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Investment strategy forms an integral part of any business management and utility status. This means that any fluctuations in the trends that play some role in business functions lead to tremendous effects. One of the leading trend factors that have opened successful applications into the business managements revolves around the hardware’s costs, sizes, processing power, and the careful integration of the three aspects in ensuring optimal success in the business investment strategy. This paper aims to analyse how the increased hardware trends affect the business management investment strategy and the influence of the same on the management decisions regarding the purchase of organizations’ software and equipment.
Reduction in cost of hardware
The influence that reduction in the cost of hardware has on the business management’s investment strategy depends on the business in one industry or another. The reduction of hardware’s costs offers strategic advantages to a business in that the new services that a company is planning to take off will go through successfully. Perhaps, this happens due to a multiplied investment based on the lower cost of equipment and needed software for the new business ventures (Rainer & Cegeilski, 2011). On the other hand, the reduction in cost of hardware may also increase the expenses used in applying new strategies of investment. This is because with the shift in the cost of hardware, the outcome affects the employees and the structure of business making the management re-deploy the equipments and ask the employees to adopt to a new business setting to fit the changes that occur in the trends and field of business altogether.
Additionally, the business investment strategy may benefit from the reduction in the cost of hardware because this causes the policy changes that enable the business to access equipment; their inexpensiveness means that employees can even assist the business in the provision of equipments. However, this trend may also be an added disadvantage to the effective application of the investment strategies because with the freedom of employee, equipment provision of the business management loses its corporate asset power symbolizing that the business would have to deal with more challenges in enforcing security procedures in case of the expensive hardware costs. Furthermore, the reduction in the cost of hardware may look appealing at first but has far more challenges to application of the business management and its maintenance of the laid down investment strategies. This is because even with the development of the cheap hardware, competition still presented in a business capacity has to enable the growing technologies.
Reduction of hardware size
The equipment sizes have made it easy for distribution and information processes throughout the business chains. However, with the reduction in size of equipment, certain technologically related skill issues may need to be dealt with in business. The business might end up spending more in terms of investment to re-train their employees on the new technologies of scale and the widespread equipment technology, especially in the network communications based businesses (Rainer & Cegeilski, 2011). This changing trend may also move too fast for the business functions to keep up with it while the reduction in size of equipment may present threatening advances to the current structure of the business model making it difficult for the management to implement the desired investment strategies because of fear of uncertainties.
Increase in processing power
The increase in the processing power of hardware has significantly raised the business operation costs due to the changed structure costs of business operations. On the other hand, this increase in power has also influenced the development of business because the simplified processing of business information across different business investment builds the exemplary business relations and simulations quality tools of trade investment, practically implementable through the internet. For example, using the internet increases the business ability to engage in online investments while gauging the utility of some investment strategies.
Although the raise in power may boost the business in increased implementation of investment strategies and quick feedback, the changes resulting from those investment strategies may occur at an unusually slow pace that will drag the business growth as it takes several years for positive outcomes (Rainer & Cegeilski, 2011). This may also sway other factors, such as that the processing power may occur at an extremely peculiar speed, or that the business would have to consider the cost of managing the change that comes with the same effort to implement the desired investment strategy.
This shift in the changing trends in relation to the business management’s investment strategy has immense influence on the management decisions when it comes to choosing what equipment and software to purchase for their respective organizations as well as defining the appropriate time for doing purchases. According to Moore’s law on the rapid change in hardware technology, most organizations would base their purchase on the price of the hardware and only pick out machines every six months depending on their capacity to double their investments on machinery and the reduced cost of the same equipment (Brock & Moore, 2006).
In conclusion, as the technology advances, the need for a comparative merge of the emerging trends in investment with the implementation of the right set of tools for trade to increase quality of production and performance increases as well.
Brock, D. C., & Moore, G. E. (2006). Understanding Moore’s law: four decades of innovation. Philadelphia, Pa.: Chemical Heritage Foundation.
Rainer, R. K., & Cegielski, C. G. (2011). Introduction to Information Systems: Supporting and Transforming Business (3rd ed.). Hoboken, NJ: John Wiley & Sons.