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Investment Appraisal - Assignment Example
Finance & Accounting
Pages 9 (2259 words)
Tyneside gravel organizations are an organization that is in the growth stage in the organization development cycle. This is especially because it’s in the growth stage that an organization is characterized with a need to expand in terms of its size and the number of customers. …
The growth stage is also evidenced by the existence of sufficient resources that will be enough for the organization to open up to new opportunities. Tyneside gravel organization is currently faced by three main decisions. The first decision that Tyneside organization needs to consider is the need to expand as a way of meeting the demand of more customers. Through expansion it will be possible for the organization to open up to more opportunities. The organization needs to make a stable decision on the need to expand especially because one the area they seek to move in doesn’t have enough sand and gravel which would only add to the inconveniences (McEvoy, 2012). Tyneside gravel organization also needs to make a decision about having a similar stand especially for the autocratic managing director who fears taking into new and innovative methods which are mostly useful in adding to the success of any business. Tyneside organization is also faced by a third and very important decision of choosing between the most viable expansion site between Cleadon Hill and Burdon Farm through a consideration of various factors such as market and cost of leasing. Market is one of the major factors that affect the success of a particular organization because it affects both internal and external efficiency thus making it necessarily for Tyneside Gravel to put it into consideration. The issue of the market should be considered relative to Claedon Hill especially based on the fact that one of the management has secured a promise with a top contractor in the region to buy from the company should they decide to take on the Claedon Hill farm.
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