Evaluate the firm’s decision-making procedures, and explain why the acceptance of project 263 and rejection of project 264 may not be in the owners’ best interest.

Wren manufacturing has begun analyzing the investment it will make.

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 business the most in the future without complete financial data, such as projected profit and cost estimates for each venture. There is also a lack of feedback from stakeholders outside the company, such as suppliers or customers who may have valuable information on how a project could affect their interests.

It also seems that neither project has undergone a risk assessment before making the final decision. The importance of risk assessments is that they help to identify possible shortcomings which should be considered when evaluating options. This allows all outcomes and their weightings to be fully understood. If the firm ignores this step, it may accept unknowingly too many risks that will lead to an uncertain future.