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IGNOU MBA MS-08 Solved Assignments 2010

Course Code : MS 08

Course Title : Quantitative Analysis for Managerial Applications

Assignment No. : 08/TMA-1/SEM-I/2010

Coverage : All Blocks

Note: Attempt all the questions and send it to the coordinator of the study centre, you are attached with.

1. ‘The manager should seek some balance between quantitative and qualitative factors in decision making’. Elaborate the statement giving the situations in which various statistical tools are used.

Solution : Quantitative and Qualitative Factors in Decision Making

Quantitative Factors --LET US TAKE THE Investment Appraisal.

THE FACTORS CONSIDERED ARE

Payback period

NPV

ARR

Provide a numerical basis for decision making – reduces decisions to looking at a monetary value placed on different choices, e.g. Forecasted sales figures for the next 3 years The cost of a series of redundancies against the longer term financial benefits to the firm of this process But: such data provides only part of the story Other factors need to be taken into account, particularly the effects of decisions on stakeholder groups and their response to such decisions, e.g.

The takeover of Manchester United CLUB by Malcolm Glazer might make financial sense but the reaction of the supporters might make the move unworkable

QUALITATIVE FACTORS

Qualitative factors look to take account of these other issues that may influence the outcome

of a decision Can be wide ranging and especially need to consider the impact on human resources and their response to decisions

CONDUCT THE SWOT ANALYSIS

A decisions (for example, investment in a new production plant) could be considered not only in financial terms but also to apply other techniques of decision making

to look at wider issues:

A SWOT analysis might be part of this:

-STRENGTHS

-WEAKNESSES

-OPPORTUNITIES

-THREATS

PEST ANALYSIS

Might also need to factor in other external issues that might...