Evaluating Business Cases: Baselines and Scenarios PPT

This PPT slide, part of the 105-slide How to Develop a Business Case PowerPoint presentation, outlines a structured approach to evaluating business cases through the use of baselines and scenarios. It emphasizes the importance of establishing a baseline, which represents the current state of the business without any investment. This baseline serves as a reference point, allowing stakeholders to compare potential future states that arise from different investment options.

The purpose of the baseline is twofold. First, it illustrates the existing business outcomes, providing a clear picture of where the organization currently stands. Second, it acts as a common reference frame, enabling a straightforward comparison across various future scenarios. This comparison is critical for understanding the potential impact of different investment alternatives.

The slide also details the purpose of scenarios. Scenarios represent possible future conditions resulting from specific investment choices. Each scenario is crafted to depict the outcomes of pursuing a particular option, allowing decision-makers to visualize the implications of their choices. The slide suggests that one scenario should be developed for each investment alternative, ensuring a comprehensive analysis of all options.

The accompanying bar chart likely illustrates financial outcomes for various scenarios, further supporting the analysis. The values shown indicate different potential returns, highlighting the financial implications of each investment decision. This structured approach aids in making informed decisions, as it provides a clear framework for evaluating the performance of investments against established baselines.

This slide is part of the How to Develop a Business Case PowerPoint presentation.

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