Characteristics of strategic decision Essay Example | Topics and Well Written Essays - 250 words

Characteristics of strategic decision - Essay Example Purchasing an automobile involves a reallocation of resources and the investment is irreversible. The decision could be controversial and may have consequences if the purchase is not made. When purchasing a vehicle, the strategic decision had to be made whether to purchase an older model or a newer model. An older model vehicle could be purchased sooner because it would require a lower down payment and the monthly payments would be lower. A newer model automobile would require a bigger initial investment and the monthly payments would be higher. The long term consequences of purchasing an older model vehicle could result in constant repair bills. A newer automobile may not need the repairs. In either case, the strategic decision would involve and irreversible decision. The vehicle purchase would require a reallocation of funds from a bank account for the initial down payment. There is opportunity costs involved when making a strategic decision to purchase the vehicle. The decision in volves using the available to capital to purchase an older model sooner or continue to save for a larger down payment for a newer model vehicle. In either scenario resources will need to be reallocated. Purchasing the vehicle caused disagreement because the funds that were reallocated could have been used for educational expenses.