Accounts and Finance

Quantitative Investment Appraisal

Average rate of return

Average rate of return is a percentage that shows the amount of profit someone gets back from an investment. This takes into account the profit and not the time.

                   [Net return (profit) per annum / Capital Outlay (cost)] x 100 = ARR

Payback Period

The Payback Period is the amount of time a firm would take to recover the investment made. This takes into account the time and not the profit.

                   [Amount required / Net Cash Flow in year] x 12 = Payback Period

In the case UWP

Strenghts This humanitarian project would remotivate the troops by providing a change of routine, by giving them a sense of achievement, and by building positive relationships with the local population. (47-49)

Weaknesses The reputation of the UWP troops gradually deteriorated. (25) Moreover, “the Olive Hats” in Loyka started to resent being there and motivation was beginning to deteriorate. (28-29) some peacekeeping troops would need extra training in construction skills and safety procedures. (92-93)

Opportunities The existing University Campus was small, old and in need of extensive repair. (76 - 77)

Threats However, opposition to the UWP presence grew as did violence against the troops. (or weakness) (27) As a result, there was a significant decrease in the number of doctors in Loyka. (68-69) Conservatives in the country, Kos warned, would be strongly opposed to Loykese women receiving care from foreign male doctors. (73-74) Kos feared that a university built by the UWP would become a symbol of foreign intervention in Loyka and would make it a target for critics of the government and of the UWP presence in the country. (79-81)

Kos

Strenghts Info aqui Y Aqui	Weaknesses Info aqui Y Aqui
Opportunities Info aqui Y Aqui	Threats Info aqui Y Aqui

PESTLE Analysis

UWP

Political	Info Aqui y Aqui
Economic	Info Aqui y Aqui
Social	Info Aqui y Aqui
Technological	Info Aqui y Aqui
Legal Factors	Info Aqui y Aqui
Environmental Factors	Info Aqui y Aqui

Kos

Political	Info Aqui y Aqui
Economic	Info Aqui y Aqui
Social	Info Aqui y Aqui
Technological	Info Aqui y Aqui
Legal Factors	Info Aqui y Aqui
Environmental Factors	Info Aqui y Aqui

Ansoff Matrix

UWP

Product Development
UWP would be Product development because they have already been for a while in Loyka therefore they are in the same “market” and with the construction of either the hospital or the university it would be the “product” (in this case a service)

Kos

Market penetration for Kos

Strategic, tactic and operational objectives (apply to UWP)

Strategic and operational objectives both help to Loyka in decision-making in order to know how to achieve the aims of either the university or the hospital. It is as important for Loyka to set operational objectives as strategic objectives. As seen in this case, these type of objectives would allow General Pierce to fulfill the two objectives given to her: improving the image of the “Olive Hats” (strategic) and the remotivation of their troops (operational). If a hospital were to be constructed, prenatal care might have to be taken into account for an operational objective. On the other hand, for the construction of a university, there might be the need to rebuild the social infrastructure, which could be a strategic objective. As seen in this case, the setting of both types of objectives are important to Loyka, since the company could see which objectives are more likely to be achieved in order to know which construction is the most suitable.

Tactics: Are short-term objectives which help achieve the strategic objectives. In this case, a tactic could be the finding of a source in which something could be used in order to improve the image of the “Olive Hats”.

Glossary

Na (Later)

Categories

• Business Organization and Environment
• Human Resources
• Accounts and Finance
• Marketing
• Operations Management

References

If Any...