Business Decision-making for AJ PLC's Vegan Products

Business Decision-making

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Payback Period: ....................................................................................................................3
Net Present Value (NPV): .....................................................................................................4
Financial and Non Financial Factors: ....................................................................................5
Analysis and Decision-making...............................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business decision making refers to a step by step procedure taken by the business
managers of an organisation to determine the best plan of action among the various alternatives
available (Abdel-Basset and et.al., 2020). In this report, an analysis of the two business
alternatives available to AJ PLC in the form of ideas for launching vegan products are taken into
account. The two ideas that the strategic managers of AJ PLC will analyse and evaluate are of
two distinct ideas relating to vegan products. The analysis is based upon two different calculation
methods of Payback period and Net present value. The final decision of the company managers
will be based upon the results of the above two methods and on the analysis of which one
benefits the business the most (Limani, Hajrizi and Stapleton, 2021).
MAIN BODY
AJ PLC is a chocolate manufacturing organisation which is planning upon investing in a project
which relates to the vegan products. The team of strategic managers of the company have
decided upon two respective ideas that relate to this concept of vegan products. These ideas
involve manufacturing of the vegan products and the vegan spread. The company still is in the
dilemma of which project is the best and the one that the company should consider to invest in.
To assist the team of the strategic managers, the company has decided to have a critical analysis
of the factors which influence the decision making of the company for the two ideas available
and to assess the idea that will benefit the company the most. There are few tools which will help
strategic managers of the company to analyse the insights upon the return that the company will
receive after investing in any one of these two projects available (Bolis, and et.al., 2020).
Calculations of the respective tools available and utilised in decision-making:
Payback Period:
This method is related to the total number of years needed to recover the entire original cash
investment made. It basically calculates the time required to get back the initial cost of
investment.
In this scenario, the company AJ PLC is required to calculate and analyse upon the pay back
period of the two alternative projects available and assess which project will pay out the initial
cash amount faster than the other (Lee, Kwon and Back, 2021). This methods will help the