StudentShare solutions
Triangle menu

Strategic Investment Decision Making - Case Study Example

Not dowloaded yet

Extract of sample
Strategic Investment Decision Making

This paper addresses a critical question "Should TAM Airlines buy Airplanes of the Model: Fokker F-100 or the Airbus A-320" The research is carried out in the form of a case study where drawing information from different search engines such as Google and previous research we compared the two aircraft.
Drawing from prior studies the evidence suggests that Airbus 320 represents a better option for TAM Airline considering, it flight capacity, its flexibilities, and its technological advancement attached to the changing time. Airbus 320 offers the management an opportunity for a long term suppliers relationship management. The difference is attributed to differences in the level market systems that characterized both economies. Fokker F100 is characterized by a Short route for regional flight limited to 3111km where as Airbus 320 is a long route flight. The features and flexibilities offered by airbus gave us grounds to recommend it to TAM Airline
Adler (2000) suggests that strategic investment decision making involves the process of identifying, evaluating, and selecting projects that are likely to have a big impact on a company's competitive advantage. Strategic investment decisions influence what the company is doing, that is, the set of products and services as well as their attributes that it offers to customers. These decisions also influence where the company offers these products and services and how it offers them. (Adler, 2000). It is therefore very essential to ensure that the right decision is made as regards the products and services on offer, where such products are offered and how they are offered. Investment decision making involves the elements of a classic cost-benefit analysis. (Adler, 2000). According to Akalu and Turner (2001, 2002) finding a reliable method of investment appraisal is not only a matter of concern for company management. Investment appraisal has now become a matter of concern to both shareholders and investors. (Turner, 2001, 2002).



Customer satisfaction lies at the heart of all modern thinking on quality and business management. Customers and suppliers are important stakeholders. "Stakeholders are those individual or groups who depend on the organisation to fulfill their own goals and on whom, in turn, the organization depends" (JSW: 2005:179). TAM Airlines now faces a critical purchase / Suppliers management decision to discontinue with it much heralded Fokker F-100 and go in for the Airbus -320. Thus, the central theme in this paper is to find out which of the two airplanes represent a better investment or purchase decision for TAM Airlines.

1.1Problem Statement and Research Questions
The supplier selection process must be an integral part of an effective ...Show more

Summary

Being the author of this piece of writing do not entitle me to all the credit. I am particularly grateful for the Lord almighty for guiding me through my educational studies and particularly this work. I am grateful to all the authors who through reading of their work I gain an insight on how to approach the assignment.
Author : jacobsonalford
Strategic Investment Decision Making essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Strategic Investment Decision Making"
with a personal 20% discount.
Grab the best paper

Related Essays

Strategic Decision Making in a Global Business Setting
The reason UCTC wants to acquire AMI is for strategic purposes. The firm was already buying most of its metal fabrications from AMI. By buying AMI in an acquisition transaction UCTC would lower its operations costs and it would increase its income. The acquisition option can be implemented immediately since it would not affect the internal operations of UCTC.
2 pages (500 words) Case Study
Investment Decision: Goofys / Plutos
Goofy’s has a gross margin of 47.09% which is better than Pluto’s by 2.74%. In comparison with the industry standard gross margin of 46% Goofy’s gross margin is better than the industry, while Pluto’s is below the industry standard.
2 pages (500 words) Case Study
Corporate Decision Making
are demanded more than they are produced at current level. Since, less production implies less sales, there is a loss of revenue that can be gained from selling the addition units of the products. As a result, the firm plans to expand and there are two options that can adopted for the planned expansion.
10 pages (2500 words) Case Study
Strategic Accounting for Decision Making
The practices of the Fitness Forever has been criticized much because the organization has increased the prices i.e. fees and interest rates charged, particularly when the declination in the revenues was imminent. The financial institution was heavily criticized and disliked by the local market because of the expected reduction in the interest rates, when the declination of the deposits and advances was observed.
12 pages (3000 words) Case Study
Strategic Decision Making
Thus the new Chief Executive Officer's (CEO) decision to present himself in a prime-time TV interview is of strategic significance for a number of reasons. In the first instance Bamford's decision is based on the premise that with the death of the old CEO things are bound to change at Comfort Homes.
10 pages (2500 words) Case Study
Decision Making - Euro Crisis
The crises have led to decrease in exports from the financial giants. Apart from the giants, the third world countries have been affected severely. There has
14 pages (3500 words) Case Study
Managerial Decision-Making
qualification, there are those who prefer to take priority work and assign the rest to their colleagues but whatever the case, all managers have a system that they follow to ensure that all the goals and objectives required by them are completed on the stated timeline. They are
1 pages (250 words) Case Study
Decision making process
Gill tract identifies diversified stakeholders that should be incorporated at different stages in the decisions for exploitation of the tract. Previously held decisions over plans to use pieces of land within the
2 pages (500 words) Case Study
Ethical Decision Making
Further, it is the ethical responsibility of both the manager and the supervisor to let the employees know why their password-protected accounts are being accessed by people other than themselves. If the exercise
10 pages (2500 words) Case Study
Decision Making Case Study
The chosen decision-making process bases on the case study of Dave as a department manager for an IT firm. From the case, there was a general misunderstanding between Alex and Dave
3 pages (750 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation