Keflavik paper company Case Study Example | Topics and Well Written Essays - 250 words

Keflavik paper company - Case Study Example phasize only on one or two criteria; instead, it should take holistic viewpoint to achieve overall synergy with the available resources and ability to create new capabilities while embarking on a new project. (Seeber 2011) Organizations do best on their core competencies and identifying the core competencies is an essential task. Core competencies could be in new process innovations or marketing expertise to have an edge on competitors. Mere cash flow analysis or favorable NPV cannot make the project a grand success. Aims at finding the benefit derived versus the cost of the project and the risk involved. The risk involved should not be such that it can put the company into negative territory from where it cannot recover. Financial analysis is a part of this evaluation criterion. While selecting any project, it is important to delve into exploring the future market growth prospects. It is like exploring the threats and opportunities with a project in consideration in the given market place. A niche with high market growth prospects is always preferred over lower growth areas. (Seeber 2011) Poor project screening methods have a direct bearing on firms capacity to manage its project effectively. A firm is deployed with finite resources on finance, and manpower. When they are not put to use judiciously to achieve synergy among its operations, it is certain to affect the project immensely. Positive cash flows are worked out on paper and it takes considerable skill to achieve those in reality. Selection of a project is thus, a strategic decision for an organization and that should be done screening through several criteria. Project prioritization is a necessity and has been a new learning for the decision makers in the case of Keflavik. Selecting a most favorable project in the beginning that passes through all laid down criteria reduces the firefighting work later on considerably. (Seeber