Relevant Information for Decision Making

Relevant Information for Decision Making

Introduction

According to Luecy (2003) decision making is an important activity that is performed by all the organizations either for a short time period or for a long time period. In order to perform decision making activity regarding any future activity in the organization, it is important that all the relevant information is available so that correct decision is made. Similarly Kentucky Fried Chicken recently has decided to launch a new product along with their chicken product. The management has decided to launch burger along with their main product of fried chicken product. The management in order to ensure that whether their decision is correct or not need to gather and analyses all the relevant information, so that the organization should decide on whether to launch the new product or not.

Discussion

According to Porter and Norton (2010) it is very important that the information provided to the decision makers has three things: 1) relevance- that is all the information should only be related to the launch of a new product and no irrelevant information is required, 2) reliability- means that information should be collected from authentic sources so that correct decisions can be made; and 3) variability- means that information should be collected from variety of relevant sources for example customers, suppliers, market and etc. so that nothing is left to be considered while making a future decision.

According to Bhimani (et al., 2008) in order to make a decision there certain important things that need to be considered. In case of Kentucky Fried Chicken, the decision to launch a new product will be made by collecting information and estimating the cost of the product, it will also need to decide the selling price at which the product will be sold in the market, projections in ...