Strategic Investment Decision Making Case Study

strategic Investment Decision Making - Case Study ExampleThis paper addresses a critical motion Should tam Airlines buy Airplanes of the Model Fokker F-100 or the Airbus A-320 The research is carried out in the form of a grammatical case study where drawing information from different search engines such as Google and previous research we comp ared the twain aircraft.Drawing from prior studies the evidence suggests that Airbus 320 represents a better option for TAM Airline considering, it leak capacity, its flexibilities, and its expert advancement attached to the changing time. Airbus 320 offers the management an opportunity for a long term suppliers relationship management. The balance is attributed to differences in the level market systems that characterized both economies. Fokker F100 is characterized by a Short route for regional flight limited to 3111km where as Airbus 320 is a long route flight. The features and flexibilities offered by airbus gave us grounds to recomme nd it to TAM AirlineAdler (2000) suggests that strategic investment decision making involves the process of identifying, evaluating, and selecting projects that are likely to have a big impact on a participations competitive advantage. Strategic investment decisions influence what the company is doing, that is, the square up of products and services as well as their attributes that it offers to customers. These decisions also influence where the company offers these products and services and how it offers them. (Adler, 2000). It is therefore real essential to ensure that the right decision is made as regards the products and services on offer, where such products are offered and how they are offered. Investment decision making involves the elements of a classic cost-benefit analysis. (Adler, 2000). According to Akalu and Turner (2001, 2002) finding a reliable method of investment appraisal is not only a matter of concern for company management. Investment appraisal has now become a matter of concern to both shareholders and investors. (Turner, 2001, 2002). Customer happiness lies at the heart of all modern thinking on quality and business management. Customers and suppliers are alpha stakeholders. Stakeholders are those individual or groups who depend on the organisation to fulfill their own goals and on whom, in turn, the organization depends (JSW 2005179). TAM Airlines now faces a critical purchase / Suppliers management decision to discontinue with it overmuch heralded Fokker F-100 and go in for the Airbus -320. Thus, the central theme in this paper is to find out which of the devil airplanes represent a better investment or purchase decision for TAM Airlines.1.1Problem Statement and look QuestionsThe supplier selection process must be an integral part of an effective