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5.6: Assignment- Your Decision-Making Process

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• Lumen Learning

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Preparation

The Decision Making module of your text provided numerous decision tools and methods to use during the decision process. In this assignment, you will draw upon your personal decision-making experience. As you learned in the module, people make decisions with our biases and preferred styles in play. You will describe your decision, what choices were involved, how you made your decision, and what the outcome was, relating your process to the rational decision-making process described in the text. The following steps will help you prepare for your written assignment:

• Carefully consider the tools and methods described in the reading to assist with Management Decision Making.
• Think of a decision you have made or been involved in making. This could be a personal decision or a work-related decision.

Outline your decision process as it relates to the six steps of the rational decision-making process described in the text:

• Step 1. Identify the Problem
• Step 2. Establish Decision Criteria
• Step 3. Weigh Decision Criteria
• Step 4. Generate Alternatives
• Step 5. Evaluate Alternatives
• Step 6. Select the Best Alternative

For example, if you’re writing about your decision to adopt a pet, the problem you identify in Step 1 might be that you were lonely in your apartment at night, and you’d always wanted to rescue a dog. In Step 2, you could describe the decision criteria you used to select a dog: your apartment only allows dogs under 25 pounds, you wanted a dog with short hair for easier cleanup, you would only travel to a rescue facility within 50 miles of your house, and so on. If you skipped any of the steps above, note that. Include this outline in your written assignment submission.

Write a two-paragraph essay describing your decision process (as outlined above), including its strengths and weaknesses. Your essay must include at least two properly described and referenced decision methods or styles from the text. For example, if your decision was impeded by bias, describe if it was confirmation bias, anchoring, or some other kind of bias. Answer and address these questions:

• What is your preferred decision-making style?
• How does your style work for you? Are you always satisfied with your decisions?
• What method from the text would you consider for your future decision making?
• How important is decision making in the role of a business leader? Provide an example.

In addition to the text, you are encouraged to research decision-making methods using reliable and properly cited Internet resources. You may also draw from your personal experience with appropriate examples to support your references.

Contributors and Attributions

• Assignment: Your Decision-Making Process. Authored by : Betty Fitte and Lumen Learning. License : CC BY: Attribution

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8 Steps in the Decision-Making Process

• 04 Feb 2020

Strong decision-making skills are essential for newly appointed and seasoned managers alike. The ability to navigate complex challenges and develop a plan can not only lead to more effective team management but drive key organizational change initiatives and objectives.

Despite decision-making’s importance in business, a recent survey by McKinsey shows that just 20 percent of professionals believe their organizations excel at it. Survey respondents noted that, on average, they spend 37 percent of their time making decisions, but more than half of it’s used ineffectively.

For managers, it’s critical to ensure effective decisions are made for their organizations’ success. Every managerial decision must be accompanied by research and data , collaboration, and alternative solutions.

Few managers, however, reap the benefits of making more thoughtful choices due to undeveloped decision-making models.

Access your free e-book today.

Why Is Making Decisions Important?

According to Harvard Business School Professor Leonard Schlesinger, who’s featured in the online course Management Essentials , most managers view decision-making as a single event, rather than a process. This can lead to managers overestimating their abilities to influence outcomes and closing themselves off from alternative perspectives and diverse ways of thinking.

“The reality is, it’s very rare to find a single point in time where ‘a decision of significance’ is made and things go forward from there,” Schlesinger says. “Embedded in this work is the notion that what we’re really talking about is a process. The role of the manager in managing that process is actually quite straightforward, yet, at the same time, extraordinarily complex.”

If you want to further your business knowledge and be more effective in your role, it’s critical to become a strong decision-maker. Here are eight steps in the decision-making process you can employ to become a better manager and have greater influence in your organization.

Steps in the Decision-Making Process

1. frame the decision.

Pinpointing the issue is the first step to initiating the decision-making process. Ensure the problem is carefully analyzed, clearly defined, and everyone involved in the outcome agrees on what needs to be solved. This process will give your team peace of mind that each key decision is based on extensive research and collaboration.

Schlesinger says this initial action can be challenging for managers because an ill-formed question can result in a process that produces the wrong decision.

“The real issue for a manager at the start is to make sure they are actively working to shape the question they’re trying to address and the decision they’re trying to have made,” Schlesinger says. “That’s not a trivial task.”

2. Structure Your Team

Managers must assemble the right people to navigate the decision-making process.

“The issue of who’s going to be involved in helping you to make that decision is one of the most central issues you face,” Schlesinger says. “The primary issue being the membership of the collection of individuals or group that you’re bringing together to make that decision.”

As you build your team, Schlesinger advises mapping the technical, political, and cultural underpinnings of the decision that needs to be made and gathering colleagues with an array of skills and experience levels to help you make an informed decision. .

“You want some newcomers who are going to provide a different point of view and perspective on the issue you’re dealing with,” he says. “At the same time, you want people who have profound knowledge and deep experience with the problem.”

It’s key to assign decision tasks to colleagues and invite perspectives that uncover blindspots or roadblocks. Schlesinger notes that attempting to arrive at the “right answer” without a team that will ultimately support and execute it is a “recipe for failure.”

3. Consider the Timeframe

This act of mapping the issue’s intricacies should involve taking the decision’s urgency into account. Business problems with significant implications sometimes allow for lengthier decision-making processes, whereas other challenges call for more accelerated timelines.

“As a manager, you need to shape the decision-making process in terms of both of those dimensions: The criticality of what it is you’re trying to decide and, more importantly, how quickly it needs to get decided given the urgency,” Schlesinger says. “The final question is, how much time you’re going to provide yourself and the group to invest in both problem diagnosis and decisions.”

4. Establish Your Approach

In the early stages of the decision-making process, it’s critical to set ground rules and assign roles to team members. Doing so can help ensure everyone understands how they contribute to problem-solving and agrees on how a solution will be reached.

“It’s really important to get clarity upfront around the roles people are going to play and the ways in which decisions are going to get made,” Schlesinger says. “Often, managers leave that to chance, so people self-assign themselves to roles in ways that you don’t necessarily want, and the decision-making process defers to consensus, which is likely to lead to a lower evaluation of the problem and a less creative solution.”

5. Encourage Discussion and Debate

One of the issues of leading a group that defaults to consensus is that it can shut out contrarian points of view and deter inventive problem-solving. Because of this potential pitfall, Schlesinger notes, you should designate roles that focus on poking holes in arguments and fostering debate.

“What we’re talking about is establishing a process of devil’s advocacy, either in an individual or a subgroup role,” he says. “That’s much more likely to lead to a deeper critical evaluation and generate a substantial number of alternatives.”

Schlesinger adds that this action can take time and potentially disrupt group harmony, so it’s vital for managers to guide the inner workings of the process from the outset to ensure effective collaboration and guarantee more quality decisions will be made.

“What we need to do is establish norms in the group that enable us to be open to a broader array of data and decision-making processes,” he says. “If that doesn’t happen upfront, but in the process without a conversation, it’s generally a source of consternation and some measure of frustration.”

Related: 3 Group Decision-Making Techniques for Success

6. Navigate Group Dynamics

In addition to creating a dynamic in which candor and debate are encouraged, there are other challenges you need to navigate as you manage your team throughout the decision-making process.

One is ensuring the size of the group is appropriate for the problem and allows for an efficient workflow.

“In getting all the people together that have relevant data and represent various political and cultural constituencies, each incremental member adds to the complexity of the decision-making process and the amount of time it takes to get a decision made and implemented,” Schlesinger says.

Another task, he notes, is identifying which parts of the process can be completed without face-to-face interaction.

“There’s no question that pieces of the decision-making process can be deferred to paper, email, or some app,” Schlesinger says. “But, at the end of the day, given that so much of decision-making requires high-quality human interaction, you need to defer some part of the process for ill-structured and difficult tasks to a face-to-face meeting.”

7. Ensure the Pieces Are in Place for Implementation

Throughout your team’s efforts to arrive at a decision, you must ensure you facilitate a process that encompasses:

• Shared goals that were presented upfront
• Alternative options that have been given rigorous thought and fair consideration
• Sound methods for exploring decisions’ consequences

According to Schlesinger, these components profoundly influence the quality of the solution that’s ultimately identified and the types of decisions that’ll be made in the future.

“In the general manager’s job, the quality of the decision is only one part of the equation,” he says. “All of this is oriented toward trying to make sure that once a decision is made, we have the right groupings and the right support to implement.”

8. Achieve Closure and Alignment

Achieving closure in the decision-making process requires arriving at a solution that sufficiently aligns members of your group and garners enough support to implement it.

As with the other phases of decision-making, clear communication ensures your team understands and commits to the plan.

In a video interview for the online course Management Essentials , Harvard Business School Dean Nitin Nohria says it’s essential to explain the rationale behind the decision to your employees.

“If it’s a decision that you have to make, say, ‘I know there were some of you who thought differently, but let me tell you why we went this way,’” Nohria says. “This is so the people on the other side feel heard and recognize the concerns they raised are things you’ve tried to incorporate into the decision and, as implementation proceeds, if those concerns become real, then they’ll be attended to.”

How to Improve Your Decision-Making

An in-depth understanding of the decision-making process is vital for all managers. Whether you’re an aspiring manager aiming to move up at your organization or a seasoned executive who wants to boost your job performance, honing your approach to decision-making can improve your managerial skills and equip you with the tools to advance your career.

Do you want to become a more effective decision-maker? Explore Management Essentials —one of our online leadership and management courses —to learn how you can influence the context and environment in which decisions get made.

This article was update on July 15, 2022. It was originally published on February 4, 2020.

About the Author

Module 5: Decision Making

Assignment: your decision-making process, preparation.

The Decision Making module of your text provided numerous decision tools and methods to use during the decision process. In this assignment, you will draw upon your personal decision-making experience. As you learned in the module, people make decisions with our biases and preferred styles in play. You will describe your decision, what choices were involved, how you made your decision, and what the outcome was, relating your process to the rational decision-making process described in the text. The following steps will help you prepare for your written assignment:

• Thoroughly read the Decision Making module.
• Carefully consider the tools and methods described in the reading to assist with Management Decision Making.
• Think of a decision you have made or been involved in making. This could be a personal decision or a work-related decision.
• Outline your decision process as it relates to the six steps of the rational decision-making process described in the text:

Step 1. Identify the Problem

Step 2. Establish Decision Criteria

Step 3. Weigh Decision Criteria

Step 4. Generate Alternatives

Step 5. Evaluate Alternatives

Step 6. Select the Best Alternative

For example, if you’re writing about your decision to adopt a pet, the problem you identify in Step 1 might be that you were lonely in your apartment at night, and you’d always wanted to rescue a dog. In Step 2, you could describe the decision criteria you used to select a dog: your apartment only allows dogs under 25 pounds, you wanted a dog with short hair for easier cleanup, you would only travel to a rescue facility within 50 miles of your house, and so on. If you skipped any of the steps above, note that.  Include this outline in your written assignment submission.

• What is your preferred decision-making style?
• How does your style work for you? Are you always satisfied with your decisions?
• What method from the text would you consider for your future decision making?
• How important is decision making in the role of a business leader? Provide an example.

In addition to the text, you are encouraged to research decision-making methods using reliable and properly cited Internet resources. You may also draw from your personal experience with appropriate examples to support your references.

