Decisions in Paradise Part III

Running head : Decisions In Paradise Part 3

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The time has come for an evaluation of the factors affecting the decision making process . This exercise is necessary to evaluate how decisions are mad and the reasons behind them . This process of decision making is very important for the success of a business . If a wrong decision to invest is made , it may have serious repercussions for the company . A will informed decision will lead to prosperity

Our company is an established one . It has

been around for a couple of years and that has gives us certain advantages . The solid nature of our company favours us in that we are financially stable and can harness resources much more quickly than start up companies . The financial muscle we posses put us in a better negotiating position in relation to prices , credits and discounts from the suppliers . Before any investment decision is arrived , at the question of funding comes into play . Do we have the money for investment ? The key factor here is if we do have the capital , then what is the expected rate of return on investment ? The rate of return should be higher than what we could get from simply investing the money in a bank . However the interest rate is not the only consideration for deciding to invest . The bank rate may be higher than the projected rate of return , but the prospects of growth may see the company reap huge profits on its investments in the long term . Consequently there is a need to focus on the long term rather than on the short term . Investments are usually made where investors feel the playing field is level . There should be no unfair competition in the market and all players should face the same conditions as the rest . Our company has a good opportunity in Kava because the government is keen for us to invest there . This is a comparative advantage that should be exploited to the maximum . Good relations with government officials ensure the smooth operation of the company 's activities . The security of the investment is another key factor in deciding to invest in any country . This means that the security situation in Kava as concerns terrorism must be handled quickly and effectively before it scares investors away . The existence of a well maintained infrastructure is important in attracting foreign investment . Roads , power supplies , port and railways should be in a workable state if Kava wants to benefit from foreign direct investment (FDI . The speed with which the utility companies work to restore the power , telephone , water and road networks after a natural disaster will be the yard stick that investors will use in basing their decisions . The faster these supplies are up and running the better for everyone . The ease of getting licenses for operating businesses is another factor contributing to the readiness of investors to invest . Most countries have adopted the one stop office policy for the registration and licensing...