Capital Structure Financial Gearing Project

Negative Effects of Financial Gearing

Capital structure is one of the paramount elements which a firm should consider when undertaking its short term and long term projects. Well, the balanced capital structure enables the company to achieve strike off the balance of growth‚ Continuous improvement and growth‚ risk mitigation thus ensuring production goes on uninterrupted. For this matter the paper analysis the factors to consider when setting the capital structure‚ advantages of proper debt-equity management and lastly the risks of having improperly balanced capital structure when financing various operations. Finally‚ evaluation of best financial management techniques which can help to ensure organizational goals are achieved without compromising its operations.

Enterprises should maintain the proper balance of the capital structure which entails attaining the reasonable level of equity-debt level. Furthermore‚ it is recommendable that there should be the efficient matching of liability to asset level, this implies that only long-term projects should be. Financed by the long-term liabilities and vice versa for short-term projects which should be funded by use of the short-term sources of the funds. Lack of this aspect will compromise the value of the firm which can lead to financial distress in its advance levels‚ as debt capital is very much expensive source of fund (Ding, Wu, & Zhong, 2016‚p 328).

For instance use the short-term loans to build rentals with the anticipation they will raise some money which can be used to service the loan repayment can ditch the firm in financial problems especially when the building fails to get occupants. It should be noted that returns on some projects are probabilistic whereby there is no consistency of their returns as market forces of demand and supply are unpredictable. Thus market assessment and evaluation should be carried out to prevent such advance results which can jeopardize the firm’s operations.

Factor to Consider When Setting Appropriate Capital Structure

In recent past, there has been the development of various theories to expound on factors which should be considered when determining proper level debt-equity ratio to be maintained by the company (Öztekin, 2015 ‚p 302). Most of the theories suggest that before choosing the capital structure to use firms should consider various factors which include the following;-

Cost-benefit‚ the companies should come up with the capital structure which yields the highest return with the least risk involved. For instance, if the shareholders capital is capable of financing the operations of the firm or they have sponsors. Dong, Yanmin, Kaul, Charles ‚Yui, and Tsang, (2016‚p 200) noted that having these organization helps in achieving proper control and management of capital structure   The management should opt to maintain the high level of equity to debt ratio in its capital component. Furthermore‚ depending on the risk propensity and attitude of the management one can opt to go for debt capital due to tax shield benefit.

Financial flexibility‚ this involves ease at which the enterprise can interchange debt to equity without possible cases of financial distress. For instance, promptly the airline industry is capable of making significant returns‚ while at bad times it can consider raising working capital through debt capital.

Management style may be classified as either aggressive or conservative. Aggressive managers have the appetite for risk‚ hence taking the risk for them is not a big deal (Zawadzka, Szafraniec-Siluta, & Ardan, 2015‚p 358). For conservative managers, they are risk averse, so they will tend to avoid debts.

The growth phase of the firm -The companies in growth stage tend to finance their operations through debt capital while well-established firms prefer equity capital more than debt capital.

Market condition‚ if the company is raising funds to finance new plant having high market volatility. In such situation, there are high chances of the company to land in financial distress whereby the returns accrued from the plant are not sufficient to service the loans.

Illustration

Assuming that a company has borrowed £5,000,000 to be repaid for eight years at an interest rate of 12% pa to invest in both shares and real estate. The repayment will be systematically be amortized as follows:-

Year

Opening Balance Annual repayment Interest Principal

Closing balance

1 5,000,000 1,006,514 600,000 406,514 4,593,486
2 4,593,486 1,006,514 551,218 455,296 4,138,190
3 4,138,190 1,006,514 496,582 509,931 3,628,259
4 3,628,259 1,006,514 435,391 5,711,223 3,057,136
5 3,057,136 1,006,514 366,856 639,658 2,417,478
6 2,417,478 1,006,514 290,097 716,417 1,701,061
7 1,701,061 1,006,514 204,127 802,387 898,674
8 898,674 1,006,514 107,841 898,673

Amount to be repaid annually is 5,000,000=PMT (1-1/ (1+r)/r

£5,000,000=PMT (1-1/ (1+0.12)8)/0.12=£1006514.