Your written assignment will be graded using the Written Assignment Rubric . Please review and keep it in mind as you prepare your assignment. Each component is weighted as follows:

10% Organization and Format

Adequate: Writing is coherent and logically organized, using a format suitable for the material presented. Transitions used between ideas and paragraphs create coherence. Overall unity of ideas is supported by the format and organization of the material presented.

40% Content

Adequate: All required questions are addressed with thoughtful consideration reflecting both proper use of content terminology and additional original thought. Some additional concepts are presented from properly cited sources, or originated by the author following logic and reasoning they’ve clearly presented throughout the writing.

40% Development – Critical Thinking

Adequate: Content indicates original thinking, cohesive conclusions, and developed ideas with sufficient and firm evidence. Ideas presented are not merely the opinion of the writer, and clearly address all of the questions or requirements asked with evidence presented to support conclusions drawn.

10% Grammar, Mechanics, Style

Adequate: Writing is free of spelling, punctuation, and grammatical errors, allowing the reader to follow ideas clearly. There are no sentence fragments and run-ons. The style of writing, tone, and use of rhetorical devices is presented in a cohesive style that enhances the content of the message.

• Assignment: Your Decision-Making Process. Authored by : Betty Fitte and Lumen Learning. License : CC BY: Attribution

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4 decision-making models to apply in your business

February 16, 2022 by MindManager Blog

By: Emily Finlay

Your job requires you to make dozens of key decisions every day. Some of these decisions might involve only you, but others require input from additional members of your team.

No matter what the situation is, the right decision-making model can help you and your team better understand and analyze a situation better so you can make the best choice in terms of how to address or resolve it.

Decision-making models are processes intended to break down a problem you’re facing, help you and your team identify possible solutions, and guide you to the most effective outcome.

For example, if your team is trying to determine which project management method would work best for your next assignment, you could use a decision-making model to evaluate potential techniques and pick the best one.

Just as there are many ways to approach a challenge, there are also many types of decision-making models. In this article, we’ll take a closer look at four types of decision-making model you can apply to business decisions in order to make choices that lead to better outcomes.

1. The rational model

When the stakes of a decision’s outcome are high, the rational model can be an effective way to work through your options.

This model uses a series of steps focused around data, logic, and analysis (rather than personal opinion or intuition). These steps are designed to help you understand the challenge, define the factors that influence your decision, and compare solutions to find the right one.

For example, if you need to cut back on your department’s spending to meet a new budget, for you could use the rational model to determine which areas make the most sense to trim back on, whether it’s your technology budget, team outings, or making staff reductions.

Steps for following the rational model include:

• Define the problem and desired result. What challenge are you are trying to solve? What result do you want to achieve by making a decision?
• Identify the factors involved in your decision. Determine what specific details you’ll need to consider. For example, are there budget areas you can trim down on that will have little impact on your team, or will you need make vital cuts that may significantly impact morale, which you’ll have to prepare for?
• List your potential solutions. Use the information from the first two steps to identify potential solutions to your challenge, and loop in relevant team members to help you narrow down your list to the most viable options.
• Assess the potential impact of each decision. Vet your potential solutions by thinking about the impact and/or consequences they may have, whether it’s on an individual employee, a team, or the company as a whole. Your ideal solution should have minimal negative impact while still achieving your desired result.
• Make and implement your decision. Using the results from your analysis, determine which option you believe to be the correct one. You may need to loop in key stakeholders and/or executives for approval, but once everyone has signed off, implement your decision and monitor the results.

The rational model isn’t one of the quickest decision-making models out there, so be sure you have enough time to work with before opting to use this model.

2. The intuitive model

Rather than relying on an in-depth analysis, the intuitive model uses pattern recognition to identify the option that will yield the best results. It uses your past experiences with similar goals or challenges to guide you to the right choice.

For example, if you need to assign a task with a short deadline to an employee, you would identify which employee performed best on similar assignments in the past to make your decision.

The intuitive model supports your gut decisions by helping you understand why you’ve chosen a specific solution and what you can expect from your decision based on similar scenarios.

In a survey by Lumen, 89% of managers said they had sometimes used intuition to make decisions, while 59% said they often relied on intuition.

Steps for following the intuitive model include:

• Define the problem. Determine what challenge you need to overcome and/or problem you need to solve with your final decision.
• Identify similar past situations. Take a moment to think about any similar previous experiences you’ve encountered, and what choices or decisions you made—or what factors you used to make them—to resolve the issues.
• Recognize potential biases. Decision-making can be prone to certain biases , such as authority, confirmation, and framing. To ensure your decision is free from certain tendencies or inclinations, solicit feedback from others you trust, and take a moment to reflect on past decisions and how they turned out before you move forward.
• Choose the best solution. Equipped with the information you’ve gathered, make the decision that is most likely to lead to your desired outcome.
• Implement your decision. If your decision had to be made quickly and/or you were not able to involve your team, let them know what you decided (and why) before implementing the changes.

Unlike the rational model, this process can be completed quickly, making it a good choice to use when you need to make a fast decision.

3. The recognition-primed model

The recognition-primed model works similarly to the intuitive model. Rather than just going with the solution that feels best, however, this technique adds an extra step.

Once you’ve identified a solution based on your past experience, you then run a mental simulation of this decision.

The more experience you have with the particular challenge you’re facing, the easier it is to use this model.

In addition to helping you identify the most important parts of the problem, this past experience can prompt you to look for options that are more likely to resolve the challenge .

For example, you can use this model to decide if you can take on a project with a tight deadline. By thinking through the times your team completed projects with similar time constraints, you can determine if you’re capable of meeting these new demands.

Then, you can run a simulation of how you expect the project to go to identify any potential challenges or roadblocks before they occur, which can help make the process smoother and enable you to meet your deadline.

