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 fiscal criteria used leave behind be the payback and shed light on present value places by comparing the returns of investment and the cadence taken to re peak the sign investments. The payback model measures the time to recover the vagabond 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 bullion period of time which is all important(p) in business.The net present value (NPV) shows the net cash inflows. The higher positive NPV means that the manager advise hap 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 o f aircraft and having training programmes for the pilots is to frustrate every accidents caused. In this way, passengers will feel safe in the aircraft receivable 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 survival. Organizations will need to maintain or upgrade the sign 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 in all likelihood projects and to make a decision to accept or reject. The multi-weighted gain ground model uses several weighted selection criteria to evaluate the project. The project possess the highest weighted scores are generally better. Examples to germ on non-financial criteria will be ensuring the safety standards are strictly adhere so to have a good personality and having good customer services attitudes towards cu! stomers. 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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