The Application of Decision-analysis : Report
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Added on 2020-07-22
The Application of Decision-analysis : Report
Added on 2020-07-22
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Analytical Thinking andDecision Making
Table of ContentsINTRODUCTION...........................................................................................................................1Question 1 .......................................................................................................................................1Discussing the importance of decision making and application of decision analysis............1QUESTION 2 ..................................................................................................................................3Decision problem with multiple objectives............................................................................3Question 3........................................................................................................................................5SMART simple-multi-attribute rating technique for UK Steel..............................................5Question 4......................................................................................................................................13Strengths and weaknesses of SMART analysis....................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16
INTRODUCTIONDecision making is a process which collects all the information and assess it to thealternatives which helps to solve the business issues and problems effectively. In respect to thisthe report covers the aspects of decision making process and also application of decision-analysisin regards to UK Steel. The problems of reducing profitability is also assessed in regards to UKSteel. The SMART which is a simple multi-attribute rating technique is also describes in thisreport for solving the problem of reducing profits. The application of decision-analysis bydecision makers and analysts is also covered in this report. Finally, the report will discuss thestrengths and weaknesses of the analysis towards the decision making in Sainsburry.Question 1 Discussing the importance of decision making and application of decision analysisDecision making is so much important for UK Steel in order to face the variouschallenges and difficulties in business operations and other activities effectively. Managers usethe decision making for solving the business issues and problems. Decision making helps bothsmall and large organisation to solve their issues from which they can increase their profitabilityand production. Decisions are normally based on forming a judgement which related to thenumerous factor (Baykasoğlu and Gölcük, 2015). These factors also affect the final resultsproduced from decisions. Decision making is all about analysing the factors and application ofeffective knowledge to collect the information which helps to solve the business issues andproblems. Decision making includes defining the problem, identification of alternatives andobjectives, examining the consequences and finally applying the appropriate solution for theproblem.Decision making is a critical process that the decision made by managers in UK Steel canaffect all the essential elements of organisation such as resources, management, implementationof strategies and plans and other prioritization effectively and efficiently. Thus, it can be justifythat decisions made by the managers affect all the aspects and elements within the firm (Brewer,Sorensen and Stout, 2014).The world of business is uncertain that there are so many unexpected changes and aspectstake place within the market which enables every organisation to examine the aspects anddifferent options to select the best one effectively. Decision making is influenced by such factorsuncertainty, risk, different stakeholders, complex structure and various objectives. Thus, the1
decision making process is very complex which changes according to the future requirementsand situations. It is necessary for the decision makers who implement the policies and strategiesthat they should evaluate all the factors with the help of their own experience and knowledge toselect the best to find effective results. Decision can be effective with the size and geographicalpresence of the firm. Thus, decision making will help both management and organisation interms of raising profits and production with available resources. The best solution for theproblems will reduce the chances of uncertainties and the wrong decisions may lead to failure.In the market segmentation, due to the regular changes and volatile market the decisionmakers sometimes find difficulties and feel overwhelmed in comprehending with thecomplexities assessed with it (Churchland and Kiani, 2016). Decision makers are human beingsthat the capacity of their minds for analysing the information is limited. Thus, managers at givendiversity and complexity level try to simply the issues which whelps towards the propermanagement in UK Steel. The managers use different decision-analysis techniques to solve thecomplex problems and issues. Analytical thinking and decision-analysis helps managers to todevelop a highly structured framework which helps to clarify the situations effectively andefficiently. A well structured approach will help managers to break their problems in smallerparts or sub-categories. This will help them to evaluate the problems or situation effectively andalso to find the best solution for this. Decision-analysis helps to provide a formal mechanism tointegrate with the outcomes and which will also help to produce an outlook to make the mosteffective solution (Zhu and Russell, 2014).The use of decision-analysis helps managers in UK Steel towards effective thinking forforming and selecting the best action. The decision makers should analyse the possible outcomesthat decision-analysis is based on various techniques which does not assure the effectivesolutions but helps to measure the possible solution with the help of evidences. Decision-analysisalso helps managers to manage the resources and information for effective decision makingtowards the solution (Claxton, Owen and Sadler-Smith, 2015). They are able to measure thedifferent factors such as complex structure, stakeholders, objectives, risks and uncertainties withthe help of decision-analysis. Thus, it will help them to make an effective solution for theproblems and issues.There are so many techniques available for managers in order to reduce or solve the UKSteel problems and issues such as AHP, SMART, Even Swaps, Decision tree, Macbeth and2
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