BUSN11079 Analytical Thinking and Decision Making Assignment Sample 2024
Introduction
The study is going to illustrate the purpose of making effective decisions in order to get positive outcomes in the present and future. Business associates from different industries have been found to be giving core value to the decision making and its practices and the ultimate cause of making decisions is to change or bring something new to the work and practices of business.
For instance, the study will be demonstrating the impact of decision making that would be both positive and negative based on industrial or organisational decisions. Most business owners make decisions based on tactical, operational and strategic decisions which are the major core decision making types that will be analysed in this study.
Importance of decision making and the application of decision analysis
Decision making part is highly effective and significant and it has become a core part to move towards the right direction within a business. Companies’ revenues, profits and losses depend on the decision making, as it has been seen that one decision can convert success into failure and vice versa.
Herbert Simon’s decision-making theory is well popular and many business entrepreneurs have been suggested to follow the theory of Herbert after getting successful outcomes to make effective decisions (Esmail and Geneletti, 2018). Moreover, based on Herbert Simon’s decision making theory, business developers can easily make changes within the price and outputs and these two components are highly essential to run a business smoothly.
In many cases, business founders deal with multi challenging issues after making wrong business moves and this happens many times due to a lack of involvement of internal stakeholders and most importantly fraud business partners.
Based on the global market scenario, business suppliers have been found to make decisions based on the well-being of their worker’s health and most importantly workflow. Rational decision making model is highly essential and many business owners have been observed to be following the principle of this model before making decisions.
As cited by Koechlin (2020), proper or accurate decisions are the key to success and due to that reason business associates from different industries are aiming to take effective decisions based on reducing business burdens accused by huge numbers of competitors all over the global consumer market. Artificial intelligence has become a powerful tool to deliver better quality services among market buyers and business development managers are giving suggestions to their management to make effective decisions to bring AI technology into business and practices to make more profits (Szutowski, 2019).
Application of decision analysis varies on the key objectives and variables based on the organisational or industrial demands and people should be aware of business competitors’ movements before developing decisions.
From the past decades, the competition ratio was not as high as it is now, yet it has become mandatory to make decisions based on developing sustainable finance. Decision analysis contains several methods, procedures, clear representation, tools for identification and formally accessing essential aspects based on a decision (Abdel-Basset et al. 2019).
Business corporations, through decision analysis, have got successful outcomes to model and evaluate the potential outcomes based on various decisions to access the correct pathway or to determine an accurate course of action. Decision making is important for interpersonal issues, alternatives, high-risk consequences, uncertainty and complexity.
Decision-making processes have been regulated or hosted by business entrepreneurs based on better utilisation of resources, achieving objectives, facilitating innovation, business growth, motivating employees and facing problems and challenges. Decision making skills are interpersonal skills, time management, leadership, analytical and logical thinking, team collaboration, problem solving, critical thinking and listening effectively (Palafox-Alcantar et al. 2020).
Furthermore, such decision making skills are highly essential and people that belong to such skills have been seen to be benefitted in order to make proper decisions based on the well-being of business and profits.
Decisions are based on deciding something to make a choice based on careful considerations. Decision making ability allows individuals to save capital and time which are the highly crucial components to achieve success in business. Decision making process cannot be done or executed alone, whereas before making effective decisions, there is a need to respond to suggestions or opinions based on others.
For instance, business managers have been seen to execute or take a part in group discussions or meetings to inform other managers, owners and working professionals about changes and their real or ultimate reason and their outcomes (Baryannis et al. 2019). Decision making process allows individuals to identify issues or challenges that might occur several issues in present or in coming days.
Identification and outline a decision problem
Four different decision making models, such as Rational, Bounded rationality, Intuitive and creative have been found to be utilised by business associates in multiple industries based on moving in the right direction after implementing the right choice or decision (Guarini et al. 2018).
On the other hand, Administrative and Retrospective models have become trendiest and popular due to their effective principles and people often use the principle of these decision making theories to make the right decision based on business development. Issues in making decisions occur due to a lack of involvement of business associates and in many cases, it is difficult to make choices without taking others’ opinions or suggestions (Townsend et al. 2018).
