BUS 5110- Portfolio Activity Unit 6

University of the People

 As defined in an article in it simplest terms “Qualitative factors are decision

outcomes that cannot be measured”[ CITATION Ste18 \l 1033 ].

For me, they are those factors that cannot be measured because they seem

secondary and there may not be a way to gauge them..

Below are three qualitative factors that can affect capital budgeting decisions.

There are some others but for me the three below has been in play around me.

Environmental Impact

In the last course I took which was majorly on consumer behavior, I learnt so much

about words in sales and convincing people. Words; carefully constructed becomes

the truth to some people even though it might not necessarily be true and gives people

a sense of belonging and vice versa.

Against that background, when a company shows interest in what people stands

for, it positions the organization for a great acceptance and ultimately productivity.

Brian Hill in his article on Qualitative Factors in Capital Investment Decisions said

that in response to consumers’ growing concerns about protecting the environment,

that many companies have included expenditures in their budgets that serve this

important cause, going even beyond what is required by government regulations”

[ CITATION Bri17 \l 1033 ].

 Companies who go beyond the ordinary to comply with regulation on environment

gets recognized by authorities and ultimate get to be noticed by potential client.

There might not be a way to evaluate this but it pays at the end. 

Employee Morale

Been a media person, I have been able to work into the systems of some

organization, say in a little way but with that little knowledge I can say a bit about

some of this organization in terms of how bad the employees feel.

Some employees come just to knock in and out and not motivated to drive the

vision or goal of the organization.

According to an article, companies sometimes spend money on capital

improvements because they want to create a better work environment for their

employees [ CITATION Bri17 \l 1033 ]. Good examples will be when a corporation

shows interest in the employees by making an office very conducive and well kept

goes a long way to tell outsiders the value the company place on their workers and it

boosts morale. Added to that I also think that good pay gives all the necessary

information to an employee to work effectively and keep the company productive and

himself/herself employed.

This answers it; because people who are well motivated and feel cared for do the

most to keep getting motivated and better that job that even creates the motivation.

 
  Commitment to quality:

When it comes to quality I always remember the words of Henry Ford. Hen Henry

Ford once said "Quality means doing it right when no one is looking[ CITATION

Ste16 \l 1033 ].

I see quality as maintaining that standard that brought clients to you and if

anything strives to increase it/them

According to an article, it say that is “also one of the most important qualitative

factors in investment decisions since it could breed either compatibility or set you on

a collision course if your goal is to make a product of the highest quality while your

potential investment choice emphasizes cost-cutting [ CITATION MTW19 \l 1033 ].

In conclusion, I feel managements should never play little on qualitative factors

that could position their business higher in the industry whether or not the quantitative

factors complements it or not. Rather ways should be sourced to make those factors

count.
Hill, B. (2017, April 19). Qualitative Factors in Capital Investment Decisions.

Retrieved Mar 11, 2020, from : https://pocketsense.com/qualitative-factors-

capital-investment-decisions-1979.html

Olenski, S. (2016, Nov 16). Why Brands Must Never Lose Sight Of Quality.

Retrieved Mar 11, 2020, from:

https://www.forbes.com/sites/steveolenski/2016/11/16/why-brands-must-

never-lose-sight-of-quality/#dd6785961479

Wroblewski, M. (2019, April 25). Qualitative Factors in Capital Investment

Decisions. Retrieved Mar 11, 2020, from:

https://smallbusiness.chron.com/qualitative-factors-capital-investment-

decisions-73769.html

Bragg, S. (2018, Oct 28). Qualitative factors. Retrieved Mar 11, 2020, from :

https://www.accountingtools.com/articles/2017/5/8/qualitative-factors

Bragg, S. (2018, Oct 28). Qualitative factors. Retrieved Mar 10, 2020, from :

https://www.accountingtools.com/articles/2017/5/8/qualitative-factors