The Importance of Decision Making in Business

This assignment emphasizes the significance of decision-making in achieving business success. It argues that well-informed decisions guide firms towards profitability and market expansion. The text delves into multi-criteria decision-making techniques used for supplier evaluation and selection, illustrating their application in various contexts like acute stroke imaging software platform selection. References to books, journals, and online sources support the discussion.

Analytical Thinking
and Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1 .......................................................................................................................................1
The value of decision analysis in an organisation ......................................................................1
Question 2 .......................................................................................................................................2
Challenges facing by iResearch .................................................................................................2
Question 3........................................................................................................................................3
Decision analysis and an appropriate decision tree ....................................................................3
Question 4 .......................................................................................................................................5
Most suitable approach for iResearch and recommendation for the managers .........................5
Question 5 .....................................................................................................................................6
Strength and weaknesses of analysis in terms of decision problem ...........................................6
Question 6 .......................................................................................................................................6
The influence of probability estimates and uncertainty within the decision making process ....6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Decision making is the most essential term in every business organisation and this can be
described as an ability to take decisions by most senior authority or executives in order to grow
business and gain success in the organisation. ACME system is an most popular international
organisation who deals in production equipments and services and provide them to the
manufacturing industry in terms of gaining growth and success (Agarwal and et. al., 2011).
With the integration of various software application into business functions has become more
valuable in multiple firms and ACME's has expand its business activities at very large scale.
With the expansion of business ACME's has started to serve globally and offer variety of goods
and services to customers.
Question 1
The value of decision analysis in an organisation
Decision analysis can be describes as the discipline which comprising the theory,
philosophy, professional practices and methodology that are necessary to point out the most
essential decisions in a formal or well planned manner. It is a combination of various tools,
procedures, methods that are important for identifying, representing and assessing essential
component of decision. Each organisation is focused on enhancing their performance through the
process of effective decision making, it plays most important role in business and it also
considered as the primary function of firm. iResearch is a famous design organisation who deals
in development of software application that are important for production and engineering
management firms. It is necessary for each business organisation is to take an effective decision
after measuring all elements of firm in order to gaining profit and growth. iResearch is taking an
essential decision for putting their significant efforts on managing the project which is proposed
by ACME. An effective decision making process helps in generating high profit and growth for
company, it create value of firm at market place. It has huge importance in firm or its betterment
in future, some are describes as under: Better utilisation of resources: Resources can be considered as the fundamental need of
firm, which are essential for each firm in order to attaining high range of profit and
revenue (Sandeep, Kumanan and Vinodh, 2011). Companies resources has involved
various elements such as money, men, methods. Machines, material and market. As a
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designing firm iResearch needs to implement all resources into proper action for gaining
growth and success for firm. According to the instruction from ACME the application
software could be developed through a mobile plate form or wed based plate form.
 Facing problem and challenges: Issues and problems are uncertain in nature, they can
arise at any situation. In an organisation problems may arises due to adopting challenges
and it is required for firm to resolve them in efficient manner. It is not easy for iResearch
to doing work through web system or mobile plate form, so they needs to implement their
skills and ability to use application software and tools.
Question 2
Challenges facing by iResearch
The basic purpose of each business organisation is to expand their business or its
activities at very wide scale in order to gaining profit and revenue for companies future growth
and success (Chai, Liu and Ngai, 2013). There are so many challenges that are faced by
iResearch for developing an effective software application as per the proposal of ACME, some
issues are describes as follows: Cost: This is the major issue which is faced by iResearch, the company has some concern
over the project and whether a proposal should be submitted. As a designing firm
iResearch is competing through an individual rival firm for the work, there is fifty- fifty
chance of getting any kind of award after completion of contract. As per the specification
which is given by ACME that the application software could be developed by web based
or mobile based platform. It is very cost consuming process to select the most suitable
method for moving foreword towards a right direction so that application software can be
implement in most efficient manner. The engineers of company highlight both mobile
and web based platform which are associated by their own costs. The development cost
of web based package is £24,000. the cost of mobile platform was low as compared to
web based cost due to less demanding, and the cost was £19000.
