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Flashcards in Decision making + conflicts in decision making Deck (12):
1

what are the 3 types of decisions you can make

Strategic
Tactical
Operational

2

Strategic decision making

-long term
-expensive
-made by senior management
-reputation being damaged risk if they go wrong
-difficult to reverse

(launching a new product range, expanding abroad, acquiring another company)

3

Tactical decision making

-medium term
-taken by middle management
-easy to rectify
-less costly
-they affect particular departments

(changing price of a product, new promotional campaign, training certain workers)

4

Operational decision making

-short term
-taken by department managers
-easily reversed
-cover the day to day decisions without really thinking about it

(allocating staff duties, handling customer queries)

5

Decision making and effective decision making

One of the most important factors in achieving success and meeting targets

Involves:
Identifying the options available
Consultation and advice
The use of decision making tools
Clear vision
Commitment to carrying the decision through and effective implementation

Particularly important when winning over stakeholders

The effects upon all stakeholders need to be considered in the decision making process

6

Tackling and beginning the decision making process

Weighing up the pros and cons of the change

Process is only a rough guide - looks into the process OBJECTIVELY - speaking up about the concerns before moving onto the next

7

Decision making tools

some quantitative some qualitative

SWOT
Porter's 5 forces
PEST analysis
Decision trees
Time series analysis
Help from business advisors (bank)
Advice from consultants
Market research information
Financial information on the economy - local, national, international
Business (internal) financial accounts

8

Deciding upon decision making tools

risk, bias, accuracy must also be taken into account when using any decision making tools

Not possible NOR advisable to use all methods to make a decision = too confusing

Choosing to ignore information on what they believe is a good desirable course of action is also common
= with investment decisions - payback period better etc.

Business decisions often about business confidence or lack of it

Targeting main objectives (survival, break even, growth, profitability) >>>>>> lesser objectives (market leadership, customer satisfaction, low labour turnover, low environmental impact)

9

Ansoff matrix

see another sheet

10

Conflicts in decision making

One decision making tool suggesting taking a certain route that others don't think is right

Manager taking the final judgement

11

Why would there be conflicts in decision making?

the information collected doesn't reflect any type of reality
Staff morale + customer satisfaction cant be quantified or taken into account with these tools

If information or research has been taken from external agencies to contribute to the deciosn making tools, it may be inaccurate information
= lack of business knowledge

12

Benefits of using the tools

Good research used for the tools can be useful

Technology and computer aided work allows the decision maker to look at different scenarios - sales predictions