Step-by-step explanation:
Recently, I made a purchase of a new laptop. Several financial and non-financial factors influenced my decision. Let's examine the factors and how they contributed to my final purchase decision.
Financial factors:
1. Price: The cost of the laptop was a significant financial factor. I had a budget in mind and considered options within that range.
2. Value for money: I assessed the features, specifications, and performance of the laptop in relation to its price. I wanted to ensure that I was getting good value for the money spent.
Non-financial factors:
1. Quality and reliability: I considered the reputation of the brand and read reviews to determine the laptop's quality and reliability. I wanted a durable and long-lasting device.
2. Performance: The laptop's processing power, storage capacity, and battery life were important non-financial factors. I needed a laptop that could handle my work tasks efficiently.
3. Design and aesthetics: The overall design, build quality, and aesthetic appeal of the laptop were also considerations. I preferred a sleek and visually appealing device.
Ranking the factors and making the final decision:
While financial factors such as price and value for money were important, the non-financial factors carried more weight in my decision-making process. Quality, performance, and design were crucial aspects that influenced my final choice. I ultimately selected a laptop that offered a balance between performance, durability, and visual appeal, even if it meant paying a slightly higher price.
Financial and non-financial factors are not always equal when contributing to a decision. In certain cases, non-financial factors may carry more significance, particularly when considering long-term value, satisfaction, and personal preferences. However, financial factors cannot be disregarded entirely, as they provide practical constraints and considerations.
This correlation can be seen in business decisions that managers make within organizations. While financial factors like cost, budget, and profitability are essential, non-financial factors such as customer satisfaction, product quality, employee well-being, and ethical considerations also play a significant role. Managers need to balance both financial and non-financial factors to make informed decisions that consider the organization's financial health, while also considering the impact on stakeholders, reputation, and long-term success.