IMOb: S7 Decision-making

What level of business does implement the decision-making process?

• Functional level

• Business level

• Corporate Level

• Entrepreneurial Level

Choose the correct order of the "classical" decision-making process.

• 1. 1. Implement the decision.

  2. Identify a business problem.

  3. Monitor the situation.

  4. Seek information about different possible decisions.

  5. Evaluate the alternatives and choose one of them.

• 1. 1. Identify a business problem.

  2. 2. Seek information about different possible decisions.

  3. 3. Evaluate the alternatives and choose one of them.

  4. 4. Implement the decision.

  5. 5. Monitor the situation

• 1. 1. Seek information about different possible decisions.

  2. 2. Monitor the situation.

  3. 3. Implement the decision.

  4. 4. Evaluate the alternatives and choose one of them.

  5. 5. Identify a business problem.

• 1. 1. Implement the decision.

  2. 2. Evaluate the alternatives and choose one of them.

  3. 3. Seek information about different possible decisions.

  4. 4. Identify a business problem.

  5. 5. Monitor the situation.

This technique is used when weighing the financial ramifications of each possible alternative to determine what makes the most sense from an economic perspective.

• Pros and cons list

• Decision tree

• Cost-benefit analysis

• Decision matrix

It is used when many people are involved in making a decision. It helps reduce an extensive list of options to a smaller group until the final decision is revealed.

• Cost-benefit analysis

• Decision matrix

• Pros and cons list

• Multiple voices

This one is a graph or model that contemplates each option and its outcomes. This technique also conducts statistical analyses

• Decision tree

• Decision matrix

• Cost-benefit analysis

• Multiple voices

Decision-makers use a T-chart to weigh the benefits and disadvantages of the options.

• Pareto analysis

• Cost-benefit analysis

• SWOT analysis

• Pros and cons list

A table is created with all the choices and factors that affect the decision. Scores are assigned and then the final score is to reveal the best pick.

• PEST/PESTLE analysis

• Decision matrix

• Decision tree

• Multiple voices

When assessing our ability to predict future events, the tendency to believe that our forecasts are better than they truly are.

• Anchoring Bias

• Availability Bias

• Confirmation Bias

• Overconfidence Bias

Individuals rely too heavily on the first piece of information they receive when making decisions, and they don't adjust their judgments enough in response to new information.

• Anchoring Bias

• Risk Aversion

• Overconfidence Bias

• Hindsight Bias

Individuals seek out information that reaffirms their past choices, and they discount information that contradicts them.

• Risk Aversion

• Escalation of Commitment

• Confirmation Bias

• Hindsight Bias