 Selection of platform: The major issue which is faced by iResearch is the selection of
platform among mobile or web based platform. The selection is based on the approval of
engineers of ACME. The engineers of iResearch are also concerned about that, they are
not able to implement an effective working package.
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Question 3
Decision analysis and an appropriate decision tree
A decision analysis can be considered as the systematic, visual and quantitative approach
which are helpful in evaluating and addressing essential choices that are confronted by business
organisations. Decision analysis emphasizes a variety of tools and techniques in order to measure
all relevant data and information that are effective aid in the process of decision making. A
possible solutions and graphical representation of alternatives or uncertainties or challenges can
be generated on influence digram or decision tree (Churilov and et. al., 2013). In software
development, it is a very first point where alternatives are essential, it can be describes as the part
where proposal are defined. The team of proposal not feel tempted to perform any alternatives
analysis, the reason behind this is customers are already asks for different solutions, a specific
technology, architecture and specific plate form. In the present case study of iResearch the
engineers are more tempted on selecting an specific platform in order to completing their work
in most effective and efficient manner.
Decision tree
A decision tree can be described as the support tools which are uses a tree like model or
graph of decision and their possible outcome and consequences involving chance event,
outcomes, utility and resource cost. Decision tree is a most effective tool in each business who
are implementing various activities in order to generating high growth and profit. A decision tree
can be measured as a graphical representation of possible solution to a decision which are based
on some particular condition (Tzeng and Huang, 2011). It is required for each organisation to
maintain an effective decision tree in order to developing most efficient solution to the given
problem and work could be done in most efficient direction.
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(Source: Decision Tree, 2017)
It is the major responsibility of organisation and its higher authority to manage budget because
all business activities are based on available capital and funds of firm. Make a proper
arrangement of funds and capital because this may directly impacted on organisational overall
performance. As a designing firm iResearch needs a high cost and capital in order to implement
all business activities in proper direction so that desired goals and objectives can be attained in
well planned manner. Organisation is mainly focused on implementing an effective time scale so
that work has to be categorised as per their need or priority, it is easy for firm's engineers is to
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Illustration 1: Decision Tree

perform in most significant manner so that they can develop an effective application software
through applying significant tools and platforms.
Question 4
Most suitable approach for iResearch and recommendation for the managers
Rollback method plays most essential role in data base technologies, it can be considered
as an operation which provide a specific returns to some previous state of data. Roll-backs are
essential for database integrity because according to an organisation the database can be resorted
to a clean copy even after erroneous activities and operations are performed (Hwang and Masud,
2012). For the completion of project the engineers of iResearch present four possible software's
that are helpful in doing the work in most appropriate manner. These are describes as under:
Software A: It is the first package, in this engineers are very much certain that through this
software they are able ton develop a suitable software application with the use of mobile or web
based platform. This software could be adapted by iResearch in order to completion of ACME
project. The development cost of A software is £145,000.
Software B: This has lower development cost, in this the success of both platform are also low.
The cost incured in this software is £80,000. in the case of web based platform there is only 65
percent chance of success and in the case of mobile platform there is only 45 percent chance of
success.
Software C: This can associated with higher cost of £102,000 in development. In this both the
situation of web based or mobile platform there is only 75 percent chance of success and it is
ensure that software will work without any issue.
Software D: This is the final software, it has £92,000 of development cost. The engineer of
iResearch estimate that using the web based platform there is only 45 percent chance of success
and in the condition of mobile platform there is only 65 percent chance of success.
In the above mention software's software A is most suitable which needs to adopted by
iResearch in order to developing the application software without any issue and obstacles. In this
engineers are more sure about that the application could be implement in effective manner (Martı
and Herrera, 2012).
It is the responsibility of manager is to keep an eye on each activity that are held in firm.
Manager needs to select the most appropriate software and tool in respect of completing whole
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work in right direction. It is essential for manager is to make proper arrangement of funds and
capital to performing all business activities and can easily purchase the software to implement
in proper action.
Question 5
Strength and weaknesses of analysis in terms of decision problem
Strengths Weakness
 Competitive and dynamic in nature.