Assuming after the company bought shares the value of returns on stocks deteriorated and stabilized at £50,000 at the interest rate of 10%. The present value can be computed by use of present annuity formula as follows

Amount=50,000 (1-1 / (1+0.10)8)/0.10=266746

From above illustration the due to unforeseen market condition during loan acquisition. The firm will be unable to meet the debt obligation as even cumulative returns for eight years cannot pay for the loan in the first year. As there is the deficit of 1,006,514-266,746=£749,768.

Advantages of Above Arrangement

Robust accessibility of capital‚ efficient utilization of the debt capital can help the firm achieve the significant level of growth especially when the management have ventured in the viable industry. For instance ‚ by venturing in real estate the company will be capable of recouping the money required to service the loan in a very short. After which it can invest back the capital accumulated. The net effect of this will be multiplier effect‚ which will help the firm achieve its goal for sustainable development.

Best for buyout and acquisition for strategic growth‚ due to the risky nature of the debt capital it is only effective when the firm has short term strategic needs which are geared towards achieving a particular short viable objective. For instance buying of shares in the profitable company.

Tax shield benefit- debt capital is tax deductible thus a high level of returns to shareholders.

Disadvantage of Above Arrangement

Costly‚ for instance in case the enterprise has secured the loan to invest the in the financially geared products such as high-yield bonds and leveraged loans. For this matter managers must monitor the interest effectively that it does not suppose the intended rate of return on investment (Homburg, 2014‚ p 414). For investors to be convinced to take such investment risk, they will need compensation regarding premium of which in case of the unfavorable market condition the firm may be unable to raise.

It is the risky source of finance‚ even though financial gearing is one of the effective methods of financing operations of the firm. Extreme levels increase the risk level of the company to land at the lead to financial distress which at the advanced level can lead the Company to be put into receivership. For this reason, managers must ensure proper maintenance of liabilities and assets trend off is maintained to prevent adverse results which can jeopardize the firm’s operations. Hence, leading to financial failure which signifies the failure of the enterprise.

The sophisticated analysis required before taking loans. Most financial institutions need proper business plan from borrowing individuals and companies. In such situation, the borrowing entity may be compelled to hire financial analyst consultant to do some market feasibility and come up with the business plan which is very expensive, and it does not guarantee the proposal will be accepted by the prospected lending institution.

Financial Gearing and Capital Structure
Financial Gearing and Capital Structure

Conclusion

Going by the above discussion, it is clear that although using debt capital to finance operations has advantages. Such as Powerful accessibility of capital due to tax shield benefit and is best for buyout and acquisition strategic growth. It has inherent risks and disadvantages which can lead to financial distress hence bankruptcy. Thus‚ management must ensure proper trend off of risk and returns of borrowed loans and anticipated projects to be financed by such debt.

References

Ding, X. (Wu, M., & Zhong, L. 2016. ‘The Effect of Access to Public Debt Market on Chinese Firms Leverage’. Chinese Economy, no 49(5), pp 327-342.

Dong, C., Yanmin, G., Kaul, M., Charles Ka Yui, L., & Tsang, D. 2016. ‘The Role of Sponsors and External Management on the Capital Structure of Asian-Pacific REITs’: The Case of Australia, Japan, and Singapore. International Real Estate Review, no 19(2), pp 197-221.

Homburg, S. 2014. ‘Overaccumulation, Public Debt and the Importance of Land. German Economic Review’, no 15(4), pp.411-435.

Öztekin, Ö. (2015). ‘Capital Structure Decisions around the World: Which Factors Are Reliably Important?’. Journal of Financial & Quantitative Analysis, no 50(3), pp 301-323.

