Use of strategic considerations to justify a project


Many financial analysts are very skeptical of the use of strategic considerations to justify a project.

This opinion is largely based on the observation that some of the biggest investment disasters were undertaken based on a "strategic" rationale. However, this type of mind-set can lead to a form of managerial myopia in which the only projects that can survive the firm's acceptance hurdle are those for which future cash flows can be easily identified and forecast.

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Other Management: Use of strategic considerations to justify a project
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