Qualitive Factors (Quick Revision) Flashcards
Define: Qualitative Factors
Qualitative factors are non-quantifiable factors.
Which means they are factors that are not easy to measure and express in numerical terms.
State three qualitative factors that a firm might consider when choosing a supplier.
- Ease of communication
- Reputation
- Reliability
State three qualitative factors that an investor might consider when deciding which shares to buy.
- Ethics of the business
- The firm’s environmental policy
- The firm’s treatment of employees
State two qualitative factors that might influence whom you hire for a job.
- Their personality
* The appearance of the person
State two qualitative factors involved in deciding on a location.
- Quality of life in the area
* Access to facilities
What is the Examiner’s note for Qualitative Factors?
When making decisions, managers will consider a range of factors - both quantitative and qualitative.
What is the Evaluation point for Qualitative Factors?
The relative importance of qualitative factors depends on how easy it is to measure relevant factors and managers’ own style of decision making (e.g. how important are ‘facts’?).
