208-Decision making models Flashcards
What are strategic decisions?
long-term and will affect the direction the business takes. These decisions will affect the entire business and will be made by the owners or senior management
What are operational decisions?
The day-to-day decisions made in a business. Lower level decisions and tend to be short-term and have little risk. Do not need to be as careful thought and planning that strategic and tactical decisions. Many decisions on this level are routine and can be taken fairly quickly.
What are tactical decisions?
usually carried out by middle management. tend to be short to medium term. Also tend to be more flexible - if it is failing to meet its objectives then it can be changed.
Explain the importance of decision-making to a business
-Can solve problems for a business
-No certainty it will lead to the best outcome
-some external factors that cannot be controlled will affect the success
What is cost benefit analysis?
Private costs and benefits as well as public costs and benefits
What does the upper right section of the node mean for CPA?
Earliest start time
what does the bottoms left part of the node mean for CPA?
Latest finish time
