DECISION MAKING

Zetal Electronics Company: Decision Making

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Zetal Electronics Company: Decision Making

Theoretical Background

An autocratic style of decision making continues to be prevalent within the entrepreneur and sole proprietorship ranks of management. Historically, this management style has the ability to respond quickly in many crisis decision events. Results of this research may provide some insight into the use of individual crisis decision making that could ultimately benefit business practitioners. The results and questions presented in the dissertation are applicable to both individuals and business practitioners in crisis. Researchers posited that individuals typically do not change decision making processes between the home and the office. Business decision making applies to an intelligence gathering process that includes environmental scanning as an outside stimulus towards decisions. SWOT analysis, along with risk analysis, should be a continuous process for arriving at strategic decisions within the organization. The SWOT process is important to any crisis decision making from an organizational viewpoint. The SWOT method serves as the source of cognitive decisions of diverse individuals within an organization. SWOT analysis becomes more critical in the current information age where strategic information floods daily consciousness to the point of overload. Many elements of the risk analysis processes can transfer to individual environments and smaller organizations.

Methods to structure and analyze a complex decision problem

Practical

The first and most convenient method to structure a decision at corporate level is by ensuring that it is the most practical method to follow. In the context of the case study, the most practical decision to make would be to move to Option 2, that is, SutonLand because of the reason that the railway system as well as the roads in Almeria are not as developed which means business processes would not be managed too easily and the company would have to incur additional costs on the transportation of goods to and from the country. However, it is also of note here that the labor in the country is very cheap and easily available.

Evaluative

The second method to make a complex decision is to evaluate the options and consider all possibilities before deciding. Again, in the context of the case study, it is wiser to consider this method of decision making because there are two options available to the company, both with their pros and cons. The company should see which option is better and consider the overall benefits of both options as compared to the evident risks.

Non-mathematical

If a non mathematical approach is used to evaluate both the options then the company would not be able to consider the numbers that come into play. When a decision this big is being made, it is not wise to use a non mathematical approach because numbers matter. There are huge costs and revenues associated with the decision so, a mathematical approach is much preferred.

Multidisciplinary

According to most risk managers, the best option to choose is a multidisciplinary approach to decision making which keeps in mind the numbers associated with the decision as well as other factors which may be political, ...