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Non Routine Business Decisions - New Project 5

Decision Making
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Non Routine Business Decisions

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Non-routine business decisions are those that are unique, complex, and require careful analysis and consideration. These are decisions that are infrequently made.

Here are some examples of non-routine business decisions:
1. Whether to make or buy your product.
2. Whether to accept a special customer order.
3. Whether to discontinue or add a product or product line.
4. Capital investment decisions:
   Equipment repair or replace
   Add to Capacity-additional buildings
5. Product Combination Under Scarce Resources
In situations where resources such as labor hours, machine hours, or materials are limited, companies must decide which products to prioritize for manufacturing and sales. The optimal choice is typically the product that provides the highest contribution margin per unit of scarce resource
6. Responding to Competitive Threats
When faced with significant competitive threats—such as new entrants in their market or competitors lowering prices—companies may need to make strategic decisions about pricing strategies, marketing approaches, or even restructuring operations to maintain their market position
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