Zawadzka, D, Szafraniec-Siluta, E, & Ardan, R 2015, ‘Factors influencing the use of the debt capital on firm, Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu, no. 412, pp. 356-366.

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Management of Organisational Change

Management of Organisational Change

The management of organisational change is very important for the long run success and sustainability of the business. Business that has loyal workers will have the process of change management easily adopted. People of the organisation may be resisting change that will pose threats for the organisation. The highly competitive industry and dynamic environment requires the organisations to manage change properly. There are many theories and approaches developed by the hard work of researchers that have developed guidance for the organisation for adopting the appropriate practices that would increase the chances of the organisation to manage change in an effective and efficient manner (Taylor, P. & Hirst, J. (2001).

The process of change management involves changes in the direction, capabilities and structure of the organisation (Moran & Brightman, 2011). The study conducted by Burnes (2004) states that the change is an inevitable thing that will take place in the life of an organisation having an impact on the operational and the strategic level of the business.

The organisation should rigorously research about the future of the business so that proper planning is conducted that will enable the organisation to achieve the objectives of the business. The main emphasis was laid around the fact that the change in the organisation cannot be just focused without the organisational strategy being considered. It is very important that the business has aligned the objectives of the employees with the organisational objectives to increase the chances of success and growth. Businesses that are not effectively running have identified certain issues that restrict them to adapt to the changes that are essential for the long run success and growth of the business.

Graetz (2000) has identified that the information revealing about the increasing trend towards globalisation, the deregulation, growing knowledge of the employees, changes in social and demographic trends all over the world have led to a change in the perspective of the leadership of the organisation to consider change management very important. The advancements around the world regarding the trends and the globalisation have not been ignored by the business organisations.

Change management is crucial for businesses as there are many factors that have to be considered. Information not shared properly with the employees of the organisation so it will not motivate the employees to contribute towards the efforts of the organisation to manage change effectively. The work of Balogun & Hope (2004), have shared the results of about 70 percent organisations that are not capable of successfully implementing change in the organisation.

There is work conducted by the people in the past regarding change management. It has been identified that the change that takes place has been equal to the level of change in the environment of business in the current time (Balgon & Hope, 2004; Carnall, 2003). The change that takes place in the organisation has been considered to have all shapes, forms and sizes.

There can be drastic changes in the structure of the organisation, the product line can be diversified further and the number of employees needed for the different positions in the organisation can also change with time. The high level of competition in the industry has created certain challenges for the organisations to acquire the best possible talent in the industry to support the organisation. The information that is available for the organisations is very important for the people to improve the operations of the business in the long run (Kotter, 1996).

The change management is a crucial factor for the business organisations because that is the requirement for businesses to stay in competition. There has been a high level of focus on the importance of the management of change in the organisation but there is less empirical research conducted to support the topic (Guimaraes & Armstrong, 1998).

The work of Senior, (2002) has identified the three categories that are focused from the perspective of the characteristics of the change. The important concepts like total quality management (TQM) and the business process re-engineering (BPR) along with other initiatives for the change have not been focused very much. The main area of focus for the organisation is the sustainability and the long run growth of the business so the management of change is crucial (Pettinger, 2004).

The work of Rieley & Clarkson, (2001) has clarified that constantly changing organisations are not performing well because it is very difficult to manage change that is taking place regularly. The routine work performed by the employees of the organisation allows them to learn from their mistakes and specialise in the tasks they perform so it is difficult to adapt to new changes in the organisation. If the business has the ability to identify methods that would enable the organisation to manage change effectively that will be fruitful.

Luecke, (2003) states that changing environment has allowed employees to mould with the surroundings to adapt properly to the business changes to be able to survive in the competitive industry. The work of Nelson, (2003) has clarified that the change in the organisation does not occur in a steady manner as the level of change that is experienced varies with the nature of the business, changes in technology and the degree of competition in the industry. Many organisations have developed proper plans and implemented the effective strategies developed by skilled managers to adopt change and manage it properly.

