Effective Decision Making: Analysis of Business Issues and Solutions

This report delves into the crucial role of effective decision-making in business management, emphasizing its significance in achieving organizational goals. Focusing on Apple Inc., the report identifies key business issues such as communication barriers and a lack of managerial skills. It explores the importance of obtaining relevant information for decision-making, analyzes the advantages and disadvantages of existing approaches, and proposes recommendations for improvement. Furthermore, the report outlines a communication plan for overseeing new decision-making approaches and develops measures to evaluate the effectiveness of decision-making processes. The analysis covers various aspects, including the impact of globalization, uncertainty, and risk mitigation on decision-making, ultimately providing insights into enhancing the decision-making capabilities of the company.

Effective Decision
Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Review several business issues where decisions are required..........................................1
1.2 Review the information for business issues where decisions are needed........................3
TASK 2............................................................................................................................................5
2.1 Process for obtaining business issues and identify the advantages and disadvantages of
existing approach ...................................................................................................................5
2.2 Take decisions which are based upon information...........................................................8
2.3 Recommendations to improve decision making process .................................................8
TASK 3............................................................................................................................................9
3.1 Communication plan for oversee new approaches of decision making...........................9
3.2 Develop measures to evaluate the effectiveness of decision making ............................12
CONCLUSION..............................................................................................................................13

INTRODUCTION
Decision making is an imperative part of business management; it can be seem as
primary function within organisations. In order to achieve goals and objectives of the firm, it is
essential for managers to take effective decisions. It plays an eminent role in order to manage
working activities and operations. Along with this, decisions can be refereed as course of action
that are chosen from various alternatives for accomplishment of company's vision and mission.
Furthermore, decision making a continuous process; it is a crucial elements which assists in
managing working activities. Organisational decision are made up in order to sustain business
functions. Managers of commercial entities make various determinations, i.e. for improving
performance level of staff members, providing training and development sessions to employees,
hiring new people etc. Some decisions can be changed on the demand of situation whereas some
decisions cannot be modified (Allen and et. al., 2012). The present report is based upon Apple
Inc., it is the largest multinational technology company which develops or design electronic
services and computer software. These are the famous products of the company, such as- I
Phone, iPad, iPod and Mac personal computer. Apple was founded in 1977 and its headquarter is
in California. It serve its products and services in all over the world; the annual sales revenue of
the firm is US$215.639 billion. Apart from this, the report will be describe several business
issues where effective decisions must be taken. The document states that decision makers have to
obtain relevant information so as to resolve business issues in an effective manner. Readers will
also come to know that how to improve the decision making process of the company. There will
be explained a plan for oversee new approaches of decision making. The assignment also
enlighten some measures so as to take effective decisions.
TASK 1
1.1 Review several business issues where decisions are required
In this competitive environment, there are various issues and problems that are being
faced decision makers. These problems not only affected firm productivity even it creates
negative working environment at workplace. As a multinational firm, Apple is continuously
facing several changes due changes in external environment (Anderson and et. al., 2015).
Decision makers have to identify certain solutions which can address these barriers. They also
affect the vision and mission of refereed business organisation. Business can be generated from
changes in employees' as well as customers demands, new entrants, competitors. In addition,
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corporate issues are also affected on resources and brand image of the company through which
its financial position also goes down. There is described certain common problems and issues of
business entities :-
 Due to uncertainty in global environment, managers are faced many problems. There are
certain laws and legislations are also affected decision making process of the company.
On the other hand, uncertainty can be related with market competitors, new technologies,
customers perceptions, employees' detainment etc. The bottom line is that uncertainty
which leads short terms issues (Arnold and Boggs, 2015).
 Another issue is globalisation which bear on long term planning of companies.
Recognising foreign cultural is must for decision makers but it needs strong leaders who
can penetrate new markets with their existing products and services.
 Lack of communication in staff member is also a major issue. It states that managers have
to make an interaction with their employees so as to make effective decisions. If this
would not be done then, it will generate misunderstanding and further many issues within
workers.
 Further major challenge for business organisations is assessing and mitigating risks
involving financial and human capital. Sometimes it is too difficult for managers to
determine future risk and those factors which will affect their organisational performance
and productivity in target market (Baron and Brown, 2012). Lack of managerial and leadership skills is also another issue of business entities. Such
employees cannot gives high contribution in growth and success of company.
