| dc.description.abstract | The past literature concerning the tools used by management for capital investment decisions mainly focuses on Net Present Value (NPV), Return on Investment (ROI), Return on Capital Employed and Payback period. Such quantitative analysis tools rely on financial analysis and focus on whether a capital investment could increase the company’s competitiveness. The use of business models as an approach for evaluating a capital investment decision is far few and rare, particularly, for a capital investment initiated by a key account of a firm.
In order to make a more comprehensive analysis, this study uses the “8十 Business Model” and “8十Finance & Accounting Model” developed by Hann-Tarn Jeng (2013) as the analytical framework to evaluate the feasibility of a capital investment of Company A. That capital investment was recently requested by Company B, a key account of Company A. By using the “8十Business Model” framework, this study attempts to address the questions, such as “In addition to financial results, what impact would the capital investment make on the current business model of Company A?” “What should Company A reinvent her business model, if Company A decides to make the capital investment?” and “Whether Company should make the capital investment?”
The results of this study are as follows the company high level can realize what impact to company from capital investment when they use “8十 Business Model” to evaluate the important capital investment. What change is company need to do to keep company successful after investment, for example, whether need to change company policy, mission or build up the new operating process, new management team or sell product into new market, even create new product.
General speaking the “8十 Business Model” is not only a analysis tool for capital investment, but it is a framework of evaluation to company high level, when they finish the capital investment evaluate at the same time also complete a comprehensive review for company management. | en_US |