NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Identify two projects or events that require an investment in AIG American International Group, Inc. (AIG) is considered to be one of the major insurance corporations in the world. It was founded in 1919 by Edwin Cornelius Vander Starr in Shanghai, China and became the first western company that sold insurance to the Chinese. Later, the company enlarged the geography of its business and then extended the sphere of its building management and vendor selection. American International Group consists of several companies. Some of them are active in the areas of recycling and energy conservation. Recently AIG has invested in the rebuilding of some constructions that were conformed to the U.
S. Green Building Councils Leadership in Energy and Environmental Design (LEED) standards. At present AIG is engaged in the project that converted contaminated land in the center of Atlanta into a large office-retail-residential complex. Organizations that want to increase their participation in some processes (for example, in environmental projects) are supported with capital projects funding. The procedure of financing depends on the size and duration of the project and is based on the planning and budgeting phases of the project. Thats why the effective management is necessary for more complicated and larger projects; otherwise, there will be a lot of difficulties.
Very often capital projects are affected by cost and time overruns. These facts will influence negatively the implementation of business strategy and will cause re-financing and even insolvency. The financing of a project depend on its main goals and can be in form of direct government support, industry-wide sponsorship or larger financial incentive. The project of building office-retail-residential complex demands great expenses.
Its economics should be based on how the project recovers the cost of the initial capital outlay. A capital expenditure includes the following costs: costs of capital, property taxes, insurance and constant dollar CRF (if a project is long-term typically over 10 years in duration). Cost of capital can be determined as the initial capital needed for a project. It consists of money borrowed from a bank or other institution in the form of debt or from shareholders in the form of a reduction. The current initiative is mostly supported by non-profit ecological organizations and sponsorship. American International Group itself has made investment in the project.
In 1999, American International Group (AIG) took part in Global Health Initiative. As it was said, AIG is one of the leading international insurance and financial services organizations that has a lot of subsidiary firms in approximately 130 countries. One of them is American International Assurance in Thailand (AIA). It is a large insurance company focusing on life insurance products. The main goal of Aia's HIV/AIDS programme was to reduce the impact of HIV/AIDS on its main stakeholders, which include AIA staff, customers and the communities where they live and work. AIA made investments in the project as well as a great number of other big companies and was co-sponsor of the programme.
It encouraged 125 businesses to implement HIV/AIDS prevention programmes. Most of all, AIG wants to determine if financial incentives can be used to encourage the private sector to become actively involved in developing and improving workplace HIV/AIDS programmes. Having examined the effectiveness, several lessons were made. Companies that had joined the project would get financial rewards. But for nearly 90 % of companies it was not the main motivating factor. The other factor was that 82 % of companies could improve their evaluation score between the two rounds.
From 1999 to 2001 AIG spent US$ 56, 179 on the project. The funding was provided through Aia's non-profit Community Fund. So, the main source of funding for the project was industry-wide sponsorship though it got direct government support. Bibliography: Wideman, Max. (2006).
The Public Relations. Concept project management site. Last updated May 1, 2006. web American International Group, Inc.
Last updated April 4, 2006. web
Free research essays on topics related to: projects, insurance, aids, hiv, hiv aids
Research essay sample on Retail Residential Complex Office Retail Residential Complex Project
