Analytical Thinking and Decision Making

Analytical Thinking and
Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1 .......................................................................................................................................1
Discussing the importance of decision making and application of decision analysis............1
QUESTION 2 ..................................................................................................................................3
Decision problem with multiple objectives............................................................................3
Question 3........................................................................................................................................5
SMART simple-multi-attribute rating technique for UK Steel..............................................5
Question 4......................................................................................................................................13
Strengths and weaknesses of SMART analysis....................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Decision making is a process which collects all the information and assess it to the
alternatives which helps to solve the business issues and problems effectively. In respect to this
the report covers the aspects of decision making process and also application of decision-analysis
in regards to UK Steel. The problems of reducing profitability is also assessed in regards to UK
Steel. The SMART which is a simple multi-attribute rating technique is also describes in this
report for solving the problem of reducing profits. The application of decision-analysis by
decision makers and analysts is also covered in this report. Finally, the report will discuss the
strengths and weaknesses of the analysis towards the decision making in Sainsburry.
Question 1
Discussing the importance of decision making and application of decision analysis
Decision making is so much important for UK Steel in order to face the various
challenges and difficulties in business operations and other activities effectively. Managers use
the decision making for solving the business issues and problems. Decision making helps both
small and large organisation to solve their issues from which they can increase their profitability
and production. Decisions are normally based on forming a judgement which related to the
numerous factor (Baykasoğlu and Gölcük, 2015). These factors also affect the final results
produced from decisions. Decision making is all about analysing the factors and application of
effective knowledge to collect the information which helps to solve the business issues and
problems. Decision making includes defining the problem, identification of alternatives and
objectives, examining the consequences and finally applying the appropriate solution for the
problem.
Decision making is a critical process that the decision made by managers in UK Steel can
affect all the essential elements of organisation such as resources, management, implementation
of strategies and plans and other prioritization effectively and efficiently. Thus, it can be justify
that 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 aspects
take place within the market which enables every organisation to examine the aspects and
different options to select the best one effectively. Decision making is influenced by such factors
uncertainty, risk, different stakeholders, complex structure and various objectives. Thus, the
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decision making process is very complex which changes according to the future requirements
and situations. It is necessary for the decision makers who implement the policies and strategies
that they should evaluate all the factors with the help of their own experience and knowledge to
select the best to find effective results. Decision can be effective with the size and geographical
presence of the firm. Thus, decision making will help both management and organisation in
terms of raising profits and production with available resources. The best solution for the
problems 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 decision
makers sometimes find difficulties and feel overwhelmed in comprehending with the
complexities assessed with it (Churchland and Kiani, 2016). Decision makers are human beings
that the capacity of their minds for analysing the information is limited. Thus, managers at given
diversity and complexity level try to simply the issues which whelps towards the proper
management in UK Steel. The managers use different decision-analysis techniques to solve the
complex problems and issues. Analytical thinking and decision-analysis helps managers to to
develop a highly structured framework which helps to clarify the situations effectively and
efficiently. A well structured approach will help managers to break their problems in smaller
parts or sub-categories. This will help them to evaluate the problems or situation effectively and
also to find the best solution for this. Decision-analysis helps to provide a formal mechanism to
integrate with the outcomes and which will also help to produce an outlook to make the most
effective solution (Zhu and Russell, 2014).
The use of decision-analysis helps managers in UK Steel towards effective thinking for
forming and selecting the best action. The decision makers should analyse the possible outcomes
that decision-analysis is based on various techniques which does not assure the effective
solutions but helps to measure the possible solution with the help of evidences. Decision-analysis
also helps managers to manage the resources and information for effective decision making
towards the solution (Claxton, Owen and Sadler-Smith, 2015). They are able to measure the
different factors such as complex structure, stakeholders, objectives, risks and uncertainties with
the help of decision-analysis. Thus, it will help them to make an effective solution for the
problems and issues.
There are so many techniques available for managers in order to reduce or solve the UK
Steel problems and issues such as AHP, SMART, Even Swaps, Decision tree, Macbeth and
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