Quantitative Methods for Business Essay Example | Topics and Well Written Essays - 750 words

Quantitative Methods for Business - Essay Example This essay offers a comprehensive analysis of the role of the quantitative methods in ensuring economic efficiency of the management process.These methods do not just play an important role in making business decisions. There are also instrumental in estimation. Thirdly they are also a valuable tool for taking inventory of items, cost and profit. This is the unique tracking aspect of these methods. Business decision cannot be taken on a light note and hence it is absolutely that all logical and mathematical calculations are exhausted so that an optimal result can be ascertained before a final decision is implemented that will be of consequential importance to the business and the profit and or loss that subsequently endured. The process of a Quantitative Method in business is that the method gives a systematic and theoretical yet practical approach to finding solutions to pending and prospective problems. It is also important in making certain decisions that require critical thinking and analysis. This also enables an executive or a key decision maker of the business to take defining decisions that are binding on the entire business based on transparency and sound judgment through logical principles. These principles are based on a logical schematic that deals with each decision in a step by step fashion. This approach is necessary because it step of the decision making process has its own stressors and set of parameters. Quantitative methods also have an extraordinary tool in its arsenal which is numerical analysis. ... The method of quantitative analysis that is applied involves the valuation of an expected return of profit on the varying amounts of expenditures. This in turn allows one to deduce the most logical and sound method to secure the bid value and at the very same time making the most profit in the bargain. The thinking behind securing the bid value is applying linear programming to calculate the exact balance between minimum bid price and maximum profit attained using a production possibility curve as an economic function. The bid value hence must provide a profitable aspect for both the bidder and the client who requires a bid to be made. The whole aim of the Quantitative method for businesses is to foster an analytical mindset that is very important in the process of project acquisition, development, marketing, management and execution (Slater et.al, 2002, pp. 222-228). Sequelae Project management is a very volatile and demanding field of business development that requires the manager to be on the top of their game at all times. Therefore it is of paramount importance that project managers are able to utilize the complete range of skills and procedures that are prevalent in Quantitative methods for studying the business conditions. Secondly managers continuously need to associate decision making with consequential results. Thirdly they have to take a look at viable alternative. These alternatives in turn need to be assessed to see if they can be practical or theoretical and a cost benefit analysis using the Quantitative method has to be conducted. Finally the result of each alternative being theoretically applied to the projected situation has to be estimated before an