Decisions in Paradise Ii
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Decisions in Paradise II
Alicia Joseph
MGT 350
Steve Boylan
March 13, 2011
Running head: Decisions in Paradise 1
Business partners Alex and Nik has decided to create a plan to the develop The Wyndham Resort on the small island of Kava. In the paper I will attempt to create and critique the decision making technique of the business plan of Alex and Nik. Both parties have decided to use the analysis of cost-benefit of the Resort in Kava. Cost-benefit analyses “adds up the value of the benefits of a course of action and subtract the costs that are associated with the change” (Mind tools, Para 4, 2010). This is one of the most effective tools for explaining the expenditures for the project.
Cost-Benefit Analysis
By utilizing this technique, Alex and Nik will be able to determine if the plan will make a profit. The analysis will help add the positives, add the benefits, and also be able to identify the quantities and look at and take away the negatives and cost. The difference of the two can usually be determined if the action planned is advisable.
One of the first steps that should be created is to make a list of the possible costs that would be associated with the project. The costs may include but are not limited to such things as personnel, equipment, maintenance, environmental impact, and implementation time. Alex and Nik should be able to provide a detailed outline of all the projected costs. In the cost benefit analysis report it will include a breakdown of the projected cost. The chart below would be an example of how the projected cost outline will appear as:
Running head: Decisions in Paradise II 2
Projected Cost Analysis Report
Construction $65 Million
Salaries $5 Million
Advertising $15,000
Maintenance $12,000
Utilities $50,000
Purchase of Land $45,000...
Alicia Joseph
MGT 350
Steve Boylan
March 13, 2011
Running head: Decisions in Paradise 1
Business partners Alex and Nik has decided to create a plan to the develop The Wyndham Resort on the small island of Kava. In the paper I will attempt to create and critique the decision making technique of the business plan of Alex and Nik. Both parties have decided to use the analysis of cost-benefit of the Resort in Kava. Cost-benefit analyses “adds up the value of the benefits of a course of action and subtract the costs that are associated with the change” (Mind tools, Para 4, 2010). This is one of the most effective tools for explaining the expenditures for the project.
Cost-Benefit Analysis
By utilizing this technique, Alex and Nik will be able to determine if the plan will make a profit. The analysis will help add the positives, add the benefits, and also be able to identify the quantities and look at and take away the negatives and cost. The difference of the two can usually be determined if the action planned is advisable.
One of the first steps that should be created is to make a list of the possible costs that would be associated with the project. The costs may include but are not limited to such things as personnel, equipment, maintenance, environmental impact, and implementation time. Alex and Nik should be able to provide a detailed outline of all the projected costs. In the cost benefit analysis report it will include a breakdown of the projected cost. The chart below would be an example of how the projected cost outline will appear as:
Running head: Decisions in Paradise II 2
Projected Cost Analysis Report
Construction $65 Million
Salaries $5 Million
Advertising $15,000
Maintenance $12,000
Utilities $50,000
Purchase of Land $45,000...