MBA 640 Classmate Responses
Please respond to classmates:
My name Is XXX and I currently reside in XXX, CT. I received my Bachelors of Science at Southern New Hampshire University in Accounting. I lived on campus for two years and enjoyed that experience and met some amazing people. Now I am pursing my MBA with a concentration in International Business. Currently, I am working as a Jet Underwriter for XXX Mutual Life insurance in XXX, XXX. As a Jet Underwriter I am responsible for assessing risk on individual’s life insurance policies that are submitted by the agents. My goal is to provide the agent with the best possible offer for the insured to protect the ones they love. In the future, I will look to become a Director with all the knowledge I have obtained from my job experience and degree. In my free time, I like to go to the gym, hang with friends, and enjoy life as much as I can. Growing up my dad has taught me that education is very important and without it, it is hard to be successful. I have ran with that my whole entire life and look forward to getting the most out of this course.
Before reviewing the New Earth Mining Inc, it was important for me to understand what both quantitative and qualitative information mean. Qualitative research is defined as information that could not be analyzed in a numerical form. Quantitative research is completed by using numerical figures to analyze information (McLeod, 2008). New Earth Mining Inc began experiencing significant growth in 2013 after the price of gold rapidly increased (Fruhan & Wang, 2013). Like most organizations, the goal of the company was to become to top metal company in the industry by maximizing their profits on mining. New Earth Mining executives made a business decision to utilize other capital investments to diversify the company rather than focusing on just precious metal (Fruhan & Wang, 2013).
Before the company was able to make this final decision on their investments, New Earth Mining executives used the decision-making process. The decision-making process is defined as gathering information and deciding based off what information you have (Decision-making process, n.d). The company hired Drexel corporation to scope out their new investments and provide figures as to how much it would cost to invest and how much the company can be looking to get out from this investment (Fruhan & Wang, 2013). After further research, Drexel corporation was able to provide quantitative information for the company. According to Drexel corporation, “the field contained 30 million tons of ore with an average iron content of 60%. At the projected extraction rate of 2 million tons per year, it would take 15 years to deplete the ore body” (Fruhan & Wang, 2013). The final cost that the company would be accruing would be an estimate of $200 million. New Earth Mining was able to come to a conclusion on how they would take on this expense. Having this quantitative data made it easier for the company to move forward and handle those immediate expenses that will later become profits for the organization.
Analyzing the qualitative information is different as this pertains to non-numeric data. When an organization is trying to decide, it is easy to have differences of opinions all over the company. If you were looking at this investment from a quantitative basis, the information made sense and the company was going to make significant amount of revenue in the 15 year agreement (Fruhan & Wang, 2013). On the other hand, the company was indebting itself into a $200 Million deal that was going to last for the next 15 years (Fruhan & Wang, 2013). In addition to that New Earth Mining understood that South Africa had some risk factors involved in it. The political system in South Africa was corrupted and unstable and experts rated it as one of the top countries in terms of political risk affecting the mining operations (Fruhan & Wang, 2013). Good thing for New Earth Mining is that they had the support from their partners with made the deal less riskier for the company and more chances for them to have success in this new investment.
Decision-making process. (n.d.). Retrieved January 26, 2017, from http://www.umassd.edu/fycm/decisionmaking/process/
Fruhan, W. E. & Wang, W. (2013, Oct 11). “New Earth Mining, Inc.” Retrieved from Harvard Business School.
McLeod, S. (2008, October 11). Qualitative Vs Quantitative. Retrieved April 03, 2017, from https://www.simplypsychology.org/qualitative-quantitative.html
Course: MBA 640 – Finance, Economics, and Decision Making
School: Southern New Hampshire University
- : 07/04/2017
- : 5.00