Non financial factors before decision to discontinue course

Non financial factors before decision to cast off consortAs the course usaged to be popular, thither must(prenominal) be certain inwardness of students have joined for this course. Thus, if Mawar College wants to breach this course, they must place their first priority to these students. As what they expected, students volition have haemorrhoid of questions and of course they pull up s memorises feel frustrated and angry. They could even be reveal with the petition with the hopes that the college could continue running this course before they graduate. tied(p) if the college has decided to discontinue this course, they overly have to consider on where they should place these students as they alone halfway studying for this course. They have to realize that all these students provide absolutely feel unhappy and discontent if the college place them in a nonher(prenominal) course that is not as famous as the course they ar studying now. This is treat could possibly b opposite the students and could concern their emotions making them simply to concentrate well on their studies. (Olejnik and Holschuh 2007)These grievance students provideing also call on the carpet this issue to their p arents and over again, their parents will call or even pay a visit to Mawar College to identify the reasons and details that halt the course from continuing. However, the college has to remember that not every of these parents are understanding and willing to listen the explanation by management. As creation customers, closely of them simply concern on how often they have already paid and where their children will be placed to. Even some of these parents might argue and quarrel with the college management. When these parents concerns are not being addressed, they might carry give away some conducts which could possibly spoil the news report of the college. For example, these disgruntled parents will kill spreading their dissatisfaction ab forbidden the college because of its failure to wreak and satisfy their suspense. (The Associated Press 2010)Recapping above, the image and reputation of Mawar College will be affected and people will start losing confident to the college. other students might reluctantly register to every courses that run by this college as they worry the equivalent incident might be happening again. Even their parents may caution them from studying under this college and request them to further their studies in another more than reliable college. This has clearly showed that their good impression to the established Mawar College has dashed out and people will just believe this college anymore. The Mawar College rankings among other colleges give the gate come to a deep fall and they might face difficulties to gain keister their credibility and again be competitive advantage among its competitors. (The Indian persuade Limited 2010)Besides of affecting the reputation of the college, the reputation of th e well- hold upn University will also be affected. pot around the world will start doubting whether the University is having any problems that lead to the discontinuing of the course. University will definitely feel anger and will not allow any accusation that will regularise its goodwill. This would certainly be a hard farm out for the college to run any courses under this University in the future since they have break their promises. The University could possibly sue the college if the college breaches the contracts. Hence, the college has to bear the risk of facing legal suits from the University if they have decided to conclusion the course. The college might lose huge amount of money for the purpose to revivify the University because of their doings and this would be a loss to Mawar College. (The Times of India 2010)As the college has already employed a large group of full-time lecturer for this course, therefore every of this lecturer will be affected too if the college discontinue the course. They could be appointed in teaching another course and subjects or even discharged by the colleges that will definitely reduce their train of income. Their motivation and en thenceiasm in teaching will also come repayable to their dissatisfaction to the college. This could also affect the rest of the college employees and their level of production will start decreasing once they have anomic faith to Mawar College. (Race 1999)Other than above, there are becalm many factors that the college has to realize and take into musical score before making their decision. As the course employ to be famous, I freighter assume that certain scholarships and loans have been given to some students to further up their studies on this course. thitherfore, it would be a tough and complicated delegate that these students have to gone through for the cancellation of loans or transferring their scholarships if this course has to be stopped. authorized welfare organization s much(prenominal) as Genting Malaysia and Hong Leong Group that provide free scholarships to Mawar College on this course will also feel discontent because it will consequence up their works when the students have more enquiries regards on their transferring or cancellation of scholarships. (Sunway University College nd) People that do not understand the reason of why they discontinue the course might also claim that the only intention for the college is to make meshwork and ignore the future of the students.Thus, all these will trouble the college and they only to last in the market as people and other Universities have lost their reliability to this college. The college might face problems when they have to search and look for other Universities and running their courses because these Universities also dread the same case will be happening again and affects their reputations. Mawar College will also face difficulties in employing utmost qualification lecturers due to their spoilt image and have no select only when to employ new lecturers without much teaching experiences. As they are new, most of them still could not master the lectures and issues such(prenominal) as the flunk of students in exam could possibly occur because they do not know the correct ways of teaching the students. When the students are unable to show their achievements, again the reputation of the college will be affected. (BNET nd)All these clearly show that there are different non financial factors that the college has to consider and it is pertinent to make a correct decision in order to prevent any unanticipated circumstances from happening that could lead them into a deep fall and hardly for them to bounce back in the education industry.Part C enthronisation appraisal methods are act as a tool for intend an investing and decide whether or not to accept the projects. (Gotze et al 2008) There are a few different investment appraisal methods can be used, including give the axeed property flow (DCF), payback, (Smith 2007) and Accounting Rate of Return (ARR) whereby DCF includes the methods of fire Present Value (NPV) and Internal Rate of Return (IRR). The NPV under DCF has been recognise as the sound of all the investment appraisal methods due to its servant on the time value of money. This time value of money refers to the amount of money that the descent need to be compensated for forgoing the use of the money for a period of time if it has to be invested in a project. (Evans et al 2003)NPV is a method of including all the cash inflows and outflows that will be earned and used in a project at a chosen acceptable rate of return and taking the net total. (Evans et al 2003) Even though there are many advantages in utilize NPV, but payback method and ARR are still widely used and drawed by many businesses due to the limitations brought by NPV and benefits of payback and ARR methods. (Fabozzi and Peterson 2003)The weaknesses that business normally face when using this NPV approach is they hardly to make right long-term forecast of cash flows they can receive in the future. No company can predict the future cash flows as factors such as future sales, costs of labor, wager rate, and government policies can affect the estimated cash flows. Overestimation or underestimation can sometimes mold uncountable loss to the business. (Siddiqui and Siddiqui 2005)Further, in reality it is difficult for business to determine the discount rate, which is cost of finance or cost of great. It is not an easy job to calculate various costs of finance such as pct working capital and loans. (Coombs et al 2005) They also have to take the bank interest rate, risk and future inflation into account when deciding the cost of capital because the money value of RM1 in the future will be lesser than its today value. (Bowhill 2008)Moreover, NPV method will assume that the discount rate will remain the same throughout the project running periods. But in fact, these discount rates are easily swayed from year to year. Business has to prospect the future discount rate which sometimes might be a big differences opposed to their forecast with the real situation. (Groppelli and Nikbakht 2006)Besides that, NPV also not capable to be used in the situation when comparing projects with different lives times. (Siddiqui and Siddiqui 2005) They also have a weakness whereby they never take the size or capital invested into account but only look at the higher(prenominal) yield of NPV. (Moyer et al 2009) This can be shown by the example where a project with size RM1 million that yield NPV RM1500 will be recommended compare to other project with capital RM 1000 with a NPV of RM800. (Coombs 2005) Calculation of NPV which is verbalized in money form is not favorable by most of the companies compared to percentage form. (Fabozzi and Peterson 2003)Payback method also has been called as payout method (Belkaoui 2001) and it refers to the come of ye ars a project or investment will take to pay back the sign cash outlay. This is only done when the accumulative cash inflows equally same with the cash outflows. (Bowhill 2008) Payback method is still widely used because it offers information regard to the risk of the investment. Risk analysis can be made depends on the payback period of the investment. (Moyer et al 2009) Risks will be dwindled by using this payback method because it focuses on earlier cash flows and not the later cash flows which are hardly to predict specially in this fast pace world. (Walker 2009) The business will face less risk with the shorter payback period and vice versa. (Moyer et al 2009)Furthermore, payback method will clearly show the liquidity of the investment because it measure the net cash earned by the investment in shorter term. (Bowhill 2008) For company that always concern the liquidity of their businesses will definitely adopt this helpful method so they could know whether their businesses ar e in fortified or weak liquidity to perform or carry out any plans or activities. (Moyer et al 2009)This simple to use and easy to understand method (Walker 2009) can be applied especially to small projects where only a simple decision is needed without consider other cash flow implications. (Bowhill 2008) There is no complicated calculation needed and thus many companies find it is the best way to check whether the money invested can be generated back in reasonable period of time. (Groppelli and Nikbakht 2006)Last but not least, ARR is the average annual profits divided by the initial investment and it also known as Return on enthronement (ROI) that used for performance appraisal. (Walker 2009) The investment will only be accept and applied if the ARR was the same or higher than the target rate snip by the company. (Bowhill 2008)This percentage form of ARR is easy to compute and understand especially to business people because it sounds familiar as return on capital employed th at mostly applied by companies. (Coombs 2005) ARR is always been used due to its consideration on all the returns and whole life of the investment into account. ARR is the only one that is based on the accounting profits and focus on accounting income rather than cash flows. (Belkaoui 2001) The amount and value calculated by ARR also relevant and used for financial statement presentation such as balance sheet. (Shim and Siegel 2004)