Decision making ppt bec bagalkot mba

1. Subject : Managerial Economics
 DECISION MAKING :
 Presented by:BABASAB PATIL

2. DECISION MAKING
 FACTS
 Pioneer planned to increase the demand for their car in
the country by 20%.
 10 plants are fully in operation up to their maximum
capacity.
 They have planned expand the output with an objective
of maximizing profit.
 The company has two options whether to construct two
additional plants or to purchase prestige automobile
company

3. PROBLEM OF CASE
TO TAKE A RIGHT DECISION OF SELECTING
STRATEGY.
ALTERNATIVES
Strategy one: S1: Construct two new additional plants
Strategy two: S2: A rival firm, Prestige Automobiles, is in
financial trouble and wishers to sell out its two plants in
the vicinity of the pioneer. Buy this and modify.

4. Evaluation of alternatives
STRATEGY ONE:S1
Merits:
 More production.
 Profit motive.
Demerits:
 Large investment.
 More recruitment .
 Time consuming.

5.  Strategy Two:s2
Merits:
 Save time
 Save cost
 Less recruitment.
Demerits:
 Less production
 Modify the plant

6. CONCLUSION
As per evaluation of alternative we are taken decision is that
to purchase old plant. That is strategy two. because it is
already existing plant is there, and employees are also there.
and it save opportunities and real cost .