Below mentioned two major issues of Apple which is being faced by it: -
Communication barrier – Lack of communication is one of the main reason which
generates issues and misunderstanding among staff members. If employees of Apple will not be
interact with each other then they cannot share their ideas and thoughts. In a multinational
business entity, there are cultural people are worked, all of them have different languages, values
and beliefs. In term of customers, if a firm is not communicated with its target customers then it
cannot understand their needs and wants in systematic manner. Healthy public relations are the
necessity of growth and survival in global environment. Apple is served its services in all overall
the world, it has many multinational customers. But due to long distance, it is not capable to
know buyers' desires and wants; this might be reduces company's sales and profits. Customers
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and employees, both are the main stakeholders of the company (Beach and Lipshitz, 2017). If
such people are not included in decision making process of Apple. With this, employees would
not retain for long term period within organisation and customers will also tend towards another
firms.
Lack of managerial and leadership skills – In order to gain high competitive advantages,
multinational firms are not fully focused on training and development assistance of their staff
members. With this, employees are not capable to produce in well being mannered. This would
also reduces growth and success of the firm because it is not capable to produce effectively. In
past years, Apple was faced the same problem, it didn't have active managers and leaders who
can guide other people. On the other hand, due to flexible working environment staff members
also do not give proper concentration towards learning assistance. Without proper direction,
workers are aimless; in other words they does know why they are working. Lack of leadership
skills also affect employees productivity, it can also leads frustration among people.
There are various types of stakeholders of the company, such as – customers, suppliers,
creditors, Employees and senior managers wants that their directors will provide them healthy
and positive working where they can performed in effective manner (Bolman and Deal 2017).
Higher authorities have to involve all of their stakeholders in decision making process of the
company so as to make better conclusion in order to get growth and survival in target market.
1.2 Review the information for business issues where decisions are needed
While making any kind of decision, it is essential for managers to identify certain issues
and problems which will affect their business organisation. In this context, they need to analyse
future market situations as well as those factors which can influence decision making process of
the company. There are some areas in which decision makers have to show their concerns.
Below mentioned two areas or issues of Apple for which Apple needs to make strong
conclusions: -
Communication issues – Good and strong communication is the key of getting succeed
in target market. It is also liable for high level of productivity. Conversely, bad communication
has an adverse effect on commercial entities, it leads confusions and creates misunderstandings
at workplace. Poor communication also reduces productivity as well as employees' performance
(Byrnes, 2013). In order to accomplish as task or an activity; employees need to interact with
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each other so as to resolve work related issues. Whereas, pathetic communication can also leads
breakdowns in production level. Apart from this, it also generate low morale of employees
because they are not rewarded by their senior employers or leaders. Not recognising the tasks
properly is also create confusion at workplace; this will impact on self esteem or prestige of
workers. It results, employees cannot perform working tasks and activities in sustainable manner.
Beside this, poor communication also increases conflicts and disputes in staff members, cause
with this a wrong news can be spread in overall organisation. For example- if managers
implement certain instruction at workplace and due to lack of proper communication, such
information will not be spread in working environment in proper manner. With this, employees
get wrong information and then it generates conflicts and misunderstanding in the refereed
business entity.
Therefore, it can be said that communication issue put a huge impact on advancement
and prosperity of business organisation. It leads many other problems, customer dissatisfaction,
employees' retaining and low sales revenue. In customers perspectives, poor communication can
also generate the problem of high customers dissatisfaction because if workers will not
communicate with each other then they are not capable to determine market trends and
customers requirements (Chai, Liu and Ngai, 2013). In addition, if company will not able to
fulfil buyers needs and wants it cannot achieve its goals and objectives from target market.
Beside this, if employees have poor communication skills then they will not understand their
roles and duties. So that, the chances of mistakes could be increased during production. Hence,
communication issue at Apple also affect its manufacturing process; it would also reduce market
share and profits of the company by affect its decision making process.
Lack of managerial and leadership skills – By reviewing all issues and problems, lack
of managerial and leadership skills is also taken as major barrier of business organisations. Poor
management is generated from huge bridges between strategy creation and its execution. It
occurs when managers have to ability to render direction and training to their staff members.
With this, employees morale and organisational cultural also suffers. It results negative financial
results so that Apple is not capable to achieve its goals and objectives in a given time frame.
Every company needs such persons who can committed towards their job roles as well as vision
of the firm in order to optimise sales and production. Some pathetic leaders cannot inspire
workers for gaining best outcomes (Cunningham and et. al., 20141). A long run cultural of
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inappropriate leadership perpetuates over a firm at all levels. If an organisation has unskilled and
unqualified managers then it also inhibits the evolvement of synergy. Furthermore, only effective
employers can coordinate all working activities; they are also liable to promote positive
environment which can motivate employees as they can discuss ideas. Therefore, it can be said
that due to lack of managerial skills managers cannot manage their teams. It results, subordinates
are also started to neglect working activities in order to achieve departmental objectives.
However, poor management generates high employee turnover because of ineffective
management company requires to hire new employees. There is needed a lot of money to recruit
people from different sources (Desimone, 2011). Along with this, new employees also wants
training and development to understand job roles and responsibilities in an adequate manner.
