The paper focuses on the development of business care to motivate an Information Technology investment for organizations. It discusses the usability of a DDBM and provides a detailed description of two different implementation procedures.
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OPPORTUNITY FOR FURTHER INVESTMENT Opportunity for further investment Name of the Student Name of the University Author’s Note:
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1OPPORTUNITY FOR FURTHER INVESTMENT Executive Summary The notable determination of the paper is to focus on the development of business care to motivate an Information Technology investment for organizations. The usability of a DDBM will be described in the paper in a detailed manner. This paper will have numerous sections, and each of the section will be contributing to the effectiveness of the paper. The proposed new DDBM will be supported by the detailed description of two different types of implementation procedure. Based upon the two different implementation procedure, the best-suited implementation plan will be selected. The paper will be concluding with a high level project plan for implementing the idea.
2OPPORTUNITY FOR FURTHER INVESTMENT Table of Contents Introduction......................................................................................................................................4 DDBM driven revenue generation idea...........................................................................................4 Business opportunity.......................................................................................................................5 Generation of revenue..................................................................................................................6 Is it driven by big data.................................................................................................................6 Key data sources and activities of this DDBM............................................................................7 Monetisation of this DDBM in order to generate revenue..........................................................7 Barriers for Nettavisen when pursuing this DDBM....................................................................8 Option 1: Implementation using a 2 step process............................................................................9 Risks (risk register and matrix)..................................................................................................10 C/B Analysis..............................................................................................................................11 Option 2: Pilot implementation plan................................................................................................0 Risks (risk register and matrix)....................................................................................................1 C/B Analysis................................................................................................................................2 Analyse the alternatives...................................................................................................................4 Recommendation.............................................................................................................................5 Best choice.......................................................................................................................................6 Plan for implementing the idea........................................................................................................6 Conclusion.......................................................................................................................................9 References......................................................................................................................................11
3OPPORTUNITY FOR FURTHER INVESTMENT Introduction The application of a new DDBM can be very much important for the Nettavisen as it can help them to capture large markets as a result, the existing DDBM made them one of the three major online news sites in Norway. However, the management team of this organization want to shift their focus towards a Data-Driven Business Model (DDBM) (Kaiser 2015). It can be said that the shift in focus is very much challenging due to different types of factors such as the threat coming from the other similar organization, employee turnover, and collaborations difficulties with the subsidiary organizations, resource management and the lack of data packets. DDBM can play a huge role in the management of the datasets, embedded applications. DDBM can play a huge role in the editorial decision making of Nettavisen (Islam and Barghouthi 2018). The other aim of Nettavisen is to compete with the legacy new publishers and the social media players. The following unit of the paper will be presenting one DDBM revenue generation idea, which will be beneficial for this organization to grow in this competitive market and also identify the business opportunities. DDBM driven revenue generation idea This unit of the paper will be presenting an idea which can be used by Nettavisen as it will ensure the organizational development (Khurshid, Zahid and Khan 2017). The below pictorialdiagramcan bevery much importantto understandthe proposed ideafor this commercial organization.
