Strategically Appropriate Investment Projects
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Strategically Appropriate Investment Projects
Organizations engage in investment projects for the purpose of achieving returns on the specific investments made. The aim of investments for organizations is to achieve profitability and grow their businesses to higher levels. Therefore, smart decisions on investing need to be made, and investment projects that have been established to be strategically appropriate to be considered. This paper seeks to discuss investment projects that are strategically appropriate for a well-known business, a non-profit organization that is well known, and a provincial, state, and national government.
Well Known Business
Several investment projects are strategically appropriate for Amazon, but my focus is on the two that I think are the main ones. The first investment is in the needs of their customers in the markets that are emerging. The unsatisfactory services offered by Amazon to their customers in emerging markets scare most of them from purchasing their products from Amazon. Amazon should, therefore, make more investments in customer care in the emerging market, eliminating the omission error, thus achieving customer satisfaction, which is essential for the achievement of profitability. The second investment project that is strategically appropriate entails acquiring Staples, which is a company in the US involved in selling office supplies and other products that are related. Amazon will be able to make major profits like it did when it acquired Whole Foods (Wingfield & De La Merced, 2017). the acquisition of Staples will therefore be beneficial to Amazon as it will be able to acquire added value as it will have immediate access to local warehouses for distribution and a retail presence in North America, providing quick returns on their investment.
A prominent not-for-profit organization
Step Up For Students is a non-profit organization that is in Florida that provides the students from low-income families and those that have special needs with education scholarships. They do this by helping pay tuition for private schools, assistance for attending public schools that are out of the state, tutoring, and therapies or school textbooks (Step Up For Students, n.d.). One investment project that would be strategically appropriate would be to open a fund to support the students after they bare done with high school education, to be able to pay for their university education. This would help the students be well prepared for the job market, and the organization would be able to acquire more donations to meet the students’ needs. Another investment project that is strategic would be to establish a fund that will be able to cater to the other needs of the children that they offer scholarships to during the times that they will be out of school, like during the holidays. This will enable the organization to gain more support from Donors as they will be catering to all the students’ needs, in addition to education.
National Economy
The United States has one of the biggest economies across the world. The investment projects that would be strategically appropriate for the US economy, one in which it would benefit significantly, would be undertaking a program for the revamp of infrastructure. This would entail working on the infrastructure that has been pending for quite some time, like the highways, utilities, roads, and waterways. Another strategic investment project would be to open up opportunities for local and foreign investment in the country because an increase in investment will boost the Aggregate Demand (AD). With the increase in the AD rate, the country’s economy will grow significantly (Stiglitz, 2016). When economic growth is achieved, the country’s citizens are the ones that end up benefitting the most as their livelihoods get improved.
References
Step Up For Students. Retrieved from https://www.stepupforstudents.org/about-us/mission/
Stiglitz, J. E. (2016). How to restore equitable and sustainable economic growth in the United States. American Economic Review, 106(5), 43-47.
Wingfield, N., & De La Merced, M. J. (2017). Amazon to buy Whole Foods for $13.4 billion. The New York Times, 16.