Not all EC investments need to be formally justified. Each of the following is a case where formal evaluation may not be needed except
A) when the value of the investment is relatively small for the organization.
B) when competitors have made that type of investment.
C) when the relevant data are not available, are inaccurate, or are too volatile.
D) when the EC project is mandated and must be done regardless of the costs and benefits.

Question

Quizplus · Accepted Answer

Formal evaluation may not be needed in cases A, C, and D because the investment might be too small to justify the cost of evaluation, data issues make evaluation impractical, or the project is mandated, respectively. However, just because competitors have made a similar investment (choice B) does not mean an organization should forego formal evaluation; understanding the specific costs, benefits, and strategic implications for the organization itself is crucial.

Not All EC Investments Need to Be Formally Justified