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  • Capital Investments.: Importance Long Term Effect Irreversibility Substantial Outlay

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    santu1989
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    The document discusses capital investments and capital budgeting. It describes the importance of capital investments, the difficulties in measurement and uncertainty, and the phases of capital budgeting including planning, analysis, selection, financing, implementation, and review. It also discusses levels of decision making for operating, strategic, and top level decisions. The document outlines facets of project analysis including market, technical, financial, economic, and ecological analysis. It defines strategy as setting long term goals and objectives, adopting courses of action, and allocating needed resources. It discusses formulating strategies through environmental and internal analysis.

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    Finnance

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    Capital Investment

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    The document discusses capital investments and capital budgeting. It describes the importance of capital investments, the difficulties in measurement and uncertainty, and the phases of capital budgeting including planning, analysis, selection, financing, implementation, and review. It also discusses levels of decision making for operating, strategic, and top level decisions. The document outlines facets of project analysis including market, technical, financial, economic, and ecological analysis. It defines strategy as setting long term goals and objectives, adopting courses of action, and allocating needed resources. It discusses formulating strategies through environmental and internal analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    23 views9 pages

    Capital Investments.: Importance Long Term Effect Irreversibility Substantial Outlay

    Uploaded by

    santu1989
    The document discusses capital investments and capital budgeting. It describes the importance of capital investments, the difficulties in measurement and uncertainty, and the phases of capital budgeting including planning, analysis, selection, financing, implementation, and review. It also discusses levels of decision making for operating, strategic, and top level decisions. The document outlines facets of project analysis including market, technical, financial, economic, and ecological analysis. It defines strategy as setting long term goals and objectives, adopting courses of action, and allocating needed resources. It discusses formulating strategies through environmental and internal analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    CAPITAL INVESTMENTS.

    IMPORTANCE Long Term Effect Irreversibility Substantial Outlay

    DIFFICULTIES Measurement Problems Uncertainty Temporal Spread

    PHASES OF CAPITAL BUDGETING


    Planning Analysis Selection Financing Implementation Review

    LEVELS OF DECISION MAKING


    Decision: Level: Structure: Resources Commitment: Time Horizon: Operating. Lower Routine Minor ST Admn. Middle Semi Moderate MT Strategic. Top Unstructure Major L T.

    FACETS OF PROJECT ANALYSIS


    Important Facets are; Market analysis Technical analysis Financial analysis Economic analysis Ecological analysis

    STRATEGY AND RESOURCES ALLOCATION


    Strategy is defined as: Basic L T goals & objectives determination Adoption of courses of action Allocation of resources needed

    Formulation of Strategies
    Environmental Analysis (Opportunities & Threats) Customers Competitors Suppliers Regulations Infrastructure Social/Political

    Internal Analysis (Strengths & Weaknesses) Technical knowhow Manufacturing capacity Marketing & Distribution Capability Logistics Financial resources

    Firms Strategies: Identify opportunities Determine core capabilities Find the fit between the above two To have a positive NPV.

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