Quantitative and Qualitative Factors in Decision Making

Quantitative Factors

This factors provides a numerical basis for decision making. It 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 this system only provides a part of the total information. Though we have numerical information we have to bear other variables in mind as the environment, the competitors or the socioeconomic situation.

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 .

SWOT Analysis

This analysis is based in :

Strenghts

Weaknesses

Opportunities

Threats

PEST Analysis

This analysis bears in mind:

Political

Economic

Social

Technological