Economic Problem in Furniture Production

Economic Problem in Furniture Production
Economic Problem in Furniture Production
Economic Problem in Furniture Production
Economic Problem in Furniture Production
Economic Problem in Furniture Production
Economic Problem in Furniture Production
Economic Problem in Furniture Production
Economic Problem in Furniture Production
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The conduction of the investments and the growth within the businesses operations is considered to be based on the identification of the main needs and the demands of the organizations within the entire operations and the activities of the organization (Allen, 1991). Business managers should be aware of the majority of the costs and the main benefits that are considered to be allocated from the different investments options or alternatives, for ensuring the effectiveness of the approach or the path that would be followed (Geddes, 2002). The elimination of the rate of the effectiveness of the alternative will be based on the assessment of the rates of risks and the returns of each alternative (Agar, 2005). The identification of the alternative will be focused on the highest returns, while the identification of the alternative with the least risks (Pierru & Babusiaux, 2005). In addition, the identification of the significance of the risks and the importance of the returns is considered to be based on the perspective and the attitude of the decision makers regarding the value and the quality of the risks and the returns (Komakech, Emmanuel, & Harris, 2009). Different decision makers may be holding different assessment criterion for the evaluation of the rate of the significance of the risks, as well as the capability for the company or the business’ owners to handle the risk, for the sake of the expected returns. Different approaches can be followed for the assessment of the organizational capabilities for the enhancement of the capabilities and the competencies of the businesses within the assessment of the investment decisions, as well as the identification of the value that can be gained from each of the decisions (Debarshi, 2011). The formulation of the assessment and the evaluation of the alternatives are considered to be focused on the economic and the financial benefits that would be gained from the entire alternative decisions, as well as the other factors, rather than the financial and the conic factors (Ward, 2012). There should be a combination between the financial managers and the technical mangers within the organization, which will be allocated from the main areas of operations, at which the decision will be conducted (Goetzmann, Brown, Gruber, & Elton, 2009). For the conduction of the effective analysis for the investment decision, it can be ensured that the most critical stage within the evaluation process is considered to be based on the identification of the main type of the investment. For instance, the development an effective investment decision, should be deifying the main goal for the investment, which will be seeking that gathering and the allocation of various information and data. The investments decisions that ca be conducted by organizations are divided into replacement decisions and growth decisions (Debarshi, 2011). The following paper will be repenting one of the most critical activities and the actions that had been conducted by the organizational management within El-Kashef Company for Furniture Production within the development of a strategy for the identification of the most effective alternatives for the enhancement of the effectiveness of the investment decisions. The main methodology that had been deployed is considered to be focused on the cost-benefit analysis.
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