It should be noted that there are number of constraints (implicit and explicit) on the actions of the firms in making– Its pricing , output and cost decisions. These are technology, resource scarcity, contractual obligations, legal constraints and environmental constraints. To make decisions that will maximize value, managers must considers both short-run and long-run implications as well as how various external constraints affect their ability to achieve organizational objectives.
Although a large variety of constraints can arise in managerial decision problem most fall within following four broad categories.
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