Steps for following the recognition-primed model include:

• Define the problem. As always, you need to know what you need to achieve or resolve before you can determine the right solution.
• Identify similar situations. Think through previous situations that are relevant to the current challenge. How did they turn out? What unforeseen issues did you run into? You can also review information from past scenarios and the data behind the outcomes, if you have the time.
• Map out multiple solutions. Based on how these past situations unfolded, come up with a few potential solution options.
• Run a mental simulation for each solution. For each option, identify the potential results, impact, and complications/challenges that are likely to occur, eliminating any that won’t work or making necessary adjustments.
• Decide on and implement your solution. Time to see how your solution works in reality! If you weren’t able to involve your team in the process, explain your decision to them and why you made it.

4. The creative decision model

You may not have the real-world experience needed for the last two models. If that be the case, the creative decision model may be a better option.

With this model, you don’t create solutions based on past experiences. Instead, you come up with imaginative ideas and new ways of dealing with a situation, or you decide to try a solution you may have thought of previously but haven’t yet tried.

For example, if you want your team to be number one in sales revenue next month, you could offer incentives to your employees for hitting certain targets, or work with marketing to come up with an exclusive promotional deal.

Steps for following the creative decision model include:

• Define the problem. Since this is an unfamiliar challenge, make sure you’re very clear on the result you want to achieve. Meet with your team to fully outline the problem, and consider consulting with more experienced colleagues to better understand the challenge you’re up against..
• Consider all factors. Do your research to understand every possible factor that might impact this challenge and any potential solution. See if you can identify similar situations that your coworkers may have encountered, what decision was made, and what the result was.
• Identify a viable solution. Decide which decision is the best one for this particular situation.
• Implement your decision. Once your solution is in effect, monitor the outcome to measure how well your idea performed and inform future decisions.

Create better decision-making models with MindManager

MindManager® can be an extremely useful tool for creating decision-making models in your workplace.

It’s an easy-to-use productivity and collaboration solution that enables you to map out every step of the decision-making process visually so you can better understand what factors must be considered in making a choice.

You can create decision-making models in MindManager in several ways:

• Use a mind map to identify the factors you need to consider when making your decision and to understand how each one might affect the desired outcome. Similar templates include radial maps, right maps, and concept maps.
• Develop an idea map to keep track of potential solutions that you brainstorm with your team. Similar templates include onion diagrams, funnel diagrams, and matrix diagrams.
• Create a flowchart to simulate your solution and visualize how it will work in practice. Similar templates include timelines and Kanban boards.

MindManager’s co-edit feature allows multiple people to work on the same diagram simultaneously, allowing you to evaluate all options collaboratively to make quicker decisions.

Creating a visual map of your decision-making process also provides you with a digital template that you can use as a model in the future.

Create better decision-making models with MindManager. Access your free 30-day trial today!

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Unit 6 Business Decision Making Assignment

Introduction

With the growing ramifications of changes and the evolved economic circumstances of industries all over the world, entrepreneurs have faced a number of challenges in making business decisions. Several variables influence company decisions in a deliberate manner throughout the business life cycle. Simply put, choice is the process of selecting one course of action from a set of possibilities. Although the focus of this unit 6 business decision-making assignment is on strategic planning, there are other aspects to consider, such as environmental influences, organisational activities, and the control system process.

1.1 Create a plan for primary and secondary data collection?

There are two sorts of decisions made primarily in the organization’s working system, as described in the brief:

Tactical decisions are an example of structured decision making, which is characterised by a predetermined framework and is repeated in nature.

Non-structured decision making is associated with a high weighted result and occurs seldom in the workplace. For improved decision-making, this sort of decision necessitated a high degree of data collecting.

As a result, corporate decision-making and business psychology are non-structured in nature and need a great deal of thought for the organization’s benefit.

Data may be collected in two ways: primary data and secondary data.

Primary data are particular and explicit in form, and they are collected for a specific purpose in order to have a comprehensive picture of all the relevant components. Secondary data, on the other hand, is acquired for a variety of purposes and used by others according to their own personal preferences. The process system below can be used to outline the plan for acquiring primary and secondary data.

Identification of subject matter- In this data collection, Kompas Holiday International was chosen as a tour operator, and as a consultant for this firm, I conducted a thorough investigation into all relevant elements. In order to make successful decisions, it is necessary to determine the subjective nature of the issues for which data is being collected.

Designing a survey technique- Adopting an effective approach for data gathering is required. It includes the use of sample surveys, questioners, and feedback forms, among other things.

Data gathering- Following the adoption of the appropriate survey technique, adequate data collection of both types of data is necessary based on the organization’s needs.

Analysis- In this process system, it will be determined how acquired data may be used by bifurcating all factors in order for Kompas Holiday International to make better decisions in product and service development (Enrique , 2011).

Conclusion- This is the end of the data gathering plan, after which the acquired data will be analysed to produce useful findings. Kompas Holiday International will utilise this information in this section to produce effective goods and services in a methodical manner.

The following pros and demerits may emerge from the gathered primary and secondary data.

Primary data is defined as information that is clear and precise in nature and is acquired for a specified purpose. This information might be used by Kompas Holiday International to assess client needs, demand, and expectations from tour operations. However, it may eventually lead to higher costs of goods and services, as well as the establishment of a time-consuming process system.

1.2 Presentthe survey methodology along with an appropriate sampling frame and strategy?

Data is acquired by numerous methods such as interviews, seminars, social programmes, and other ways in survey methodology. With the help of this poll, Methodology Kompas vacation international was able to quickly identify the client’s preferred course of action and successful activities using a systematic manner. It investigates individual unit sampling and population identification strategies, as well as survey data gathering tools such as questionnaire creation and ways for increasing the volume and accuracy of surveys. Structured sampling is the type of sampling that is associated with each unit of individual behaviour and is non-repetitive.

