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What are the pressures on the company that pushes it to invest?

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Question ajoutée par Nadjib RABAHI , Freelancer , My own account
Date de publication: 2016/05/13
Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

The following could be reasons that would force a company to invest:

1.     Availability of profitable investment opportunity with low risk

2.     To meet the shareholders expectations for share price increase.

 

3.     To beat the competitors and remain competitive in the industry

Ahmad Kamal Shafieck Aref
par Ahmad Kamal Shafieck Aref , Administrative Assistant Manager , National Academy Of Legal Studies And Research

 

As I understood the question the reasons is  

 

1. Reduce production costs 2. Increase sales and profits 3. The market volatility 4. Take advantage of overproduction

 

I'm waiting for comments if error

 

Wasi Rahman Sheikh
par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Mohamed Helal
par Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

I prefer to wait for Experts answer

musharifuddin mohammed
par musharifuddin mohammed , Supervisor (estimation and proposal ) , zamil steel industries , process equipment division

competition, efficiency, marketing are constraint with pushes company to invest, 

Randy Jumaquio
par Randy Jumaquio , HR Executive │ Content Creator │ Coach , Self-Employed (Freelancer)

In addition to Mr. Fazlur response,

 

Companies are investing also forcefully in order to comply in Safety requirements and to comply audit requirements, this type of investments are part of compliance issues and not necessarily to increase profit.

vivek vijayvergia
par vivek vijayvergia , Cross Currency Dealer

1) Shareholder's expectation of profits.

2) Ideal cash piling up which may be used to acquire or invest in suitable avenues to generate profits.

3) Upgradation of technology,systems etc to remain competitive in business

4) In unusal cases, it may be an effort to hide some fraud like it happened in the case when satyam decided to acquire its sister concern maytas at unusual high pricing to justify cash outflows

mohammed negm
par mohammed negm , مدير مبيعات , مؤسسة أطياف لتجارة المواد الغذائية

  .........................I agree with Mr. Ahmad Kamal.

Mohamed Tolba
par Mohamed Tolba , Human Resources Generalist & Branch Manager , FANA

I agree with Mr. Ahmad Kamal......

adadi ABDERRAHMAN
par adadi ABDERRAHMAN , قائد الفريق , STE SOTA COGENORD SARL

Thank you for the invitation. I agree with the answer M. Fazlur Rahman

Vaiyapuri Gopalakrishnan
par Vaiyapuri Gopalakrishnan , Manager - After Sales , M/s Saud Bahwan Automotive llc

Agree with experts answer.

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