1) Once appropriate alternatives are found, the next step is evaluating them, & selecting the one that will best contribute to the goal.
2) Following factors should be considered in evaluating of alternatives
a. Quantitative / Qualitative factors:
i. In comparing alternatives sometimes numbers become easy [quantitative]
ii. While comparing, we cannot also forget the qualitative aspects. Do not ignore the intangible factors. Try & give them quantitative dimension
b. Marginal analysis
i. It is a technique of comparing additional revenues arising from additional costs
ii. If our objective is maximization of profits, then this factor cannot be ignored
c. Cost effective analysis
i. It seeks the best ratio of benefits. It is a variation of marginal analysis
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