This form of sampling aids in the identification of the organization’s future tendencies as well as clients’ reciprocal behaviour. Non-structured sampling is the most important data since it gives a detailed picture of all the connected aspects that are utilised to evaluate the Kompas holiday international’s strategy plan. Here are a few non-structured sample techniques that the Kompas vacation international might employ to make better decisions.

Systematics sample- This is a statically calculated sample that is obtained by taking N clients and splitting them in half. Simple random sampling aids in gathering a clear picture of the client’s interest in seeing new locations and demonstrates how ordinary people would respond to the tours packages supplied by the organisation.

Stratified sample- This sampling aids in the collection of data from subgroups of clients by dividing them by age, gender, purchasing power, and other factors.

Cluster sample- This gives a clear picture of the client’s decision by looking at a limited number of groupings that reflect the entire area.

This sample data gives a wealth of information about the clients’ actions and their reciprocal behaviour with the products on sale. To execute this sampling survey, the business has assigned a team of ten employees and given them one month to finish the procedure.

2.1 Analyses the results to draw valid conclusions regarding new tour product development?

It is accompanied with central tendency values, as well as many ranges and variables such as range, interquartile range, and percentile range. With the goal of conducting a comprehensive examination of the data and information gathered. The central tendency data, or mean mode median, displays the best acceptable data that may reflect the entire arrangement of data obtained in a determined manner. The mean reflects the total of all the individual values at large and is the average indicative of all the data collected. The average expenditure of the data obtained from the clients is taken into account in this calculation. Following the calculation, the average client spending is £ 478.

Mode: Mode is the score with the most recurrence of events and transactions, and it is the score with the highest frequency of data gathered. The most recurrent frequency with the greatest order is £400-500, according to this collection of data ( Enrique, 2011).

The data that sits in the middle of the dispersion of all the gathered data is referred to as the median. In order to compute the median, the given data must be sorted ascending and descending. Following that, the cumulative frequency of clients placing orders must be calculated. With the help of Median, you can compute the median:

Analysis: Based on this calculation, Kompas Holiday International has to produce products and services packages in the £600 to £800 pricing range. As a result, the company’s recurrence in other price ranges of orders is minimal. As a result, Kompas vacation international marketing should manipulate its product offering packages based on the client’s preferred course of action. As a result, the company’s turnover will be large.

2.2 Analyze data using measures of dispersion (standard deviation) to develop a given business scenario for a new product development?

After analysing the computed represented values, it was discovered that the corporation should price its generated items and services between £600 and £800. Furthermore, the average price of travel packages supplied on the market is £ 478, which represents the average rate of clients booking packages. In addition, the greatest recurrence of the trips package is £650, implying that the corporation should price its new items in the £650 area. As a result of this information, it can be concluded that Kompas Holiday International has to produce new packages in a price range that more clients can afford in a simple and identifiable manner.

2.3 Analyzedata using measures of dispersion (standard deviation) to develop a given business scenario for a new product development?

Dispersion measures- In order to make successful business decisions and arrive at a measured conclusion, a firm must consider all connected elements such as risk and return. Variables, scatter, and spread are all terms used to describe the dispersion of values in variables.

The difference between the specified price’s maximum and minimum value is known as the range. For example, if the package’s highest specified price is £500 and its lowest is £200, the range for both is £ 300 (Markovi?. & Damnjanovi?, 2013).

The squared of standard deviationofrandom variables from their mean is variance, and it indicates how much a group of values is spread out from its mean.

(Standard deviation) 2= (478)2= £228484 Variance = (Standard deviation) 2= (478)2= £228484

3.1 Producegraphs and charts (pie, bar, line, give, histogram) using a spreadsheet to draw valid conclusions based on the information regarding the proposed project?

Graphs and charts- These are formal representations of data that are utilised to better comprehend the organization’s current and future trends.

Pie chart- This graph displays the frequency of sales orders in relation to price variations. This graph might be used by Kompas Holiday International to better determine the optimum pricing set for clients in order to improve sales orders.

Scatter graph—this graph is used to assess tourist actions in order to improve the development of tours, travel products, and services. In addition, the organisation will be able to determine which location is the most popular with customers.

3.2 Create a trend line on an XY- plot using a spreadsheet and use it to forecast future events within the chosen business context

The trend line is the most essential graphical tool for evaluating the company’s performance over a period of time. Several competitors of Kompas vacation international, as well as their current and projected market shares, have been included in this trend line. Furthermore, it will assist the firm in developing its tour product and services in accordance with the client’s preferred activities.

4.1 Launch of new project

For better decision-making, the management department might employ various technologies to generate fresh ideas for the development of effective new trip packages. The organisation can employ a variety of information technologies, including decision support systems, management information systems, and more (Sampath & Anjana, 201).

MIS stands for management information system integrated supported system, and it is used to focus on information system management in order to give efficient and improved decision making.

The organisation might enhance its operational, financial, and tactical level work in a decided manner in order to improve the efficiency of the management information system. The following action plan has been constructed to better understand the time necessary in implementing a new MIS system in an organisation:

7+4+16+11+4+12+11+11+22+22= Project duration a period of 120 days

Critical route- A critical path is a representation of the longest path that is used to finish project tasks in a certain order (Chu, 2012).

A®C®E®F®G®K®L

Countdown to 99 Days

4.2 Do you use financial techniques to examine the project’s viability, such as a feasibility analysis?

Financial tools- Kompas vacation international has access to a number of financial resources that it may use to gain a better understanding of the risk and return of the chosen information tools. These include NPV, IRR, Payback period, and others.

The difference between the present value of cash outflow and the present value of cash inflow is called net present value.

