Strategic Decision Making In Business Management
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.