You’re in the Manager’s Seat

Making Decisions

Mike has recently inherited a sizable amount of money and is looking to invest it.

He is considering several options and has met with a number of financial advisors to help him narrow down the options and decide where to invest his funds.

Stinky Business

Some of the advisors are suggesting funds that have characteristically been solid, conservative performers, but are based on products and services that are not environmentally friendly.

Environment

Since Mike is very passionate about supporting and protecting the environment, he consults with other advisors who suggest that he align his investment strategy with his passion.

They recommend several funds that are also solid performers, but not quite as aggressive as those funds that do not support environmental issues.

Tax Time

Mike needs to make a relatively quick decision, as the tax deadlines are looming.

Discussion

Given the results you got on your decision-making and creativity assessments, how would you invest the funds if you were Mike? See page 2

I scored 55.

Your decision-making process is okay. You have a good understanding of the basics, but now you need to improve your process and be more proactive. Concentrate on finding lots of options and discovering as many risks and consequences as you can. The better your analysis, the better your decision will be in the long term.

 

I scored 52.

Your creativity is a “work in progress.” You’ve had some successes, so now it’s time to let loose and stretch yourself. Share your ideas and perspectives with others, and ask them how they view problems. Adopt a collaborative approach to problem finding, and work actively with others to create and innovate.

 

I scored 59.

Your project management skills are okay, and when projects are relatively simple, your outcomes are often good. However, the more complex the projects you manage, the less control you will have and the more likely you are to deliver below expectations. Take time to improve your planning skills and prepare for the unexpected. The more time you spend on your up-front planning, the better your project outcomes will be.

 

Respond to the two post below:

1.

I have scored okay on the assessments. I have a good understanding of the basis, but I could improve on my skills and be more proactive. I also need to concentrate more on finding many options and discover risks and consequences.  When choosing on how to invest you money is a big decision. If I were Mike, I would take my time and and do some research into other companies profits and also see which one has helped make a positive impact on the environment. I would do some research and try to find some other options that would be profitable or even environmental that could be helpful. Also meeting with investment firms is a good option as well which could help with finding what types of investments are available and to also ask myself do I need more money as soon as possible for the investment or am I okay with investing for less money.

 

2. If I am Mike the first thing I am doing is taking my time. Doing my due diligence and then taking it from there. Yes the tax deadline is approaching but a decision can still be made without rushing. Personally I would look into the companies profit margins over the last couple of years and see which ones have been producing the most and coming out above breaking even. Furthermore I would see which companies can still and will make a positive impact on the world and give people something that could be life changing. Depending on the funds I would put more into the company that has been tested and would be in the positive every year but also spread a small amount into a startup or newer company that could hit but also miss. That way I am involved in the potential gain but if they tank I do not miss out on the money I am losing or lost. This is based on my assessment that I got back, scoring above average in both and staying true to myself. I would not make a fast decision but would always have a back up plan.

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Solution

Making Decisions

Carrying out an investment requires effective decision-making skills, creativity, and management skills. Investment refers to the act of assigning resources with the aim of creating wealth or profits. Effective investment strategies involve putting capital or resources in well-known assets (Kalin et al., 2019). From the scenario given, Mike has enough capital to start an investment. In addition, he has effective decision-making skills, creativity, and management skills. Mike has numerous investment alternatives and passion. Advising Mike on investment strategies requires consideration of different factors, including the amount of capital, passion, and the level of management and operational skills.

If I were Mike, I would follow my passion when investing the inheritance. I would align my investment strategy with passion. As an environmental advocate, I would research and find different strategies on how to make a profit from the investment. With the increased desire to create a sustainable environment, there exist different investment opportunities that can be exploited. As a result, Mike will be able to find different opportunities in this area to make a profit. With passion, effective decision-making, and management skills, Mike will be able to undertake different processes geared towards profits. In Mike’s case, I would also recommend investing a different percentage of the inheritance in different businesses. However, the largest share should be invested in the area of passion. Apart from consultation and advice from that parties, I would use my decision and management skills to decide on some of the strategies to undertake for an effective investment process.

