Marginal Analysis
The total sum of all costs?
Total Cost
The "S" in SWOT.
Strengths
Tool used to compare different choices.
Decision Matrix
Rule associated in Pareto Analysis.
80/20 rule
The additional benefit from one more unit.
Marginal Benifit
Internal negative factors in business.
Weaknesses
When options are placed in rows while these are placed in columns.
Criteria
It focuses on solving the most important ______.
problems (or causes)
Formula: New Total Cost - Old Total Cost
Marginal Cost
External chances for growth.
Opportunities
Where options are listed in a matrix.
Rows
Percent of problems caused by a small number of factors.
80%
When marginal benefit is greater than marginal cost, what should you do?
Continue Production
External risks that can harm the business.
Threats
These are assigned to criteria to show importance.
Weights
The "vital few" refers to what?
the most significant causes
At what point should a business stop producing more units?
when marginal cost equals or exceeds marginal benefit
Purpose of SWOT analysis in decision making.
To understand internal and external factors for better decisions.
Main advantage of using a decision matrix.
making objective and structured decisions
Main goal of Pareto Analysis.
Prioritize high-impact problems for better results.