Business owners have been seen to give value to making effective decisions based on enhancing organisational culture that will allow them to attract customers’ attention towards business through maintaining proper business or service culture and ambience. Problem or issue solving is an analytical process that helps in identifying solutions in crisis.
Through defining issues or problems, it is easy to make effective decisions without hesitation. Confidence is the key to making the right decision and this happens through experience of failure, as it has been analysed that people make decisions more effectively and eventually after not getting satisfying results from the previous or prior decision (Tseng et al. 2018).
There are multiple decision criteria, such as requirements, principles and guidelines and such criteria are useful and essential in order to make effective decisions. Business owners and founders have been found to utilise different tools and techniques for efficient decision making and problem solving.
Moreover, those tools and techniques develop real evidence that supports views, weigh alternatives, form and apply concepts, organise and generate ideas, illustrate subjects in organised manner, design systematic plans and prediction the consequences of the subject (Odu, 2019). Therefore, it will be easier for individuals to use decision making in order to solve issues or problems.
In many cases, people fail in analysing risks or issues, yet they have profited through prominent decisions based on searching or finding those issues and getting effective or positive results at the end. Bounded rationality decision-making model is desirable and many people have been benefited to make decisions based on increasing profitability and accountability within business (Abubakr et al. 2020).
Yetton Decision-Making Model, on the other hand, is also equally important to make the right decision based on organisational or business growth. Competition ratio within the global consumer market has increased and due to that reason business owners are making different decisions based on taking right business movements through reducing business threats caused by similar service providers.
Intuitive decision-making model is useful for encouraging business associates to take right steps before getting involved in decision making processes (Pereira et al. 2018). Ultimate decision making ability or capability allows business makers to develop their business collaboration with market investors and develop connections with supply chain members.
Limitations in decision making occur due to lack of knowledge about current business movements and real cause of business decisions and movements changes. In order to solve problems within a business, it has been seen that limited contribution within the gracious discussion or low attention of the decision making process by several working professionals develops multi challenging issues (Abdel-Basset et al. 2018).
Employees are the major key characters that involve managing business, increasing sales and profits and business progression and development and due to that reason taking part in the decision making process has become mandatory for employees to deliver better outcomes or outputs to their business management.
Marginal analysis is the most effective tool that helps in making decisions that are incorporated with benefit and cost (Alabool et al. 2018). Through marginal analysis, it has become possible for business owners to make decisions more effectively and eventually, as marginal analysis takes resources, preferences and informative constraints into an account based on information.
SMART analysis to the outlined decision problem
| Alternative | Criteria (C) | |||
| Stock
(C1) |
Price
(C2) |
Quality (C3) | Size
(C4) |
|
| A1 | ± 2000Kg | £ 76000 | Good | Medium |
| A2 | ± 800Kg | £ 16000 | Enough | Large |
| A3 | ± 1400Kg | £ 66000 | Average | Medium |
| A4 | ± 700kg | £ 190000 | Good | Very Large |
| A5 | ± 2000Kg | £ 80000 | Average | Medium |
Table 1: SMART Analysis
(Source: Created by researcher)
Based on the above table that has discussed four different alternatives for the business aspects on the basis of stocks size, price and quality. Price of alternative 1 is estimated at £76000 based on medium size and desirable quality of the products. On the other hand, the price of alternative 2 is £16000 on the basis of enough quality and large size.
Customers get more influenced towards the quality of the product and services rather than price or quantity and due to that business owners from different corporations are aiming to increase the quality of the products to earn more profits through meeting customers’ requirements or expectations (Duan et al. 2019).
Therefore, there is a need to make decisions based on checking, observing, controlling and rectifying the quality of the services of any different business associations to develop a prestigious position all over the global consumer market. Apart from that, the cost of alternative 3 is around £66000 with average quality and medium size. On the other hand, the price of attribute 4 is £190000 that includes good quality and large size.
Effective analysis of the availability of substitutes or alternatives is needed in order to make decisions more effectively and eventually. The cost of alternative 5 is £80000 with average quality and medium size. Therefore, it can be said that there is a need to give value or focus on the attributes, product quality, size and price for business associations to decrease business burdens caused by unsatisfied customers due to poor product quality (Nyumba et al. 2018).
