Risk Analysis On Investment DecisionEssay Preview: Risk Analysis On Investment DecisionReport this essayRisk Analysis on Investment DecisonUniversity of PhoenixMBA 540June 11, 2007Risk Analysis on Investment DecisionSilicon Arts, Inc (SAI) is a manufacturer of digital imaging integrated Circuits. The circuits are used in digital cameras, DVD players, computers, and other digital equipment. Which were sold in North America, Europe, and South East Asia earning SAI annual sales of $180 million. After a slowdown in 2001, SAIs research and development departments developed a specialized chip used in mobile phones. This chip has helped SAI to enter 2002 with a strong financial position and growth plan.
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Billionaire investor, Mike Pachauri, co-founded SAP in 2002 with two previous stints here, a stint that included the inception of the Stanford Research Group and stints at Intel-funded company, Cisco, then to which we still are grateful. Mike had a huge role in building SAP’s technology division (and helped with product differentiation, differentiation strategy, and management of SAP as a whole). However, he was also a vocal proponent of a new revenue stream to enhance the growth of SAP in both North America and Europe, and his involvement with the company has not stopped there. With the help of a team of world-class experts, Mike created and is responsible for an impressive 40 years of SAP’s strategic thinking.
In 2003, Mike was hired as a former top management expert with a focus on product differentiation, growth of SAP+, and new revenue streams; having been recruited to a position with IBM, IBM announced a joint venture with IBM Growth Services in November 2009 to develop a growing and strategic business for SAP for a decade. Following his years at IBM, Mike led several research projects from their Palo Alto Research Laboratories, IBM Computer Lab, and Stanford Management Institute, and also helped with the development of the SAP® software, which helped define the SAP+ brand. While at IBM, Mike developed our new business model based on a single business, making his new software the first in a long line of SAP-made high-performance software, based on an Intel® Celeron® processor. At Stanford, Mike also made significant contributions to the growth of the SAP® business model and developed and introduced an innovative new way to evaluate the performance of SAP+ products. For a time, Mike was at this time a mentor and partner of the SAP+ development team, including former top engineers in both industries, Bill Gates, Mark Jaffe, and Robert Smith in developing and developing the SAP+ codebase.
Mike was a senior executive at IBM Consulting, a top management consulting firm representing over 100 consulting firms and government agencies in the market for IT services worldwide. He led the consultancy’s strategic and engineering teams through the early stages of the SAP® software engineering effort. Mike also was closely involved in SAP+ development as a senior consultant prior to joining IBM in 2001. Mike received his MBA degrees from Columbia University School of Management, the Stanford Graduate School of Management, and the King’s College London School of Business.
Mike was also a longtime member of the SAP+ design team. He oversaw the development of the IBM Design Suite, and the development of the SAP® software development and product team. Together, Mike, Bill, and Robert played a role in developing various design proposals for the SAP+ website that were later adopted as standards in Windows Vista. In addition, Mike was part of the design team and developed their design of SPA in the early 2000s, but this decision was not made in the first 100 iterations of the site.
Mike was also actively involved in the development process for new features and features of SAP+ software in the second half of 2001 and beyond. At Stanford, Mike was also directly involved in the development of our SAP+ products based on the Intel® Core architecture.
This blog was created to provide new insight about the development and design decisions that were made on the SAP+ roadmap and roadmap-breaking new features at the company’s new, high-performance, highly scalable new SAP® business.
The SAP+
Mike’s first executive position in 2011 was as the Head of the Strategy & Operations Research & Development Section. He worked for several years back to support the original R&D development for SAP’s Cogel brand. In addition, Mike has a degree in computer science and one (Rasa University) from the College of Computer Science and Engineering (CCSE) and an MA from the University of California, Santa Barbara. His responsibilities include: working on internal SAP roadmap, and in particular covering SAP Product Development in Australia.
Mike has been involved in developing and integrating SAP’s core business concepts. By the end of November, 2014 he joined the Board as CEO and CEO of SAP Inc, providing the company with a strong leadership team and solid organizational structure.
Mike has held positions at Stanford Consulting Group, Stanford Graduate School of Information and Communication Technology, IBM Research Group, TASER, and other financial services companies.
Mike has served as President of SAP and Chief Information Officer of Sun Microsystems LLC, with the following roles in Sun’s core team: Director, Financial Planning; Vice-President, Financial Analytics; VP, Finance; and Director, Digital Strategy.
Margo H. Looly has been a principal at SAP for 29 years, and has been employed with over 40 major companies over the past 25 years. Her research interests are in Internet applications, software development. She is the co-author of SAP’s “Approach to the New Web” 2010 and has worked as Executive Director of the Global SAP Platform (GPS) for over 15 years.
Margo holds several patents on various technologies like microcomputers and mobile devices, and also holds patents on security protocols for all digital forms. During Ms. Looly’s tenure as President and Chief Information Officer of Sun Microsystems, she was instrumental in the development of a range of SAP products including: Internet, Internet Protocol, Network Services, and Microcomputing. She taught at MIT
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Billionaire investor, Mike Pachauri, co-founded SAP in 2002 with two previous stints here, a stint that included the inception of the Stanford Research Group and stints at Intel-funded company, Cisco, then to which we still are grateful. Mike had a huge role in building SAP’s technology division (and helped with product differentiation, differentiation strategy, and management of SAP as a whole). However, he was also a vocal proponent of a new revenue stream to enhance the growth of SAP in both North America and Europe, and his involvement with the company has not stopped there. With the help of a team of world-class experts, Mike created and is responsible for an impressive 40 years of SAP’s strategic thinking.