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4OPPORTUNITY FOR FURTHER INVESTMENT Figure 1: Revenue generation idea (Source:Athanasopoulos 2017) Business opportunity Product service differentiation can be an important aspect to the target outcome as proposed by this DDBM (Inamdaret al. 2017). Distinguishing a particular target can be done in a professional manner using product service differentiation feature of the new DDBM. The
5OPPORTUNITY FOR FURTHER INVESTMENT product of the competitors can be understood using this business idea. The proposed DDBM can highlight the importance of data acquisition technique in one of the other specifications of DDBM. However, it can also be said that Data logger can be an alternative of the data acquisition technique of this DDBM model (Huang 2019). Issues coming from the SaaS can be purposefully resolved using Data logging instead of data acquisition technique.Different categories of cost of Nettavisen can also be purposefully affected using the data logging facility. Generation of revenue This revenue generation idea will be very much beneficial for Nettavisen as it will look after the data source, key activities, and offerings of the organization and the target outcome of the model. Is it driven by big data The key challenges faced by this organization in terms of the legal issues, data privacy obstacles, legal challenges, hardware issues, resource issues, data quality and integrity issues, data availability and accessibility, and other organizational issues can be purposefully solved with the help of this DDBM idea as this idea is compatible with the big data technology. Key data sources and activities of this DDBM The current value creation of this organization can be optimised with the help of this DDBM framework. Both the new data sources as well as the existing data sources, can be managed in an organized manner using this DDBM. This new DDBM will not be having any negative effect on the existing data sources of this commercial organization. One of the key attributes of this DDBM is that it can be very much helpful to categorise the analytics activities into three broad perspectives such as prescriptive, descriptive and predictive analysis. Different
6OPPORTUNITY FOR FURTHER INVESTMENT types of machine learning techniques will be compatible with this DDBM model. Most of the optimal decision making of this organization can be significantly boosted using this DDBM model. Most of the key data sources of this organization can be identified and used accordingly using this DDBM (Gamel, Menrad and Decker 2016). This DDBM can be very much important to organize, synthesize, selected and distribute both unstructured as well as structured data from their databases. The permission and the licensing issues can also be resolved using this DDBM model (Lee 2016). The key data activities of this DDBM is data acquisition, data generation, and processing, analytics and data visualization. Monetisation of this DDBM in order to generate revenue This DDBM model can be very much useful for Nettavisen as it can help in managing the asset sale of Nettavisen. All the renting, leasing and lending of the documents of this corporation can be securely tracked using this data-driven business model (Logan-Robinson, Nunley and Knox 2017). Most of the data licensing issues faced by this organization can also be addressed if this DDBM is professionally incorporated in this business organization (Doherty and Torode 2016). The free subscriptions and the usages for the new consumers of thus organization can also be significantly boosted using this DDBM. Most of the advertising issues of this organization which can be very much beneficial to increase their market reach can be efficiently addressed using this DDBM (Dogru and Sirakaya-Turk 2017). This DDBM model can be used as long term support for this organization as it can significantly help to stop data leakage to the Norwegian market which is a significant concern for this organization. Thus, it this new DDMN is pursued by Nettavisen it would help them to increase the net probability of the business.
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7OPPORTUNITY FOR FURTHER INVESTMENT Barriers for Nettavisen when pursuing this DDBM TheincorporationofthisDDBMcanbeverymuchbeneficialforNettavisen organization.However,therearelotsofchallengesforthisorganizationregardingthe incorporation of this DDBM. All these challenges will be discussed in this section of the paper. Both the external as well as the internal stakeholders of this organization should be aware of the advantages as well as the disadvantages of this new DDBM (Marmot 2017). This new DDBM must be compatible with most of the emerging technologies which are already in-use in this organization. Communication between the external and the internal stakeholders is very much desired so that the implementation procedure of this DDBM is done in a professional manner (Ding and Meng 2017). The DDBM has to be compatible with the current market conditions and the service