Grundy (1993) has been able to identify that the process of change can be manipulated by the organisations by dealing with changes in a proper way by ensuring that the incremental and slow change is taking place at the right time as the organisation prepares the required human resource and other resources for the change management. When the level of change is viewed from the perceptive of the cause of change then Bamford & Forrester, (2003) have identified several factors that the organisation toward the process of change. The planned process of dealing with the change that is going to take place in the organisation is the appropriate strategy as it allows the business to identify the most appropriate practices that will guide the organisation for dealing with the change effectively. If the change is taking place that will result the organisation to pass through different states of changes so it is crucial to deal with it properly to shift the business from an unsatisfactory place to a desirable state (Eldrod & Toppett, 2000).

The planned change approach was developed by Lewin, (1946) having the background in the study of intergroup and interpersonal relationships in the community. According to the study the individuals have to understand the importance of three main steps for the management of change that include the level of unfreezing present, moving to the new level and then refreezing the current level. It is a good way to discard the previous information to be open to understand and properly manage the new information that is being shared with the employees.

The work of Bullock & Batten, (1985) has been highly appreciated regarding the management of change for the organisation as they have developed a four phased model for the planned changes that need to take place in the organisation that involve the exploration, planning, action and integration. The model has laid major emphasis on the process of change that allows the organisation to move from one place/state to another that enables the managers or leaders of the business to adapt to certain changes that are very important for the business.

Though the model has gained respect of the researchers in the past but has also faced criticism for the model being focused on the incremental changes taking place at the small scale level, condition that is considered is that organisations are operating in constant environment and movement takes place from one stage to another. The process of change that takes place in the organisation is not taking place in a step by step or predefined manner so it is crucial that effective planning is done to incorporate the needs of the stakeholders of the business in the change management process so it can take place in a successful manner.

The proper manner to adapt to changes for the business organisation is to not take the concepts of change in isolation rather develop a set of integrated steps that can ensure that the performance of the business will be good. The information that is being shared by the employees for developing a strategy for the effective management of change is crucial. If the leadership allows the employees to have a say in the decision making process that will increase the motivation, commitment and loyalty of the employees of the business.

The importance of sincere employees that are willing to support the organisation in good and bad times cannot be ignored so it is the responsibility of the human resource management department of the organisation to ensure that the employees are very much satisfied with the performance of the managers (Dawson, 1994). The growth and career development opportunities in the organisation should be developed for the welfare and growth of the employees. As the skilled workforce of the organisation will feel comfortable with the practices of the organisation there are higher chances that such businesses will be able to perform well in the industry.

Management of Organisational Change
Management of Organisational Change

To properly manage the change in the organisation by dealing with high level of uncertainty and the complexity a business must emphasise on the development of the open learning systems so that employees are acquainted with the skills, experiences and abilities that are crucial for the growth, expansion, survival and sustainability of the business (Dunphy & Stace, 1993). There are no proper rules that have been developed for guiding organisations properly to deal with the process of change properly but still it is imperative that business organisations continuously work on strengthening the business procedures and operations in a manner that will ensure the proper flow of operations enabling the business to cope with change effectively (Pettigrew & Whipp, 1993).

Conclusion

Change is inevitable in the dynamic environment, globalisation and high degree of competition in the industry. It is imperative that organisations develop proper plans for dealing with change in an effective manner. The business organisations that are dealing with the change properly have achieved high level of success as they are able to guide the employees in a successful manner towards the achievement of the goals and objectives of the business. There are many theories and approaches that are developed for the guidance and direction to be provided to businesses but it depends on the nature of the business and the industry in which the business is operating to adopt the proper procedure. The successful businesses emphasise on motivating their employees so that they can adapt to changes properly and perform well in the business environment.

