Valentinos PERT Analysis
PERT is Program Evaluation and Review Technique which is used to identify the most realistic estimate/duration of an activity in a project. It uses the following formula PERT = (P+O+4M)/6 Where P is Pessimistic estimate O is Optimistic estimate M is Most likely estimate.
Three-Point Estimating: This concept is originated from the probability based theories as per Program Evaluation and Review Technique (PERT). It uses three estimates to define an approximate range of an activity cost:
Most Likely (CM): The cost of activity based on realistic effort.
Optimistic (CO): The cost of activity based on analysis of the best-case scenario with minimal …show more content…
Government’s taxation policies.
Include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how Valentino’s will operate and make decisions.
Include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor).
Technological Factors Include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.
Include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a Valentionos operates, its costs, and the demand for its