Business Decisions: Steps, Models and Criteria

Running head: BUSINESS DECISIONS
Business Decisions
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BUSINESS DECISIONS
Introduction
The smooth running of the business requires the ability to make the good decisions. If
any wrong decision is made it can affect the working of the whole company. It is necessary for
the owners of the business to understand the pros and cons of each of the decisions before
accepting the same and make sure that they continuously improvise in the decision-making
skills of decision-making. The initial step of the decision making process is to first identify the
idea and gather relevant information of the same, next is to understand the alternatives and
their results along with evidences. The decision-making final step is to take the action and its
consequences. The main assumption is the decision making process is to anticipate that it will
be fruitful and result in the maximum yield (Block et al. 2016). The development of the business
is based on the sound decision-making and it arises from the collective decisions taken by the
staffs and the management. The different kinds of programs, policies and the strategies are
converted into actions through the process of decision-making.
Effective and Successful decisions make profit to the business. Therefore, the corporate
process of making decision is a process in any business, which is critical. However, at times due
to lack in proper managerial leadership and corruption in the organization unethical decision-
making may take place. Due to this the organization may face distress and suffer a financial loss
(Ferrell and Fraedrich 2015).
In the decision making process, a single course of action from a set of alternatives are
chosen. The various Decision Making steps Process are as follows:
Step 1: Purpose of identification that deals with the following questions

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BUSINESS DECISIONS
 identification of the various problem
 need for solving the problem
 parties who are ia part of decision making process and its execution
 Analyzing the time of execution of the decision.
Step 2: gathering of Information
In the process, it is to obtain as much as knowledge related to the factors and involved
stakeholders in the problem (Heyler et al. 2016).
Step 3: Alternatives principles
The step deals with the judgment of the alternatives should be set. When it comes to the
criteria of defining, business goals as well as the corporate culture should considered (Vahlne
and Johanson 2017).
Step 4: analyzing the choices
Here, the best option is to list down all the ideas . Prior to the idea generation step, it is
Important to understand the problem and the prioritization of causes.
Step 5: Evaluation of alternatives
Decision-making step is to evaluate each alternative. In this step, experience and effectiveness
of the judgment principles come into play.
Step 6: Select the best alternative

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BUSINESS DECISIONS
After analyzing the Step 1 to Step 5, the selection of the best alternative is selected.
Step 7: decision execution
Implementations of the idea into action
Step 8: Evaluate the results
It is to verify the success of the process
The five main decision making criteria are as follows:
1. The purpose of the decision: In these criteria, the main reason for taking the decision is
pointed out along with the pros and cons of the same.
2. Ethics: Decision-making that is Ethical refers to the method of assesing and selecting among
the choices consistently with ethical principles. It is a very important component in the making
the decisions, it is important to eliminate and perceive alternatives that are unethical and select
the ethical choices (Meyer-Zehnder et al.2017).
The making decisions process that is ethical requires:
Commitment: The need to do the appropriate execution irrespective of the cost
Consciousness: It refers to the awareness for acting consistently and apply convictions that re
moral to regular behavior
Competency: The process of collecting and evaluating the information, development of
alternatives, and anticipate the potential risks and consequences (Kocet and Herlihy 2014)