£3,000,000 – £2099300 = £900700 NPV

The internal rate of return, or IRR, is the needed rate of return for an investment. The corporation has defined an 11 percent necessary rate of return in order to receive the requisite return from the made investment.

The payback period is the amount of time that the organisation needs to recover the money it has invested. It is calculated using the initial cash inflow amount and needed cash outlay to set up a new MIS system.

Total cash outflow minus total cash inflow

The decision-making process is focused with maximising the advantages or productive outcomes from the chosen course of action, as well as assisting in the identification of all connected elements such as future uncertainty and other negative consequences in general. Finally, in order to conclude this report, it must be stated that the organisation must assess its clients’ data in a determined approach in order to make better decisions.

Chu, B. 2012;2011;, “Large deviations estimation of the windfall and shortfall probabilities for optimal diversified portfolios”, Annals of Finance, vol. 8, no. 1, pp. 97-122.

Djokovic, F. 2013, “BUSINESS DECISION MAKING ON FINANCING OPERATING ACTIVITIES IN HOTEL INDUSTRY”, Socioeconomica : Scientific Journal for Theory and Practice of Socio-economic Development, vol. 2, no. 3, pp. 67-79.

Enrique Benjamín Franklin Fincowsky 2011, “Business making decisions”, Contabilidad y Negocios : Revista del Departamento Académico de Ciencias Administrativas, vol. 6, no. 11, pp. 113-120.

Jayalakshmi, N.S., Ravindra, S., Nagaraj, K.R., Rupesh, P.L. &Harshavardhan, M.P. 2013, “Acceptable Deviation between Facial and Dental Midlines in Dentate Population”, The Journal of Indian Prosthodontic Society, vol. 13, no. 4, pp. 473-477.

Majumdar, R. 2014, “Business decision making, production technology and process efficiency”, International Journal of Emerging Markets, vol. 9, no. 1, pp. 79-97.

Markovi?, M., Ple?i?, K. & Damnjanovi?, I. 2013, “DECISION TREES USAGE IN BUSINESS DECISION MAKING PROCESS”, Socioeconomica : Scientific Journal for Theory and Practice of Socio-economic Development, vol. 2, no. 3, pp. 107-115.

Mital, P., Goetschalckx, M. & Huang, E. 2015, “Robust material handling system design with standard deviation, variance and downside risk as risk measures”, International Journal of Production Economics, vol. 170, pp. 815-824.

Nadadur, G., Raschke, U. & Parkinson, M.B. 2016, “A quantile-based anthropometry synthesis technique for global user populations”, International Journal of Industrial Ergonomics, vol. 53, pp. 167-178.

Sampath, S. &Anjana, K. 2016, “Percentile Matching Estimation of Uncertainty Distribution”, Journal of Uncertainty Analysis and Applications, vol. 4, no. 1, pp. 1-13.

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Assignment on Business Decision Making

Introduction

Business decision making is widely critical process which is find in each and every organisation. This is also known with its alternative name entrepreneur decision making. Decision making is the simple process of electing one action out of available different course of action. Whereas business decision making is a strategic decision which requires utmost care and diligence. This Assignment on Business Decision Making discusses the methods, techniques and tools which are used to process data and derive information which helps in the decision making process of a business. It is seen that business decisions in various fields are the key component in the overall success of an organisation. Mostly these decisions are NON-STRUCTURED in nature so that it is usually taken by top level management. Success and failure of and organisation in today’s competitive market are highly dependent upon the business decision making.

AC 1.1 Create a plan for the collection of primary and secondary data useful to conduct a research that may provide ways to improve sales in your chosen company?

Data is simply a raw material of information. In order to see the full information management has to collect data from different sources. It could be said secret ingredient of information lies within the data collected. Data analysis and design can be qualitative or quantitative and if it has relevance to the purpose then it becomes information (Olsen, 2012). The Marriott can create a short plan in order to collect the data that may provide ways to improve sales.

AC 1.2 Present, a survey methodology and sampling frame that will be most appropriate in your investigation?

• Survey methodology : it is the process of collecting primary and secondary data from the customers in context of their choice of actions and their preference. This is the best method through which genuine data could be collected from different context of people all over the world.
• Sample survey : The Marriot being in hospitality business can take the sample survey in order to decide the preference and expectation of potential consumers (Roepstorff, et. al., 2015).

AC 1.3 Design a questionnaire that you will use to collect primary data for the research

In order to make increment in sale Mariette has to make survey on large as it is easy to tell that collecting data from public at large is not an easy task therefor sample survey is a very useful technique.

Sample questionnaire:-

• Have you ever visited to a Marriott Hotel?
• Yes                                  

       2. What is the best thing you feel after availing hotel services which are offered to you?

• Hotel staff services        
• Ambience and culture
• Swimming pool
• Foods served

       3. Which of the following would you like to avail first if it is being offered to you at free of cost?

• Complementary premium drink
• Spa or head massage
• A game in golf court

 4. How will you rate our hotel as per the services you have availed in business?

       5. What are the core services you like most in our hotel?

• Food services
• Housekeeping services
• Luxurious services
• Accommodation services
• Pick and drop services

       6. Which type of Food do you prefer most in our hotel?

• Vegetarian Food
• Continental Food
• Non-vegetarian Food

       7. How often would you like to visit out hotel?

• Never(De Bruijne & Wijnant 2014)

       8. Which are the best things you see in our hotel?

• 2. Ambience
• 3. Services
• 4. Corporative behavior

       9. what is the most appropriate mean you use for booking room in our hotel?