offered by this organization to the consumers. The sales and marketing strategies of the global social media platforms should also be considered before implementing this business model. The major editorial decision making must be aligned with the working protocol of this DDBM (Mason, Botelho and Zygmunt 2017). One of the most significant challenges of the implementation of this DDBM is it should not be having any compatibility issues with the existing DDBM, which is already being used in this corporation for many years. The following unit of the paper will be discussing the two different alternative options for the implementation of the DDBM model. Option 1: Implementation using a 2 step process There are different categories of risk associated with this implementation phase such as the role of the sales and marketing team, the role of the suppliers and the vendors of the
8OPPORTUNITY FOR FURTHER INVESTMENT organization, stringent government regulations and the cultural issues of the consumers of this organization. StepsExplanation Step 1: First phaseThe initial phase of this implementation plan willbeconsideringfewdepartmentsof Nettavisen, such as the data sources of the organization (Memonet al.2017). Once this phaseissuccessfullycompleted,detailed documentationwillbemadetofindthe effectiveness of phase 1. Step 2: Second phaseBased upon the detailed documentation of the first phase, phase two of this implementation will start (Ogbokor 2018). The phase two of thisimplementationwillstartconsidering each of the business unit of this organization. Table 1: 2 step implementation procedure (Source: Created by the author) The risk register table can be very much suitable for this organization to have an idea about the likelihood of each of the risks which can be considered for this 2 step implementation. Risks (risk register and matrix) RiskRisk Owner LikelihoodImpactSeverityMitigation strategy Customer insight Salesand marketing team MediumLowLowRecentmarket trendsshouldbe understood from the consumers using the communication platformchannels forthis implementation procedure. Generation of data Third party vendors LowHighHighSelectionofthe external
9OPPORTUNITY FOR FURTHER INVESTMENT stakeholders must be doneina professional manner inthis implementation procedure. Legal challenges Stringent government regulations HighMediumMediumRiskmanagement teamofNettavisen must be considering allthegovernment regulationsforthis implementation procedure (Sudmant et al.2017). Cultural problems ConsumersMediumHighHighConflict management techniquemustbe consideredinthe first place to resolve the cultural issues of the proposed idea. Table 2: Risk Register Table (Source: Created by the author) The risk matrix of this 2 step implementation of the proposed DDBM is presented in the following table. Risk Matrix RisksLikelihoodExplanatio n NegligibleMarginalCriticalCatastrophic Customer insight UnlikelyNotlikely to occur LowMediumMediumMedium Generation of data PossibleMay occurLowMediumHighHigh Legal challenges LikelyExpected to occur MediumLowHighHigh Cultural problems Almost certain Expected to occur regularly MediumLowHighHigh Table 3: Risk Matrix Table
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10OPPORTUNITY FOR FURTHER INVESTMENT (Source: Created by the author) C/B Analysis CostbenefitanalysisoftheimplementationoftheDDBMmodelusing2-step implementation plan. C/B Analysis: Implementation of the DDBM model using 2-step implementation plan Implementation of the plan60000 Additional cost10000 Total Cost for the project70000 Year of Project year 0year1year 2year 3year 4year 5TOTALS Net economic benefit$0.00$35,000.00$35,000.00$35,000.00$35,000.00$35,000.00 Discount Rate 8%10.92590.85730.79380.73500.6806 PV Of Benefits$0.00$32,407.41$30,006.86$27,784.13$25,726.04$23,820.41 NPV of all BENEFITS$0.00$32,407.41$62,414.27$90,198.39$115,924.44$139,744.85$440,689.36 One Time Costs$70,000.00 Recurring Costs$0.00$100.00$100.00$100.00$100.00$100.00 Discount Rate 8%1.00000.92590.85730.79380.73500.6806 PV Of Recurring Costs$0.00$92.59$85.73$79.38$73.50$68.06 NPV Of All Costs$70,000.00$70,092.59$70,178.33$70,257.71$70,331.21$70,399.27$421,259.11 Overall NPV$19,430.25 Total Cost for the project Figure 2: Cost Benefit Analysis of the 2 step implementation plan (Source: Created by the author) Overall NPV$19,430.25 Overall ROI =(Overall NPV / NPVOf All Costs0.05 Break-Even Analysis Yearly NPV Cash Flow$0.00$32,314.81$29,921.12$27,704.75$25,652.54$23,752.35 Overall NPV Cash Flow$70,000.00($37,685.19)($7,764.06)$19,940.68$45,593.23$69,345.58 Project break-even occurs between years 2 and 3 Use 1st year of positive cash flow to calculate break-even fraction2.2802years Figure 2: Break-even occurrence of this implementation plan
11OPPORTUNITY FOR FURTHER INVESTMENT (Source: Created by the author)
