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Decision Analysis for Managers by David Charlesworth

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Purchasing Decisions

Many decisions can usually be made solely on financial measures, including large capital project and product development decisions (in fact, a project undertaken with the justification that it is “strategic” is likely poor use of company money). Merger and acquisition decisions can be made solely on financial measures. However, company culture is a very important factor as to whether a merger or acquisition succeeds or fails. Delta Airlines and Chevron, for example, have been generally successful addressing corporate culture as they have acquired companies.

The most common multiattribute decisions most of us will face (whether business or personal) are purchasing decisions. Normally as you spend more money, you can achieve ...

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