Analytical Thinking and Decision Making Report: Case Study Analysis

This report delves into the critical role of decision-making in management, emphasizing its impact on organizational activities. It presents a case study involving Equal Experts, a software consultancy, to demonstrate the application of analytical tools in practical decision-making scenarios. The report highlights the significance of decision analysis and applies the Simple Multi-attribute Rating Technique (SMART) to address a specific decision problem faced by Equal Experts. Furthermore, it critically assesses the strengths and limitations of the analytical approach within the context of the chosen case study, offering insights into effective decision-making processes. The report covers topics such as choosing a new office location, selecting a new computer system, choosing a raw materials supplier and proper software packages, and addresses the problems encountered in each decision-making process.

Running head: ANALYTICAL THINKING AND DECISION MAKING
Analytical Thinking and Decision Making
Name of the student:
Name of the university:
Author Note

1ANALYTICAL THINKING AND DECISION MAKING
Executive summary
Decision Making is a component of current day management playing a crucial role. This is because
they determine both managerial and organizational activities. The following report involves an
application of an analytical tool to a practical decision making scenario. Moreover, it intends to
examine strengths and weaknesses of this analysis. The significance of decision making and
application of decision analysis are demonstrated here. Decision problem related to an external
organization are outlined. A SMART or “Simple Multi-attribute Rating Technique” towards the
decision problem is applied to strengthen the claims. Lastly, benefits and drawbacks of that analysis
are analyzed under the present context of a decision problem.

2ANALYTICAL THINKING AND DECISION MAKING
Table of Contents
Introduction:..........................................................................................................................................3
1. Discussion on the importance of decision making and the application of decision analysis:...........3
1.1. Importance of decision making:.................................................................................................4
1.2. Application of decision analysis:................................................................................................4
2. Decision problem relating to an external organization:.....................................................................6
2.1. Decision problem at Equal Experts:...........................................................................................6
2.2. Typical examples:.......................................................................................................................7
3. Application of Simple Multi-Attribute Rating Technique or SMART to decision problem:..........12
4. Discussing and detailing strengths and limitations of analysis in the context of above decision
problem:...............................................................................................................................................15
4.1. Strengths:..................................................................................................................................16
4.2. Weaknesses:..............................................................................................................................16
Conclusion:..........................................................................................................................................17
References:..........................................................................................................................................18

3ANALYTICAL THINKING AND DECISION MAKING
Introduction:
Decision making is always an essential part of current day management. It plays a vital role
since they determine both managerial and organizational activities. It involves selection of course of
actions from various alternatives for solving given a problem.
The assignment is prepared to involve an application of an analytical tool to a practical
decision making scenario. It intends to assess strengths and weaknesses of that analysis.
The report discusses the significance of decision making and application of decision analysis.
It has identified and outlined decision problem related to an external organization. Then it applies a
SMART or “Simple Multi-attribute Rating Technique” to the decision problem outlined. Then a full
strength and limitation of that analysis are discussed in the current decision problem context.
1. Discussion on the importance of decision making and the application of decision analysis:
As evidenced by the above-foregone definitions, a process of decision making can be said to
be a conductive affair. This is done by a community of professionals driving better functioning of
organizations. It is a dynamic and continuous activity pervading every activity about any
organization. Thereby, decision making is a dynamic and continuous activity pervading every other
activity that has been about the organization (Power, Sharda and Burstein 2015). As it is a
continuous activity, it plays a crucial role regarding the functioning of companies. Intellectual minds
have been included in the process of decision making of the company. It needed solid scientific
knowledge assimilated with experience and skills along with mental maturity. This process to make
decisions is seen as a check and balance system keeping firms growing both in straight and vertical
decisions.

