Non-Financial and Ethical Issues In Business Feasibility (Coursework Sample)

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Non-Financial and Ethical Issues in Business Feasibility
Summary
A copper rods manufacturer, Star Limited, manufactures copper rods. The company’s wants to increase its economic footprint beyond the supply of copper rods. This business’ expansion targets the development of a copper wire manufacturing plant to meet the increasing demand for product from electricity companies. Consequently, the company undertook a financial feasibility plan to examine the potential of the expansion plans, which gave a potential IRR of 17.5%.
The study affirmed that this IRR ranked higher than that of any other copper wire manufacturing plant. With a projected life of 20 years, the project’s employee would be 70% immigrant laborers earning wages 15% less than that native laborers. Due to their immigration status, the company intended to sign them on single-year contracts and pay them no retirement benefits. Despite such ambitions, none of the company’s plants had enough space for the project necessitating the purchase of adjacent land - a forest reserve with commercial activity restrictions. Despite these restrictions, liaison with government officials opens an avenue for acquiring the land by remitting a certain percentage of the fee to government officials as facilitation. The plant will result in harmful chemical waste that will be disposed into the river without proper treatment.
Reflection
While a financial feasibility study is an essential step in any project execution endeavour, numerous other factors play an imperative role in the successful completion, execution and longevity of the project. Environmental issues are one such factor with public debates on a project’s impact determining costs profusely, which culminates in either negation or affirmation of the feasibility established. Situations such as protests and government bans are examples of how environmental concerns lead to increased project costs. Secondly, while salaries are critical for employees, their motivation rides on such other factors as the working environment, discrimination, and job security. In the absence of these motivating factors, go-slows, and strikes, which limit company productivity, ensue. Besides, lowering wages, denying pensions, and commercializing forested land against government regulations can result in predicaments and hurdles in the implementation of projects.
Any Other Point Covered
Inadequate resources should be foreseen and countered in a feasibility study. While resources generally refer to raw materials, inputs such as labor and energy are other essential resources that affect deliverability. Therefore, efficacious p