Criteria for Evaluation of Strategic Alternatives

5 Criteria for Evaluation of Strategic Alternatives 5.1 Financial Criteria Financial criteria atomic number 18 preferred for coachs to evaluate objectifys.The two pecuniary criteria used leave behind be the payback and illuminate present value toughies by comparing the returns of investment and the metre taken to re peak the sign investments. The payback model measures the time to recover the jump investment. The shorter effect represents the well-being of the business, if a project takes a long period, manager will not accept it. Payback emphasizes change period of time which is essential in business.The net present value (NPV) shows the net cash inflows. The higher positive NPV means that the manager advise come about in considering byaccepting the project. (Larson & Gray 2011, p.37-38) Examples will be investment in larger aircrafts, training and maintenance. The benefit of having larger aircrafts is to cover a greater distance. By maintaining the safety of air craft and having training programmes for the pilots is to frustrate some(prenominal) accidents caused. In this way, passengers will feel safe in the aircraft due(p) to the good temper. 5.2 Non-Financial Criteria Non-financial criteria will assist in reflecting strategic importance. By developing and maintaining the core competencies, it will be a long-run survival.

Organizations will need to maintain or upgrade the envision and brand recognition too. The two non-financial criterias used will be checklist and multi-weighted leveling models. The checklist approach uses a list of questions to review belike projects and to make a decision to accept or! reject. The multi-weighted hit model uses several weighted selection criteria to evaluate the project. The project possess the highest weighted scores are generally better. Examples to finalize on non-financial criteria will be ensuring the safety standards are purely adhere so to have a good theme and having good customer services attitudes towards customers. The benefits will be retaining the old...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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