• 1 Directly with the front house of the hotel
• 2 Through our hotel app
• 4 Tours and travel agency

       10. Where does u come to know about our hotel?

• 1. Travel advice portal
• 2. Online advertisement
• 3. from agent
• 4. Some other places

       11. What would be your feedback with our hotel services you availed in our hotel?

• 4. Not Satisfactory

       12. In which part of the hotel would you like to make changes in our hotel services?

• 1. Room services
• 2. Accommodation services
• 3. Tours and travel services
• 4. Bars and roof top pool services

       13. Where do you rank our hotel services provided to you in last visit?

       14. In which manner you would prefer us to connect with you?

• 1. Phone Call
• 4. via Social Network

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Task 2- Part A: Calculations and graph production (evidence for AC 3.3)

Ac 2.1 creation of information using representative values.

The sales commission of 20 employees of ALF & Sons Ltd. in £ for the month of Decemberis as follows:

Calculation of mean

Mean = Average value of the data             = £1091.7

Calculation of Median

Median = Middle value of the data             = £1129.5

Calculation of Mode

Mode = the value from the data which is having the highest frequency             = Not Applicable

Since all the values of the data are discrete and none of them is being repeated, therefore mode cannot be calculated for the sales planning commission of employees. (Garcia, 2014)

AC 2.2 Analysis of results obtained in AC 2.1 for decision making

The data related to the sales commission of twenty employees of Alf & Sons Ltd for the month of December. The mean of the data so calculated comes out to be £1091.7. This means that the average commission payable to the employees by the company is £1091.7. The median of the data so calculated comes out to be £1129.5 which means that when the values of sales commission of the employees will be arranged in ascending order the most middle value will be £1129.5. On calculation of mode it was observed that figures of sales commission of all the twenty employees are different. No value is being repeated. Since mode represents the value of sales commission that has arrived maximum number of times therefore, mode could not be ascertained for the discrete data. (Merkova, 2013)

AC 2.3 Calculation of Standard Deviation and its usefulness

The profit figures and sales for the past ten years of Alf & Sons Ltd are as follows:

Standard Deviation:  It is measure of dispersion which is used to quantify the variation or dispersion of the data values or a range of data values. When standard deviation is low it means that the data is likely to be close to the mean of the data whereas when standard deviation is high it means that the data is far away from the mean. It is useful for the analysis of the data as it is capable to measure the exact value of dispersion in the same units as the units of data is. As a result of measurement of variation, the confidence in the statistical value calculation can be achieved. The standard deviation of sales figures of the company for past ten years is 53.30 and the standard deviation of profit figures of the company is 54. 07. The high standard deviation of the profits and sales of the company suggest that the mean is wider from the data.

AC 2.4 Calculate the quartiles, percentiles and correlation coefficient of profit and sales figures

Calculation of quartiles

Calculation of Percentiles

Calculation of Correlation Coefficient

Correlation coefficient 0.878495215

Usefulness of quartiles percentiles and correlation coefficient:  The quartiles, percentiles and correlation coefficient are the measures of dispersion which are used to measure the variation and dispersion of the statistical calculations and help the analyst to gain the confidence about the results of the calculations with quantification of likely variations. The quartiles and percentiles are used to evaluate the quantitative data whereas the correlation is used to evaluate the qualitative aspects of data and operational efficiency. (Francis, 2016)

AC 3.1 Production of graphs

The profit generated by the company Alf & Sons Ltd. by making of cars in the year 2015 is as follows:

It can be observed that the company has generated maximum profits from the sale of Mercedes Benz and BMW cars whereas the sale of Range Rover and Golf cars have resulted in minimum profits out of the five cars.

It can be observed that the sales and profits are fluctuating during the period of ten years but both the lines in the same direction suggest that the increase in sales has resulted in increase of profits correspondingly for all the ten years. Although the change in the figures is not at same rate since the correlation between the two values is not perfect although positive. (Forkman, 2012)

Scatter Chart

AC 3.2 Creation of trend line in scatter graph and obtaining linear equation of the line fitted on scatter graph to forecast profit for an estimated sale of £ 400,000.

The linear equation obtained from the scatter graph representing the figures of profit and sales of past ten years of the company is as follows:

Linear Equation y = 0.891x - 74.04

Where, y represents profits of the company and x represent sales. The forecast of profit of the company at estimated sales of £ 400,000 can be made with the help of this linear equation as follows:

Profit (y) = 0.891(400) – 74.4 y = 282

These states at for the sales of £ 400,000, the company will earn profits of £ 282,000. The increase in profit is 0.7% and the change in profit is 14%. (Muntean, 2010)

AC 3.3 Preparation of Business Presentation

AC 3.4 Formal Business Report

To The Management Alf & Sons Ltd. Date – 1 st July, 2016

Subject – To provide information assisting in analysis of data to support sales promotion.

This report is based on the calculations and analysis made from the data provided by the management about the sales commission of twenty employees of the company for the month of December, profit and sales figures for the past ten years and profit generated by the company by making of five cars in the year 2015. The calculations and analysis have been made using computer generated software’s and information processing tools.

The results of the calculations show that the average commission payable by the company to its employees skills is £1091.7. The standard deviation used as the measure of dispersion for the data related to profit and sales of company during past ten years is 54 and 53 respectively which shows that the statistical calculations from the data related to these figures is likely to be in variance with the mean. There is positive correlation between profit and sales with a correlation coefficient of 0.88. Out of the five cars made by the company in the year 2015, maximum profits were earned from the making of cars Mercedes Benz and BMW whereas minimum profits were earned from Golf and Range Rover cars. The linear equation obtained from the scatter graph of [profit and sales suggest that the forecasted profit at an estimated sales of £ 400,000 is £ 282,000 which is an increase of 0.7 % as compared to the increase of sales by 14% from last year.

Conclusion and recommendations

Thus it can be concluded that the company needs to focus on increase of sales of Mercedes Benz and BMW cars while planning its sales promotional activities. Although there is positive correlation between sales and profit but the efforts shall be made to make them perfectly correlated so that the increase in sales may result in increase of corresponding profit. The average commission is £1091.7 whereas the highest sales commission is £1230 paid by the company during the month of December. Therefore efforts shall be made to motivate the employees increase their sales commission through increase of sales of cars.

