The Likelihood of Success That Halliburton Can Achieve Essay

The Likelihood of Success That Halliburton Can Achieve - Essay Example There is an increasing concern among corporate houses to manage the current and the emerging issues that are being faced by them. This is required in order to create an effective management and maintain a competitive edge over its competitors. If the issues are not resolved by the management in a timely manner then this is likely to impact the financial performance of the company and raise the question of the credibility of the corporate governance. The most important task of the management is to identify the prioritized critical issues that are being faced by the organization. The effectiveness of resolving the issues depend on the identification of the problems and allocation of the top management in resolving that issue. Corporate scandals have an immense impact on the credentials of a business. The past decade had witnessed a major increase in the rate of the corporate scandals which had significantly impacted the profitability of a business. Corporate scandals have become an imp ortant source of loss of investor confidence in the company. A root cause of this failure has been identified in the â€Å"command and control† nature of these corporations which follows a top-down approach to management with a single board dictating the policies. Owing to these complex procedures that raise the chances of corporate scandals, organizations are now being increasingly forced to adopt a simpler managerial structure that is guided by flexibility. This is essentially a secondary research that will use data from secondary resources and interpret the problems that have been faced by the company and the way in which it has been successful or unsuccessful in handling the issues. The report tries to analyze the likelihood of success that Halliburton can achieve. This report will use the academic framework of SWOT to identify the issues that are being faced by Halliburton.

Case Study 03092 Essay Example | Topics and Well Written Essays - 2000 words

Case Study 03092 - Essay Example NENE limited is considering investing in one of the two mutually exclusive projects, Alpha and Beta. The investment decision would be taken on the basis of capital budgeting techniques. The calculations in respect of payback period, accounting rate of return (ARR) and net present value (NPV) carried out for both the projects are as follows: Based on the capital budgeting calculations carried out in respect of Alpha and Beta, it can be seen the returns available from Alpha are more acceptable and profitable. In terms of the payback period, the company with the lower period is accepted. This would signify that the project would be able to cover their initial cost of investment within a shorter duration and begin providing profits (Shapiro, 2005). Accordingly, Alpha is considered to be a better project. In case of other techniques used, the project with higher ARR and higher NPV is required to be chosen as they indicate higher returns. In this respect, project Alpha is seen to be better. Hence, the company must consider choosing Alpha and invest in the same (Atrill and McLaney, 2006). Accounting rate of return can be expressed as the percentage or ratio between the average profit earned from a project with the average investments made in the same. In simpler words, it explains the returns available from a project on an annual basis. In case of mutually exclusive projects, the one with the higher ARR has greater chances of being selected. In case of a single project, higher ARR would indicate that the project would add more value to the organization (Marino and Matsusaka, 2005). The ARR technique of capital budgeting is simple and involves less calculations (Bierman Jr and Smidt, 2012). However, a major disadvantage of the ARR method of project appraisal is that it does not take into consideration the time value of money. A project which