This might be decrease the profitability of Apple.
TASK 2
2.1 Process for obtaining business issues and identify the advantages and disadvantages of
existing approach
Every business entity is facing various types of business issues and problems which can
influence their work performance and productivity. The multinational commercial entity Apple is
facing many issues, i.e. communication barrier, lack of managerial skills in staff members,
government laws and regulations etc. Such obstacles not only affected business growth, even
though it also influence working operations with which companies are not capable to accomplish
their aims and targets. Hence, it is necessary for decision makers to adopt a process through
which they can identify business problem and issues in an effective manner ( Vercellis, 2011). It
will be helpful for managers to get relevant information about business difficulties. There is
described a process with which managers can easily determine all issues at workplace, which is
stated is under:
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Illustration 1: Problem solving plan

(Source: Problem Solving Method of Decision Making, 2017)
 Identify the business problem – In order to identify the main reason behind all these
issues managers need to develop a process. They have to recognise those areas where
problems are arises. This will be assistive in addressing workplace issues as soon as
possible (Doyle, Lennox and Bell, 2013). In addition, it is very indispensable for them to
be reached of the curve of customers expectations. As sooner the problems are
recognised, as quicker the action plan can be developed in order to resolve all barriers. Understand everyone's interest – It is a critical step of problem solving. Managers
requires to know the interest of all employees and stakeholders in order to make effective
decisions. As the can best satisfaction employees' get as more they can perform well. In
order to understand people's interest decision makers have to listen them very carefully.
For this purpose, they can also conduct group meetings, conferences etc. so as to go
closer from all stakeholders. With this, employers can get needs and expectations of their
employees. List of the possible solutions – After recognising everyone's interests and choices
managers have to determine all possible solutions in order to resolve specific problems
and issues. In this perspective, various activities are created, data and information is also
gathered to find out relevant solution (Drucker, 2017). Managers can also conduct
internal and external analysis so as to take best possible solutions. Evaluate the option – After recognising all alternatives, managers have to evaluate their
strength and weaknesses. This can be done through monitoring their benefits, costs and
utility whether or not they are able to give best outcomes in resolution of a problem. Select an appropriate option - In this stage, managers have to chose an appropriate or
suitable solutions for business problems. It is selected by between all other alternatives
which is able to give maximum level of satisfaction in certain time of periods. Effective
solutions are helpful in providing best results to Apple in short span of time. Make a decision and align responsibilities – After selecting a befitting option,
employers have to decide a course of action. The longer put off in deciding makes higher
costs as well as large the influence. Therefore, the selection option should be able to deal
with 80% problems quickly. In addition, set a deadline in order to make decisions and
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stick it at workplace. Apart from this, managers need to align all responsibilities so as to
carry out the the alternative methods (Ferrell and Fraedrich, 2015). If roles and
responsibilities will be not assigned then a firm cannot achieve its goals and objectives
towards business issues.
 Implement and monitor the solution – At last, the overall plan is regulated in business
organisations and it helps managers to remove barriers or obstacles in short time period.
Beside this, it is crucial for decision makers to monitor the progress of plan so as to gain
better results.
Decision makers of Apple are endorsed a problem solving approach. For which they
create and execute a plan which is defined as above. Every approach has its own merits and
demerits. So that decision makers have to examine them in order to get out from barriers in a
certain time period: -
Advantages and disadvantages of problem solving approach: -
ADVANTAGES DISADVANTAGES
Problem solving skills are assistive in giving
greater output because there is large number of
people are involved in this process. If all of
them will be worked very effectively then the
refereed company can get higher level of
production (Gigerenzer and Gaissmaier, 2011).
Problem solving plan is developed so as to
initiate all workers to work in a group. It
generate competition among all people that can
drain as well as destruct the creativeness of
human energy of workers.
It creates cross fertilisation because in problem
solving process employees are interacted with
their managers. Where they can give new and
attractive ideas which are really helpful for
growth and vitality of a firm.
Managers are conducted meetings or group
discussions in order to resolve business
problems. Some problem takes a lot of time in
removing. Through which decision makers
cannot focuses on the main goal and objective
of their company.
It diminish biases by classifying roles and
responsibilities among different people. If
there in no involvement of managers in
It is very slow process and also required those
people who can committed with company with
long term period (Hunink and et. al., 2014).
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employees' work. Then it reduces group
pressures so as workers can fulfil their tasks
effectively.
Due to dynamic nature, workers also don't
prefer to work at one place for a long term
period.