Regards Consultant

Task 4: Prepare a project plan

Ac 4.1 preparation of project plan using network diagram and determination of critical path..

The business plan of the company to Alf & Sons to launch a new car part includes the following series of activities:

The network diagram of the given series of activities is as follows:

The various paths of the project as contained in network diagram are as follows:

Critical Path

The path of the project which has the highest duration is known as the critical path regardless of whether it has a float or not. It is used to determine the minimum time possible for the completion of the project. It is used for the determination of project plan and its presentation in the form of diagram.

AC 4.2 Calculation of NPV and IRR. Reporting on the financial viability of project options and advising on which option to channel the investment.

The company Alf & sons Ltd has to options for its investment as part of launch of new car part. The company has obtained two quotes for the options viz. ABC system has initial cost of equipment and installation of £1 million and XYZ solutions Ltd having initial cost of equipment and installation of £1.5 million. The cost of capital of company is 5%. The projected cash flows of the two options from new production line are as follows:

• Net Present Value:  It refers to as the difference between present value of Cash inflows and present value of cash outflows for a project in which the present value ions discounted cash flow at the cost of capital which is the discounting rate for the project. The project having a positive NPV is considered as profitable whereas the project having negative NPV is considered as loss making project. It is a method or tool used to evaluate the financial efficiency of a project.
• Internal Rate of Return:  It is the rate of return at which the present value of cash inflows of a project is equal to the present value of cash flows other words this rate is the rate which makes the Net Present Value of a project equals to zero if the cash inflows and cash outflows are discounted at this rate to calculate the Net Present Value. Outflows of a project. It is used in capital budgeting decisions to evaluate the profitability of projects having investment potential. The return so calculated is based on the consideration of cash flows only and the environmental factors and other factors affecting the projects are ignored. It is also known as Economic Rate of Return (ERR) because of this reason. (Enrique, 2011)
• Financial viability of project:  The net present values of both the projects are positive which means that the projects are capable of generating the cash inflows higher than the cash outflows during the five years. The Internal Rate of Return for the project to be done by ABC systems is 25% and the internal rate of return of project of XYZ Solutions is 15%. Since the projects have higher internal rate of returns therefore both the projects have the potential for generating high returns for the new production line to be launched by the company. Thus, it can be concluded that the project is financially viable since the net present value under both the options is positive and the internal rate of return under both the options is higher than the cost of capital.
• Decision:  The higher the Net Present Value, the better is the project and similarly the option of project with higher Internal Rate of Return shall be selected. The net present value of ABC systems is higher than the net present value of XYZ Solutions by £203,080. Therefore on the basis of NPV method Option A is better. Similarly the Internal Rate of Return of Option A is higher than Option B by 10%; therefore Option A is better on the basis of internal Rate of Return. Thus the company Alf & sons is advised to undertake Option A which is quotations received from ABC Systems. Also the initial investment is less in Option A under which cost of equipment and installations quoted by ABC systems is £ 1.5 million. (Canco, 2014)

Get Complete Solution From Best Locus Assignment Experts.

Business strategy is concerned with long term decision. It is mostly taken by top level department. Usually these decisions are non-structured in nature. Business strategy is critical in nature and highly dependent upon the information collected from various concerned fields I have  studied all the information  given in this Assignment on Business Decision Making and this has helped me very much in order to come with the conclusion that business strategy is the key pillar in performance of organization’s activities.

Canco, I. 2014, "THE IMPACT OF THE DECISION-MAKING METHOD IN BUSINESS ACHIEVEMENTS", European Scientific Journal,  vol. 10, no. 7, pp. 37. De Bruijne, M. & Wijnant, A. 2014, "Improving Response Rates and Questionnaire Design for Mobile Web Surveys", Public Opinion Quarterly,  vol. 78, no. 4, pp. 951-962. Enrique Benjamín Franklin Fincowsky 2011, "Business making decisions",  Contabilidad y Negocios : Revista del Departamento Académico de Ciencias Administrativas,  vol. 6, no. 11, pp. 113-120. Forkmann, S., Wang, D., Henneberg, S.C., Naudé, P. & Sutcliffe, A. 2012, "Strategic decision making in business relationships: A dyadic agent-based simulation approach", Industrial Marketing Management,  vol. 41, no. 5, pp. 816. Francis, R.D., Murfey, G. & eBook Library (EBL) 2016, Global business ethics: responsible decision making in an international context,  Kogan Page Limited, London;Philadelphia; García-Peñalvo, F.J. & Conde, M.Á. 2014, "Using informal learning for business decision making and knowledge management",  Journal of Business Research,  vol. 67, no. 5, pp. 686-691. Merková, M., Drábek, J. & Jela?i?, D. 2013, "Application of Risk Analysis in Business Investment Decision-Making", Drvna industrija,  vol. 64, no. 4, pp. 313-322. MUNTEAN, C. & MUNTEAN, M. 2010, "Multicriterial Methods used in Expert Systems for Business Decision Making",  Informatica Economica Journal,  vol. 14, no. 3, pp. 199-205. Olsen, W. 2012;2011;,  Data collection: key debates and methods in social research,  SAGE Publications, Thousand Oaks, CA.

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A Message From the Assistant Director of Content Development 

The Purdue OWL® is committed to supporting  students, instructors, and writers by offering a wide range of resources that are developed and revised with them in mind. To do this, the OWL team is always exploring possibilties for a better design, allowing accessibility and user experience to guide our process. As the OWL undergoes some changes, we welcome your feedback and suggestions by email at any time.

Please don't hesitate to contact us via our contact page  if you have any questions or comments.

All the best,

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