Question

Relevant qualitative factors include any nonquantitative issues that managers should consider before taking a decision. Give examples of questions managers could ask to help them identify relevant qualitative factors (answer should be clear and not photo)

Answer 1

There various qualitative factors that must be evaluated by the management before taking business decision.

1. Morale of employee: The morale of employee must be considered while taking decision in areas of human capital development. For example, declaring zero annual bonus to employee due to low productivity may create a negative impact on the morale of the employees.
2. Stakeholders or investors attitude: Some business decisions might impact the attitude of the investors. Like acquiring any company which sells harmful products may persuade some of the investors to withdraw their investment.
3. Social environment: The management must understand the current social environment before taking any decision. For example, a company cannot diversified its business to sell wine in gulf countries where wine is prohibited and not considered good by the public.
4. Customers: The management must make an analysis of the customer taste and preference before launching any new product.
5. Products: The decision in terms of reducing the price of the product must be taken while considering the quality of the product.