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DECISION MAKING SKILLS

A 1 Porter 's five forces

Michael Porter in his famous idea of the Five Forces condenses his theory regarding the 5 separate forces , which , according to him influence any given industry . These forces include the force of Rivalry rampant between all the firms in the industry . Threat of substitutes is another force i .e . the threat posed by outside products which do not belong to the same industry as the product it tends to threaten . Buyer Power Barriers

is another which , if high , can even set the price for things available in the market . The next one is the Supplier Power which , if high , can even bite of a good chunk of the manufacturers profit by simply supplying raw materials at a higher price . The last one is the Barriers to Entry , which is the principle key in the hands of the old firms to keep new firms from entering the market

Porter 's five forces train you to scrutinize these 5 important forces before taking decisions pertaining to strategies your firm might be keen to pursue . Porter is quick to provide antidotes to deal with each of the force he so carefully describes . To combat either of the forces he outlines 3 different types of strategies the corporate level strategy the business unit level strategy and the functional or departmental level strategy . These strategies ought to be utilized for successfully confronting and overpowering the problems posed by any of the 5 forces he outlines (Fletcher , 2005

2 Knowledge management system (KMS

The KMS or Knowledge Management System is an information technology based system used to manage knowledge in various organizations . It is usually a part of a Knowledge Management program , although it is generally neither indispensable nor adequate for the success of such a program . The KMS is used to assist the creation of information , later it is also used to acquire , store and circulate the same

The KMS plays a crucial role in the decision making process of a firm since it 's functions are directed at making all the organization 's factual documents to its employees . Thanks to the KMS every individual employed in the firm can have an access to all the sources of information as well as the key solutions that the firm uses for its operations or for some specific project . Now , the use of such a system is dependant on exactly how the firm is organized and whether every member of the staff is equally involved in the firm 's functions (or a given project ) or not

The use of a KMS has often been advocated based on its capacity to distribute important organizational information amongst the staff members . While some think this is an advantage , others tend to disagree The parties who support the system argue that such transparency within the organization can help work to be completed promptly and thereby prevent the repetition of jobs . Avoiding such repetitiveness , they...

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