Professional Education - Sample Essay
The results of IRR are not exact since we just calculate with the random number for the trial value. However, during the process of calculating, I have chosen the closest approximation to maintain and improve the reliability factors. After comparing all the values of IRR, Project C has the highest number which is 26. 26%. Therefore, Co-op Supermarket should better invest in project C to make highest IRR and the profit for the company. 1. Other Financial tools
In real situations, in order to have the most effective plan and the most benefit, an organization must consider many different financial tools in order to invest in the right time and at the right business, not just only NPV and IRR. There are some other financial tools that can be used in order to make a fulfill decision of investment of the company. First, the Modified Internal Rate of Return (MIRR) can be used to analyze the investment of the company. It is said to reflect the profitability of a project or investment more realistically than an IRR.
The MIRR is used extensively in real estate financial analysis due to the nature and timing of cash flows and investments for real estate investments (Financial Modeling Guide, 2010). Moreover, the benefit-cost ratio B/C is the ratio of the present value of gross benefit to the present value of gross cost (Fisheries and Aquaculture Department, 1980). In order to choose the most effective investment plan for the organization, the ratio between B/C should be greater of at least equal.
Conclusion It can be seen that Co-op Supermarket has been using all the techniques very effectively. Relating to the report, all the techniques of forecasting future sales are provided to the company in order to compare and choose the closest and most reliable value for the business. That may help the company to control and develop the business in the future. Moreover, the company was able to use MIS – Management Information Systems- as a useful tool to manage all the tasks and performances in the business.
In addition, the inventory control system, material requirement planning, project plan and financial tools are used very effectively. By doing so, Co-op Supermarket can ensure about the result of all projects and whole business performance. These techniques also take very important roles in the process of business decision making. It can help the company to control the risk, manage and safe time, human, money and other resources, also avoid the waste of irrelevant orders.
By following the result of these methods, the company is able to achieve all the tasks at high achievement and be able to make improvement and development in the future. 1. Recommendation: Since Co-op Supermarket has been already one of the strongest organizations in Vietnam, the company has been doing well in its own position and achieves high performance for their business. To develop in the future, Co-op Supermarket should improve it business by enlarge the business in larger market, and even international market.
When the business is expanded, all of the techniques which related to the business decision must be improved as well. They must be able to calculate and apply all the technique in larger areas and larger amount of products and money to make decision on long term plan and decide on larger projects. Therefore, the company should improve the training systems to develop skills, experience and ability of employees in order to prepare for using all of these techniques in their own business to make the most benefit for themselves and the whole company.
1. BPP Professional Education (2004). Business Decision Making. London: BPP Professional Educating. 2. Chris, H. (2008). 10. Fundamental Scheduling Procedures. In: Prentice Hall Project management for construction. 2nd ed. Pittsburgh: Prentice Hall. p7,8. 3. Co-op Mart. (2006). Introduction. Available: http://www. saigonco-op. com. vn/index3. php? lang=1&option=system&q=14&l=3. Last accessed 04 July 2010. 4. eFunda. (no date). Least Square Method. Available: http://www. efunda. com/math/leastsquares/leastsquares. cfm. Last accessed 04 July 2010. )