2.2 Take decisions which are based upon information
Apple is facing two major issues, such as -
 Improper communication
 Lack of managerial and leadership skills in employees
In order to remove all these barriers, higher authorities have to make effective decisions
so as to deal with these problems. In this context, the firm has taken a decision towards first
major issue, i.e. improper communication. As per the above information that is gained by
research, it is founded that communication barriers also effect business decisions as well as its
performance in an adequate manner. For this purpose, they are decided to make an effective
communication plan in which all employees can share their ideas and thoughts with each other. It
generates new innovations at workplace with which Apple can easily gain high market growth
and success in target market. It will be help them to clarify business goals and objectives because
the decision of implementing communication plan will be worked as road map for a company
(Jansen and et. al., 2011). Apart from this, it is also assistive in improving relationship between
managers with their subordinates. With the assistance of effective planning, decision makers will
found the various ways of get succeed in global environment. It also
2.3 Recommendations to improve decision making process
In order to grow and diversify in target market, managers have to take effective decisions
which can boost up their working operations and activities. For this purpose, it is suggested to
the managing director of Apple to hire some experts and specialist who have great experience in
this particular field. Beside, managers also need to emphasis on providing training and
development to all employees who will be involved in this process (Stadtler, 2015). This can
improve their skills and knowledge towards internal and external market. It is essential to boost
up the effectiveness of decision making process, managers need to examine global environment
and future challenges which will impact on Apple' performance and productivity in target
market.
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On the other hand, decision makers should be determined major business problems and
issues and make an effective action plan in order to remove all internal and external barriers. For
example- the major problem of the refereed business entity is lack of communication within
managers and their employees. In this perspective an adequate communication plan is developed
therefore, all of them can share their ideas and issues with each other (Légaré and Witteman,
2013).
Another issue that is facing by company is lack of managerial and leadership skills
among staff members. For this purpose, managers need to take an effective business decision
regrading proper implement of training and development assistance of employees. If a firm has
well qualified and skilled workers then it can easily gain high market growth and vitality from
target market. Effective training and development sessions will be also assistive in gaining high
competitive advantages from target market by encouraging and motivating employees'.
TASK 3
3.1 Communication plan for oversee new approaches of decision making
As per above information, communication is one of the major issue for business entities.
So that company have to made an effective communication plan in which all employees can
easily interact with their senior managers. The plan is also executed as workers will discuss and
share their ideas and issue. Below mentioned communication plan of Apple so as to identify new
approaches of decision making: -
 Statement of purpose – Firstly managers have to identify the reason for which they are
implementing a communication plan. It will be helpful in accomplish organisational goals
and objectives (Levin and Nolan, 2013). The plan can be related with engaged with
stakeholders so as to know their perceptions towards company.
 Situational analysis – Communication strategy should outline the where and why a
company operates and what are its prime functions. It will be helpful for them in order to
chose an appropriate approach of decision making. There are various tools can be used by
decision makers, such as- PEST analysis, SWOT analysis, competitors analysis etc.
PEST analysis is used so as to examine all external factors whereas SWOT is usage for
monitoring all internal factors.
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 In third stage, decision makers need to set communication objectives which reflect
overall business entity. Such visions and missions should link with communication plan
and deliver key messages which a company wants to convey.
 Determine stakeholders – In this section, decision makers should identify all those people
who will have put a direct and indirect impact on decision making process. Apple has
several stakeholders, i.e. customers, employees, creditors, politicians etc. Therefore,
determination of stakeholders' needs and wants will be helpful in taking effective
decisions so as to resolve all problems and issues (Lunenburg, 2011).
 Afterwards, managers have to underpin the message which they want to deliver target
audiences. Messages should be relevant with all decisions as well as appropriate for all
people. For this purpose, firm can be used different types of communication methods, i.e.
workshops, seminars, press release, leaflet and certain events.
 At last, the overall communication plan is implemented within a business entity. It
indicates all communication activities, allocated resources and budget so as to deliver
strategies. Whenever a communication strategy is regulated, managers have to timely
monitor its progress whether or not all decisions are taken in suitable manner.
Above mentioned overall communication plan will be helpful for managers. It helps
managers to take effective and important business decisions. In this competitive era, business
entities have to make effective and innovative decisions so as to compete with external rivals
(McAfee, Brynjolfsson and Davenport, 2012). In order to make appropriate decisions Apple is
used various approaches through which it can also analyse the factors which can affect
company's performance. In order to take best decisions regarding communication plan, higher
authorities have to use decision making approaches Below mentioned different approaches of
decision making process that are accessible in making imperative conclusions towards any
problems:- Behavioural approach of decision making - It assumes that decision makers have to
operate in a specific bounded rationality. Beside this, behavioural approach is also called
as descriptive approach, which describes that decision makes does not have proper
knowledge about business problems and issues. They also does not have specific
resources so as manipulate an exhaustive research in order to find out appropriate
solutions for problems. The behavioural approach model is based upon satisfying and
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