Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are the pressures on the company that pushes it to invest?

user-image
Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2016/05/13
Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

The following could be reasons that would force a company to invest:

1.     Availability of profitable investment opportunity with low risk

2.     To meet the shareholders expectations for share price increase.

 

3.     To beat the competitors and remain competitive in the industry

Ahmad Kamal Shafieck Aref
by Ahmad Kamal Shafieck Aref , Administrative Assistant Manager , National Academy Of Legal Studies And Research

 

As I understood the question the reasons is  

 

1. Reduce production costs 2. Increase sales and profits 3. The market volatility 4. Take advantage of overproduction

 

I'm waiting for comments if error

 

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Mohamed Helal
by Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

I prefer to wait for Experts answer

musharifuddin mohammed
by musharifuddin mohammed , Supervisor (estimation and proposal ) , zamil steel industries , process equipment division

competition, efficiency, marketing are constraint with pushes company to invest, 

Randy Jumaquio
by Randy Jumaquio , HR Executive │ Content Creator │ Coach , Self-Employed (Freelancer)

In addition to Mr. Fazlur response,

 

Companies are investing also forcefully in order to comply in Safety requirements and to comply audit requirements, this type of investments are part of compliance issues and not necessarily to increase profit.

vivek vijayvergia
by vivek vijayvergia , Cross Currency Dealer

1) Shareholder's expectation of profits.

2) Ideal cash piling up which may be used to acquire or invest in suitable avenues to generate profits.

3) Upgradation of technology,systems etc to remain competitive in business

4) In unusal cases, it may be an effort to hide some fraud like it happened in the case when satyam decided to acquire its sister concern maytas at unusual high pricing to justify cash outflows

mohammed negm
by mohammed negm , مدير مبيعات , مؤسسة أطياف لتجارة المواد الغذائية

  .........................I agree with Mr. Ahmad Kamal.

Mohamed Tolba
by Mohamed Tolba , HR Business Partner , InDriver

I agree with Mr. Ahmad Kamal......

adadi ABDERRAHMAN
by adadi ABDERRAHMAN , قائد الفريق , STE SOTA COGENORD SARL

Thank you for the invitation. I agree with the answer M. Fazlur Rahman

Vaiyapuri Gopalakrishnan
by Vaiyapuri Gopalakrishnan , Manager - After Sales , M/s Saud Bahwan Automotive llc

Agree with experts answer.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.