Quantitative factors

Definition

Quantitative factors are measurable variables that influence decision-making in business environments. They include numerical data such as financial metrics, production rates, and statistical analyses.

5 Must Know Facts For Your Next Test

1. Quantitative factors are essential for evaluating the financial performance of an organization.
2. They provide objective data that can be analyzed to track progress toward strategic goals.
3. In a Balanced Scorecard, quantitative factors often relate to financial metrics like ROI and profitability.
4. Decision-makers use quantitative factors to make informed choices about resource allocation.
5. These factors can be compared against benchmarks or industry standards to assess competitiveness.

Review Questions

• What role do quantitative factors play in a Balanced Scorecard?
• How can quantitative factors influence managerial decision-making?
• Give an example of a quantitative factor used in performance measurement.

Related terms

Balanced Scorecard: A strategic management tool that uses multiple performance metrics to provide a comprehensive view of organizational performance.

Key Performance Indicators (KPIs): Specific, measurable metrics used to gauge overall long-term performance.

Return on Investment (ROI): A measure of the profitability of an investment relative to its cost.