Ch 2 Flashcards
Managerial decision-making challenges
Analyze large amounts of information
Apply sophisticated analysis techniques
Make decisions quickly
Decision-Making Process
- Problem identification
- data collection
- Solution generation
- Solution test
- solution selection
- Solution implementation
Define the problem as clearly and precisely as posible
Problem identification
Gather problem-related data, including who,what,where,when,why, and how. Be sure to gather facts,not rumors or opinions about the problem
Data collection
Detail every solutions possible, including ideas that seem farfetched
Solution generation
Evaluate solutions in terms of feasibility, suitability, and acceptability
Solution test
Select the solution that best solves the problem and meets the need of the business
Solution selection
If the solution solves the problem, then the decisions made were correct. If not, then decisions were incorrect and the process begins again.
Solution implementation.
Employees develop, control, and maintain core business activities required to run the day-to-day operations
Operational decision making
Situations where established processes offer potential solutions
Structured decisions
Employees evaluate company operations to identify, adapt to, and leverage change
Managerial decision making
Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
Semi structured decisions
Managers develop overall strategies,goals, and objectives
Strategic decision making
Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice
Unstructured decisions
Basic business system that serves the operational level and assists in making structures decisions
Transaction processing system (TPS)
Capturing of transaction and event information using technology to process,store, and update
Online transaction processing (OLTP)
The original transaction record
Source document
Manipulation of information to create business intelligence in support of strategic decision making
Online analytical processing (OLAP)
Models information to support managers and business decision-making process
Decision-making process
Managerial support systems
- What-if analysis
- Sensitivity analysis
- Goal-seeking analysis
- Optimization analysis
Excel scenario manager
What if analysis
Excel if function
Sensitivity analysis
Excel goal seek
Goal-seeking analysis
Excel solved
Optimization analysis