 Software developing organisation has
diversified range of products.
 They have no factories, so that makes
them a lean organisation and less
investment (Myllyviita, Leskinen and
Seppälä, 2014).
 These companies are strong at research
and and evolve at rapid speed.
 I research can produce or develop a
program wherever they can produce at
lower prices.
 They create user friendly environment
which establishes strong team.
 Iresearch is the fastest growing company
which has strong base of active
Resellers.
 Clients in software industry has very
short time limits so if the website or
software is not developed within time
limit or duration them deal made can be
cancelled.
 There are much big companies other than
iResearch so they need to struggle more
than any other company.
 Sometimes it takes time to complete a
project as Employees are less in number.
 Due to lack of sources and knowledge or
even a minor wrong step, whole
programming can go wrong.
Question 6
The influence of probability estimates and uncertainty within the decision making process
Problems and issues are uncertain they can arise at any condition or in any situation, the
major issue which is faced by iResearch is that the engineers of company are very much
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confused in slection of most suitable software platform in order to competion of given project of
ACME. In the whole project major issue is cost, they applicatin software which are associated by
compaies engineer are very much cost effective in nature. They comparing all softwares they
select software A in respect of devloping new application software bhecause this is most
appropriate for completion of project (Rohitratana and Altmann, 2012). Decision making process
plays wide role at work place because whole activities of firm are based on selecting mosr
appropriate tool for project. There is a huge impact of decision making on each business
organisation because whole work of firm are based on effective decision that are related with
various tools and activities that are essential for organisational growth and success. The
engineers of iReserach associate four different software's which are associated on various cost,
among all this it is very much hard for them to choose the most suitable tool which helps in
developing an application software and provide support in generating high profit and revenue.
CONCLUSION
From the above report, it can be concluded that process of decision making plays the
most important role in an organisation for attaining growth and success in long run of business
activities. Each organisation follows some different decision making process to make effective
decision for the organisational growth and success. Decision making plays a significant role in
the business organisation as an effective judgement may lead firm towards right direction so that
company can easily earn huge amount of profit and growth in the market.
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REFERENCES
Books and Journals
Agarwal, P. and et. al., 2011. A review of multi-criteria decision making techniques for supplier
evaluation and selection. International journal of industrial engineering computations.
2(4). pp.801-810.
Chai, J., Liu, J. N. and Ngai, E. W., 2013. Application of decision-making techniques in supplier
selection: A systematic review of literature. Expert Systems with Applications. 40(10).
pp.3872-3885.
Churilov, L. and et. al., 2013. Multiattribute selection of acute stroke imaging software platform
for Extending the Time for Thrombolysis in Emergency Neurological Deficits
(EXTEND) clinical trial. International Journal of Stroke. 8(3). pp.204-210.
Hwang, C. L. and Masud, A. S. M., 2012. Multiple objective decision making—methods and
applications: a state-of-the-art survey (Vol. 164). Springer Science & Business Media.
Martı, L. and Herrera, F., 2012. An overview on the 2-tuple linguistic model for computing with
words in decision making: Extensions, applications and challenges. Information Sciences.
207. pp.1-18.
Myllyviita, T., Leskinen, P. and Seppälä, J., 2014. Impact of normalisation, elicitation technique
and background information on panel weighting results in life cycle assessment. The
International Journal of Life Cycle Assessment. 19(2). pp.377-386.
Rohitratana, J. and Altmann, J., 2012. Impact of pricing schemes on a market for Software-as-a-
Service and perpetual software. Future Generation Computer Systems. 28(8). pp.1328-
1339.
Sandeep, M., Kumanan, S. and Vinodh, S., 2011. Application of fuzzy SMART approach for
supplier selection. International Journal of Services and Operations Management. 9(3).
pp.365-388.
Tzeng, G. H. and Huang, J. J., 2011. Multiple attribute decision making: methods and
applications. CRC press.
Online
Akrani, G., 2011. Importance of decision. [Online]. Available through: <http://kalyan-
city.blogspot.in/2011/08/importance-of-decision-making-in.html>. [Accessed on 20th
September 2017].
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