making strategic decisions Flashcards
what are programmed decisions?
these are familiar and routine decisions for which there are established ruled or procedures
non programmed decisions are…
unfamiliar and less structured decisions that require unique solutions
define scientific decision making
this is a logical, rational approach to decision making based on data
what is intuition/hunch?
knowing or sensing what needs to be done which is not based on any form of analysis
what is information management?
the way in which the process of collecting the information needed by a business and circulating it to the appropriate people is managed to aid decision making
what are decision trees?
a mathematical model which can be used by managers to help them make the right decision
what is a risk?
a chance that you take within the business which can either improve the business if it carry’s out, or could be a negative affect if it doesn’t
what is a reward?
if a risk goes the right way and improves the business, the improvements are the reward of taking the risk
what is a benefit of scientific decision making?
decisions are based on comparisons between alternative approaches which provides a clear sense of direction
what is a disadvantage of using a scientific decision approach?
a scientific approach is expensive and time consuming
what are the 5 influences on corporate decision making?
- the mission of the organisation
- objectives
- ethical positions
- resource constraints
- the external environment
what’s opportunity cost?
the cost of doing something expressed in terms of the next best alternative which could have been chosen but had been given up e.g. buying an ipad instead of going on holiday, the holiday is the opportunity cost of the ipad
