A study of practice in large UK manufacturing companies. The complexity surrounding strategic capital investments present challenges to managers charged with evaluating these projects.
In particular over- reliance on financial appraisal tools is thought to bias decision- makers against undertaking strategic projects that are crucial to the development of business capability and innovation. In response to this concern, several emergent analysis tools have been advanced as means to integrate strategic and financial analyses of capital investment projects. This paper examines the use of both conventional financial analysis tools and selected emergent analysis approaches in the capital investment decision- making of large UK manufacturing companies. The findings update previous studies on the use of financial analysis tools, but also examine how their use varies between strategic and non- strategic investment projects and the extent to which emergent analysis tools are impacting decision- making practice. Little evidence emerges of integration between strategic and financial analysis approaches.
Financial analysis techniques still dominate the appraisal of all categories of capital investment projects, while risk analysis approaches remain simplistic, even for complex strategic projects. Despite their noted potential for informing strategic investment decisions, the emergent analysis tools barely register in practice. The appraisal of capital projects seems to reflect a ‘simple is best’ philosophy and a commitment to the role of intuition and judgement in assessing how the strategic dimensions of capital investments connect with their financial outcomes. Copyright © 2. 00. Elsevier Ltd. All rights reserved.
HYDROCARBON PROCESSING / APRIL 2002 Plant Design and Retrofitting K. Loudermilk and R. L. Steinberger, Aspen Technology, Inc., Rockville, Maryland I n the global process industries, the object of a project’s economic. Tools for Decision Analysis: Analysis of Risky Decisions. If you will begin with certainties, you shall end in doubts, but if you will content to begin with doubts, you shall end in almost certainties.
- Governments, businesses, development agencies, and NGOs are increasingly turning to economic valuation as a way to protect coral reefs and mangroves. This process makes the economic case for protection and sustainable use of.
- HR Analytics: Driving Return on Human Capital Investment An Oracle White Paper September 2011 HR Analytics: Driving Return on Human Capital Investment.
- Abstract. Multi-criteria decision analysis (MCDA) methods have become increasingly popular in decision-making for sustainable energy because of the multi-dimensionality of the sustainability goal and the complexity of socio.
Corporations may rely on borrowed funds (debt capital or credit) as sources of investment to sustain ongoing business operations or to fund future growth. Debt comes in several forms, such as through bank loans, notes payable. Capital budgeting, or investment appraisal, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research.
On 29th November 2002, questionnaires were sent to the financial directors of these 320 companies on the basis that financial directors are most likely to be involved in evaluating investment projects (Chen, 1995, Arnold and. Capital programming guide table of contents. table of contents list of abbreviations.. i key internet addresses.