BS2- Decision Making

Question 1

Define a strategic decision

Answer 1

Made in order to meet the objective of the business (long term)

Question 2

Define a tactical decision

Answer 2

The shorter term steps taken to help achieve the strategy.

Question 3

Define an operational decision.

Answer 3

Operational decisions are specific business decisions made every day within every business.

Question 4

Why is making good decisions important for a business?

Answer 4

The more good decisions a business makes then more successful they will be leading to a more profitable company.

Question 5

List 5 decision making tools that a business could use:

Answer 5

Ansofts matrix 
Decision trees 
Critical path analysis 
Swot diagram 
Decision matrix

Question 6

What is ansoff matrix?

Answer 6

A marketing planning model that helps a business determine its product and market strategy
Consists of market development, market penetration, product development and diversification.

Question 7

What are the four possible strategies of growth identified in the ansoff matrix.

Answer 7

Consists of market development, market penetration, product development and diversification.

Question 8

Define market penetration

Answer 8

Where the firm try’s to sell more of the existing product in its existing market.

Question 9

Define market development

Answer 9

Selling the existing product in a new market.

Question 10

Define product development

Answer 10

Changes are made to an existing product but then still sold in the same market

Question 11

Diversification

Answer 11

This is selling a new product in a new market