References

Balogun, J. and Hope Hailey, V. (2004), Exploring Strategic Change, 2nd edn (London: Prentice Hall)

Bamford, D. R. and Forrester, P. L. (2003) ‘Managing planned and emergent change within an operations management environment’, International Journal of Operations & Production Management, 23(5), p. 546–564

Bullock, R. J. and Batten, D. (1985), It’s just a phase we’re going through: a review and synthesis of OD phase analysis’, Group and Organisation Studies, 10(December), pp. 383–412

Burnes, B. (1996) ‘No such thing as a “one best way” to manage organisational change’, Management Decision, 34(10), pp. 11–18

Burnes, B. (2004) Managing Change: A Strategic Approach to Organisational Dynamics, 4th edn (Harlow: Prentice Hall).

Carnall, C. A. (2003), Managing Change in Organisations, 4th edn (Harlow: Prentice Hall)

Davidson,M. C. G. and De Marco, L. (1999) ‘Corporate change: education as a catalyst’, International Journal of Contemporary Hospitality Management  , 11(1), pp. 16–23.

Dawson, P. (1994) Organisational Change: A Processual Approach (London: Paul Chapman).

Dunphy, D. and Stace, D. (1993) ‘The strategic management of corporate change’, Human Relations, 46(8),pp. 905–918

Edmonstone, J. (1995), ‘Managing change: an emerging consensus’, Health Manpower Management, 21(1),pp. 16–19

Eldrod & Tippett, (2002), ‘The “death valley” of change’, Journal of Organisational Change Management, 15(3), pp. 273–291

Graetz, F. (2000), ‘Strategic change leadership’, Management Decision, 38(8), pp. 550–562

Grundy, T. (1993), Managing Strategic Change (London: Kogan Page)

Guimaraes, T. and Armstrong, C. (1998) ‘Empirically testing the impact of change management effectiveness on company performance’, European Journal of Innovation Management, 1(2), pp. 74–84

Kotter, J. P. (1996), Leading Organisational Change (Boston, MA: Harvard Business School Press).

Luecke, R. (2003), Managing Organisational Change and Transition (Boston, MA: Harvard Business School Press)

Moran, J. W. and Brightman, B. K. (2001) ‘Leading Organisational Change Career Development International, 6(2), pp. 111–118

Nelson, L. (2003) ‘a case study in Organisational Change: implications for theory’, The Learning Organisation, 10(1), pp. 18–30

Pettigrew, A. M. and Whipp, R. (1993), Managing Organisational Change for Competitive Success (Cambridge: Blackwell)

Pettinger, R. (2004), Contemporary Strategic Management (Basingstoke: Palgrave MacMillan)

Rieley, J. B. and Clarkson, I. (2001), ‘The impact of change on performance’, Journal of Change Management, 2(2), pp. 160–172

Senior, B. (2002) Organisational Change, 2nd edn (London: Prentice Hall)

Taylor, P. and Hirst, J. (2001), ‘Facilitating effective change and continuous improvement: The Mortgage Expressway’,Journal of Change Management , 2(1), pp. 67–71

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I hope you enjoyed reading this post on organisational change. There are many other titles available in the business management and MBA dissertation collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.

Project Management UAE Construction Industry

Assessment of the Application of Project Management in the United Arab Emirates Construction Industry

Subject: Project Management in UAE Construction Industry. This dissertation aims to critically analyze the application of project management for successful project completion in the construction industry. Literature review covers extensively the development history of project management since the old ages to modern era project management techniques.

The first three objectives are covered during the desk study of reviewing different literature available. Major reasons of project failure in achieving designed project goals are identified and how the market slowdown is affecting the construction industry of United Arab Emirates. The role of project Management becomes essential when complexities such as introduction of new technologies, tasks to perform which are inter dependent, large and distant teams spread across different departments, different projects or sometimes different parts of the World and constraints of time, quality, cost are imposed.

