strategic decisions and scientific decison making Flashcards
explain why scientific decision making tools appropriate when makinf stratefic decisions
Strategic decisions are long term and will affect the direction the business takes. They
affect the whole business and will be made by owners or senior management. They are
often complex, require large financial commitment and may create major organisational
change.
Scientific decision-making tools are based on logic, quantitative data and evidence and
should reduce the risk of failure. The process considers alternative options and so a full
analysis is made before making any decisions.
Therefore, as strategic decisions carry a much higher level of risk, it would be better to use
scientific decision-making tools so that the risk is minimised and the outcome is more likely
to be favourable and successful.
A comparison as to why intuitive decision-making tools would be less appropriate for
strategic decisions may be given instead as valid analysis.
