Business Decision-Making Process
Decision-making through Business Environmental Scanning
As a relatively new research agency in the market research industry, our firm has two main objectives for this year. The first objective is to increase profitability through increased number and/or higher research costs. The second objective, meanwhile, is to increase the firm's "visibility" in the market research industry, and be recognized as one of the major players in it. In order to achieve these objectives, our firm looked into the business environment of the market research industry, assessing its strengths, weaknesses, threats, and opportunities. The following are the considerations the firm has discussed and taken into consideration in evaluating its performance for the year, using these decisions as the basis for next year's business plan.
Currently, the market research environment is technology-centric -- that is, market research agencies and firms mainly compete with each other through the technology they have. Technologies include software that…...
00 income if Mr. Pecos accepted the committed sale made by his Office Assistant Manager.
Prepare a contribution margin income statement for the month
ased on Mr. Peco's Decision
Recommended
Sales
286,500.00*
578,000.00**
Variable Cost
245 per unit)
925*245-226,625.00)
471,625.00)
Fixed Cost
Income
Computed as follows:
of units
Selling Price
Accepted Orders by Sam Smooth talk
Accepted Orders by Harry Hustler
Accepted Orders by Garry Giftofgab
Total Selling Price
286,500.00*
Computed as follows of units
Selling Price
Recommended orders to accept:
Total amount of accepted order
Total Selling Price
203000+286,500 578,000.00**
Assumption that $475,000 fixed cost is spread out evenly during the year, thus, fixed cost per month is at $39,583.33.
Take note that the fixed cost amount did not changed for the month. This is because fixed cost do not change as volume changes. It will be incurred in spite of how many number of units will be produced at a certain level.
The second column (recommended portion) accepted sales order for those above 276.66 cost per unit. In the second column, total units sold increased from 925…...
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Bibliography
Louderback, J.G. III, Holmen, J.S., Dominiak, G.F. (2000). Managerial Accounting,
Profit Planning (pp.29-58). South-Western College Publishing
Cost/Benefit Analysis: Evaluating Quantitatively Whether to Follow a Course of Action. (2007).
Behavioral Economics
Many academics advocate that markets are "efficient." They argue that all stock and business information is embedded in the current price of an asset. As new information enters the market, the asset price immediately adjusts to reflect the new market sentiment. As a result of these efficient markets, investors can only hope to achieve the market rate of return given the amount of risk taken. There is very little opportunity, according to the academics to achieve higher rates of return in regards to capital expenditures than the overall market warrants. It is my contention however that the markets are inefficient in both valuations and subsequent reappraisals of assets and capital projects. Behavior finance and the teachings embedded within its theories are proof of the inefficient market theory (Shleifer, 1999). In fact, behavioral economics has very profound implications on the overall business decisions of a company in regards to growth.…...
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References:
1) Shleifer, Andrei (1999). Inefficient Markets: An Introduction to Behavioral Finance. New York: Oxford University Press. ISBN 0-19-829228-7.
2) Rabin, Matthew (1998). "Psychology and Economics." Journal of Economic Literature 36 (1): 5 -- 44
By knowing how to read visual presentations of data, the manager will be able to spot the central tendencies and distributions found in data in order to correctly asses whether a given decision is likely to reach the biggest part of the market or cut the highest percentage of inefficiency.
Second, the manager must understand what central tendency and variability mean. Specifically, these are simply measures showing where the data trends lie, and how spread out the data are.
Third, other descriptive statistics such as association and dispersion should be understood so that the basic relationships within data are understood. If customers who buy one product are more (or less) likely to also buy another product, the manager needs to know that in developing marketing around the two products.
Fourth, the manager should have a basic understanding of correlation and regression, including an understanding of how valid and reliable measures are formulated…...
Decision-Making Process in Business Environment
The activity of decision-making may be defined as mental processes leading to the choosing of one alternative out of many.
All decision-making processes generate an ultimate choice.
Decision-making output may be a chosen view or action.
Broadly, decision-making represents a process of choosing between numerous alternatives and making a commitment to adopting some particular option for the future (Masood).
The Nature of Decision-Making
Successful decision-making, realizing where one has made the wrong choice, and being quick to respond to one's errors, forms a major component of corporate efficiency.
According to some scholars, decision-making constitutes the most elementary and salient of all the responsibilities of a manager.
The activity of decision-making relates most closely to the activity of planning.
But it also forms part of leadership, organization, and control (icaksana).
Decision-Making Process
Decision-making entails six steps:
a. Problem Identification
• Need for explicitly outlining the issue
• Manager should thoroughly understand the issue
• Manager should carefully regard and assess the…...
