Business Studies with Foundation Assignment Sample

Introduction to Business Studies with Foundation Assignment Sample

Decision making refers to the method of making choices by accumulating relevant information and assessing alternatives. Effective investment decision is significant for generating optimum revenue and driving overall financial growth. P&I plc is the leading cookware producing organization which operates in UK and other parts of Europe. Organization outsourced production of energy saving and stainless steel pots due to the lack of resources. The current report is based on analysing the best investment option among stainless steel and energy saving pot which aids in boosting the firm’s profitability.

This Business Studies with Foundation Assignment Sample analyses investment decisions at P&I plc, comparing stainless steel and energy-saving pots to identify the option with greater profitability. An Assignment writing helper can support students in understanding financial analysis, investment evaluation, and business decision-making strategies.

Main Body

Business decision is also known as operational choice involved in making choices from the available option which aids in attaining the short and long term goals. It is the contingent process as manager needs to take diverse decision while hiring the candidates, formulating budget, initiating investment and expanding product & market. Organization laid higher emphasis over each decision as it directly impacts the firm’s growth and stability (Ogunbiyi, 2023). This process also aids in utilizing all the monetary resources optimally that contribute towards the long term development of the organization. There is a diverse capital appraisal or investment techniques such as Net present value, payback period and internal rate of return which are used for determining growth potential of particular investment (Baum, Crosby and Devaney, 2021). Net present value is the capital appraisal method that defines the present value of future cash outflow. This method considered time value of money concept that aids in taking judicious decision.

Net present value of project stainless steel pots and energy saving clay pots:

Year	PV factor @ 14%	Project A- Stainless Steel Pots (£)	Discounted cash inflows (£)	Project B- Energy Saving Clay Pots (£)	Discounted cash inflows (£)
1	0.877	35000	30702	28000	24561
2	0.769	45000	34626	44000	33857
3	0.675	68000	45898	72000	48598
4	0.592	79000	46774	98000	58024
5	0.519	105000	54534	110000	57131
Total discounted cash inflow	212534	222170
Initial investment	90000	95000
NPV (Total discounted cash inflows - initial investment)	122534	127170

Payback Period implies for the measure which used to calculate the total time that an investment takes to recover the initial cost. This method supports in assessing all the risk associated with an investment based on which accurate decision could be taken (Zhao, 2023). It also facilitates comparison between diverse investment projects and thereby enhances overall decision making process.

Pay back period for project A and B:

Year	Project A- Stainless Steel Pots	Cumulative cash inflows (Project A)	Project B- Energy Saving Clay Pots	Cumulative cash inflows (Project B)
1	35000	35000	28000	28000
2	45000	80000	44000	72000
3	68000	148000	72000	144000
4	79000	227000	98000	242000
5	105000	332000	110000	352000
Initial investment	90000	95000
Payback period	2	2
0.1	0.3
Payback period	2 years 1 month	2 year and 3 Months

From the calculation of above payback period and Net present value, it has been asserted that P&I Plc should opt for Energy saving Clay Pots which offer better return. Project B provides a return of 127170 pound which is 4% higher than Stainless steel project. This denotes that project B is estimated to offers higher profits in the upcoming time indicating viable investment option. However, organization needs to wait for 2 year 3 months for receiving the initial cost of project B which is 2 month higher than project A. On this basis, project A should be selected as it supports in recovering initial cost within the limited time and thereby contributes in earning higher profits. After evaluating project on both investment appraisal methods, it has recommended that organization should opt for project B as it has higher NPV which is most suitable basis for evaluation. Although, firm has higher pay back period but this method ignores Time value of money concept which does not provide accurate assessment of true profits (Karnavas, 2024). Further, NPV consider inflation which help business in easily comparing actual outflow of different options.

There are diverse financial and non financial factors that should be considered while doing assessment of options that available for investment purpose. Under financial factors, business entity should concentrate over evaluating overall risk tolerance of organization that support in taking accurate decision. Entity should evaluate current liquidity and financial risk that aids in identifying the firm ability to face future uncertainties (Agbloyor et al, 2021). Further, organization should evaluate market and economic factors such as stock market trend, interest rate, inflation and geo-political factor before taking investment decision. Any change in interest and inflation rate impact on firm’s financial and liquidity position that need to be considered while making selection of an investment option.

Apart from this, business entity needs to ensure an adequate alignment with the current and future legislation to avoid any type of legal obligation. Moreover, manager should evaluate investment opportunities on the basis of industry standards which ensure overall feasibility of the selected option (Investment Appraisal Techniques, 2025). Besides this, investment could only provide viable return if trained and skilled workforce is available. In this regard, P & I Plc should ensure an adequate availability of human resources before establishing manufacturing unit of energy saving clay pots. Supplier and customer relationships are another critical factor that should be analysed for taking accurate investment decision. In this context, manager of P&I plc should ensure accurate suppliers and availability of resources which help in taking optimum decision.

Conclusion

By summing up the essay, it has been discovered that decision making is the significant process for ensuring long term stability within industry. NPV consider Time Value of money method that facilitates comparison between diverse projects. P & I Plc should opt for energy saving clay pot project as it offer higher returns which ensures financial viability. This essay depicts that market condition, interest and inflation rate, risk tolerance, current legislation, Industry standard, supplier relation and employee competencies should be consider before taking investment decision.

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References

Books and Journals

• Agbloyor, E.K., Ametefe, F.K., Sarpong-Kumankoma, E. and Fiador, V., 2021. Investment appraisal: Akwaaba university hostel project. Emerald Emerging Markets Case Studies, 11(2), pp.1-38.
• Baum, A.E., Crosby, N. and Devaney, S., 2021. Property investment appraisal. John Wiley & Sons.
• Karnavas, C., 2024. A New Approach of Investment Project Appraisal Under Risk and Uncertainty. Economics and Business Journal (ECBIS), 2(3), pp.217-240.
• Ogunbiyi, J.O., 2023. Practical Demonstrations of the Use of Select Property Investment Viability Appraisal Models: Net Present Value, Profitability Index and Net Terminal Value. Profitability Index and Net Terminal Value (May 25, 2023).
• Zhao, Y., 2023. Research on the Ways to Appraise the Investment Based on NPV, Payback Period and IRR. Advances in Economics, Management and Political Sciences, 15, pp.359-366.

Online

• Investment Appraisal Techniques. 2025. Online. Available through: < https://www.nibusinessinfo.co.uk/content/non-financial-factors-investment-appraisal#:~:text=Key%20non%2Dfinancial%20factors%20for%20investment&text=matching%20industry%20standards%20and%20good,relationships%20with%20the%20local%20community>