Availability of attribute 1 for specific business organisations might assist in order to improve existing plannings. Based on the present market or business scenario, it has been noticed that it has become mandatory to introduce innovative products that are technically advanced and exactly similar to the customer’s expectations. Therefore, business associates need to make decisions based on developing innovative production processes to generate creative or innovative products in the market.
Techniques that are incorporated with the Simple Multi-Attribute Rating, which might support the management of different industries in order to recognise or identify decision makers identification and analysis of alternatives, measuring performances and identification of evaluating or analysing criteria (Wu and Xu, 2018).
There are different phases or ways to make effective decisions based on selection of decisions, evaluation of information, identification of problems, gathering information, effective review of performances and implementation of decisions.
Strengths and limitations
Decision making process plays an effective role in order to develop changes and implementing something new for the well-being of business. In many cases, business development managers are aiming to deliver better services through making right decisions and they are aiming to suggest to their entire internal business stakeholders to pay attention to the decision making process in order to deliver well-efficient performances on a regular basis.
Strength
Proper and right decisions help in finding and analysing risks and issues that might hamper the business progression or development of business. Decision making skills help individuals to deliver best possible services on a regular basis and those that include decision making ability or skills get success in developing their positions while working for a business organisation.
Through the right decision, it has become possible to reduce additional cash flow and extra or excessive expenses. Based on the present market scenario, it has become important to make right choices by business organisations, or else it will be difficult to compete with similar service providers on a daily basis (Wu and Xu, 2018).
Theories of decision-making are essential to improve employee performance and motivate them towards their job responsibilities. Through making the right choices, it will be easier for the business associates to utilise resources in an effective way by assurance of business development and progress into business more effectively and significantly.
Competitive advantages can be easily taken after making right decisions, as decisions have been seen to be made due to the development of change based on the well-being of business. Through better decisions, there is a chance to create a great base of customers, which would be beneficial for business associations to reduce business burdens caused by a lack of reliability among customers (Wu and Xu, 2018).
Decision making is the ultimate solution to develop a prestigious position all over the global consumer market through providing standard quality services among customers on a regular basis.
Limitation
Poor decision making is the ultimate reason for business associates to deal with a financial crisis. Improper decisions lead to business failure and due to poor decisions, business organisations have been found to be losing their reliable customers based on the product’s quality or quantity.
Market buyers include different natures and perspectives and it is quite difficult to satisfy each customer through quality of the product or with product quantity (Wu and Xu, 2018). Moreover, different expectations and multiple choice of customers are the actual reason that makes business development managers confused in order to make decisions, as few customers are aiming to get better quality products no matter what the price is and few populations tend to compromise with buying quality-maintained products due to financial instability. Poor decisions cause limited growth in business and it is the actual reason for limited sales and low profits.
Due to a lack of right decisions, it has been seen that business managers fail to increase the reliability among customers and due to poor decisions, there are limited chances to develop long-term business collaboration with customers and market investors. Due to poor decisions, it has been found that resources utilisation in a right track or path has not been seen.
Conclusion
Based on the above discussion, it can be concluded that proper and right decisions are highly essential and important to lead success among business competitors. Poor decisions do not allow individuals to utilise resources in an effective way or in the right direction.
Therefore, it is necessary to pay huge attention to the decision making process by internal stakeholders, as internal stakeholders’ effective contribution or involvement helps business owners to make effective decisions after getting aware of business opportunities and threats through group discussion.
Throughout this study, it can be summarised that decision making models, theories and tools and techniques are essential for developing profitability and sustainable finance. Better decisions allow business owners to increase their networks more effectively in both domestic and international platforms.
Reference list
Journals
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Abdel-Basset, M., Mohamed, R., Zaied, A.E.N.H. and Smarandache, F., 2019. A hybrid plithogenic decision-making approach with quality function deployment for selecting supply chain sustainability metrics. Symmetry, 11(7), p.903. Available at: https://www.mdpi.com/2073-8994/11/7/903/pdf
Abubakr, M., Abbas, A.T., Tomaz, I., Soliman, M.S., Luqman, M. and Hegab, H., 2020. Sustainable and smart manufacturing: an integrated approach. Sustainability, 12(6), p.2280. Available at: https://www.mdpi.com/2071-1050/12/6/2280/pdf
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