The Invest Decisions And Process Making

*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)

PART -4

1.   THE INVESTMENT DECISIONS AND PROCESS MAKING

The investment decision-making process has different levels, they are:

STARTING POINT OF PROPOSALS:

It is necessary to prepare free brain storming places for our organizations future. New and good ideas will grow up while employees feel free themselves to improve present or new ideas. Some alternative projects will abandon before they start but some of them will investigate deeply.

SCREENING OF A PROJECT:

Before financial analysis, there has to be detailed project investigation. The ideal projects have the same long term objectives with the organizations goals. Then, be sure to check all the alternative projects. On condition that the project passes this first focus after then, detailed financial analysis can start.

INVESTIGATION AND ACCEPTANCE:

This is financial analysis level of investment decisions. In this step, investment appraisal methods have to be considered. In addition, qualitative subjects need to be estimated before decision-making and implementation.

MONITOR THE PROJECT:

All projects have total costs. For this reason, Organisations separate capital to spend for the projects. However, they have to ensure that not to spend more than the capital. After all of these steps, if the project implement properly, organizations will obtain the benefits that expected.