ABC Company Management Research Paper Example | Topics and Well Written Essays - 750 words

ABC Company Management - Research Paper ExampleThe decision is of salient importance for the organization because the results of the decision continue for many years hence such decision reckon the profitability of a firm. Large amounts of money are invested in capital projects, the resources that are invested in a project are often committed for a long period of time and it may be difficult to reverse the effects of a poor decision. In view of the above, the viability of this new product business enterprise should be made based on the time needed to commit to the project, the expenses associated with the project , source of bullion to finance the project ,level of return of new product and the additional revenue expected from the project. I. Regulatory and accord assay-this is the risk of regulatory sanctions that arises when Company fail to follow the code of conduct as outlined by the rule of law in the course of carrying out its activities. It includes failing to abide by la ws regarding conservation of environment, wellness standards of its workers and quality standard s set for their products. This risk has disastrous impact on companys existence as it may cause the company to be winded up if it fails to comply. Consumer demand shifts This is the risk associated with continued change in consumer sense of tastes and tastes. This is brought about by changes in needs and fashion .a Company thus should always be in line with this shifts so as to produce products that suit consumers needs irresolution Most business firms fear the challenges that may face the organization in the future. The uncertainty in reliance market, coupled with new laws and the fluctuations in the global economy influences investment decisions. Thus most firms shy onward from long terminus commitment of funds to long term projects in favor of short term projects with uncertainty being their major excuse. This problem of uncertainty washbasin however be solved by making long ter m strategic planning. Globalization This is a major challenge to firms today. Firms need to visualize foreign cultures so as to penetrate new markets with their products and services. Also firms face stiff competition from competitors who unknown to them are in foreign markets as a result of increased globalization. The challenge therefore can be solved by in depth understanding of international markets and diverse foreign cultures through better research of information for better analysis. Technology The technological advancement is running at an increase rate. Some competitors use this as a tool to outdo their competitors that is they wait for next generation of engineering which may be a half a year away then use it to discover a competitive edge over other firms. Hence firms need to come up with a reliable long term technology plan and also remain flexible to use to their improvement any unforeseen technology development. II. ABC COMPANY CASHFLOW STATEMENT FOR THE YEAR ENDE D 31 JUNE 20XX $ $ notes flow from operating activities Cash receipts from customers 10000 Cash nonrecreational to suppliers and employees (3000) 7000 Cash generated from activities Interest paid 200 Income taxes paid 500 (700) Net cash flow from operating activities 6300 Cash flow from investiture activities Purchase of property, plant and equipment ( 300) Proceeds from disposal of land (200) Purchase of equity investment ( 700) Interest sure 300 Dividend received 200 (700) Net cash flow from operating activities 5600 Cash flow from financial backing activities Proceeds from issue of share capital 4000 Proceeds from sale of long-term loans 300 Redemption of preference shares ( 210) Repayment of long-term loans ( 200) Dividend paid (130) 3760 net cash flow from financing activities 9360 Net increase in cash and cash equivalents 340 Cash and cash equiv