4ANALYTICAL THINKING AND DECISION MAKING
1.1. Importance of decision making:
Decision making is regarded as the founding stone of business management because without its
application at the right time, nothing can be achieved. Importance of decision making is illustrated
here in the table below.
Importance of
decision making
Discussion
Proper utilization of
resources
Companies possess different resources such as information, market,
machine, material, method, money and man. These funds are
appropriately used instead of any wastage and leakage with the help of
proper decision at an appropriate time. Thus any corporation can operate
any minimum cost.
Choosing best
alternative
Making decisions is vital for selecting best choices among different
options through using finance, statistics and analysis (Zsambok and Klein
2014).
Evaluating
managerial
performances
Judging performances of management present at the top level is essential.
Employee motivation It provides a complete framework to operate and guide the operating level
of staffs. Various kinds of benefits and facilities are also offered on time.
1.2. Application of decision analysis:
Six steps are analyzed hereafter to support the process of decision making.
Problem This initial stage of decision making process has been to recognize the

5ANALYTICAL THINKING AND DECISION MAKING
identification exact problem. It can be said that identifying the exact problem is about
half part of decision making process.
Problem analysis As the correct problem is identified decision maker can analyze challenges
scientifically and systematically as per as short and long-term effect of the
problem (Hartman, DesJardins and MacDonald 2014).
Development of
alternative course of
action
Problems have multiple decisions. Hence decision makers must develop
different choices for a better decision.
Evaluation of
alternative action
course
Decision makers must evaluate all alternatives for a better decision. Here
some answers could be searched for following questions.
1. Whether that alternative has been feasible according to time, legality, cost
and additional organizational resources?
2. Whether the alternative has been satisfactory for solving organizational
problems?
3. Whether the alternative features have been matching with alternatives of
business?
Selection of best
alternative
As various options are analyzed, a decision maker can select the best choice
among different options considering multiple impacts (Solomon et al.
2014).
Implementing
decision
As the best alternative is selected, the superiors can convert decision to
action. To do this, they can communicate with subordinates and manage
different extra resources to implement an organizational decision.
Decision review The last step in decision making process has been to get a response to
feedbacks from additional stakeholders of the company. As this reaction is

6ANALYTICAL THINKING AND DECISION MAKING
positive, the decision making process gets completed successfully
(Pettigrew 2014). However, as the response is negative, he can go through
the initial step to undertake new organizational decisions.
2. Decision problem relating to an external organization:
2.1. Decision problem at Equal Experts:
Not only businesses sometimes get mixed up with problems or decisions, they only get just a
half part of their decisions correct. To understand this more precisely, Equal Experts, at the United
Kingdom is chosen. They are the network of experienced software consultants who are specialized
in agile delivery. There is evidence that they have been certainly having decision making problems
(Equal Experts, 2018).
Equal Experts has been needed to connect their objectives with those of company and
department as a whole. They have realized a SMART setting of goals. They have been applying
essential skills to set goals, cascade goals and prioritize. Various objectives estimated to be obtained
by Equal Experts are conducting training where participants can cascade and bond objectives and
goals at multiple levels of an organization. They must make a SMART analysis of a company and
personal goals (García-Peñalvo and Conde 2014). Further, they must negotiate and assign SMART
goals with their different subordinates. A structured approach is required for decision making. Best
practices are to be utilized for communicating decisions. Lastly, they have intended to look for out-
of-the-box strategies of problem solving.
2.2. Typical examples:
Here some typical examples of decision problem are discussed.

7ANALYTICAL THINKING AND DECISION MAKING
Example 1: Choosing new office location
Decision Problem Discussion
Down Time The Time period of moving company location leads to downtime for
business. As one handles this move or hires any moving company, one
can face window as computers and business tools are packed. Employees
have been finding that hard to finish tasks during the move (Reymen et
al. 2017). Also, once they have arrived at a new location, one has been
facing downtime as equipment is set up. It has potentially leaded to drop
in sales or inability to serve customers.
Cost This move itself has been costing Equal Experts excessive money. This
is particularly as they the control the progress. This also provides
estimates for the cost of relocation. However actual prices are at many
times higher than expected.
Customer access As one is unable to serve customers during that move, they have failed
to touch their business. As Equal Experts has moved a notable distance
from an old business location, some of their clients might find the new
site very inconvenient.
Communicating that
move
As one prepares to move their business, one requires a system to alert
customers and community about their progress. Equal Experts have let
their clients know from before that access has been limited while the
move has been going on. The information is included at a new location
and Equal Experts has been functional at that position (Xu 2015). Failure
to let their suppliers and clients know about move leads towards potential
problems with having people show up old location has been finding it

