Business alternatives based on financial analysis

Business alternatives based on financial analysis

Introduction

Every company has a strategy to maintain a competitive advantage. Some strategies focus on differentiation, while others focus on reduction of costs. Efficiency and specialization are important in maintaining a competitive advantage. Another solution is to invest in other business alternatives. If the financial position allows a manager to invest in alternative businesses, it should be considered. On the other hand if there is a scope of investing in the current portfolio, investments should not be made in alternative businesses.

Decision making

Managers need to continuously make decisions whether they should invest in ...