BUSINESS CAPSTONE Essay Example | Topics and Well Written Essays - 1500 words

BUSINESS CAPSTONE - Essay Example The issues that companies mostly deal with are unionization, implementation of change, threat of new entrants, issues pertaining to law and sometime faces intimidations due to turbulent business and political environment. In this study, the issues faced by CSC Australia will be uncovered. CSC is an Australian company involved in providing technology enabled business solutions and services to the clients (CSC). The company caters to both the private as well as the government clients. The company supplies desktop computers to the client sites. The supplies are made at the local corporate head offices of the client (Background 2012). However, the company is now working with an oil and Gas corporation, whose onsite delivery refers to delivering of desktops to the offshore locations. Delivering desktops to abroad locations creates huge environmental risk and if anything goes wrong during the delivery process, CSC Australia will be liable and may need to compensate the client. Moreover, th e client is also asking for unlimited liability rather initial capping on contract. In this context, according to the vice president of CSC Australia, Michael Horton, CSC Australia is facing issues related to liability capping. Liability capping is generally carried out or negotiated prior initiating the contract, but allows renegotiations (Issue 2012). Therefore it can be stated that the company is presently dealing with issues pertaining to law suits. Causes The primary reason behind the arising legal issues is mainly related with the liability capping. CSC Australia fears that, if unlimited liability is accepted, it may cause serious damages to the company’s financial position. Apart from that, acceptance of unlimited liability may create more burden on CSC as their client may ask to compensate the entire worth of their company. For example, if anything worst happens and if the client is a large company, the compensation claimed by them can be far more than the actual wort h and can ruin the financial stability of CSC Australia. Hence it can be stated that unlimited liability may pose huge threat to the company. Nevertheless, for the company to successfully close the deal and ensure lowest possible liability capping, negotiation with the client needs to be properly carried out (Cause 2012) The first section of the study has identified the issue faced by CSC Australia and its causes. Now in the next half of the project, the solution or how the issue can be addressed by the company will be suggested. In this process several alternatives will be developed and the best alternative will be chosen for implementation. PART 2 Decision Criteria In order to deal with the legal issue, CSC Australia needs to make proper decision. Although to get rid of the concern, the company will have a number of alternatives, but to deal with the issues effectively, the company needs to choose the best alternative. A decision criterion refers to the factors, based on which the alternative cours

Risk Management and asset allocation Research Proposal

Risk Management and asset allocation - Research Proposal Example According to The New York Times (2011), â€Å"Asset allocation† describes dividing one's investments among the various types of asset classes. This is like saying putting one’s eggs in different baskets. Pietersz (2005) observes that asset allocation â€Å"helps ensure that investments are spread out across a wide range of markets and securities.† They do so because asset allocation does not have a one-off surety for success – it may either succeed or backfire, depending on who is handling the asset. Grange (2010) relates exposure management to the nature of product being invested in. He recognizes two major products, which are those â€Å"made up of those products that start with a balance equal to their limit and where, over time, the balance decreases away from the limit† and those which â€Å"start with a zero balance and some higher limit and where, over time, the balance increases towards the limit†. Generally, in the first instance, ex posure created is classified as productive whereas in the second instance, all exposure created is classified as unproductive. ... some who believe that much of a success in asset allocation should be looked at in terms of who handles which venture rather than the type of equity or portfolio it is. Such an argument gives operators of private equity some hope of competition in asset allocation. 1.2 Hypothesis The type of equity; be is private or public does not have significant influence on the rate of success in asset allocation. Private equity can perform as creditably well as a public equity. Public equity is not a guaranteed choice for asset allocation. Success in asset allocation is influenced by several managerial factors including exposure management. 1.3 Research Questions 1. Which factors inform the choice of a particular venture for asset allocation? 2. Why has private equity investment become so popular? 3. What is the most favorable private equity share in a general asset allocation? 4. To what extent does private equity expose investors? 5. How can a private equity exposure be derived? 6. What are th e risks in overrunning a specific allocation and how can it be reduced? 7. Which model can be used to appraise the future of asset allocated in private equity? 1.4 Objectives 1.4.1 Main Objective To find the relationship between private equity, their exposure management practice and the degree of success in investing in private equity as an option for asset allocation 1.4.2 Specific Objectives 1. Identify the basis upon which private equities operate. 2. Explore the exposure management practices of private equities. 3. Find out from investors, why they choose and prefer private equities for asset allocation. 4. Find authentication or otherwise to claims that asset allocation in private equity is risky due to poor exposure management. 5. Prescribe models that can best be used to appraise