Making Strategic And Tactical Decisions Flashcards
SWOT analysis
An analysis of the internal strengths and weaknesses and the external opportunities and threats
Ansoff’s matrix
Is a decision-making model that can be used to help businesses analyse it strategic options
Investment appraisal
A set of techniques that can be used to determine whether a capital investment project is undertaken or not
Investment
Spending Valley business e.g. machinery or human resources, in order to generate returns in the future
Simple payback
A method of investment appraisal that measures the amount of time it takes to recover the cost of an investment period
Average rate of return
A method of investment appraisal that measures the net return per year as a percentage of the initial spending
Discounted cash flow
A method of investment appraisal that takes interest rates into account by calculating the present value of future income
Net present value
The present value of future income from an investment project, minus the costs
Present value
The present value of a sum of money available in the future
Decisions trees
A graphical way of setting out options available, that will lead to a point where a decision can be made
Critical path analysis
The process of breaking down a project into individual activities to identify the most effective route to finalise the project
Critical path
The tasks involved in a project which, if delayed, could delay the project
Earliest start time
How soon a task in the project can begin. it’s influenced by the length of time taken by tasks which must be completed before it can begin
Latest start time
The latest time that a task in a project can finish
Contribution
The returns (contribution) a business makes from each unit of a product