OPPORTUNITY FOR FURTHER INVESTMENT The following unit of the paper will be discussing the second implementation procedure of the proposed DDBM model. Option 2: Pilot implementation plan . Co-operation of each of the stakeholders of Nettavisen is very much desired in this type of implementation plan. All the business risks faced by this organization has to be considered in this plan (Denget al.2017). It can be said that the basic concept of this implementation plan can be derived from the concept of lawn six sigma. This implementation plan will be very much beneficial for both the proposed DDBM mode as well as for the organization as it will support operationalimprovement(Taliotisetal.2016).Strategicplanningisrequiredforthis implementation plan. The detailed description of the pilot plan is presented in the following table. StepsDescription Step 1Role-playing is the initial step of the plan where fake inputs through the process are used as test cases with all the stakeholders who is associated with the new DDBM. Step 2Both the software as well as the hardware compatibility issues, will be checked. Orientation training and skill development training can play a huge role for the stakeholders who is associated with the new DDBM. Role of all the Key Performance indicators will be defined in step 2. Step 3Bottleneck, as well as the co-ordination issues, will be addressed using secure communication channels. Step 4All the consumers and services offered by Nettavisen must be aligned with the functionality and the practical application of the new DDBM. Step 5The new DDBM must be running in parallel with the existing DDBM, which is already in-use in the business environment of Nettavisen. This is the final step of this implementation plan Table 4: Pilot implementation procedure (Source: Created by the author)
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1OPPORTUNITY FOR FURTHER INVESTMENT The ensuing unit of the paper will be presenting the likelihood as well as the risk associated with the pilot implementation plan Risks (risk register and matrix) RiskRisk OwnerLikelihoodImpactSeverityMitigation strategy Knowledge gap Allthe employees associated with Nettavisen MediumLowLowEachandevery employeemustbe awareofthe limitationsaswell asthebenefitsof the new DDBM. Bottle-neck issues Internal stakeholders whoworks inthe production houses. MediumHighHighThebottleneck issuescanbe resolvedwiththe help of the strategic planners. Co- ordination issues Project managers andthe employees ofthe organization. MediumHighHighProjectmanagers mustplayahuge roleinaddressing thecoordination issues. Compatibility issue Existing technologies usedinthe organization. MediumLowLowEachandevery employeemustbe understandingthe businesssystems which exists in this organization. Table 5: Risk Register Table (Source: Created by the author) The risk matrix of this 2 step implementation of the proposed DDBM is presented in the following table. Risk Matrix RisksLikelihoodExplanatio n NegligibleMarginalCriticalCatastrophic KnowledgeUnlikelyNotlikelyLowMediumMediumMedium
2OPPORTUNITY FOR FURTHER INVESTMENT gapto occur Compatibility issue PossibleMay occurLowMediumHighHigh Bottle-neck issues LikelyExpected to occur MediumLowHighHigh Co- ordination issues Almost certain Expected to occur regularly MediumLowHighHigh Table 6: Risk Matrix Table (Source: Created by the author) C/B Analysis The detailed description of the cost-benefit analysis will be presented in the following table. C/B Analysis: Implementation of the DDBM model using pilot implementation plan Implementation of the plan70000 Additional cost5000 Total Cost for the project75000 Year of Project year 0year1year 2year 3year 4year 5TOTALS Net economic benefit$0.00$35,000.00$35,000.00$35,000.00$35,000.00$35,000.00 Discount Rate 8%10.92590.85730.79380.73500.6806 PV Of Benefits$0.00$32,407.41$30,006.86$27,784.13$25,726.04$23,820.41 NPV of all BENEFITS$0.00$32,407.41$62,414.27$90,198.39$115,924.44$139,744.85$440,689.36 One Time Costs$75,000.00 Recurring Costs$0.00$100.00$100.00$100.00$100.00$100.00 Discount Rate 8%1.00000.92590.85730.79380.73500.6806 PV Of Recurring Costs$0.00$92.59$85.73$79.38$73.50$68.06 NPV Of All Costs$75,000.00$75,092.59$75,178.33$75,257.71$75,331.21$75,399.27$451,259.11 Overall NPV($10,569.75) Total Cost for the project Figure 3: Cost Benefit Analysis of the pilot implementation plan (Source: Created by the author)
3OPPORTUNITY FOR FURTHER INVESTMENT Overall ROI =(Overall NPV / NPVOf All Costs-0.02 Break-Even Analysis Yearly NPV Cash Flow$0.00$32,314.81$29,921.12$27,704.75$25,652.54$23,752.35 Overall NPV Cash Flow$75,000.00($42,685.19)($12,764.06)$14,940.68$40,593.23$64,345.58 Project break-even occurs between years 2 and 3 Use 1st year of positive cash flow to calculate break-even fraction2.4607years Figure 4: Break-even occurrence of this implementation plan (Source: Created by the author) Analyse the alternatives 2 step implementation planPilot implementation plan Feasibility:It can be said that most of this implementation plan can be easily considered by the management team of Nettavisen as it will not be having any effect on the existing DDBM with the help of this implementation plan (Tran 2018). However, it can be said the productserviceshouldonlybedoneby