Explain the Concept of Matching in the Strategy Formulation Framework

question 85

Essay

Explain the concept of matching in the strategy formulation framework. Give at least three examples of matching.

---

Definitions:

Depreciation

A method to allocate the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Worst-Case Scenario

The most severe or unfavorable outcome that may happen in a given situation, often used in planning and risk management.

Soft Rationing

An internal policy mechanism by which a company limits the amount of funding allocated to new or existing projects, without a shortage of available funds.

NPV Project

A project evaluated using the Net Present Value method, which calculates the present value of all cash flows associated with the project, minus the initial investment.