Table of Contents
2.0 Discuss the importance of decision making and the application of decision analysis.
2.1 Importance of decision making.
2.2 Types of Decision Making.
2.3 Characteristics of Decision Making.
2.4 Application of decision analysis.
3.0 Identify and outline a decision problem relating to an external organization, which involves multiple objectives
4.0 Apply the simple multi-attribute rating technique (SMART) to the outlined decision problem.
Step 1: Who is the decision-maker and why?.
Step 2: Identify all the alternatives courses of action.
Step 3: Identify the attributes that are relevant to the decision problem (minimum of 5)
Step: For each attribute, assign values to measure the performance of the alternatives on that attribute
Step 5: Determine the weight for each attribute.
Step 6: Convert the raw data into a weighted value.
Step 7: Make a provisional decision.
Step 8: A sensitivity analysis.
5.0 Discuss and detail the strengths and limitations of your analysis in the context of your decision problem
Strengths of my analysis.
Weaknesses of my analysis.
Analytical thinking is a kind of critical thinking that makes an organization capable to solve different problems effectively and quickly. On the other hand, effective decision making is the key process that makes an organization to make the right decisions for a problem (March 2018). The aim of this paper is to identify a decision problem for a business organization and thinks critically and makes decision effectively to find out the proper alternative to solve the problem.
First of all, this paper explains the importance of decision making and the application of decision analysis. Secondly, this paper identifies a decision problem for a company named Meat and Shake and also identifies the objectives of this decision problem. Thirdly, this paper applies the SMART technique to outline the decision problem effectively. Finally, this paper discusses the strengths and weaknesses of decision analysis.
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2.0 Discuss the importance of decision making and the application of decision analysis
2.1 Importance of decision making
Definition of decision making
According to Stoner (2017), decision making is a process of recognizing different types of actions from a number of alternatives to solve a particular problem. Effective and right decision making is beneficial for a business organization as it supports the business organization to increase the efficiency to achieve the organizational goals and objectives properly. A study by Baron (2018) said that ineffective decision making for a business can be harmful because this makes the activities disorganized. The disorganized activities of a business cannot able to make a profit. Thus, effective decision making plays a great role in business success.
Importance of decision making
Decision making is a significant management function for business as the success of all of the management activities rely on the effective decision-making process (Bazerman, 2016). Thus, the importance of decision making in business management is important. The main importance of the decision-making process for a business is identified as follows:
Selection and continuous operation of the business: Before starting a business a number of significant decisions are made to continue the business operations in the future (Sparough, 2017). For example, to do any work in business a number of resources and alternatives are chosen. In this case, it is essential to select a suitable alternative or resources that bring profit for a business. The effective decision-making process can make the decision-maker of a business able to select the right alternative and continue the business operations properly (Bazerman, 2016).
Helpful in the determination of objectives and achieving Them: A business’s main objective is to establish its business successfully to achieve more profit. Thus, the effective decision-making process of a business is crucial for achieving this objective successfully (Sowell, 2018). On the other hand, the determination of objectives in the business itself is a high level of decision making. Thus, the right decision making is helpful for a business in the determination of objectives………………..