Business Decisions:Concept and Process

1. Business Decisions:Concept and Process

2. Concept of Decision Making • The Process of generating and choosing a solution is called decision making • Decision making describes the process through which a course of action is selected as the solution to a specific problem

3. Process in Decision Making • Koontz, O’Donnel and Weihrich • Four stages: • Premising-certain assumptions about the nature of critical or strategic matters regarding internal and external environment in which the decisions will be put into operation. • Identifying alternatives in terms of the goal sought • Evaluation of alternative in terms of the goal sought • Choosing of an alternative that is considered the best option to solve the problem concerned

4. Research as a Decision Support system • A decision support system automatically searches for, manipulates and summarizes information needed by managers for specific decisions. • Research is a decision support system as it searches, manipulates and summarizes information in a given context.

5. Business Research dimensions • Environmental research • Research on Functional Areas of Business • Institutional Research in the context of LPG

6. Environmental research • The research studies on these topics can probe into: • The specific factors and aspects of the particular environment • The nature and extent of impact of the environmental factors on the business • Measures by which the opportunities offered by the environment can be reaped • Means by which the threats posed by the environment can be migrated or minimized

7. Research on Functional Areas of Business • Marketing Decisions- • New product development • Pricing strategies • Distribution channel • Salesmanship • Advertising copy • Media effectiveness • Consumer Behaviors • Market segmentation • Retail marketing • B2B • Export marketing • Supply chain management’ • Marketing strategies

8. Personnel • Effectiveness of different sources of recruitment and training • Leadership-traits, style, effectiveness • Employee motivation • Morale • Absenteeism • Job satisfaction’ • Labour turnover • Welfare measures • Quality of work life • Executive excellence • Training and Development • Employee ethics

9. Financial • Primary markets • Stock markets • Mutual funds • Investor behavior and protection’ • Global capital markets • Cost of capital and capital structure • Risk-return patterns of projects • Working capital management • Credit management • Inventory management • Cash Management

10. Institutional Research in the context of LPG • Liberalisation • Financial liberalization-freeing of institutional financing agencies like commercial banks and term financial institutions from hold of governments • Tax reforms • Trade liberalization-WTO • Privatization • Globalization