The Business Management Toolkit

Question 1

Purpose of force field diagrams

Answer 1

Used to study the factors that support or promote change(driving forces) and those that oppose or resist change(restraining forces)

Question 2

Advantages of force field diagrams

Answer 2

-Easy to understand
-Helps develop better understanding of driving and restraining forces

Question 3

Disadvantages of force field diagrams

Answer 3

-Weights for qualitative factors may be unscientific or biased
-Depicting shareholders as restraining forces may cause conflict

Question 4

Purpose of decision trees

Answer 4

Used to trace the outcomes of a particular decision so that the most profitable decision can be identified

Question 5

Key elements of decision tree diagrams

Answer 5

-Decision points
-Outcomes
-Probabilities
-Expected monetary values(EV)

Question 6

Advantages of decision trees

Answer 6

-Clear visual representation
-Allows for risk consideration
-Considers all available options(even the “don’t change” one)
-May reveal unconsidered options

Question 7

Disadvantages of decision trees

Answer 7

-No qualitative factors
-Estimated values
-Prone to bias(from decision maker)