Strategic Decision Making with CVL Analysis
A Strategic Capacity Management approach, applying Cost-Volume-Profit Analysis
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Micro and Small Companies (MPEs), given that they have at their disposal a smaller amount of capital than Large Companies, are more susceptible than the latter to oscillations in the external environment, in as much as cyclical aspects are concerned, relative to governmental policies and the country's economic situation. However, in relation to the internal environment, MSEs are as susceptible as Large Companies to the effects of decisions taken, both during the planning process before the company is opened, and in the management after it is opened, because these factors can be controlled and ...
Micro and Small Companies (MPEs), given that they have at their disposal a smaller amount of capital than Large Companies, are more susceptible than the latter to oscillations in the external environment, in as much as cyclical aspects are concerned, relative to governmental policies and the country's economic situation. However, in relation to the internal environment, MSEs are as susceptible as Large Companies to the effects of decisions taken, both during the planning process before the company is opened, and in the management after it is opened, because these factors can be controlled and managed by their leaders. The decision making process implies in making choices between two or more alternatives, and among the available management tools, the Cost-Volume-Profit (CVL) analysis is a source of information to support the decisions to be made by the managers. This study aims to identify the characteristics and perspectives of MSEs, regarding the decision making process, as wellas to investigate the usefulness of the CVL analysis, as a management tool, to help strategic decision making.
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