Analytical Thinking and Decision Making Report: MBA Assignment

This report, prepared for a Master of Business Administration course, focuses on the critical importance of decision-making in various business contexts. It defines decision-making as the process of selecting the best alternative from multiple options and emphasizes its role in business planning, policy implementation, and overall organizational success. The report highlights the significance of decision-making analysis, including its applications in scheduling, business growth, managerial tasks, and performance evaluation. It also explores real-world applications of decision-making analysis across diverse sectors such as energy, manufacturing, services, medical fields, and public policy. The report provides insights into how decision-making helps in selecting the best alternatives, motivating staff, and ensuring the pervasive nature of the business. The report also outlines a decision problem relating to an external organization involving multiple objectives and a clear business case. Overall, the report underscores the need for sound decision-making to maintain competitiveness and achieve success in today's dynamic business environment.

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Master of Business Administration
ANALYTICAL THINKING AND DECISION MAKING
Name of lecturer: Wong Wai Nam
Name of student: Phan Hong Nguyen Khang
Student ID: B00335508

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1. Summary of the importance of decision making and the applications of decision
making an analysis.
It is a technical report which summaries the essential decision-making process and the
applications of the decision making the analysis. Decision making is the process where you have
to choose the best out of many alternatives. (Gouveia, 2009)In any organizations which are
composed of many departments, there are many choices of other options, and it becomes difficult
to choose on which alternative to consider, and this is where decision making the chip in and
help you in selecting the best choice for the success of the organization. (Greco, 2005) The
primary purpose of this report is to improve the entrepreneurs to choose the best alternative
during their day to day business activities to ensure they do not make a loss but the profit for
their organization, which discusses the current trend in the decision analysis applications. When
making a decision, all the alternatives should be evaluated, analyze each of their advantages and
disadvantages. After you examine, all the other options choose the one with more benefits and
least drawbacks. It will help you in selecting the one which will lead to the success of your
business.
The importance of decision making analysis.
Supportive in scheduling and plans: Any plan is recognized via choice making. Shorn of
decision making, plans and policies can’t be performed. In the procedure of creation of plans,
suitable verdicts have to be made from countless alternatives. For that reason decision making is
a vital procedure which is supportive in scheduling.
Business Growth: Fast and accurate decision making marks in improved consumption of the
wealth. It aids the organization to surface new glitches and trials. Equally it helps attain
objectives. Nonetheless, incorrect, sluggish or no choices will result in fatalities and industrial
bad health.
Execution of managerial tasks: Devoid of decision making altered administrative function for
instance design, consolidating, leading, regulatory, recruitment can’t be conducted. (Hagedoorn,
1994)Consequently, we can agree that decision is chief part to implement the managerial
purpose.
Picking the finest alternatives: Decision making is the procedure of picking the top substitutes. It
is obligatory in each association since there are various alternatives. Thus decision creators
gauge different rewards and shortcomings of all substitute and first-rate the greatest alternative.
Assessment of managerial enactment: Decisions are used to evaluate managerial enactment.
Once decision is right it is assumed the leader is fit, talented and competent. When the choice is
incorrect, it is unspoken that the administrator is ineligible. Thus decision making assess many
managerial performance.
Prevalence of decision construction: decisions are created in entire managerial happenings and
in all jobs of the institute. It has to be taken wholly by staff. Short of decision making any sort of
purpose is not conceivable. Hence it is pervasive.

