Wren manufacturing is currently analysing its investments
The firm’s decision-making procedures appear to be lacking in some areas. For instance, the acceptance of project 263 and rejection of project 264 may not be in the owners’ best interest due to a lack of comprehensive data on both projects. It is difficult to determine which of the two options would benefit the company the most. Without complete financial data, such as costs estimates and projections for profits, it’s impossible to know what option will be best. There is also a dearth of feedback from customers and suppliers, who may be able to provide useful input about how the project might affect their business interests.
It appears that neither project was subject to a risk assessment before making the final decision. Because they help to identify possible shortcomings, risk assessments should also be considered when considering different options. This will allow all possibilities to be understood and weighted accordingly. This important step is often overlooked and the company may be tempted to take on too much risk, which could lead them down an uncharted path that can potentially harm their future success.