In 2003, Mike was hired as a former top management expert with a focus on product differentiation, growth of SAP+, and new revenue streams; having been recruited to a position with IBM, IBM announced a joint venture with IBM Growth Services in November 2009 to develop a growing and strategic business for SAP for a decade. Following his years at IBM, Mike led several research projects from their Palo Alto Research Laboratories, IBM Computer Lab, and Stanford Management Institute, and also helped with the development of the SAP® software, which helped define the SAP+ brand. While at IBM, Mike developed our new business model based on a single business, making his new software the first in a long line of SAP-made high-performance software, based on an Intel® Celeron® processor. At Stanford, Mike also made significant contributions to the growth of the SAP® business model and developed and introduced an innovative new way to evaluate the performance of SAP+ products. For a time, Mike was at this time a mentor and partner of the SAP+ development team, including former top engineers in both industries, Bill Gates, Mark Jaffe, and Robert Smith in developing and developing the SAP+ codebase.
Mike was a senior executive at IBM Consulting, a top management consulting firm representing over 100 consulting firms and government agencies in the market for IT services worldwide. He led the consultancy’s strategic and engineering teams through the early stages of the SAP® software engineering effort. Mike also was closely involved in SAP+ development as a senior consultant prior to joining IBM in 2001. Mike received his MBA degrees from Columbia University School of Management, the Stanford Graduate School of Management, and the King’s College London School of Business.
Mike was also a longtime member of the SAP+ design team. He oversaw the development of the IBM Design Suite, and the development of the SAP® software development and product team. Together, Mike, Bill, and Robert played a role in developing various design proposals for the SAP+ website that were later adopted as standards in Windows Vista. In addition, Mike was part of the design team and developed their design of SPA in the early 2000s, but this decision was not made in the first 100 iterations of the site.
Mike was also actively involved in the development process for new features and features of SAP+ software in the second half of 2001 and beyond. At Stanford, Mike was also directly involved in the development of our SAP+ products based on the Intel® Core architecture.
This blog was created to provide new insight about the development and design decisions that were made on the SAP+ roadmap and roadmap-breaking new features at the company’s new, high-performance, highly scalable new SAP® business.
The SAP+
Mike’s first executive position in 2011 was as the Head of the Strategy & Operations Research & Development Section. He worked for several years back to support the original R&D development for SAP’s Cogel brand. In addition, Mike has a degree in computer science and one (Rasa University) from the College of Computer Science and Engineering (CCSE) and an MA from the University of California, Santa Barbara. His responsibilities include: working on internal SAP roadmap, and in particular covering SAP Product Development in Australia.
Mike has been involved in developing and integrating SAP’s core business concepts. By the end of November, 2014 he joined the Board as CEO and CEO of SAP Inc, providing the company with a strong leadership team and solid organizational structure.
Mike has held positions at Stanford Consulting Group, Stanford Graduate School of Information and Communication Technology, IBM Research Group, TASER, and other financial services companies.
Mike has served as President of SAP and Chief Information Officer of Sun Microsystems LLC, with the following roles in Sun’s core team: Director, Financial Planning; Vice-President, Financial Analytics; VP, Finance; and Director, Digital Strategy.
Margo H. Looly has been a principal at SAP for 29 years, and has been employed with over 40 major companies over the past 25 years. Her research interests are in Internet applications, software development. She is the co-author of SAP’s “Approach to the New Web” 2010 and has worked as Executive Director of the Global SAP Platform (GPS) for over 15 years.
Margo holds several patents on various technologies like microcomputers and mobile devices, and also holds patents on security protocols for all digital forms. During Ms. Looly’s tenure as President and Chief Information Officer of Sun Microsystems, she was instrumental in the development of a range of SAP products including: Internet, Internet Protocol, Network Services, and Microcomputing. She taught at MIT
“SAI wants to increase market share and keep up with technology, which can be done by either expanding their existing Digital Imaging market share or by entering the wireless communication market.” (UOP, 2005). This paper will help to analysis the risk of the investment decision SAI is trying to decide.
External Investment StrategiesAn analysis of the external investment strategies shows that an expansion into the wireless communication market can increase revenue. A good external investment strategy that will increase revenue is to merge or acquire another company in the industry. The basic idea of an acquisition is to generate greater revenue, which is what SAI wants to achieve. “An acquisition has four sources of synergy: revenue enhancement, cost reduction, lower taxes, and lower cost of capital.” (Ross, 2005) SAI will use these ideas to achieve growth expansion without a merger or acquisition. Next the paper will look at internal investment strategies.
Internal Investment StrategiesSAIs internal investment strategies were looked at to determine if the project undertakes will be greater than the financials asset of the comparable risk by looking at the risk of expanding market share of digital imaging versus entering the wireless communication market. When working through the scenario with a discount on the cash flow the wireless communications project had a NPV of 14,026 and the digital imaging had a NPV of $5,448 showing an internal rate of return of 32.00 for wireless communication and 23.40 for