Strategy & Business · Business model & economics
Cost–Benefit Analysis
Cost–Benefit Analysis · Decision method
You need a structured way to make a strategic, market, portfolio, or business decision.
Why use it
Structure the business decision, compare alternatives, and make assumptions explicit.
How to apply
- Define the specific management situation and desired outcome.
- Gather the minimum facts, constraints, and perspectives needed to use the tool.
- Apply Cost–Benefit Analysis, make key assumptions explicit, and compare the result with realistic alternatives.
- Record the decision, next owner or action, and a testable criterion for the next step.
Output
A structured strategic or business decision and a clear next step.