The Manager Should Seek Some Balance Between Quantitative and Qualitative Factors in Decision Making’

1883 WordsOct 15, 20108 Pages
Quantitative Factors –LET US TAKE THE I nvestment Appraisal. THE FACTORS CONSI DERED ARE Payback period NPV ARR Provide a numerical basis for decision making – reduces decisions to looking at a monetary value placed on different choices, e.g. Forecasted sales figures for the next 3 years The cost of a series of redundancies against the longer term financial benefits to the firm of this process But: such data provides only part of the story Other factors need to be taken into account, particularly the effects of decisions on stakeholder groups and their response to such decisions, e.g. The takeover of Manchester United CLUB by Malcolm Glazer might make financial sense but the reaction of the supporters might make the…show more content…
TERRITORY 4 FORECASTS $6mill. TERRITORY 5 FORECASTS $8mill. TERRITORY 6 FORECASTS $7mill. TERRITORY 7 FORECASTS $4mill. TERRITORY 8 FORECASTS $4mill. TERRITORY 9 FORECASTS $3mill. TERRITORY 10 FORECASTS $3mill. NATI ONAL TOTAL SALES FORECAST =$55 mill M ETHOD 2 • The pipeline perspective, or “ pipeline assessment,” is generated by analyzing opportunities at each stage of the pipeline, enabling management to assess sales targets from an aggregate, top-down viewpoint. 1.MARKET POTENTAIL FORECAST $400 mill. MARKET SHARE FORECAST 15% = $60 mill. 2.FIELDSALES FORECAST = $55 mill. 3. MARKETING CHANNEL FORECAST =$ 58 mill. 4. CUSTOMERS ' END USE EXPECTATIONS FORECAST =$57 mill. THE AVERAGE OF THIS WORKING = $57.5 mill. M ETHOD 3 The historical perspective, or “ analytic assessment,” is based on a comparison of current pipeline data with historical trends, allowing the company to apply knowledge gained from prior periods to the current forecast. YEAR 2004 $45mill. YEAR 2005 $48mill. YEAR 2006 $51mill. YEAR 2007 $54mill. YEAR 2008 $57mill. FORECAST M ETHOD 4 Triangulated Forecasting provides a set of checks and balances that enables management to quickly identify potential problems. Additionally, the analytic assessment highlights that, at this point in the quarter, the company’ s forecasts are typically 20 percent above final attainment. Taking all three

More about The Manager Should Seek Some Balance Between Quantitative and Qualitative Factors in Decision Making’

Open Document