Some of the frequently asked exam questions on quantitative models and strategic decisions are as follows: Q.1. What is a ‘Model’ in business decisions and strategies? Ans. The word 'model' is often used in conjunction with quantitative techniques for business decision making and for strategic choices. Almost all quantitative techniques can be classified as models. Generally all business decision situations, [...]
In this article we will discuss about the mathematical analysis of firm’s capital investment project. The net present value of a project is equal to the sum of the present value of all the cash flows (inflows and outflows) associated with the project. NPV = Net present value, An = Cash flow occurring at the end of the year t [...]
In this article we will discuss about financial synergy, that diversification can achieve and how BCG matrix or portfolio planning can aid in developing this synergy. Broadly, there are two major approaches to achieving competitive advantage: market share and synergy. Synergy implies—joining business units together so that their combined performance exceeds that which would be possible if the businesses operated [...]