Corporate finance

what is the analytical framework for decision making in business?

1 Answer(s)


The ultimate purpose of all business activities is winning: the attainment of predetermined goals that results in increased productivity, competitiveness, greater market share, improved revenues, etc. All actions of individuals, organizations, or even nations are formulated, defined and executed with the winning strategy in mind.

Thus, unless the wide range of consequent effects is carefully considered, evaluated and incorporated into the initial strategy, the response of the environment may be far more complex than originally anticipated, and the results adverse rather than beneficial.

So, analytical framework is quite necessary so that we can plan in advance and then act accordingly for generating profits in the business.So, decision making should be done well in advance.