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Unit 4.3 What Aids Decision Making?

Unit 4.3 What Aids Decision Making?. By the end of the lesson, you will understand. How information helps decision making That there are different types of information How to give examples of information helping in decision making What is a simple decision making model

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Unit 4.3 What Aids Decision Making?

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  1. Unit 4.3What Aids Decision Making? 3.4 How do businesses operate

  2. By the end of the lesson, you will understand • How information helps decision making • That there are different types of information • How to give examples of information helping in decision making • What is a simple decision making model • What are the stages in a complex decision making model 3.4 How do businesses operate

  3. How Information helps Decision Making • How will Helen decide whether to open on Sundays? • How will Asda decide whether to open a new store in Tobermory? Information used to decisions like the above must be ACCURATE and UP-TO-DATE. 3.4 How do businesses operate

  4. Informationhelps decision-making Information can be accessed from a variety of sources: • Internal computer files • www • Newspapers/Books • Letters • CD-ROM • People • TV

  5. Different Types of Information • There are 4 main types of information that you must be aware of: • Primary • Secondary • Internal • External 3.4 How do businesses operate

  6. Primary Information • This is information gathered by the organisation for a specific purpose. For example, getting feedback from staff or customers by using a survey • observing • interviewing • questionnaires • surveys 3.4 How do businesses operate

  7. Secondary Information • This is information gathered from published sources outside the organisation. It may not be used for the purpose for which it was gathered. For example, Asda may look at published population figures to decide whether to locate a new store in a particular area • Firm’s own reports • Government statistics • Libraries • Internet 3.4 How do businesses operate

  8. Internal Information • Gathered from within the organisation. For example the company sales figures for the last 3 years • final accounts • sales statistics • staff turnover • training costs 3.4 How do businesses operate

  9. External Information • Gathered from outwith the organisation. For example newspaper articles. • population census information • competitors’ company reports • buying habits of 14-18 yr olds • new employment regulations 3.4 How do businesses operate

  10. Quick Quiz Primary or Secondary? 3.4 How do businesses operate 10

  11. Internal or External 3.4 How do businesses operate 11

  12. Simple Decision Making Model Start

  13. Complex Decision Making Model(POCGADSCIE) • Identify the Problem • Identify the Objectives of the solution (what is the outcome to be) • Identify the Constraints (what problems may be encountered) • Gather information • Analyse information • Devise possible solutions • Select the best possible solution • Communicate the decision • Plan andImplement the solution (put the solution into practice) • Evaluate the effectiveness of the solution (how successful was it) Credit Only

  14. Qualities of Good Information Credit only

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