The watch was designed to allow the wearer to log onto the Web. It had microchips capable of doing anything a laptop could do. So out it came. Problem was that you need a keyboard and monitor big enough to see and use. The Web watch, amazingly, had neither. You had to hook it up to a PC to use it! Swatch introduced it too soon due to its enthusiasm over the technology. Perhaps they should have procrastinated (Matlack, 2000).
Chrysler and General Motors. Their procrastination, greed and laziness in sticking to the big, expensive, gas-guzzlers when the foreign car market was moving elsewhere -- into the U.S. And profitability -- and the resultant loss of business, cancellation of dealerships, and layoffs of tens thousands of workers, has to be the worst business decision in modern history.
ibliography
Matlack, C. (2000, September 11). ad timing for Swatch's web watch. Retrieved July 1,…...
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Bibliography
Matlack, C. (2000, September 11). Bad timing for Swatch's web watch. Retrieved July 1, 2009, from Business Week: procrastinate. (2009). In Merriam-Webster Online Dictionary. Retrieved July 1, 2009, from http://www.merriam-webster.com/dictionary/procrastinatehttp://www.businessweek.com/bwdaily/dnflash/sep2000/nf20000911_089.htm
Decision Making
Barnes and Noble Inc. is one of the most successful bookstores in the world. The company operates throughout the United States and boasts roomy inviting stores. In addition to books, the company also sells DVDs and music. The company operates both brick and mortar stores and it is also the largest internet bookstore. Furthermore, Barnes & Noble, Inc. is a Fortune 500 company and the largest bookseller in the world. In addition, "The company is a leading content, commerce and technology company that provides customers easy and convenient access to books, magazines, newspapers and other content across its multi-channel distribution platform. As of January 29, 2011, the company operates 705 retail bookstores in regional shopping malls, major strip centers and freestanding locations in 50 states, and 636 college bookstores serving nearly 4 million students and faculty members at colleges and universities across the United States (For Investors)." The purpose…...
Asking for $2.5 million in loan to purchase and develop land and construct a 6,000-foot travel center.
Competitive issues -- Center will be located between Hwy 45 and 635; there is high visibility, good access, limited competition, good traffic potential.
Market segmentation -- Will offer gas, convenience store items, restrooms, showers, game rooms, trucker lounge, scales, parking -- meant to be a regular stop for truckers on busy U.S. route.
Staff -- Initially run by management team; with supplemental hourly wage staff for check out, cooking, dining, hotel maintenance, etc. Owners to take $50K each for salary, total payroll just under $500,000 per annum.
Silvera and Sons Coffee Export -- Prepares green Arabia coffee beans grown in Brazil for export to the U.S. (specialty roasters) and then sell to Brazilian wholesalers. Asking for investment to expand from 72,000 bags per year to 120-160 bags per year. Coffee differentiates because it is high end,…...
Decision Making Model
Decision making is defined as the cognitive process of selecting a course of action from among multiple alternatives (Wikipedia, 2004). Effective decision making, however, is contingent on an individual or group's ability to select the course of action, which is most likely to result in goal or task accomplishment. In the business world, this is easier said than done since most decisions involve taking into consideration a myriad number of variables such as environmental factors, competitive activities, customer needs, internal goals and organizational constraints. Therefore, most organizations deem it advisable to use decision making support systems or models, which have been developed specifically to assist in the through analysis and evaluation of various alternative courses of action.
One such model is the Force Field Analysis. It is the objective of this paper to describe how the Force Field Analysis model helps weigh the pros and cons of any decision,…...
In other words, throughout the transition period, Onetech would create efficiencies and would consolidate its position. In the future however, it is recommended that the company moved towards a strategy of diversification, as this would better satisfy customers' needs, attract them and as such create market power for the firm (Markides, 2007).
The decision making process at Onetech
The decision making process at Onetech is quite intricate, revealing both strengths, as well as weaknesses. Decisions are for instance made at the level of the board and are based on the expertise gathered by the various major players in the firm. Still, the decisions are made by the executives, with little emphasis on the input which could be provided by the employees.
In order to better assess the decision making process at Onetech, it is appropriate to analyze it through the lenses of the rational decision making model. This model consists of a series…...
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References:
Cologon, D.R., Cohen, D.R., 2008, FileMaker Pro 9 Bible, John Wiley and Sons
Hage, M., 2007, A stakeholder concern towards an economix theory on stakeholder governance, Uitgeverij Van Gorcum
Jacobs, P.K., 2000, Minding the muse: the impact of downsizing on corporate creativity, Harvard Business School, last accessed on November 30, 2011http://hbswk.hbs.edu/item/1518.html
Markides, C.C., 2007, Diversification, refocusing and economic performance, MIT Press
Business Strategies and Decision-Making
Choosing a business structure can depend on a wide range of variables and it is thus essential for a manager to have a complex understanding of his company, the industry it is associated with, and business forecasts. The process of choosing a business structure needs to be considered before starting any businesses in spite of the fact that this respective process can take a significant amount of resources. Many business owners are inclined to either dedicate very little of their time to this process or even to bypass it completely. This can lead to serious issues later in the company's functioning, as business owners can come across a series of problems that they're not prepared to deal with.
