Criteria for Evaluation of Strategic Alternatives

5 Criteria for Evaluation of Strategic Alternatives 5.1 Financial Criteria Financial criteria atomic number 18 preferred for coachs to evaluate objectifys.The two financial criteria used leave behind be the payback and clarify present value presents by comparing the returns of investment and the eon taken to re peak the sign investments. The payback model measures the time to recover the draw investment. The shorter effect represents the well-being of the business, if a project takes a long period, manager will non accept it. Payback emphasizes specie period of time which is inhering in business.The net present value (NPV) shows the net cash inflows. The higher positive NPV means that the manager advise retain in considering byaccepting the project. (Larson & Gray 2011, p.37-38) Examples will be investment in larger aircrafts, training and maintenance. The benefit of having larger aircrafts is to cover a greater distance. By maintaining the safety of aircraft and having training programmes for the pilots is to frustrate each accidents caused. In this way, passengers will feel safe in the aircraft ascribable to the good temper. 5.2 Non-Financial Criteria Non-financial criteria will assist in reflecting strategic importance. By developing and maintaining the core competencies, it will be a long-term survival.

Organizations will need to maintain or upgrade the word picture and brand recognition too. The two non-financial criterias used will be checklist and multi-weighted leveling models. The checklist approach uses a list of questions to review belike projects and to make a decision to accept or reject. The! multi-weighted advance model uses several weighted selection criteria to evaluate the project. The project possess the highest weighted scores are generally better. Examples to lineage on non-financial criteria will be ensuring the safety standards are purely adhere so to have a good news report and having good customer services attitudes towards customers. The benefits will be retaining the old...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper