Table of Contents
2.0 Discuss the importance of decision making and the application of decision analysis.
Decision making in business.
Types of business decision making.
Importance of decision making in business.
2.3 Application of decision analysis.
3.0 Identify and outline a decision problem relating to your work or an external organization.
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.
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.
The main purpose of this assignment is to focus on the analytical technique in a decision case. In addition, by thinking analytically and evaluating both strengths and weaknesses of the analysis critically an effective decision is made for the decision case. Firstly, this assignment describes the importance of the decision-making process and the application of decision analysis in a business organization. Secondly, this assignment outlines a specific decision problem for a business organization. In this case, for a specific decision problem, a business organization is chosen named Zamzam International.
On the other hand, the decision problem focuses on five attributes and five alternatives. Thirdly, this assignment aims to discuss decision problems and make an effective decision for a business organization’s decision problem, the SMART decision analysis tool is used. Thirdly, this assignment discusses both the strengths and weaknesses of the analysis of the decision problem by identifying a suitable source for the decision problem.
2.0 Discuss the importance of decision making and the application of decision analysis
Decision making in business
Decision making in a business organization is a vital component to manage the business activities successfully (Simon, 2016). An effective decision-making process is beneficial for any kind of business organization as it helps to make the right decision for a business. The inappropriate decision can affect a business organization negatively. Thus, an effective decision-maker is necessary for making appropriate decisions for a business.
On the other hand, an effective decision-making process in a business can help to find out the best solutions from different alternatives to solve a particular problem. Managers of a business organization must focus on the right information for making the decisions effective. Thus, a number of steps must be followed by them. According to Joseph (2017), managers must identify the exact problem and gather the right information to solve the problem. Then, managers must focus on the right alternatives to solve the problem. Finally, managers must plan effectively to solve the problem by taking the right actions.
Our Recommended Resources:
Types of business decision making
Chand (2017) said that a business can focus on different types of decision making where the key decision making for business are programmed decision making, non-programmed decision making, strategic decision making, organizational decision making, tactical decision making, individual decision making, and group decision making. According to Jones (2018), on basis of a number of scholars decision making is different types such as routine decision making, basic decision making, policy decision making, operating decision making, departmental decision making, and interdepartmental decision making.
Importance of decision making in business
Effective decision making is very much significant for the success of a business. The importance of decision making in business is explained as follows:
Effective implementation of different managerial functions: The key managerial functions for business are staffing, controlling, directing, organizing and planning. Without a proper decision-making process in business the managerial functions cannot be implemented properly (MSG, 2017). Thus, each of the managerial functions of a business can be done properly by making effective decisions.