Business Decision Making

BUSINESS DECISION MAKING

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSON.................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUTION
Decision making plays an important role in the business. Management is required to take
number of decision daily small as well as big. Decision having impact over the business
organisation are to be analysed using tools and techniques for sound and effective decisions by
the management. Present report is based over A & B plc that is restaurant chain operating in UK
and parts of Europe. Company is proposing to invest in the dishwashing or software projects
after analysing the most beneficial project.
TASK
Business Decision making
Decision making process involves identifying the goals, getting relevant and necessary
information and also weighing the alternatives for making decisions. Decision making could be
termed as the most vital component of the business success. The decisions are based over
foundation of the knowledge and strong reasoning leads entity to the long term prosperity. On
the other business decisions made on the flawed logic or incomplete information can affect the
business operations significantly. Business face difficulty in making choices, the decisions about
the choices are to be made in timely fashion and as per the demands of market (Weygandt and
et.al., 2018). Ultimately, the success of business is driven by the quality of decisions that are
made and implemented by the business.
Investment Appraisal techniques
A business has to take financial decisions for which they have to identify the results and
profitability of the proposed projects. They choose the most beneficial alternative for the
business. Investment appraisals enable the company to identify the viability of investments.
Different techniques used are net present value, payback period, accounting rate of return and
internal rate of return in the investment appraisals.
Net Present Value
It is the techniques used by management for identifying the profitability of investment. It
identifies whether the cash flows generated from the project will be enough for recovering the
cost of investments or not. Projects with positive NPV are chosen after discounting the cash
flows.
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