Answer to Question #172185 in Economics for JESH

Question

A named international business company intends to invest in Zambia. You have been employed as an international business manager resident in Zambia to carry out a feasibility study. a) Briefly discuss using practical examples how you would conduct each of the following: i. Market assessment ii. Production assessment iii. Legal environmental assessment iv. Human resource assessment v. Suppliers assessment vi. Credit policies assessment vii. Management and organisation assessment viii. Professional and advisory support assessment

Answer 1

The market assessment is a consistently implemented set of actions and activities aimed at collecting and analyzing information about the market and its participants. Otherwise, the assessment of the market in marketing means its analysis or research.

Production appraisal is one of the most difficult types of appraisal work since it includes such areas of research as the financial condition of the company (analysis of the company's financial performance from the balance sheet and other reporting); financial and management accounting at the enterprise; contracts with suppliers of raw materials, creditors, as well as consumers of products and dealers; production technologies, equipment; competitive environment, marketing policy, etc. In a broad sense, the assessment of production, in contrast to the assessment of the property of an enterprise, implies a comprehensive assessment of the business, which takes into account not only the cost of cash at a given moment of fixed assets, materials, products, accounts receivable, cash, but and the value of the enterprise as a whole, in the long term, taking into account competitive advantages, development potential and the ability to generate profits.

Environmental impact assessment refers to activities aimed at determining the nature and extent of the potential impact of the planned activity on the environment, the expected environmental and related social and economic consequences in the process and after the implementation of such a project, and the development of measures to ensure the rational use of natural resources and protection of the environment from harmful influences in accordance with the requirements of the current environmental legislation.

The main form of assessing the quality of human resources is the certification of employees. Attestation is a procedure for a formalized assessment of the compliance of a specific employee's activities with the standard of work performed at a given work in a specific position.

Supplier evaluation. The elements of quality management in the procurement process include the assessment and selection of suppliers who are able to provide the required level of quality of the supplied products. In many respects, the evaluation and selection of suppliers are based on the same factors as for any major purchase (such as a computer or a car). The consumer organization takes into account the price, quality, reputation of the supplier, previous experience with him, after-sales service, location, readiness, and ability of the supplier to respond to changing demand.

The financial position of any enterprise, its liquidity, and solvency are largely determined by the policy of working capital management since the latter expresses the relationship between the assets and liabilities of the company's balance sheet - the repayment of short-term obligations with active values ​​that are normally and break-even realizable.

Analysis of the organization's management is an assessment of possible changes in the activities of the organization and personnel potential, taking into account the influence of existing external factors (factors that this organization practically cannot influence).

It is much more difficult to assess the quality of a consulting service than the quality of goods. The client perceives not only the result of the service but becomes an accomplice in its provision.