Analysis of Critical Business Variables in Investment Projects
DOI:
https://doi.org/10.61799/2216-0388.1555Keywords:
Business uncertainty, human resources, Regulatory framework, Risk, budget.Abstract
Business uncertainty is a constant concern in the realm of investment projects, especially in a global context where change is the only constant. This article examines how four key variables—risk, budget, human resources, and regulatory framework—affect a company's ability to adapt and thrive amidst uncertainty. Drawing on previous studies by authors such as Wright, Goodwin, Stewart, Montibeller, Schroeder, and Lambert, it analyzes how irrational emotions, described by Keynes as "animal spirits," and highly improbable events, as argued by Taleb, contribute to business uncertainty. The gap between necessary and available information is highlighted, which can hinder strategic planning and long-term decision-making. Flexibility in strategic planning, as proposed by Drucker, is presented as a crucial response to this uncertainty. Furthermore, Lorenz and Mandelbrot's chaos theory is explored to understand how uncertainty can lead to unpredictable outcomes. To address this uncertainty, organizations are argued to adopt strategic planning incorporating tools such as foresight and logistics. The article discusses how risk, budget, regulatory framework, and human resources can be affected by uncertainty, emphasizing the importance of managing these variables properly to minimize their negative impacts on investment projects. Ultimately, the article aims to deepen the understanding of the relationship between business uncertainty and these critical variables, offering strategies to enhance organization's ability to achieve its business goals and objectives in an ever-changing business environment.
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