1 / 21

Higher Business Management

Higher Business Management. Unit 1 Learning Outcome 3 Decision-making in Business. The Nature of Decisions. What to produce? Where to locate? Methods of production? How many employees? What price to charge?. Types of Decisions. Strategic - the long-term aims of the business

emerald-orr
Télécharger la présentation

Higher Business Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Higher Business Management Unit 1 Learning Outcome 3 Decision-making in Business BM Unit 1 - LO3

  2. The Nature of Decisions • What to produce? • Where to locate? • Methods of production? • How many employees? • What price to charge? BM Unit 1 - LO3

  3. Types of Decisions • Strategic - the long-term aims of the business • Tactical - setting out the objectives; more short-term; how to achieve the strategic aims • Operational - day-to-day decisions on how to achieve the objectives BM Unit 1 - LO3

  4. Review/Evaluation/Alteration REVIEW EVALUATE ALTER There must be a continuous process of review in order to respond to change. Take, for example, how airlines across the world reacted after the terrorist attacks on America. BM Unit 1 - LO3

  5. Who Makes the Decisions? Strategic • Owner/senior management Tactical • As above ormiddle management Operational • Junior management, section heads or even individual workers BM Unit 1 - LO3

  6. Mission Statements • A written summary of the strategic aims of an organisation. Well publicised and available to all stakeholders. • Often used in marketing the company’s products or services, eg Body Shop. BM Unit 1 - LO3

  7. The Role of Managers • Get things done through other people • Get things done by using the firm’s resources • Controls and supervises activities in the organisation • Makes decisions about running the organisation • Oversees the work of subordinates • Oversees the work of department/s • Is accountable to, and carries out the wishes of, the owner(s) of the organisation BM Unit 1 - LO3

  8. Functions of Management • Plans • Organises • Commands • Co-ordinates • Controls • Delegates • Motivates BM Unit 1 - LO3

  9. The GROUP View of Management • Management has conflicting GOALS • Managers are held responsible for RESULTS • Managers work in ORGANISATIONS • Managers must cope with UNCERTAINTY • Managers work with and through PEOPLE BM Unit 1 - LO3

  10. Why Make Decisions? • To achieve the long-term aims of the owners • To carry out roles and functions • To be able to give clear instructions • To give directions and purpose to employees • To compare actual performance with objectives • To judge the success or failure of previous decisions • To guide into decisions for the future • To modify existing decisions BM Unit 1 - LO3

  11. Structured Decision-making Model - “POGADSCIE” • Identify the PROBLEM • Identify the OBJECTIVES • GATHER information • ANALYSE information • DEVISE alternative solutions • SELECT from alternative solutions • COMMUNICATE the decision • IMPLEMENT the decision • EVALUATE BM Unit 1 - LO3

  12. Making a Decision Apply the “POGADSCIE” model to choosing a new digital laptop computer for the staff in your firm. BM Unit 1 - LO3

  13. IT and Decision-making • Huge storage capacity • Vast amounts of information from the internet • Sophisticated software for processing information • Reporting and presentation packages (PowerPoint) • Improved efficiency and lower costs (less time to find information) • Problem of ‘too much’ information? BM Unit 1 - LO3

  14. SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats BM Unit 1 - LO3

  15. Internal Factors Strengths THE FIRM Weaknesses BM Unit 1 - LO3

  16. External Factors Opportunities THE FIRM Threats BM Unit 1 - LO3

  17. A SWOT Grid Internal Strengths Weaknesses Present External Opportunities Threats Future BM Unit 1 - LO3

  18. Problems of Using a Structured Model • The time scale required • The ability to collect all the information • Generating alternative solutions • Lack of creativity BM Unit 1 - LO3

  19. Benefits of Using a Structured Model • The time scale required • The quality/quantity of the information you have • The availability of alternative solutions • Enhances innovation and responsiveness BM Unit 1 - LO3

  20. Aids to Decision-making Brainstorming • This be a very useful way to generate and create ideas Pest Analysis • Political, economic, social and cultural external constraints on decision-making (you could add the environment here) • NB Pest and Swot often used together to identify opportunities and threats BM Unit 1 - LO3

  21. Factors Affecting the Quality of Decisions • Quality and quantity of information used • Training of staff in decision-making • Risk-taking • The human element BM Unit 1 - LO3

More Related