Modern project management tools and techniques are discussed in detail and use of new technology to improve the performance of project management hence construction industry is highlighted. These findings of literature review are used further in research methodology to develop an online survey questionnaire (quantitative) to evaluate the aims and objectives set for the research, e.g. the level of awareness of PM tools and techniques and to investigate if the current industry demands are met by project management and to discuss any potential improvements/features that can lead the construction industry to achieve better results in project success.

Conclusions are drawn from the analysis of data received based on online questionnaire from professionals in the industry and the aim of dissertation is achieved by meeting all the objectives set for this dissertation. In the end, recommendations are made that can lead the construction industry to achieve better results in project success.

Dissertation Objectives

  • To critically analyze the available literature on project management development history; addressing the demand of the construction industry, and how it has been assisting the industry in managing projects of extensive nature
  • To identify the major reasons of project failure in UAE construction industry in achieving the designed project goals
  • To identify how the market slowdown is affecting UAE construction industry
  • To investigate the level of awareness of new project management tools and techniques
  • To investigate if the current industry demands are being met by Project management techniques, and to identify any potential improvements/features that can lead the construction industry to achieve better results in project success
UAE Construction Industry Dissertation
UAE Construction Industry Dissertation

Dissertation Contents

1: Introduction
Rationale
Aim
Objectives
Research Methodology
Dissertation Structure

2: Literature Review
Project Management
Project Management History
Concept of Modern Project Management
Project Management Process Groups
Initiation
Planning
Executing
Monitoring and Controlling
Closing
Major Causes of Project Failure
Facts about Projects Failure
Causes of Projects Failure
Project Management Associations, Standards and Applications
Need for Project Management in Construction
Why Project Management
Benefits of Project Management
UAE Construction industry and Market Slowdown
UAE Construction Set Back
UAE Construction SWOT Analysis
Competitive Environment during Recession in UAE
Development of Project Management Tools and Techniques
Project Management Software
Over View of Prevalent Software Products
Evolution / Merging of Primavera with Oracle

3: Research Methodology
Objectives of Research Data anthology
Research Approaches
Quantitative Methods (Deductive Approach)
Qualitative Methods (Inductive Approach)
Mixed Methods
Research Strategy
Questionnaire Design
Questionnaire Sampling

4: Survey Data Analysis and Results
General Introduction Questions
Project Management General Understanding
Performance of Construction Industry in UAE
Modern PM and UAE Construction Industry
Further Improvements

5: Conclusions and Recommendations
Conclusions of the Objectives
AIM of Dissertation
Recommendations
Limitations of the Research

References

Appendix
Questionnaires

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Interest Rate Investment Decision Dissertation

An Analysis on the Changes in Interest Rate and Its Impact on the Investment Decision: An Assessment of Barclays

Changes in Interest Rate Dissertation – Interest rate fluctuation and investment decision are two parallel things which investors take into consideration seriously. Due to the risk adverseness of the investors and the opportunity of investments, degree of investment in different industries and sectors are different. While making investment decisions, investors consider the risk adjusted return foremost.

At the same time, a good consideration about the inflation rate and the tax rate is made since investors are well aware about the real income generated from the investment. In determining the interest rate, the treasury department plays the crucial role by analysing the interest rate being offered by other competitors and the probable effects of increasing or reducing the interest rate.

Barclays Bank has been facing the issue of lower investment due to the lower interest rate being offered and the returns to the shareholders in the form of dividends have seen significant reduction. There is a huge lost interest income due to the failure in attracting the depositors by offering higher rate. The treasury department is liable for managing the assets and liabilities in a way which secures the net worth not to be reduced. Treasury department within the Barclays Bank uses the sensitivity analysis in order to determine whether the interest rate is to be reduced or increased considering the goals and objectives of the firm.

Dissertation Objectives

  • To have a clear understanding about the interest rate changing factors
  • To understand the exposure of investors toward the interest rate fluctuations
  • To know the relationship between the interest rate and degree of investment
  • To understand the way Barclays Bank, determine the interest rates on their deposits and the loans and advances
Interest Rate Dissertation
Interest Rate Dissertation

Dissertation Contents

1: Introduction
Background of the research
Significance of the research
Problem solving and rationale of the research
Aims of the research
Objectives of the research
Research Questions
Structure of the research

2: Literature Review
A brief analysis on Barclays
Interest rate and its viewpoint from different perspectives
Factors that affect the changes in the interest rate
Changes in the interest rate and investment decision
Concepts regarding the research

3: Research Methodology
Research Philosophy
Research Paradigm
Research Reasoning
Research Approach
Collection of data and analysis of the data
Data analysis plan
Limitations of the research

4: Data Analysis
Base interest rate in the UK
Interest rate and inflation
Interest rate offered by different banks in the UK
Interest rate offered by Barclays in the UK
Interest rate movement and effect on net worth
Interest rate and shareholders’ actions
Treasury department and interest rate fixation

5: Discussion and Recommendations
Secondary research and literature review
Aims and objectives achievement
Recommendations
Future studies
Conclusion

References

Appendices

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ERP Dissertation Implementation SMEs

A Study of Enterprise Resource Planning (ERP) Implementation and Critical Factors that Affect Chinese Small-Medium Enterprise

Title: ERP Dissertation Enterprise Resource Planning. Following the global economic recession caused by several economic crises during the first decade of the twenty-first century, the business world market has become more intensely competitive, but also more cooperative between organizations and firms, in order to achieve their goals and reach the next level. SMEs (Small Medium Enterprises) have become one of the most significant forces in leading the economic recovery globally and domestically, as they occupy a large percentage of every domestic economy in the world.

It was quoted by U.S. Presidential candidate Romney in 2012, when running for election, small businesses are the foundation of our nation’s economy. He raised the importance of SME’s development as being crucial, having a strong effect on the economy. Meanwhile, the usage of the ERP (enterprise resource planning) has developed widely. It has been recognised as an effective tool for use by both large organizations and SMEs to improve their performance in the complexity of business expansions, following many real life experiences and experiments over decades. ERP’s implementation and effect on success and failure has been studied by many experts in recent years and is becoming a popular topic in the business field.

At the same time, ERP system implementation’s critical factors and their adoptions have also been reviewed by practitioners worldwide. Therefore much effort has been made on improvements, following many reconsiderations and gap fittings. China, as one of the industrialized nations and being the second-largest economy in the world, is predicted to close the growth gap with the U.S. by 2030. Hence, the examination of ERP system circumstances as they relate to Chinese SMEs has been noted as a critical area for business development, and studying Chinese ERP implementation in SMEs will provide more insights for future development and expansion in business.

Dissertation Objectives

  • To review ERP implementation success models and critical factors for SMEs from existing literature
  • To identify the factors that effect ERP implementation in Chinese SMEs
  • To Evaluate the ERP implementation factor’s influences through interview of Chinese SME users
  • To recommend how to adopt ERP in Chinese SMEs
ERP Dissertation Implementation
ERP Dissertation Implementation

Dissertation Contents

1: Introduction
Background
Objectives of the Study
Structure of Dissertation

2: Literature Review
ERP Systems implementation Success Models
Culture Issues
Models Summary
Critical Factors on ES implementation affect to Chinese SMEs
Implementation costs to SMEs
Culture clash
Lack of top management support
Resistances in workplace
Data Accuracy from legacy system
Literature Review Summary

3: Research Methodology
Methods Analysis
Quantitative Research Methods
Qualitative and Quantitative Comparison
Review Methodologies From Previous Studies
Research Question Design
The Strategy Of Asking Questions
Participant Selections
Interview Limitation

4: Findings
Research Questions
Results
Participants

5: Conclusions
Discussion
Enterprise Capacity
Business Type
Top Management Support
Resistance In Work Place
Culture Clash And Organizational Culture
Data Accuracy

6: Recommendations and Limitations
Recommendations
Limitations

7: Conclusion

References

Appendix

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