Business Decision Making

Business Decision Making

Before any decision can be made in any organization , a whole process of decision making is carried out . Even in our daily lives we incur many problems , to solve these problems some decision making is required . In businesses many decisions are made everyday , some are taken by the owners of the business , while others are taken by the employees , and these decisions are more repetitive in nature . There is a basic decision making process which consists of a few steps

Define and clarify the issue - does it warrant action

? If so , now ? Is the matter urgent , important or both

Gather all the facts and understand their causes

Think about or brainstorm possible options and solutions

Consider and compare the pros and cons of each option - consult if necessary - it probably will be

Select the best option - avoid vagueness or 'foot in both camps compromise

Explain your decision to those involved and affected , and follow up to ensure proper and effective implementation ( HYPERLINK "http /www .businessballs .com /problemsolving .htm http /www .businessballs .com /problemsolving .htm

Mobile phones were introduced in the market as a new invention , but today they have taken over the market . Each and every company comes up with new and improved versions of mobile phones . They have more and more technology in a small hand held phone you can go online , play games receive and send messages , take pictures and make videos , listen to music , save documents and a lot more . There is more and more competition in this ever growing market . When a cellular phone company needs to take a decision they have to keep many factors in mind and go through the decision making process . There are graphs involved , many statistics are prepared to look at the options available and help in forming the final decision

Pareto analysis is a very simple technique that helps you to choose the most effective changes to make . It uses the Pareto principle - the idea that by doing 20 of work you can generate 80 of the advantage of doing the entire job . Pareto analysis is a formal technique for finding the changes that will give the biggest benefits . It is useful where many possible courses of action are competing for your attention

To use it

List the problems you face , or the options you have available

Group options where they are facets of the same larger problem

Apply an appropriate score to each group

Work on the group with the highest score

Pareto analysis not only shows you the most important problem to solve it also gives you a score showing how severe the problem is HYPERLINK "http /www .mindtools .com /pages /article /newTED_01 .htm http /www .mindtools .com /pages /article /newTED_01 .htm

Another tool which helps in decision making is the paired comparison analysis it helps you to work out the importance of a number of options relative to each other . It is particularly useful where you do not have objective data to base this...