Strategic Decision Making In Business Management

Author: 
Datje van Reijendam
Publication Date: 
Friday, September 26, 2014
Summary: 

Identifying Decision Criteria

  • Decisions Criteria are Factors that are Important and Relevant to Resolving the Problem
  • Costs that will be involved(Investment required)
  • Likely risks (Chance of failure)
  • Outcomes that are desired (Growth of the firm)

 Types of Decisions

  • Programmed Decisions
    • Is a decision that is fairly structured or recurs with some frequency (or both)
    • Like basic operating systems, procedures and transactions.
    • McDonalds’s employees are trained to make Big Mac’s according to specific procedures.
  • Non Programmed Decisions
    • Is a decision that is unstructured and occurs much less often than a programmed decision
    • Like mergers, acquisitions, new products, legal issues
    • Each decision is unique and you have to explore the situation from all angles and experience and intuition are major factors in these decisions.

 

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