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Keys
Definition
Quantitative decision making tool that provides a visual representation of all different options that are available, showing the probable outcome of different strategic outcome
Calculations
Expected outcome x possibilities - all all this and minus the cost
Example drawing
Example calculation
advantage for using
visually clear and logical manner
all potential problems seen at same time, speeding decision making time
consider risk - negative outcomes
quantitative so provide insight to problem rather than relying on people’s view
disadvantage
unreliable probability - estimated
qualitative factors ignored eg staff morales
probabilities subjective so might be assigned base on the preference of managers
delays and no longer works
