1
Q
What strategies are decision trees used for?
A
-A new product launch
-A new marketing campaign on the current product
-Relocation to a new building
2
Q
How do decision trees work?
A
Traces an alternative outcome of a decision, the results can be compared + the business can decide which option would be most profitable.
3
Q
What are the limitations of decision trees?
A
-Based on predicted data of the potential impact of a decision.
-Does not take into account unforeseen costs etc.
-Probabilities + net outcomes are all estimates.
-Sometimes businesses have to act quickly.
-Large degree pf uncertainty about any situation one is used for.
A-Level Business Studies (Theme 3)
flashcards
Decks in class (23)
# Cards
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3.1.1 Corporate Objectives12
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3.1.2 Theories of corporate strategy13
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3.1.3 SWOT analysis5
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3.1.4 Impact of external influences14
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3.2.1 Growth19
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3.2.2 Mergers and takeovers15
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3.2.3 Organic growth10
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3.2.4 Reasons for staying small7
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3.4.3 Shareholders Vs Stakeholders7
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3.4.2 Corporate Culture14
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3.4.1 Corporate Influences9
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3.4.4 Business Ethics7
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3.2.2 Mergers and takeovers15
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3.3.1 Quantitative sales forecasting5
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3.3.2 Investment Appraisal7
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3.3.3 Decision trees3
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3.5.1 Interpretation Of Financial Statements15
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3.5.2 Ratio Analysis4
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3.6.1 Causes And Effects Of Change12
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3.6.2 Key Factors In Change14
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3.6.3 Scenario Planning17
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3.3.4 Critical Path Analysis5
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3.5.3 Human Resources16
