1.4 Decision Making

• What is the primary goal of decision-making?

  Solve a problem
• Organizational culture is an example of an internal factor influencing decision-making.
• Economic trends are part of external factors influencing decision-making.
• Match the decision-making factor with its description:

  Organizational Culture ↔️ Values and norms within the company

  Management Style ↔️ Autocratic, democratic, or laissez-faire

  Market Conditions ↔️ Consumer demand and competition

  Technological Changes ↔️ Innovations impacting production
• What is the purpose of decision-making techniques?

  Ensure a systematic approach
• A cost-benefit analysis only considers monetary factors.

  False
• A decision tree graphically maps out possible outcomes and probabilities.
• What does SWOT analysis evaluate?

  Strengths, weaknesses, opportunities, threats
• Steps in the decision-making process:

  1️⃣ Identify the problem

  2️⃣ Generate potential solutions

  3️⃣ Evaluate the pros and cons

  4️⃣ Choose the best option
• Understanding internal and external factors helps in making well-informed decisions.
• What is one limitation of cost-benefit analysis?

  Ignores non-monetary factors
• A decision tree visualizes potential decisions and their outcomes.
• Why is SWOT analysis considered subjective?

  Relies on personal assessments
• Match the decision-making technique with its key feature:

  Cost-Benefit Analysis ↔️ Compares total costs and benefits

  Decision Tree ↔️ Graphically maps outcomes

  SWOT Analysis ↔️ Evaluates strengths and threats

  Brainstorming ↔️ Generates ideas without criticism
• What does a cost-benefit analysis compare?

  Costs and benefits
• A decision tree maps out possible outcomes and their probabilities
• SWOT analysis relies on objective data to evaluate factors.

  False
• What is a primary advantage of brainstorming?

  Fosters creativity
• The Delphi Technique leverages specialized knowledge
• What is the first phase of the decision-making process?

  Problem identification
• Order the phases of the decision-making process:

  1️⃣ Problem Identification

  2️⃣ Information Gathering

  3️⃣ Generating Alternatives

  4️⃣ Evaluation

  5️⃣ Decision Selection

  6️⃣ Implementation

  7️⃣ Monitoring and Evaluation
• Which decision-making techniques are commonly used in strategic planning?

  SWOT, Cost-Benefit, Decision Trees
• Effective decision-making is crucial for strategic planning.
• What does cost-benefit analysis ensure in strategic decisions?

  Economic viability
• Match the strategic decision with the appropriate decision-making technique:

  Market Entry ↔️ SWOT Analysis

  Mergers ↔️ Cost-Benefit Analysis

  Major Investments ↔️ Decision Trees