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. Given 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 results from specific activities that are troublesome or difficult to quantify. Each choice a chief or director makes manages applicable expenses and incomes. Chiefs attempt to foresee what the future expenses and the future incomes will be if a specific move is made or choice is made. For instance, a director may be thinking about including an additional 15-minute break toward the evening for representatives. The administrator takes a gander at what the focal points and inconveniences are for including breaks toward the evening from an expense and income stance. This is the place qualitative factors are likewise thought of.

A supervisor should think about qualitative factors as a major aspect of their investigation of a choice. Contingent upon the director and the degree of speculation included, subjective variables can be the choosing point in whether to take part in a specific action. For instance, if an enormous speculation of assets is included, the key choice variables are bound to be quantitative, since the contributing industry has a lot in question in the choice. From a marking point of view, qualitative factors can be especially significant. Legitimate marking requires high use levels to build up and keep up an emanation of value, which an absolutely quantitative investigation probably won't legitimize.

In spite of the fact that utilizing quantitative factors for dynamic is significant, subjective components may exceed the quantitative factors in settling on a choice. For instance, an enormous maker of clinical gadgets as of late put a few million dollars in a little beginning up clinical gadget firm. When gotten some information about the NPV examination, the supervisor answerable for the venture designated, "My staff did a down to business NPV investigation, which demonstrated we ought not put resources into the organization. Notwithstanding, the innovation they were utilizing for their gadget was of such key significance to us, we were unable to leave behind the venture." This is a case of qualitative factors (key significance to the organization) exceeding quantitative factors (negative NPV).