Flashcards
2.2 Decision Making
Cards in this deck (8)
- 1DecisionsDecisions have to be made in businesses to keep them on the right track.
Some decisions are easy in business as they are in life, some are much, much harder. - 2Scientific Decisions*A logical and research based approach to decision making.
*It removes any bias, looking only at the hard facts and research…
* If it goes wrong – it was based on
something…
*slow and expensive.
- 3Intuition DecisionsA decision being made on the basis of a hunch or feeling.
This instinct based method removes the need for any data
Good if there is none available.
Remembered as your decision based on very little.
- 4Which Method to use?It will depend on how quickly the decision needs to be made, how much information is available, the size
of the business, how easy it is to predict what will happen and the type of person/business making the
decision.
- 5RisksMost decisions will involve risk.
Things can always take a turn and end up being disappointing in lots of ways…
- 6RewardsIf there are no rewards – why would you bother pursuing something?
This is obviously going to ultimately be financial in the large number of cases, but it could be many other
things – ethical objectives?
- 7UncertaintyThis is what brings about the risk and rewards – if it was a safe bet, there would be very little to making a decision at all.
- 8Opportunity CostThe opportunity cost of doing something, is the loss of the next best option – the thing you could have done but didn’t.
This might be one thing in the short term, but something very different in the long term…
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- A level Business Unit 2 (2.2) Flashcards on 2.2 Decision Making, created by Umu Cisse on 02/02/2017.
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- Umu Cisse
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