faced by them. The tangible actions have to be linked with the corporate vision so that the projects are successful and yield suitable results. The risk-minimizing factors are also evaluated in order to take the right decision for any project. The quantitative factors that are required for the evaluation of the projects of the company are as follows: 1) Net Present Value: Net present value is the difference in between the present value of the total cash inflow and the present value of the total cash outflow. It helps in determining the value of an investment project thereby facilitating the investment decisions.