Case 3: Globalizing the Cost of Capital and Capital Budgeting at AES Question 1 Explain and comment on the capital budgeting method used historically by AES. Is there a need for change? Explain. Question 2 If Venerus implements the suggested methodology, what will be the adjusted discount rate for the Red Oak project (USA) and the Lal Plr project (Pakistan)? Question 3 Calculate the effect that a revision of its cost of capital will have on the Lal Plr project’s NPV. Comment on the
1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal, a project finance framework was employed.” Usually, project finance framework is used when the project has predictable cash flows, which can easily represent operating targets through explicit contract. When cash flows are certainty, the company can have
1. Describe AES’s organizational structure? What are its authority structures and control processes? What role do values play in this structure? AES organization has developed a unique decentralized “honeycomb” structure (See Exhibit 1) based on its core values. Their innovative authority structure empowered people at every organizational level to make decisions and take responsibilities according to the business needs. It helped company to achieve flexibility and accelerate decision-making
Strategy AES distinguishes itself through developing new products and applications at a low cost. It is committed to social responsibility and empowering its employees through its four main principles which include integrity, fairness, social responsibility and fun. It is "different" from other corporations because AES is focused on retaining its core values and culture as the corporation expands in size. The company 's sources of sustainable competitive advantage include technical leadership
elaboratively work toward a future of multicultural connection and free from stereotypes and discrimination. To support this collaboration, three prestige industries around the world have been chosen. The three industries—Iberdrola, Energia De Portugal, and AES Corporation—will help to make a beneficial impact on different cultural populations with an addition of explaining their functionalities among those cultures. The first industry is Iberdrola, an electrical utility company in Spain. The Iberdrola company
per case, therefore generating the maximum revenue for Lorex Pharmaceuticals. This ideal fill rate will allow more bottles to be sold at the full retail price of $186 and limit the under filled
These two chart files review studies of 148 cases discovered that SBC can be implemented across cases differing in certain variables. Implementation was greatest when teams of child welfare supervisors and workers were trained together. Results showed that workers were more engaged in case planning and service acquisition for families when Solution-Based Casework was implemented. These workers were more likely to contact
advantage and organisational profit. When looking at diversity in the workforce, the business case and the moral case justification are often necessary. The following paragraphs will talk more about the business case and moral case, and the linkages between them, as well as the theories and conceptual frameworks for the business and moral cases justification for diversity management in organisations. The business case for diversity is often expressed in terms of managing diversity (Urwin et al. 2013). It
the interview and stated that Officer Nelson did a good job. Officer Nelson is starting to work on separation interviews for possible fraud type cases. He needs to work on his procedures to find and challenge these indicators during the interview. During the monthly case reviews, he has been receiving mentoring about finding fraud indicators in cases in which he missed during the interview. He will be receiving more separation training. Officer Nelson is challenged to start finding fraud indicators
20+ cases. I can rely on Ramona to complete cases in a timely manner and if she has an overdue case she provides me with a reason why it is overdue and the expected close date of the case. Ramona maintains good attendance, she rarely requests leave. Ramona shows up for work on time as scheduled and is always prepared to perform her job duties within the realms of policy. If Ramona does need to take leave, she does so in a manner where she gives an advance notice and makes sure that her cases are