In conclusion, investment in one passion would ensure effective outcomes. However, there is the need to get advice from investment and financial experts who understand different markets and the trends that should be followed to make profits.

References

Kalin, R. M., Mwanamveka, J., Coulson, A. B., Robertson, D. J., Clark, H., Rathjen, J., &Rivett, M. O. (2019). Stranded assets as a key concept to guide investment strategies for sustainable development goal 6. Water, 11(4), 702. https://doi.org/10.3390/w11040702

 

 

Respond to the two post below:

1. I have scored okay on the assessments. I have a good understanding of the basis, but I could improve on my skills and be more proactive. I also need to concentrate more on finding many options and discover risks and consequences.  When choosing on how to invest you money is a big decision. If I were Mike, I would take my time and and do some research into other companies profits and also see which one has helped make a positive impact on the environment. I would do some research and try to find some other options that would be profitable or even environmental that could be helpful. Also meeting with investment firms is a good option as well which could help with finding what types of investments are available and to also ask myself do I need more money as soon as possible for the investment or am I okay with investing for less money.

 

Response

 

Hello colleague. This is insightful the scores from the assessment show that Mike has effective decision-making and management skills; in addition, he has moderate levels of creativity that can inform effective investment processes. Investment processes require effective planning, studying the trend, and consultation. Effective investment strategies involve putting capital or resources in well-known assets. From the scenario given, Mike has enough capital to start an investment. In addition, he has effective decision-making skills, creativity, and management skills (Kalin et al., 2019). Investment processes require undertaking research to determine the risks and possible threats in the business. Through research processes, one is able to determine possible investment strategies that would ensure increased profits. If I were Mike, I would follow my passion. In other words, I would make an investment in the available environmental opportunities. Investment in one passion would ensure effective outcomes. However, there is the need to get advice from investment and financial experts who understand different markets and the trends that should be followed to make profits.

Reference

Kalin, R. M., Mwanamveka, J., Coulson, A. B., Robertson, D. J., Clark, H., Rathjen, J., &Rivett, M. O. (2019). Stranded assets as a key concept to guide investment strategies for sustainable development goal 6. Water, 11(4), 702. https://doi.org/10.3390/w11040702

 

2.If I am Mike the first thing I am doing is taking my time. Doing my due diligence and then taking it from there. Yes the tax deadline is approaching but a decision can still be made without rushing. Personally I would look into the companies profit margins over the last couple of years and see which ones have been producing the most and coming out above breaking even. Furthermore I would see which companies can still and will make a positive impact on the world and give people something that could be life changing. Depending on the funds I would put more into the company that has been tested and would be in the positive every year but also spread a small amount into a startup or newer company that could hit but also miss. That way I am involved in the potential gain but if they tank I do not miss out on the money I am losing or lost. This is based on my assessment that I got back, scoring above average in both and staying true to myself. I would not make a fast decision but would always have a back up plan.

 

Response

Hello colleague. This is insightful; taking time to analyze different situations is essential before undertaking investment processes. Besides, investors ought to undertake research processes to determine possible risks associated with each business. Also, there is the need for investors to engage in comparing the idea with other businesses. Before engaging in any form of investment, Mike needs to take time and analyze possibilities and opportunities in the market. However, top priority should be given to the area of interest (Kalin et al., 2019). In other words, Mike needs to consider investing in his passion, environmental opportunities available. As an environmental advocate, I would research and find different strategies on how to make a profit from the investment. With the increased desire to create a sustainable environment, there exist different investment opportunities that can be exploited.

Reference

Kalin, R. M., Mwanamveka, J., Coulson, A. B., Robertson, D. J., Clark, H., Rathjen, J., &Rivett, M. O. (2019). Stranded assets as a key concept to guide investment strategies for sustainable development goal 6. Water, 11(4), 702. https://doi.org/10.3390/w11040702