Essay Example on Literature review of this project includes the theories tools and Hypothesis

8 Literature review Literature review of this project includes the theories tools and hypothesis I used when carryout this project Even though I have learned so many theories during this course I carefully selected the suitable theories for my approach 1 9 Capital Budgeting Capital Budgeting theory is assessing the each step of the project plan and determine plus and cons By using capital budgeting we will able to determine the results of our investment project Based on the results we can decide whether to go ahead with the project or not However rate of return is depend on many factors within the company and also based on project deliverables Capital budgeting helps organizations to measure long term financial health of any investment project whether the ROI is acceptable or not at a given timeline Importance of making Capital Budgeting Capital budgeting uncovers comprehensive framework which enables organization to 1 Develop and formulate long term strategic goals Setting up strategic goals for company growth will be supported by capital budgeting as it gives proper direction to appraise conclude better investment decisions 2 Seek out new investment projects knowing how to evaluate investment projects gives a business the model to seek and evaluate new projects an important function for all businesses as they seek to compete and profit in their industry 3 Estimate and forecast future cash flows Capital budgeting enables executives to take a potential project and estimate its future cash flows which then help to determine whether the project will be feasible and accepted By doing this company will ensure continuous healthy cash flow which will create the business value 

4 Facilitate the transfer of information During the project cycle there will be many decisions made by project stakes for the successful closure Here capital budgeting facilitate the transfer of information to the decision makers authorities as a when required 5 Creation of Decision Since the capital budgeting ensures ROI efficiency financial performance acceptability possible outcomes of an investment project it will help management to conclude precise decisions 1 9 1 Business Process Reengineering Business process re engineering is a concept which gives organizations a radical transformation for existing business processes which result for the improvement of Quality lead time Productivity profitability This will help companies to reduce duplicate work optimize underutilized resources eliminate procedural errors in the internal systems and there by automate entire operations with a higher efficiency Above table refers to key steps in business process re engineering and illustrate how it interconnected with company's strategy and objectives Companies use Business Process Reengineering to improve performance substantially on key processes that impact customers Business Process Reengineering can Reduce costs and cycle time Business Process Reengineering reduces costs and cycle times by eliminating unproductive activities and the employees who perform them Reorganization by teams decreases the need for management layers accelerates information flows and eliminates the errors and rework caused by multiple handoffs Improve quality Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes Workers gain responsibility for their output and can measure their performance based on prompt feedback Organizations shall obtain many advantages by managing the business process re engineering activity effectively 1 Agility BPR will facilitate flexible and meaningful changes for business processes at a minimal cost which will consistently support customization of each process and adaptation to changing business environments 2 Productivity BPR will eliminate process bottlenecks automate manual procedures ensure parallel processing so that key workforce could be focus more on fine tuning of production cycle with proper quality assurance rather than wasting time on pure operational work This will reduce clock time and duplicate work then increase the productivity 3 Reduce Risks Visibility of the process with continuous monitoring will allow tracing wastage errors and possible security breaches which will avoid financial and non financial risks throughout the business cycle 4 Transparency and compliance 

Well structured process flows will address compliance requirements as and when required with integrity between each business functions This will help organizations to ensure they adhere to compliances made by respective regulators and result for more transparency which will gain consumer trust and loyalty 5 Employee satisfaction and customer focus With leaner process flow employees could be more effectively engage in the business functions and they have ability to focus more on customer requirements behavior and service specifications which will satisfy both consumer and employees and create value for future businesses 1 9 2 Analysis Strengths weaknesses opportunities and threats SWOT analysis provide an insight about the organization's ability to leverage their strength in terms of financials human capital brand name market capitalization to gain more stable business position It also address weaknesses which can be minimize in order to defense the competitive actions Further Opportunities threats to be considered when analyzing the macro market environment to be succeed over rivals 1 9 3 Balanced Scorecard The balance scorecard is a strategic planning and management tool which focus on 1 Organization communication as to see what they want to accomplish 2 Align daily business activities to their business strategy 3 Prioritize business projects Products Services 4 Measure Monitor KPIs progress of each business function against set targets 1 9 4 Value Chain Analysis This method identifies primary and support activities of the company and then analyzes all the activities to reduce cost or increase differentiation with the competitors Also it suggest the ways to use company infrastructures processes such as Procurement Logistics Delivery Human Capital IT for core business such as Marketing Sales and Finance 1 1 Strategic Business Research Project Composition Team members and roles skills and competencies In order to achieve research objectives Teams must work effectively and they too must adapt to the changing requirements of the business environment