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Essay / Research Paper Abstract
This 3 page paper looks at a case study supplied by the student. A company has chosen an investment which involves expanding into a new but related market. The paper considers the potential risks of the investment and how those risks may be reduced or mitigated. The bibliography cites 4 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEwcomm1.rtf
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Unformatted sample text from the term paper:
risks that they may be mitigated. In determining the investment there were two potential strategies proposed. One was to increase market share in the digital imaging market, the second was
to keep pace with technology by entering the wireless communications market. The W-Comm proposal is the proposal that looks to enter the wireless technology strategy. The current specialized chip
made by the company has already performed well in the pilot tests. However this is a strategy that has some inherent risks. The first is that there are errors
with the projection. There is an estimated project life of seven years and that the company will be able to gain 3% - 4% of the market which is expected
to be around 12.5 million enabled handsets that will make up the market. There are always dangers that market estimates will be wrong, for example, the take up of third
generation cellular telephones was much slower than expected, however it did eventually meet the projections (Kotler, 2003). Part of this risk is
already allowed for. The initial investment of $18 million is limited as it is using land that is currently surplus to requirements but is already owned. The further $16 million
investment for additional facilities will not be needed until year 3. To ensure that this risk is minimised planning may need to assess if the first part of the project
only is capable of creating a good return, if this is the case and the market does not emerge in the way expected then there is the ability to limit
further investment still creating a healthy profit. James Campbell the chief marketing officer also sees increased risk in terms of more competition. The market is growing, but as the market
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