Going for Growth by Investing in People, Products and Plant Essay

Going for Growth by Investing in People, Products and Plant - Essay Example In addition, Hazlewood Sandwiches has invested ?25 million to build a factory site named Manton Wood in order to prepare several quantities of sandwiches. This factory site of the company is regarded as the largest sandwich producing plant in the world (Driver &Temple, 1999). Conclusion Investment appraisal is one of the crucial factors that for obtaining internal and external source of funds. Hazlewood Sandwiches has made two significant capital investments in the past years. The primary objectives behind the company’s substantial capital investments was to avail the prevailing opportunities in the UK sandwich market to gain higher rate of return on the capital invested and thereby to attain superior growth and expansion (Driver &Temple, 1999). References Driver, C. & Temple, P., 1999. Investment, Growth and Employment: Perspectives for Policy. Routledge. Gessinger, G. H., 2009. Materials and Innovative Product Development: Using Common Sense. Butterworth-Heinemann. Lumby, S. , 1988. Investment Appraisal and Financing Decisions the VNR Series in Accounting and Finance. Taylor & Francis. Question 2: Discuss the differences, advantages and disadvantages of the three investment decision techniques mentioned in the case. Introduction Hazlewood Sandwiches undertook three primary methods of investment appraisal namely payback method, Net Present Value (NPV) and Accounting Rate of Return (ARR) method in order to apprise and evaluate the value of the investment made by the company (Gotze, & et. al., 2008). Discussion The payback method critically considers the length of time in order to recover capital invested by the company. It is worth mentioning that the payback method takes into concern cash flow activities. The major advantages of this... This paper approves that investment appraisal is one of the crucial factors that for obtaining internal and external source of funds. Hazlewood Sandwiches has made two significant capital investments in the past years. The primary objectives behind the company’s substantial capital investments was to avail the prevailing opportunities in the UK sandwich market to gain higher rate of return on the capital invested and thereby to attain superior growth and expansion. This paper makes a conclusion that the three primary methods of investment appraisal and evaluation have their own distinctive advantages and disadvantages that facilitate the management of Hazlewood to select one of the any aforementioned methods. Notably, payback method can be considered as the simplest method of all the other two methods. This is owing to the reason that payback as well ARR method does not take into consideration the time value of money. On the contrary, NPV method expresses in dollars instead of percentage that often makes it difficult to appraise the investment. The role of workforce from both the functional perspectives of HRM and accounting is pivotal for any organisation. In this current business environment, workforce of any organisation is required to perform multiple tasks in order to conduct their business operations successfully. Thus, it can be stated that skilled and competent workforce in the business is the greatest asset of a specific organisation.