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Essay / Research Paper Abstract
This 4 page paper looks at some of the issues that need to be considered when assessing a capital investment. The paper uses the example of McDonalds installing WiFi in their restaurants. The paper looks at the different issues such as risk, cost, internal politics and PR. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEcapprojas.rtf
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Unformatted sample text from the term paper:
and other issues. If we consider the case of McDonalds it can be argued that an investment in the provision of WiFi services will bring the restaurant into the 21st
century and compliment the menu changes that are taking place. The risks are direct and indirect. The aim of the investment will be to increase revenues and profit. The
idea of providing WiFi access is seen as a way of bringing more people into the restaurant, these may be new customer, or this may increase the frequency of existing
customers visits. The first risk that the cost of installing and then running the WiFi will not be covered by the level of new business that it encourages. There are
several ways this may occur, the new visitors may not spend enough, there may not be sufficient new visitors attracted, the customers, once they have bought food may spend longer
in the restaurant blocking seats and slowing down customer turnover. It is also possible that new customer may make very minimal purchases in order to use the WiFi and the
required level of increased revenue is not reached. Where there are sufficient new customers attracted it is also possible that they will want to stay in the restaurant blocking
the seats, even where these new customers are meeting the new spending targets if they are blocking the seats they may slow down the turnover o f customers and prevent
the restaurant hitting the targets. There are also other more practical risks, these are the risk involved in the choice of equipment used to provide the services, there is
the risk of obsolescence; the equipment will not last long and will become outdated and will not be worth upgrading. There are also risks of the equipment malfunctioning or breaking
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