Importance of Effective Decision Making for Business Success

Executive summary
Decision making for any business is highly imperative for the success of the business. Managers
are often put into situations where they need to make effective decisions for the success of the
firm. In order to achieve the same, managers must adopt a strategically effective decision making
process. DVD renting business Blockbuster was approached by Netflix for a collaborative deal in
1990. However, the former rejected the offer without much thought considering the small size of
Netflix. Today Netflix is valued at over $20 billion dollars while the latter filed for bankruptcy in
2010. This report highlights the importance of decision making as well as the reasons behind
why certain managers make poor decisions.

Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................1
Importance of decision making.......................................................................................................1
Decision making process.................................................................................................................2
Strategies for improving decision making.......................................................................................4
Why do managers take wrong decisions?........................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6