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understanding business > decision making > Flashcards

decision making Flashcards

1
Q

what are the three types of decision in business?

A
  • strategic
  • tactical
  • operational
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2
Q

what are the four features of strategic decisions?

A
  • concerns the overall goals of the organisation
  • long term
  • made by senior managers
  • usually involves high risk
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3
Q

what are the four features of tactical decisions?

A
  • made to achieve the strategic objectives
  • medium term
  • made by middle managers
  • medium risk
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4
Q

what are the five features of operational decisions?

A
  • day-to day-decisions
  • short term
  • made to ensure smooth running of the business
  • made by junior managers
  • little or no risk
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5
Q

what are six ways of measuring the success of a decision?

A
  • research customer’s opinions using surveys
  • gather feedback from staff at meetings
  • assess the situation to see if a problem has been solved
  • compare profits/sales figures to see the impact of the decision
  • review the number/level of complaints made
  • customer reviews/press coverage
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6
Q

what is centralised decision making?

A

when most decisions are taken by senior managers or the head office

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7
Q

what are the advantages of centralised decision making?

A
  • decisions are made by the most experienced people
  • decisions are made more quickly
  • lead to greater uniformity within the organisation
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8
Q

what are the disadvantages of centralised decision making?

A
  • staff demotivated from lack of input in decisions
  • central team slower to respond to local changes in market
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9
Q

what is decentralised decision making?

A

when each department within the organisation has the authority to make their own decisions

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10
Q

what are the advantages of decentralised decision making?

A
  • staff motivated by opportunity to make decisions and be creative
  • local teams can respond quickly to changes in local market
  • can provide better level of customer service
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11
Q

what are the disadvantages of decentralised decision making?

A
  • decisions are made by less experienced people
  • local decisions may be inconsistent with overall strategy
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12
Q

what are the seven roles of a manager?

A
  • plan
  • organise
  • command
  • co-ordinate
  • control
  • delegate
  • motivate
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13
Q

plan

A

preparing for the future and creating action points

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14
Q

organise

A

having resources ready and putting plan into action

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15
Q

command

A

ensuring employees are working

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16
Q

co-ordinate

A

making sure all departments work together to achieve the end goal or objective

17
Q

control

A

checking the effectiveness and efficiency of the proposed plan

18
Q

delegate

A

entrusting a task or responsibility to another member of staff

19
Q

motivate

A

encouraging staff to give their best

20
Q

what are the advantages of good decision making?

A
  • increased productivity
  • increased profits
  • growth of the business
21
Q

what are the disadvanatges of bad decision making?

A
  • employees lose motivation
  • production is disrupted
  • increase in customer complaints
22
Q

what are the three main factors that can impact decision making?

A
  • finance
  • human resources
  • technology
23
Q

how can finance impact decision making?

A
  • may not be finance available to the business to make the decisions they would like to
  • for example a business may wish to invest in new machinery to increase production but they do not have enough capital to allow them to do this
24
Q

how can human resources impact decision making?

A
  • the staff involved in implementing the decision need to be willing to cooperate and work with the decision for it to be successful
  • senior managers may not agree with the decisions
  • existing company policy may restrict the decisions a manger is allowed to make
25
Q

what can the quality of decisions made by managers be impacted by?

A
  • their skills and expertise
  • the amount and quality of information they have available
26
Q

how can technology impact decision making?

A
  • lack of the correct equipment or technology may restrict the decision-making process
27
Q

what are two other factors that decision making may be impacted by?

A
  • amount of time available to make the decision
  • external pressures such as exchange rates and economic stability
28
Q

what does SWOT stand for?

A
  • strengths
  • weaknesses
  • opportunities
  • threats
29
Q

what is a SWOT analysis?

A

a managerial decision making tool used to identify a firm’s internal strengths and weaknesses, as well as external threats and opportunities

30
Q

what are strengths?

A

areas that the company is performing well in or is good at such as having a strong brand image or a good corporate culture

31
Q

what are weaknesses?

A

areas that the company is not doing well in or is performing poorly at, such as lack of investment in new technology or a poorly performing product

32
Q

what are opportunities?

A

things that could happen outwith the business to help them grow or become more profitable such as the chance to take over a competitor or a boom in the economy

33
Q

what are threats?

A

external factors that could prevent a business from meeting its goals, for example a new competitor entering the market, a rise in interest rates or a possible recession

34
Q

what are three other things that a SWOT analysis allows a business to do?

A
  • see areas where they could improve
  • where they can plan for future eventualities
  • highlight opportunities for future developments

understanding business (16 decks)

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