Criteria used when making business decisions
- Created by: KTiffanyH
- Created on: 14-01-22 14:48
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- Criteria Used When Making Business Decisions
- Internal Factors
- Attitudes to risk
- How reluctant or averse the business is to taking risks
- Organizational objectives
- Targets that have a direct impact on the business
- Core competencies of a business
- What the business is good at
- Impact on internal stakeholders
- How will it impact relationships with them
- Business ethics
- Decisions that are ethical and not always profitable
- Financial considerations
- How much will it cost, can we afford it
- Time
- Complex decisions require more time
- Opportunity cost
- Return on investment
- Attitudes to risk
- External Factors
- Level and nature of risk
- What risk is involved
- Impacts on external stakeholders
- How the external stakeholders will be affected
- Degree of uncertainty
- Level of risk
- Changes in market
- Changes in demand and supply
- Changes in external environment
- Economic, legal, political and technological changes that may affect the decision
- Level and nature of risk
- Internal Factors
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