professional experts who has the experience of working in similar projects. Feasibility:The implementation of this plan ismucheasierascomparedwiththe difficulties of the 2-step implementation plan. However, it can be said that support from each level of workforces is a must for the implementation of this plan. Costs:The cost of this implementation of this DDBM can be a little source of concern for themanagementteamofNettavisen.The prime area of investment for the management team is to focus data quality and integrity issue of the organization (Davidsson 2015). The cost of the data sources is the other source of concern for this organization. Data analysis and data acquisition is the other cost associated with the proposed idea. Costs:The cost of this implementation plan is much less than the 2 step implementation plan. The cost benefit analysis of the two categories of implementation plan helps in identifying that the project break-even occurs in 2.4607 years (Ullahet al.2018). Financial management plan may be need to manage the cost of implementations as well as for the maintenance of the plan. Benefits:The complexities of the proposed idea can be addressed with the help of this implementation plan.The products of the competitors and their business strategies can alsobedetectedusingthedatalogger (Valencik and Cervenka 2016). Benefits of Benefits:This implementation plan is much economicalascomparedwiththe2step implementation plan.
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4OPPORTUNITY FOR FURTHER INVESTMENT the catalogues and the leaflets can be very much important to attract more consumers as compared with thesocial media marketing strategies. Table 7: Analysing the alternative implementation plan (Source: Created by the author) Recommendation It can also be said that the cultural problems of the consumers has to be understood and addressed in the first place before the enactment of this idea. The needs and requirement of the consumers of this organization is always changing which has to be understood by the strategic team of this organization so that this proposed idea can be valuable for this organization. This attractive opportunity will be very much useful for Nettavisen as their big data analytics capability will be significant enhanced using this opportunity. The revenue coming from the practical issues of this model can also be a concern for Nettavisen which has to be addressed in a structured manner using the project governance plan. The limitation of the non-data product service must be also migrated in the first place using stream analytics. The issues coming from the clients due to the free subscription and other facilities can also be mitigated in the first place using the customer support team. Best choice Considering the features of each of the two implementation procedures it can be said that the 2 step implementation procedure can be more useful for Nettavisen as compared with the facilities provided by the pilot as the complexities and the risk factors of this implementation procedure is much less than the pilot implementation procedure (Chen, Li and Ng 2018). The
5OPPORTUNITY FOR FURTHER INVESTMENT following unit of the paper will be presenting the plan for implementing the idea in a tabular format. Plan for implementing the idea StepsExplanation Step1:Understandingthevalueofthis attractive opportunity The deliverables of the project have to be understood in the first place. The deliverables oftheimplementationofthisbusiness opportunityhastobealignedwiththe organizational target of Nettavisen (Bolton, Foxon and Hall 2016). Meeting the deadlines oftheimplementationofthisattractive business opportunity is very much important. Mostofthenon-humanandthehuman resources must be understanding the business opportunitysothattheefficiencyofthis attractiveDDBMcanbeusedbythe company. Step 2: Research to find out the risksThere are different categories of risks and opportunitiesassociatedwiththisbusiness opportunitysuchasthe culturalproblems, personnelissues,dataintegrityissues, hardwareandresourcesissues,practicality issues, andthe legalchallengesassociated using this opportunity which has to be solved in the first place so that this DDBM can be useful for Nettavisen Step 3: Create project plan outlineApprovalfromtheconsumersofthis organizationisverymuchrecommended regarding the implementation of this attractive business opportunity. Timeframes associated with each phase of the implementation should be considered in the first place using project scheduling (Bakre and Dorasamy 2017). All the assumptions of the implementation phase shouldbeconsideredinthebeforethe implementation of this business opportunity. Step 4: Stakeholder of the projectBoththeexternalaswellastheinternal stakeholdersofNettavisenneedsto understandalltheminutedetailsofthis attractivebusinessopportunitysuchas distribution, asset sale, licensing fee and the