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Motivates Staffs: Sensible decision upshots in inspiration for the employees. This is for the
reason that the staffs are driven to implement sane choices. Once the coherent decisions are
applied the business earns high revenues. Consequently, it can offer monetary and non-monetary
doles to the workers.
It helps in the implementation of the managerial functions to an organization. Decision making
improves some administrative services such as staffing, purchasing of machines, advertising of
the products, acquiring the raw materials, management of the firm, controlling the employees
among other. All these functions could be complicated for a manager to implement without the
decision-making tool. In other words, when an employees do the work with decision making
he/she does not leave any room for doubt and mistakes as it was mostly perfect since evaluation
and analysis did before making a decision. It, therefore, satisfies that decision making is an
essential key to the implementation of the managerial functions.
The other significant factor about decision making is that it helps the management in the
evaluation of the managerial performance. Decision made by the administrative team can be used
to determine the progress of the company as it can be evaluated based on the pros and cons of the
alternative used. When a manager makes a decision, then the other team can know that the
manager is qualified, able to perform his/her task and efficient on the work. (Kier, n.d.)On the
other side when the decision is wrong, then we can judge the kind of the manager, and we may
say he/she is not eligible for the work, not qualified or inefficient for the task given and can be
replaced to get an adequate individual. Hence decision making is an essential tool in the
evaluation of the managerial performance.
The fundamental factor in decision making is that it helps in business planning and
implementation of policies. All the plans in a firm such as staffing and promotions of workers
are as a result of decision making, to motivate the workers to perform their duties well. (Lyon,
2000) During the implementation of the policies and plan making of an organization, it all
becomes possible with decision making. In any company, there are many alternatives plans
which all seem to be best for the success of the organization, but it takes the best manager who
uses decision making to choose the best alternative. Therefore, decision making is critical in
business planning and policy implementation. (Pfeiffer, 1974)
Decision making is also critical since it helps in the pervasiveness of the business. For all
managerial activities such as budget management, staffing of employees, acquiring of raw
materials, advertisement of final produced goods and service and the other functions of an
organization it requires decision making. (Salty, 1990)All staffs should be pervasive and respect
the decisions of the manager to ensure the activities of the group performed without any
difficulty arising from the involved parties. In case there is no decision-making process, then all
the events will not run as expected and the organization will fail. Hence it is pervasive.
The other key factor in decision making is that it helps to select the best alternatives. Decision
making by definition is the process of choosing the best choice from a wide range of other
options. It is, therefore, crucial for any organization to have decision making since there are
many alternatives to choose and the best choice leads to the success of the company. It is where
the decision makers evaluate all the alternatives advantages and disadvantages, cost of
implementation and the effects on the employees then they choose the best out of the many
alternatives.

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Lastly, decision making helps in successful operations of the business. In real life situation all
the individuals, department, corporations, partnerships, companies and states make decisions.
The world of the today is very competitive and for an organization or individual to remain
relevant in the market must make a sound decision. Therefore, for them to continue always
competing in the local and global market, they must make an appropriate decision which leads to
their success. (Meade, 1998)
2: Identify and outline a decision problem relating to your work or an external
organization, which involves multiple objectives. Typical examples might be choosing a
new office location, a computer system, a raw materials supplier, a software package or a
new service provider. Outlined decision problem should have a clear business case.
Decision-making analysis has various applications in the real-life situation of the business era.
This section summarizes the decision-making applications on the market situation of today's
world. It can apply in fields such as military, medical field, manufacturing, and Services
Company, energy production plants, public policy, the general market among other. Below will
describe each application, how it is applied, its pros and cons and how decision making has
helped the application.
Energy. It can classify as environmental risks, bidding and pricing, technology choice, product
and project selection, strategy and miscellaneous. Pricing and bidding where you can use three-
point discreet- distribution to approximate the probability which helps to find the worth of the
potential buyers of the products and services the company is producing. A conventional
economic market analysis shows that there many uncertainties in the market pricing which
determined by the demand and supply of goods, hence the decision making is determined to bid
and set prices of products and services. Environmental risks. (Amram, 1999)It provides with an
overview of the utilization of the decision and risk analyzing methods, health management, and
environmental preservation and economic risk management from the operation of the industrial
utility industry. They describe the nature as the financial risk, and thus decision making helps to
ensure you avoid activities which can lead to environmental degradation and avoid
environmental which affects the business negatively. Product and project selection. (Zayden,
Directions in large-scale systems)It described by the decision analysis that helps corporate to
generate and transmit their ideas which helps them in the forging ahead of the business success.
This idea helps innovation as the individuals of the company can come up with the ways to solve
issues such as energy blackout, sales marketing among other projects which can perform by the
staffs themselves. Strategy. Most organization strategies by the use of value focused on critical
thinking to the structure and quantify the primary value of the company which is primarily for
the prosperity of the business with the context of strategic planning. The strategy is fundamental
since the decision makers can evaluate a market niche and look for ways to take advantage of the
situation in the market. Technology choice is the other important factor on the application of
decision making the analysis. It described as a multi-attribute utility which is a very crucial
factor in any industry. Technology determines the quality and quantity of products and services
produced by a specific company which is there to compete with other companies' product and
services in the global market. The decision on what technology to use is very fundamental, and
hence this should be considered keenly. Lastly, on energy, there is miscellaneous the use of

