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    Capital Investment Planning: qualitative elements in strategic evaluation

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    Consider the following scenario:

    Monsanto, a large chemical and fibers company, invested $77 million in state-of-the-art systems to improve process control, laboratory automation, and local area network (LAN) communications. The investment was not justified merely on cost savings but also on the basis of qualitative considerations. Monsanto management viewed the investment as a critical element toward achieving its strategic vision.

    Discuss what qualitative considerations you believe Monsanto would have considered in its strategic evaluation of these investments. Remember, it is not just about the money in capital investment planning.

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    In any management decision, particularly investment decisions, quantitative and qualitative criteria must be taken into account. Purely deciding based on the quantitative merits, such as cost savings and cash flows, of an investment option disregards other factors that could have significant impact on the company's long ...

    Solution Summary

    The expert examines Monsanto capital investment planning for qualitative elements in strategic evaluation.