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Simple Multi-Attribute Rating Technique (pdf)

   

Added on  2021-02-19

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SMART (Simply Multi - Attribute Rating Technique)

Table of ContentsBackground..............................................................................................................................1Why decision aids are necessary.......................................................................................1Aims and objectives..................................................................................................................4The decision aid- SMART............................................................................................................5CONCLUSION...............................................................................................................................9RECOMMENDATIONS..............................................................................................................10REFERENCES............................................................................................................................12

Background Companies invest and build capacity for creating economies of scale. Companiestarget expansion into new markets by efficiently using their potentials (resources,capabilities, brand and infrastructure) and creating additional sustainable incomeopportunities. But (Ignatius, 2017, p.110) recent global movements, the election ofDonald Trump, Brexit, and the rise of ultra-right parties in Europe are all signs ofgrowing popular displeasure with the free movement of trade, capital, people, andinformation (Italics in original). Therefore, in this environment an international expansionstrategy comprises market entry strategy includes crucial choices in regard todetermination of target market and consideration of all attributes or factors includingmicro and macro that affect the selection of the country. The company needs to selectthe country prudently as failure of consideration of any important factor wouldcompromise the success (resource and capital spent) and of the strategy. Therefore,careful selection of the country is very important. XYZ’s operation strategy in Europe is to grow and invest in the business bybuilding a strong brand by 2023. Therefore, Water Ops strategy was ‘Strategy forGrowth in and Country Plans.Why decision aids are necessary There are different types of decisions which any company need to take for theirsuccessful building up of management and strategies for them. All the type of decisionwill be related with organisations as there are different problems which are faced bythem all. There are many decision aids that can be used in international expansion.Also, some other decision aids are available such as SWOT, PEST analysis, decisiontree, etc. the benefit of SWOT is by identifying opportunities and threats, expansion canbe done. The benefit of PEST is it helps in finding out factors and analysing its impact.Moreover, it provides brief description of overall market situation of country. In present situation, decision tree is suitable as it shows different alternatives. Bythis it is easy to select the best one and implement it. There are different risk and uncertainties related to international expansion. Therisk includes political, financial risk, economic risk, etc. They highly impact on expansionstrategy. The uncertainty includes entry barriers and operational obstacles. It may1

restrict organization to enter in other country. Moreover, due to this business may fail inthat country and it results in huge loss.Programmed and non-programmed decisions-This is concerned with all sort of problems which are of repetitive nature or ofregular type so for resolving them a standard procedure should be followed. While onother hand non-programmed decision is that which is related with different situation forwhich there is not easy solution.Routine and strategic decision-This will be related with general overall function of company which will not berequiring much of the evaluation or analysis. While strategic decision is termed asimportant one which affect goals and objectives of company. Effective management decision making will be based on evidence-basedapproaches from risk management, cognitive psychology, and behavioural economics.In every organisation management taking decision every day. Depending upon themanager role they are taking strategic, tactical and operational decisions. The decisionsare taken on basis of situation and its impact in future or perception of risk. Structuraldecision has clearly defined objectives and alternatives and is based in decisiontheoryand risk analysis; while unstructured decision has unclear goals, or no predeterminedand explicit set of ordered responses exists. These are those decisions which are madefor all situation which are completely clear and understood. The main reason behindchoosing structural decision making will be for organising problems and reaching out fordecisions. Each and every decisions is consisting of several primary elementmanagement objectives.In Organisational decision making if decision is not correct it can highly affect on overallbusiness operations. For this it is required an effective decision support system thatassist in taking decision (Nurmalini and Rahim, 2017). Decision Theory- This is an interdisciplinary approach which is determining whyin which decisions could be made so that uncertain decisions could be given forvariables (Sahir, Rosmawati and Minan, 2017). The theory help into bringing2

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