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choice analyzing to help the organization develop long-term benefits by assisting other agencies
to by balancing the expenditure while protecting its operations.
Manufacturing and services. This application can classify as finance, product planning and
miscellaneous. Financing a manufacturing company requires a lot of critical thinking since there
is a lot of cash outflow. Here you need to plan the expenditure very well to ensure the output
does not exceed the input. (Dean, 1996) The best decision here is applied to provide no loss
incurred by the organization. Product planning. It is where analytical and critical thinking is used
to plan on what product to produce, which is the most competitive product and service in the
market and decide on the best product which will have more input than the output.
Medical. The medical cover for the employees acts as a motivation to the workers which make
them feel they are cared and valued members of the organization. When the body is taking
medical cover for its workers, it should consider the cheapest cover, but inclusive of all the
insurance cover that the employees need for the treatment. They should minimize all the
expenditure for the business success and maximize the income. It only achieved by proper
evaluation of all the risks associated with staffs work, and in case of any hazardous activity, they
should avoid them to minimize the instances of injury among its employees. It can only be
arrived by proper decision making which can be applied here.
Public policy. The multi-criteria decision analysis in evaluating public policy alternatives for
allocating funds according to the importance of any organized activities. Critical federal systems
of different options having varied outcome should be implemented to reduce conflict among the
interest of municipalities. The study provided useful information concerning the relationship
between the public and the organization staffs. Hence the application of decision-making process
is the primary factor in determining the decision to make public policies. (Amram, 1999)
It is a technical report which provides summaries of choice making analysis and the importance
of decision-making process.
The problem identification analysis techniques. The problems which may associate with decision
making may occur of different approaches which may arise as a result of poor decision making.
A problem can in various forms, shapes, types, sizes and different time. In an organization
problem can be broken down of machines and vehicles, a high cost of running the organization
where the expenditure is more than the income, unable to afford specific services from a needed
individual or machine, wastage of time by the employees among other associated problems. The
other critical issues in an organization may include unable to locate a strategic location for the
offices, and the premises of the team, unavailability of raw materials, technological failure and
computers break down, unpromising new service provider among other things.
This kind of problems can be directly involved in a business or indirectly involved. The directly
involved include: natural calamities such as droughts, floods, bushfire, lightning, and
thunderstorms can be a problem to trade. These natural disasters are unavoidable, and the
business investors should avoid the areas where these natural calamities found. Environmental
issues such as pollution climatically change and emission from the industries which can lead to
the environmental degradation. (Runyan, 2006)

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Global events. Some of the global games can be a problem to a business organization such as
war and misunderstanding among countries. When countries are not in good terms, it
discourages investment in foreign countries, and even foreigners cannot come to invest in
countries at war. Political instability is the other major problem which discourages investment.
No foreign investor can invest in another country which is not politically stable since there is a
high risk of losing his/her investment through the destruction of war. (Alesina, 1996)
Technological failure. When there is a failure in technology, there is a significant risk of losing
many customers to other organizations which produce the same product, but the quality ones
since the technology applied is up to date. Most of the consumers of the products and services
prefer quality even if the prices are more hence competing with such companies will be a big
problem for this society. (Newendorp, 1975)Companies should ensure its technology well
monitored and updated every time to ensure that they do not lie in the trap of the technology
failing.
High competition in the market is another problem. It could be due to a low quality of goods or
reduced prices by your competitors. Some of the corporates can use the idea of lowering costs
for their produced goods and services to remove other companies which they produce similar
products out of the market to enjoy market economies of scale. The can also be market
competition due to the change in preference taste by the consumers and prefer the products of
your competitor.
Unsafety and healthy working conditions to the staffs. Some machines can be hazardous to the
working environment of the workers which could cause accidents and harm the faculties. The
place of location can also be unsafe to the workers such as the places where there are natural
calamities such as floods, tsunami, and earthquakes can put the lives of the workers in danger.
The security of the workers can also be a problem with some places such as theft, frauds, loss of
intellectual properties, terrorism and online security and fraud.
Some government policies and regulations may be a problem to an organization. Some of this
systems include high taxes, restriction of water supply, emission of carbon monoxide, restriction
of exports and imports, high customs duty among other government restrictions. It may
discourage investment in a country as it inhibits the investors. Other direct problems include
economic and financial crisis, the legal process such as insurance covers, non- compliance with
the regulation such as property and equipment damages among others.
There can be a problem of lack of raw materials for the production process. There is no
production activity can take place without the raw materials. In a production of sugar, for
example, cannot take place without the raw materials which are the sugarcane. Raw materials are
the key factor of any production and shortage of raw materials leads to low production of goods.
This mistake should be avoided and should rectify with immediate effects. (Gouveia, 2009)
Other problems which affect business indirectly where individuals make a mistake of
overlooking things which do not directly affect their business, and this makes them unable to
face the challenge correctly. (Hagedoorn, 1994)
3: Apply the simple multi-attribute rating technique (SMART) to the outlined decision
problem. Each stage of the analysis should be clearly defined and presented

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The simple multi-attribute technique is a technique which based on a linear additive model. It
means that the given overall value of a specific alternative which calculated the total
performance score which is the value of each criterion multiplied with the weight of that
approach.
The main steps of SMART are
Identify the decision makers(s). Many of the problems are involved, and they include a
significant number of the causes. The problem could be overspreading to all departments in an
organization. Some of these issues can be very difficult to identify and trivial. It can deal with by
identity qualified and efficient decision makers to tackle this problem on time before it becomes
worse to handle. The decision makers should provide with resources needed to address the issue.
Identify the cause of the issue. The decision makers identified should establish the cause of the
problem by evaluating the problem and digging into the matter to determine the original root of
the problem. The utility usually depends on the purpose or the context of the decision. After
learning the cause of the problem, you will have known the source of the problem.
Identify the alternatives. After you have identified the cause of the problem, you will have
several options to solve the issue. In each of your replacement, you will have to evaluate each
one of them, one by one, determining the pros and cons of each. Then analyze all of the
alternatives and summarizing their advantages and disadvantages each separately. Each option
will identify the outcomes of the possible action, and this is the data collection process.
Identify the criteria. The fundamental element to know in this step is the limit of the dimension
of value. It is achieved by restating and combining standards or can also reach by doing away
with less essential criteria. It is often not necessary to accomplish the first list of the
requirements. If the number of rules exceeds amount fifteen is considered too significant and if it
adds up to eight it still the large number. Also, if the number of criteria is too small, then it is
considered not well represented. It therefore clearly shows that there no specific number criteria
appropriate for decision making.
Assign values for each criterion. The decision made by one individual decision maker is usually
considered to be reasonably straightforward. The can be several outcomes depending on the
judgment of each decision maker, and this can be ranked. To determine the result from each
decision, we can use the Spearman's rank of a correlation coefficient. When several decision
makers come up with the same effect, we can use the repeated spearman's rank of correlation to
determine the final results.
Determine the weight of each criterion. The critical decision will be assigned value out a
hundred percent. Then after rating each measure out of a hundred assign a value which is the
number reflecting the ratio of the importance to the significant dimension. By comparing the
ratios, the new judgment is made based on the current findings on the proportions. All this we
have been doing requires a lot of comparison and estimation; we assumed all that and chose a
practical number of objectives to determine the best alternative. There will be different rating in
all individual hence uniform factor is considered to come up with the typical result where every
involved decision maker will be satisfied.

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Calculate the average weights of the values assigned to each alternative. The expected value of
all the choice determined by summing up all of them. When the decision nears to 1, the option
may be considered to be the best for an organization to choose. The variance of all alternative
should be close to one if the methods used for calculating the weights which correctly used. In
this step, we estimate the expected value and the variance of the alternatives. In some cases, if
need be we can be forced to calculate the regression of this choice, but it's a rare case to do.
Make a provisional decision. Based on the values acquired from step 7 we can make temporary
results which are not usually the actual results but the results there which are not much different
from the actual results.
Perform sensitivity analysis. In this step, you will be required to do the final report of the results
and come up with the solution. You will be required to pick the best alternative from all the other
options you have been analyzing. Here is where decision making will be applied to choose the
best choice.
Renewable Energy Placement Adoption statement problem
In spite of clear objectives of the martial to upsurge energy Freedom and competence, a typical
renewable energy resolution was expected to lead inept placement of wealth. For instance,
cosmological power system with sufficient proficiency to substitute electrical energy from petrol
generators once set up to an African desert will experience shortfalls unlike when the similar
scheme is positioned to southern latitudes in the winter months.
SMART model development
The SMART model has the benefit of adding stress to the more significant qualities whereas
lessening the importance of minor characteristics once measuring the general value of the
answer. The simple multi-attribute rating technique for renewable energy placement choices
model permits commandants to take Mission-related characteristics of energy schemes into
contemplation despite the fact at the same period, influencing in duty restrictions. As well as
picking the energy spring that is suitable for the work, SMART offers the choice maker with
vital data on likely tasks prices, conveyance necessities, and wounded.
SMART execution
Verdict creator contribution is acute to an actual feature assessment procedure. The choice maker
is the unit commanding officer with duty for determining whatever kind of gear becomes arrayed
with the warfare division.
Create mission boundaries.
It is anticipated the commander has to choose amid installing petrol generator schemes or solar
panel schemes with the battle unit. To start the procedure, the commander has to evaluate the
proposed undertaking restrictions, counting probable mission length, anticipated gasoline fee per
gallon, average day-to-day solar insolation at the positioned site. As an instance, if the
commandant has a duty to backing training processes at a permanent site in Egypt for 30 months

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where gasoline is accessible at a cost of $5.00 per gallon and the mean day-to-day solar
insolation is 7.5 kWh per day per square meter. In addition assume that at minimum 15% of the
electrical power has to be delivered by petrol generators and a tiniest of 10% of the electrical
power has to be got from renewable sources, as rapt by upper headquarters strategy makers.
Rate Energy scheme qualities.
When the task limits are fixed, the commander-in-chief has to give degree of the power scheme
qualities in terms of significance to achieving the assignment. To preserve reference, the
subsequent system characteristics are used:
Dependability: a mission necessitates a power scheme that performs to the regarded likelihood of
letdown over the stated mission period.
Obtainability: assignment entails a power scheme that is duty talented for the valued percentage
of time.
Maintainability: mission necessitates a power scheme with refurbishment competence ensuing
letdown, precautionary upkeep, exhausting on-hand apparatus and workers.
Mobility: mission necessitates a power scheme proficient of quick intermodal conveyance to
backing continuing army maneuvers thru the combat space.
Sustainability: undertaking involves a power scheme that runs deprived of resupply for at
slightest 7 days.
Flexibility: assignment needs a power scheme that maneuver in a range of environmental
situations. Survivability: job have need of a power system that offers better guard beside small
weapons, offhand volatile devices, above burst. In score the scheme qualities, the leader
commences by conveying the minimum significant feature with a value of 10. For this
illustration, movement may be the slightest chief trait as the division is positioned at an immobile
site
Dependability: 50
Obtainability: 90
Maintainability: 40
Mobility: 5
Sustainability: 60
Elasticity: 10
Survivability: 40
Although there is no boundary to how high a feature may be valued, once qualities are orders of
extent bigger than aristocracies, they incline to govern the result.
Govern usefulness of separately explanation.

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Succeeding bargain of the quality recording criterion, topic substance specialists ought to assess
each power resolution to regulate the helpfulness that it offers comparative to the measure. When
the usefulness tallies are recognized, the weighted total is set up by multiplying the usefulness
score for separately class by the regularized trait worth. Normalized attribute value is arrived at
by dividing a separate quality’s score by the amount of all quality scores. Lastly, the total of the
weighted feature scores governs the general helpfulness for separately power result:

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Attribute scoring criterion table used to set system utility values
UnacceptabAcceptableGood Ideal
Reliability <200 hours200–750 h750–1500 >1500 hour
utility scor 0 0.25 0.5 1
Availability<90% 90%–95% 95%–99% >99%
utility scor 0 0.5 0.75 1
MaintainabiDepot Base Field None
utility scor 0 0.33 0.67 1
Mobility >1 mo set 1–4 wk set1–7 day se<1 day setup
utility scor 0 0.5 0.75 1
SustainabilResupply <Resupply 5Resupply 1Resupply >20 d
utility scor 0 0.4 0.6 1
Flexibility none limited some restrino restrictions
utility scor 0 0.25 0.75 1
SurvivabilitCOTS Some ruggefull ruggedarmored
Subjective utility scores and general utility values for petrol and solar panel way out.
Petrol Weighted score Solar panel Weighted score
Dependability 700 hours
0.25
0.07 >1500 hours
1
0.25
Obtainability 95%–99%
0.75 0.25
>99%
1
0.33
Maintainability Field
0.67
0.05 Base
0.33 0.03
Mobility <1 day setup
1.00 0.04
1–4 wk. setup
0.5 0.2
Sustainability Resupply 5–10
d
0.4 0.5
Resupply >20 d
1.00
0.12
Elasticity No restriction
1 0.08 0.25 0.02
Survivability Full
ruggedizing
0.75
Total utility
0.09
0.61
Some
ruggedizing
0.50
Total utility
0.06
0.81

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In this study, SMART endorses that the commandant add a solar panel elucidation as it
delivers more usefulness for the set assignment restrictions and ranking of power system
qualities than the petrol-powered answer. The total value scores for both the petrol and solar
panel power solutions visibly give the benefit to the solar panel solution.
The method will analyze the number of power systems obligatory to content the wanted day-to-
day energy demand. This comprises the capability to make changes to the disposition plan to
account for policy limitations that may require a minimum percentage of petrol generators or
power systems that utilize renewable energy sources. Once these features are assessed, the yield
gives facts on the amount of power systems required gaining and actions costs, conveyance
requirements, and likely casualties, as shown below
1000 m squared arrays requisite to supply solar panel load 36
Total number of conveyance containers compulsory 116
Attaining cost to supply solar panel load $12,882,713
Actions and upkeep charge $966,203
Predictable total charge $13,848,917
Predictable casualties 0.19
SMART production showing information on petrol
Generator system necessities, costs, and casualties.
Petrol generators mandatory to supply electrical load 6
Total number of conveyance containers required 126
Gaining cost to supply petrol electric load $108,000
Operations and upkeep charge $14,929,920
Estimated total charge $15,037,920
Projected casualties 0.20
4 Strength and limitation of decision making an analysis.