The paper 'Project Planning, Integration and Scope Management - Mubadala Development Company " is a good example of a management case study. Mubadala Development Company is a fully owned company of the Emirate of Abu Dhabi in the United Arab Emirates. The government of the Emirate of Abu Dhabi is the sole shareholder. This company falls in the category of a state corporation. It deals with high technology as well as aerospace firms as investors although it also has other investments in fields such as the oil fields, real estates as well as the health sector that as it has invested in hospitals.
It can, therefore, be stated that the company has a diverse portfolio of economic activities which have a long term return policy. The portfolios they invest in are entered into either independently or sometimes in the form of partnerships with renowned international organizations (sovereign wealth fund institute, 2008 - 2009). PART 1 Strengths and Weaknesses of Mubadala Development Company Portfolio, Program and Projects Systems Portfolio A portfolio can be described as a collection of investments by any particular company at a particular period of time.
As already established, Mubadala Development Company has a big and economically focused Portfolio. The company has investments based locally, within the region of the Arab Emirates as well as internationally. It has investments in the fields of technology, healthcare, aerospace, energy, real estate, infrastructure among other services. It is evident that Mubadala Development Company makes its investments in long term projects and initiatives that will yield long term returns. It is a wealth-generating company that also looks to develop the economic state of the emirate of Abu Dhabi.
The company has also made investments in regions such as Africa, the United States of America as well as in European countries. Therefore the investment portfolio of Mubadala Development Company is not diversified only in activities but as well as diverse regions in the world (Mubadala Development Company, 2009). Advantages of a Diversified Portfolio A diversified portfolio reduces the long term risks the company could face. By investing in different projects and initiatives a company is able to be safe from losses that could befall one of the investments. For example, if the company had invested all its funds in one investment such as the stock market and the value of the stock drops, the company will suffer huge losses and may lose everything.
Whereas a company that has put its funds in different investment projects such as the stock market, the energy sector as well as healthcare will not suffer as much if the stock market falls. This is because the other investments will cater to the loss or if not the investor will not feel the same intensity of the loss.
Therefore it is advisable to invest in different projects and initiatives (Akers, 2014). Another advantage of a diversified portfolio is that it has a higher rate of return than single portfolio investments. As long as the investment market is in a good state returns will always be positive in the long run. Most investments are for long term returns and not for the short terms goals and therefore the higher returns will be seen in the long run (Akers, 2014).
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