8ANALYTICAL THINKING AND DECISION MAKING
abandoned.
Example 2: Choosing new Computer System
Problems Discussion
A Dual
Role
At Equal Experts who have been managing technological change has needed to serve
technical implementers and developers. So, as a rule, the organization has been
developing technology and handing that off to various users. These users have been
skilled less technically and quite knowledgeable regarding their areas of application.
Multiple
Internal
Markets
Higher the organizational level at which managers of Equal Experts have been
defining needs or problems, more significant is the successful implementation
probability (De Maio et al. 2016). However, simultaneously closer has been solution
and definition of needs or problems to end-users higher has been the success
probability.
Promotion
and Hype
Various technology developers have confessed bewilderment that different
innovations have never won automatic acceptances. They have been overly optimistic
in believing that change has been itself a sell. However, it has been similarly
dangerous for overselling new systems. Moreover, exotic and novel technologies are
particularly vulnerable towards hype.
Risky Site
and Safe
Innovation
There have been two causes to conduct any pilot operation before introducing any
innovation around the board around a large organization. First one is to serve
experiment and prove technical feasibility to top management. The second one has
been to help credible demonstration model for additional units of Equal Experts (Rao
and Tilt 2016.). However, for Equal Experts, these two reasons have not been

9ANALYTICAL THINKING AND DECISION MAKING
compatible every time.
Legitimate
Resistance
to Change
An overt resistance of Equal Experts towards innovation has often been growing out
of mistakes and has been facing overlooked problems in any implementation plan.
Example 3: Choosing raw materials supplier
Problems Discussion
Improper
process
definition
Equal experts have been unable to identify methods to use to find suitable
suppliers.
Call for bids For Equal Experts, it has been including RFQ or Request for Quotation and
RFP or Request for Proposal. There has been lack of full details of services and
products needed for delivery dates, quality standards and quantities (Gubler,
Kalmoe and Wood 2015).
Improper an
Evaluation in bid
submissions
Equal Experts have been unable to compare every presentation they receive
against criteria checklist for question and suppliers regarding any items
appearing lack of clarity.
Setting criteria Equal Experts have needed to develop a list of supplier selection criteria. This
was required to provide with items they need. This included challenges like
following.
• Storage and handling facilities
• Minimum and maximum order quantities

10ANALYTICAL THINKING AND DECISION MAKING
• Return policy
• Payment terms and conditions
• Contactable references
• Lead times from receipt of your order to delivery
• Quality assurance processes
• Specific methods of delivery
Monitor supplier
performance
The most trusted suppliers of Equal Experts have been slipping up
occasionally. Moreover, the company was unable to ensure that they have direct
contact point and conduct performance reviews regularly (Smyth and
Lecoeuvre 2015). Thus they failed to keep tabs on their work and sure that they
have been fulfilling the end of their agreements. Hence Equal Experts has been
confused in understanding where they have been standing.
Example 4: Choosing proper software packages
Problems Discussion
Software price
versus value
Pricing has been integral to deciding for Equal Experts. However, it has been a
significant issue to determine the best software for the company (Schwartz
2017).
Assisted
implementation
As any specific piece of software has been coming with a monthly agreement,
Equal Experts have been unaware of options to end that contract and what
penalties have accompanies that decision.
Fixing bugs As it came to purchase proper software for Equal Experts, they have been
unaware of procedures of Software Company to fix the bugs as they arise.

11ANALYTICAL THINKING AND DECISION MAKING
Example 5: Choosing new service provider
Problems Decision
Longevity Equal Experts has been unable to verify provider’s history through searching
press releases seeking for financial statements and checking references.
Insurance Through checking that provider has been appropriately insured, Equal Experts
has not been specified whether the cost of mistakes made on their part would be
paid. They have been unable to verify that their provider possesses current
policy in place as they have done for outside vendors (Levy 2015).
Billing structure There is insufficient billing structure for Equal Experts revealing company’s
integrity.
Staff Equal Experts never asked about their staffing levels at their managed service
providers never outsourced services. There have been more personnel needed to
handle their business.
Response times Managed service providers have been unable to provide then an upfront
estimate regarding response time in any particular situation. Hence there is a
lack of giving them proper ideas of time it took to fix problems that might arise
in future.
Ability to
innovate
Equal Experts has been showing lack of ability to offer latest services and
adopt new technologies earlier (Kaner 2014). Moreover, managed service
provider, staying at the top of most recent innovations and offering most
advanced options is unable to assure that the organization remains relevant,
functional and contemporary.

12ANALYTICAL THINKING AND DECISION MAKING
3. Application of Simple Multi-Attribute Rating Technique or SMART to decision problem:
It is a comprehensive model of decision-makers for accounting things which has been
quantitative and qualitative. In decision-making model, SMART is a technique for covering
shortfalls from prior models instead of any computerizations. The method is also helpful to structure
environment and systems to components to interact with each other and regulate effects of elements
of system error.
Decision making under the business world possesses a severe effect. Due to the choices
managers or business owners can determine success and failure of a business. This is the way in
which the people undertake decisions with paramount importance. As some has been electing to look
at some options, then conduct choice others have been looking at those possibilities into
consideration (Cao, Duan and Li 2015). They are used to craft an entirely new opportunity merging
best parts of original choice. The process of integrative decision making possesses some main
benefits. This has made the process of SMART a worthy consideration for decision makers.
Primarily, chief executive officers are responsible for making every significant decision.
However, as organizations grow their managers often undertake decisions collectively. Making
group decisions is a formal process to arrive at conclusions. This includes voting, consensus and
election of leaders for making final decisions.
Decision support system is intended to assist management. It combines abilities of a
computer in interactive service with manipulation and processing models or data utilizing rules of
unstructured settlement (Shepherd, Williams and Patzelt 2015). One of the most accessible methods
to react to immediate necessities of decision makers is the SMART method. It is applied to
providing a weight of all criteria illustrating how crucial those have been comparing to others.

13ANALYTICAL THINKING AND DECISION MAKING
Moreover, the primary tool of the model is a functional hierarchy where the most critical
input is human perception. Hence there has been no notable difference in a SMART model with
additional models at the same line in that kind of information. There has been a percentage for every
linear weighting found out by results of problem analysis. This SMART weighting method is the
method to support the most straightforward decision (Wang and Byrd 2017). Here some parameters
have been determining the choice. These kinds of settings have been ranging with various weight
and values of every alternative. This amount has been determinant of a decision taken. A weighting
of SMART method is done using a scale between 0 to 1. It helps in simplifying comparison and
calculation of a value of every alternative.
The primary stages of SMART analysis are discussed hereafter.

14ANALYTICAL THINKING AND DECISION MAKING
Stage 1: Recognizing decision makers
Stage 2: Identifying issues of issues: Utility has depended on
purpose and context of decision.
Stage 5: Assigning values for every criterion: Regarding decisions made by one person, the step is just straightforward. A
ranking is a task of choice making easy to develop weights. The job has been more complicated in group environment.
Besides, groups involving diverse opinions have been resulting in more thorough analysis of relative importance. This is
because every side of that issue is needed to be voiced. An initial discussion has been providing every group members with
common information basis. It can be followed through identification of different individual judgments of relative making.
Stage 7: A weighted average can be calculated of values assigned to every
alternative. The step allows normalization of relative significance to
weights having a sum of 1.
Stage 6: Determination of weight of every criterion: The most vital dimension is assigned to the importance of 100. Next-most essential
aspect has been awarded a number showing ratio of relative significance to most critical size. The process has been continued, and then
every implied rate is checked as new judgments are made. As this needs a growing amount of comparisons, there has been a practical
necessity of limiting the number of objectives or dimensions. Further, it is expected that various individuals under that group have distinct
relative ratings.
Step 3: Identifying alternatives: Here the results of possible
outcomes are identified. It is also a data gathering process.
Stage 4: Identifying criteria: It has been vital to restrict dimensions of values. It is
accomplished through combining and restating rules and through omitting less significant
tests. It can also be said that it has not been required to have an entire list of criteria.
Stage 8: Making provisional decision
Stage 9: Performing sensitivity analysis
Figure 1: “Stages of simple multi-attribute rating technique”
(Source: Barron and Barrett, 2018)

15ANALYTICAL THINKING AND DECISION MAKING
Below every stage of a SMART process to be undertaken by Equal Experts is demonstrated.
Stage of analysis Discussion
1. Determining the
number of criteria
used
It is the initial stake to make a decision using a SMART method. It is the
first to find alternatives used as experimental.
2. Determining the
criteria weights
This is done to each criterion through utilizing 1-100 interval for every
criterion with most urgent priority.
3. Calculating the
normalization
This is done for every criterion through comparing weights of criteria by
some criteria weighted.
4. Providing criteria
parameter value
This is done on every criterion related to every alternative.
5. Determining the
value of utility
This is to convert value of every criterion for every criterion to that value
of raw data criteria.
6. Determining the
final value of every
criterion
This is to be done by shifting values that are obtained from the
normalized value of raw data criteria. This is done by weighing the
normalized value criteria (Azar, Bouaynaya and Polikar 2015).
4. Discussing and detailing strengths and limitations of analysis in the context of above decision
problem:
Like every other method, decision making has its pluses and minuses.

16ANALYTICAL THINKING AND DECISION MAKING
4.1. Strengths:
Strengths of decision
making
Discussion
Critical thinking As decision makers use skills of critical thinking, he is more likely to be
successful. Thus the strengths and weaknesses at every point are
beneficial. The chances of making a choice also get improved (Wheelen
et al. 2017).
Use of Creativity Using creativity likelihood is developed. This indicates individuals had
to reach the best place.
Pleasing Multiple
Audiences
As decision makers can assimilate various options, he develops chances
to meet customer needs. Since satisfied customers have been translating
into sales, meeting needs of customers is of high importance under
business sphere.
Satisfying Workers While managers face choices, he needs to deal with multiple camps of
workers. All of them have been rooting decisions that are beneficial to
them (Graham, Harvey and Puri 2015). He can merge opinions and
improve chances to please more of their workers. Here lesser workers
can feel that they have just lost their fight.
4.2. Weaknesses:
Weaknesses Discussion
Time drain Drawback of decision making is that it raises the period to undertake
decisions.

17ANALYTICAL THINKING AND DECISION MAKING
Disagreements and
groupthink
As managers possess fundamental disputes regarding how to go about
making decisions, it is hard for a group to reach consensus. Moreover,
group thinking also reduces creativity and knowledge sharing (Hoefer
and Green 2016). Thus some of the critical benefits towards decision
making get diminished.
Conclusion:
In a humanist system, continuous transmission of opinion permits human thinking to undertake
change decision rapidly. The above report is helpful to develop detailed knowledge of decision
making by management. It has evaluated models of decision making. For this Equal Experts, a
company is chosen. It is understood that knowledge base, sufficient level of communication skills
and thinking and organized strategy or approach is needed to solve problems. Knowledge bases are
unique for every question. No general statements are applicable other than individual or group. They
must comprehend concepts, principles, fact relevant to the particular situation and applied to them.
While taking part in the problem-solving process in any category, two extra advantages take place.
Firstly, people can learn to value alternative viewpoints and preferences through considering
differences in others. This consideration is done as per strengths instead of less value or wrong thing.
Moreover, development of individual decision-making power gets enhanced through a process with
others in a group situation.

18ANALYTICAL THINKING AND DECISION MAKING
References:
Azar, A.T., Bouaynaya, N. and Polikar, R., 2015, August. Inductive learning based on rough set
theory for medical decision making. In Fuzzy Systems (FUZZ-IEEE), 2015 IEEE International
Conference on (pp. 1-8). IEEE.
Barron, F. and Barrett, B. (2018). The efficacy of SMARTER — Simple Multi-Attribute Rating
Technique Extended to Ranking.
Cao, G., Duan, Y. and Li, G., 2015. Linking business analytics to decision making effectiveness: a
path model analysis. IEEE Transactions on Engineering Management, 62(3), pp.384-395.
De Maio, C., Fenza, G., Loia, V., Orciuoli, F. and Herrera-Viedma, E., 2016. A framework for
context-aware heterogeneous group decision making in business processes. Knowledge-Based
Systems, 102, pp.39-50.
Equal Experts. (2018). Equal Experts. [online] Available at: https://www.equalexperts.com/
[Accessed 3 Feb. 2018].
García-Peñalvo, F.J. and Conde, M.Á., 2014. Using informal learning for business decision making
and knowledge management. Journal of Business Research, 67(5), pp.686-691.
Graham, J.R., Harvey, C.R. and Puri, M., 2015. Capital allocation and delegation of decision-making
authority within firms. Journal of Financial Economics, 115(3), pp.449-470.
Gubler, J.R., Kalmoe, N.P. and Wood, D.A., 2015. Them’s fightin’words: The effects of violent
rhetoric on ethical decision making in business. Journal of business ethics, 130(3), pp.705-716.