The search for alternative courses of action, Managerial Accounting

Assignment Help:

The Search for Alternative Courses of Action

The second stage of the decision-making model is a search for a range of possible courses of action (or strategies) that might enable the objectives to be achieved. When the management of a company concentrates completely on its present product range and markets, and market shares and cash flows are permitted to decline, there is a danger which the company will be unable to generate adequate cash flows to survive in future. To maximize future cash flows, it is necessary that management identifies potential opportunities and threats in its current environment and takes any developments which may occur in the future. In particular, the company must consider one or more of the below courses of action:

1. Developing latest products for sale in existing markets;
2. Developing latest products for new markets;
3. Developing latest markets for accessible products.

The search for alternative courses of action includes the acquisition of information regarding future opportunities and environments. It is the most hard and significant stage of the decision-making procedure. Ideally, firms should consider all alternative courses of action, but, firms will in practice consider only a few alternatives, with the search procedure being localized originally. If this kind of routine search activity fails to generate satisfactory answers, the search will become more widespread.


Related Discussions:- The search for alternative courses of action

Full service non recourse, Full Service Non Recourse: in this method the b...

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is

The role of computers in simulation, The Role of Computers in Simulation ...

The Role of Computers in Simulation Computers can be used to: 1) To generate the random numbers 2) To simulate thousands of trials. This is done extremely fast, accuratel

Motives for holding cash, The firm's require holding cash may be attributed...

The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.

State the penetration pricing, State the Penetration pricing As opposed...

State the Penetration pricing As opposed to the skimming pricing the objective of penetration pricing is to gain a foothold in a highly competitive market. The objective of thi

Explain phases of life cycle of a product, Q. Explain Phases of life cycle ...

Q. Explain Phases of life cycle of a product? Every product move through a life cycle having five phases as shown in figure and they are 1) Pricing during introduction 2)

CVP, What is cvp?

What is cvp?

Motives for conducting cash balances, In this section we have discussed the...

In this section we have discussed the motives for conducting cash balances. In addition, we have discussed cash deficit or surplus situation and how it can be contained by the use

CH 7, Hickory Company manufactures two products—14,000 units of Product Y a...

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is cons

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd