Business Decision-making Process

Study Notes

Planning Process

Planning involves setting objectives, identifying alternatives, evaluating and selecting the best course of action, and developing derivative/supportive plans.
The planning process consists of deciding the planning period, identifying alternatives, evaluating and selecting alternatives, and developing derivative/supportive plans.
Deciding the planning period involves determining the timeframe for the plan, which can range from a year to decades.

Evaluation and Selection of Alternatives

Evaluation of alternatives involves determining which course of action is most suitable for achieving goals and objectives.
This is done using quantitative techniques, operations research, and software packages.

Developing Derivative/Supportive Plans

After selecting the best plan, various derivative/supportive plans are developed to support the main plan.
These plans may include buying equipment, buying raw materials, etc.

Organizing

Organizing involves identifying and grouping activities, dividing them among individuals, and creating authority and responsibility relationships.
Organizing consists of departmentalization, linking of departments, defining authority and responsibility, and prescribing authority relationships.

Organization Structure

An organization structure shows the authority and responsibility relationships between positions in the organization.
It is a set of planned relationships between groups of related functions and between physical factors and personnel required for achieving organizational goals.
A good organization structure should be dynamic and subject to change in response to changes in the business environment.

Description

This quiz covers topics related to the evaluation and selection of alternatives in the business decision-making process. It includes aspects like using quantitative techniques, operations research methods, and software packages to assess various options.