Companies have to make choices in their investments in order to anticipate market changes but also to ensure their profitability and their alignment with the company's development strategy. Moreover, today, the company takes greater account of the social and environmental impacts of its investment choices in its strategy. This case raises the question of the factors to be identified to ensure the profitability and viability of the investment project. Indeed, in its development strategy, the company has the choice between many projects, rather innovative, ecological or ordinary (such as expansion, replacement, or outsourcing), but what are the determining factors for the selection.
In this case, the participants will act as a team working for a fictitious electrical equipment company, Omega Energy Electric whose objective is to arbitrate between different investment projects. First, investment criteria such as net present value and IRR of the projects are analyzed. Then, the risks are evaluated in order to guide the choice. Finally, all projects are discussed to make the selection based on its investment strategy: Digitalization for energy efficiency, Electrification for decarbonization, and Ecodesign for sustainability. The objective of this case is to understand that many factors must be taken into account to select the projects in which to invest in order to position itself against the competition and ensure future profitability consistent with CSR objectives.