making strategic decisions Flashcards Preview

business studies > making strategic decisions > Flashcards

Flashcards in making strategic decisions Deck (12):
1

what are programmed decisions?

these are familiar and routine decisions for which there are established ruled or procedures

2

non programmed decisions are...

unfamiliar and less structured decisions that require unique solutions

3

define scientific decision making

this is a logical, rational approach to decision making based on data

4

what is intuition/hunch?

knowing or sensing what needs to be done which is not based on any form of analysis

5

what is information management?

the way in which the process of collecting the information needed by a business and circulating it to the appropriate people is managed to aid decision making

6

what are decision trees?

a mathematical model which can be used by managers to help them make the right decision

7

what is a risk?

a chance that you take within the business which can either improve the business if it carry's out, or could be a negative affect if it doesn't

8

what is a reward?

if a risk goes the right way and improves the business, the improvements are the reward of taking the risk

9

what is a benefit of scientific decision making?

decisions are based on comparisons between alternative approaches which provides a clear sense of direction

10

what is a disadvantage of using a scientific decision approach?

a scientific approach is expensive and time consuming

11

what are the 5 influences on corporate decision making?

1. the mission of the organisation
2. objectives
3. ethical positions
4. resource constraints
5. the external environment

12

what's opportunity cost?

the cost of doing something expressed in terms of the next best alternative which could have been chosen but had been given up e.g. buying an ipad instead of going on holiday, the holiday is the opportunity cost of the ipad