busn exam 2 Flashcards
2.1
6 steps of decisin making process
problem identification
data collection
solution generation
solution test
solution selection
solution implementation
problem identification
Define the problem as clearly and precisely as possible. Example: Customer is unhappy with a purchase and
wants to return it after the 30-day return policy expired.
data collection
Gather problem-related data, including who, what, where, when, why, and how. Be sure to gather facts, not rumors or opinions about the problem. Example: Gather details on problem with
product and customer.
solution generation
Detail every solution possible, including ideas that seem farfetched. Example: Allow the return, do not allow the
return, or offer to switch the product for a new one.
solution test
Evaluate solutions in terms of feasibility (can it be completed?), suitability (is it a permanent or a temporary fix?), and
acceptability (can all participants form a consensus?).
solution selection
Select the solution that best solves the problem and meets the needs of the business. Example: Allow the customer
to return the product.
Solution Implementation:
Implementation: If the solution solves the problem, then the decisions made were correct. If not, then the decisions were
incorrect and the process begins again.
managers develop overall business strategies, goals and objectives as part of the company’s strategic plan (what level is this)
Strategic (unstructured decision)
Employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt
to, and leverage change
managerial level (semistructured decision)
Employees develop, control, and maintain core
business activities required to run the day-to-day
operations
operational level (structured )
Employees develop, control, and maintain core
business activities required to run the day-to-day
operations
operational decision
these concerns hoe the organization should achieve the goals and objectives by its strategy. they are usually the responsibility of mid-level management.
managerial decisions
transaction processing system
Operational and structured
decision support system
managerial and semi-structured
