Answer
The manager of Division Y should consider the president's decision, emphasize qualitative factors in proposals, ensure accurate financial projections, and navigate corporate politics effectively.
Work Step by Step
In response to the president's decision, the manager of Division Y should consider why their project was rejected while Division X's project was accepted. They should recognize that capital budgeting decisions involve not only quantitative metrics like IRR but also qualitative factors that might have influenced the president's choice. To address this, Division Y should emphasize the inclusion of qualitative factors in their project proposals and demonstrate how these factors can enhance project success.
Additionally, if there are concerns about the accuracy of Division Y's financial projections, it's vital to document and showcase the division's track record of precise projections to build trust in their numbers.
If corporate politics play a role, the manager of Division Y should work on improving their political acumen, strengthening relationships, and ensuring transparency in their project proposals. This approach will help navigate the complex dynamics of decision-making within the organization more effectively.
