Question

Qualitative factors are non-financial in nature but are important for management to consider when making decisions. Reflecting on a company for which you have worked (or are otherwise familiar), describe three qualitative factors that would be important for management decision-making. Then, assess each of them in order of importance. Giv8en your assessment, justify a situation where the qualitative factors would outweigh the quantitative results. Be specific.

As portfolio activities are to be self-reflective, please make sure to connect the portfolio assignment to:

Your personal experiences. Reflect on how this assignment topic is applicable to and will benefit you.

Course readings and any external readings.

Discussion forum posts or other course objectives.

The Portfolio Activity entry should be a minimum of 500 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources.

Answer 1

Qualitative factors are non-financial in nature but are important for management to consider when making decisions.

The three qualitative factors that would be important for management decision-making are :

1) Customers : The impact on customer opinions of a business if an investment is made in answering their phone calls in less time by adding customer support staff.

2) Community : The impact on the local community of allowing employees to spend a few hours of paid time assisting with community projects.

3) Products :It may be possible to use somewhat cheaper components in products. However, if this is done too much, it may create an overall impression of reduced quality, which may lead customers to buy fewer products.

These are the most important qualitative factors that are non financial in nature but these are very important for management to consider when making decisions to make the organisation into the peak position.If we don't have good customers, good community and good product then we can't got the growth .so it is very important to watch all these factors.

So a manager should consider qualitative factors as part of his or her analysis of a decision. Depending on the manager and the level of investment involved, qualitative factors can be the deciding point in whether to engage in a certain activity or not. from a branding perspective, qualitative factors can be particularly important. Proper branding requires high expenditure levels to establish and maintain an aura of quality, which a purely quantitative analysis might not justify.

For example, if a large investment of funds is involved, the key decision factors are more likely to be quantitative, since the investing business has a great deal at stake in the decision. However, if the investment of funds is minor, the impact of qualitative factors could play a more important role in the decision.