Project Evaluation and Decision Making
Added on 2020-04-15
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Running head: MBA – INVESTMENT PROPOSALMBA – Investment proposalName of the studentName of the universityAuthor note
1MBA – INVESTMENT PROPOSALTable of ContentsIntroduction................................................................................................................................2SWOT analysis...........................................................................................................................2Financial analysis.......................................................................................................................41.Payback period................................................................................................................42.Net present value.............................................................................................................53.Internal rate of return (IRR)............................................................................................6Decision making.........................................................................................................................6Reference....................................................................................................................................7
2MBA – INVESTMENT PROPOSALiBest will invest in Lazada MalaysiaIntroduction Lazada group is the privately owned by German e-commerce and as a group thecompany operates all over Indonesia, Philippines, Malaysia, Thailand, Vietnam andSingapore. The company deals in various products like men’s fashion, women’s fashion,health and beauty, home and living, baby and toys, sports and travel, media and motors, petsand groceries. As iBest from Malaysia is committed to development and research of bio-refinery and promoting for the sustainable bio-economy, mitigation of climatic changes andalleviation of poverty, they are planning to invest their USD 10,00,000 in the health andbeauty products of Lzada. This investment is expected to increase the sales of iBest for thelong-term period. The investment will further expected to increase the stability, viability andthe profitability of the business (Pasqual, Padilla and Jadotte 2013). However, these metricswill be analysed through using the SWOT analysis and financial tool like payback method,net present value and internal rate of return. SWOT analysisSTRENGTHWEAKNESSESSubstantial market – investing inLazada group, iBest will get asubstantial market to deal with theirproductProduct diversification – as iBest isengaged in bio-refinery research,investing in Lazada’ product willenable it to diversify the productrange Revenue growth – the company willbe able to increase its revenue ascompared to the expenses Dependency on new product – thereturn of the investment will bedependent upon the success of newproductFinancial and organizational policy –as the organizational and financialpolicy of both the companies aredifferent, it may create confusionregarding which one is to be followedOPPORTUNITIESTHREATSCross selling – iBest will have cross-selling opportunities regarding sellingNegative impact – if the recentproduct of the company is recalled for
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