6OPPORTUNITY FOR FURTHER INVESTMENT usagefee(Vithessonthi,Schwaningerand Müller 2017). Both the external as well as the internal data sources must also be understood by the project managers of Nettavisen. Step 5: Complete project planThe implementation of this attractive business opportunity can be done in two phases which will be discussed in this section of the paper. Phase1:Theenactmentcanbedone consideringfewdepartmentsofthe organization. Based on the completion of the first placeitcan besaid thata thorough documentation can be very much important so that the final phase of the implementation can be started. Phase2:Thisisthefinalphaseofthe enactment phase of this attractive business opportunitywhichcanbestartedaftera detailed analysis of the document which is done at the end of the phase 1. This phase will be considering each of the departments of Nettavisen so that all the employees of this organization can enjoy the benefits of this attractive business opportunity. Step 6:Publish the plan and estimation of the cost Boththeinternalaswellastheexternal shareholdersofthisorganizationofthis organizationmustbeunderstandingthe importance and the opportunities of this idea. Every minute details of the enactment of this business opportunity must be notified to the employees of this organization in the portal of the organization (Xindong and Jing 2018). Cost of each of the 2 step implementation phase has to be understood by the finance team of this organization. Estimation of the cost should be done in such a way so that there are no delays in the employment phase. Step7:Maketheemployeesunderthe value of this attractive opportunity The negatives as well as the positives of this attractivebusinessopportunityhastobe understood by the employees of Nettavisen. It must be said that the proposed opportunity must be useful for both the employees as well asforthetoplevelmanagementofthis organization.Theadvantagesofthelatest specification of the big data technology has to be understood by each of the stakeholders of
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7OPPORTUNITY FOR FURTHER INVESTMENT this organization. Step 8: Resource planIt can also be said that resource management plancanbevery muchimportantfor the implementationofthisattractivebusiness opportunity for further investments in big data andanalytics(Bai,Dhavale,andSarkis, 2016). It must also be said that the existing business process of this corporation must not be affected during or after the implementation ofthisbusinessopportunity.Thehuman resourceswhowillbeworkinginthe implementation phase must be having an idea about data leakage. The data sets owned by thisorganizationshouldnotbehampered using this attractive business opportunity. The digital disruptions of this organization can also be managed in a useful manner using the resource management plan. Step 9: Communication planEffective communication between each of the stakeholdersisverymuchimportant regardingtheenactmentofthishighly attractive opportunity. The data sources of this organization should be saved from the businessuncertainties.Communication between each of the stakeholders are very much important for the successful completion of this project (Athanasopoulos 2017). All the key activities of this model must be discussed between every member of Nettavisen so that the challenges of this model can be addressed. The entire roadmap of this project must also beconsideredinthecommunicationplan, which must be done by the project manager of Nettavisen (Yan 2016). Frequency of events must be also be planned and communicated amongeachofthestakeholdersofthis organization in order to avoid any kinds of confusion. Step 10: Effectiveness of the opportunityThe advertising revenue of Nettavisen should not be affected during the implementation of the highly attractive opportunity. Table 8: High level project plan (Source: Created by the author)
8OPPORTUNITY FOR FURTHER INVESTMENT Conclusion The paper helps in concluding a new DDBM which will be very much beneficial for Nettavisen to be one of the most dominant corporation among all the other online newspaper organizations in Norway. The paper identifies a new DDBM, which is very much compatible with the working environment of Nettavisen. The specifications of the new DDBM has been discussed in a detailed manner. The paper also discusses two different types of implementation technique which can be used for the new DDBM. Risks, cost limitations and benefits of each of the two implementation procedures was mentioned in the paper. The selection of the appropriate implementation with justification was also provided in the paper. The plan for implementing the business model has been discussed using a high level project plan. The primary objective of this business organization, which is to compete with the social media organization such as Facebook and Google can be done with the new DDBM. It can be said that DDBM can help this organization to identify the potential value of their business data. Thus, it can be concluded that the new DDBM can play a huge role in the growth and development of Nettavisen in the coming years.
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