Proprietorships are one of the most encountered types of business organizations, this being largely owed to the fact that they are easier to form and maintain and because owners are…...
Grendstad, G., Selle, P., Stromsnes, K., & Bortne, O. "Unique Environmentalism: A Comparative Perspective." (Springer Science & Business Media, 28 Nov 2006)
he managers should also develop plans that refer to the human resources that must be included in their projects. his is because these projects usually require that certain experts are hired and involved in the project team. he effects of the projects must be carefully evaluated and presented to Childs.
3. hese projects are likely to provide important effects for the company, but they also require important resources. herefore, it is recommended that Childs takes these projects into consideration by allocating different levels of financial resources to their managers. However, the most important sum should be allocated to yler's project. his is because increasing the efficiency of the company's production flow is able to provide important effects on medium term and on long-term. his could help the company significantly improve its position on the market.
he project developed by Julie should also benefit from certain resources. his is because the company…...
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The project developed by Julie should also benefit from certain resources. This is because the company has already invested in it and other companies seem to develop similar projects, which means the strategy is correct. Therefore, with higher levels of resources involved in the project, its objectives could be reached easier. Childs should also invest in purchasing computers by investing in the project developed by Jeff. It is important that the company's activity is supported by technology. This is because most companies make important efforts in investing in technological developments in order to improve their performance. The company should also invest in the marketing activity managed by Joe. The company's performance on the market can be significantly influenced by developing and implementing innovative marketing strategies. This would allow the company to increase its sales and to improve its market position.
Business Decision Analysis -- Cipla
Yusuf Hamied pioneered the Chemical, Industrial and Pharmaceutical Laboratories, which is more popularly known as Cipla, in India. The main function of Cipla was to reverse engineer some of the most demanded medications in the market and then reconfigure or re-synthesize them in a different manner (to avoid patent law suits) and sell them to the masses at affordable rates. The problem for Dr. Hamied, though, was a recent upgrade in patent laws that were meant to be applicable from 2005 in India. This new upgrade was being implemented on a global scale by the World Trade Organization (WTO) and was officially called Trade elated Aspects of Intellectual Property ights (TIPS) and it mainly required India to accept the patent laws with regards to pharmaceuticals and other intellectual inventions that had been standardized for over 2 decades. This would mean that a majority of the produce…...
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References
Deshpande, R. (2006). Cipla. Harvard Business School, President and Fellow Of Harvard College, 9-305-085.
For each cell, decide which of the two options is more important. Write down the letter of the more important option in the cell, and score the difference in importance from 0 (no difference) to 3 (major difference).
5. Finally, consolidate and sum the results by adding up the total of all the values for each of the options; and then convert these values into a percentage of the total score.
As a simple example, a business is looking at several ways to expand its market share. In doing so, it comes with the following options as shown below:
1. Use electronic commerce for serving customers
Expand business in home markets
3. Improve customer satisfaction
4. Improve the quality of service
Firstly the manager draws up the Paired Comparison Analysis table in Figure 1:
Figure 1: Example Paired Comparison Analysis Table (not filled in):
Use electronic commerce (a)
Expand into home markets (B)
Improve customer
Satisfaction
Improve the quality of service
D)
Now manager…...
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References
Carlsson, C. And Walden. P. (1995). AHP in political group decisions: A study in the art of possibilities. Interfaces 25:14-29.
Business Culture Decision Making
Every research is centered on the need to make a decision and the need to make a decision in any organization sprouts from a dilemma that the particular organization may be in. Some of these dilemmas may be in the form of complains within the organization, controversy over pay, competitors introduction of a new form of operation or technology, some looming major commitment of resources and more of such issues can effectively prompt a research in an organization.
The bottom line is that research draws its origins from decision making. There must be a dilemma that dominates the course of the research in pursuit of specific information to enable a manager to set objectives, define the tasks, and obtain the best strategy for completion of some tasks. It is at this time that it can be concluded that the research always comes 'just- in -- time' for the…...
1. The importance of ethics in business decision making 2. The impact of technology on modern business practices 3. The role of corporate social responsibility in business operations 4. The benefits and challenges of globalization in the business world 5. The influence of culture on international business practices 6. The significance of leadership and management in successful business operations 7. The effects of digital marketing on consumer behavior and business success 8. The role of innovation in driving business growth and competitiveness 9. The importance of sustainability in business practices 10. The impact of financial management on business success
11. The role of entrepreneurship in driving economic growth and innovation 12.....
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