Torrens University MGT602: Business Decision Analytics Research Report

This report, prepared for MGT602 Business Decision Analytics, examines the critical role of decision-making in optimizing business performance. It explores various decision-making tools such as decision matrices, decision trees, Pareto analysis, SWOT analysis, and PEST analysis, alongside decision-making systems like T-charts, multi-voting, and cost-benefit analysis. The report details the steps involved in effective decision-making, from identifying objectives to evaluating outcomes, and discusses the importance of data sources including company records, customer feedback, and social media. It also touches upon emerging trends like big data analytics. The methodology used is descriptive, focusing on exploring the relationships between decision-making instruments and systems. The report emphasizes the significance of choosing appropriate tools and systems to improve business outcomes and sustainability.

Running Head: RESEARCH
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MGT602 BUSINESS DECISION ANALYTICS
RESEARCH ANALYSIS REPORT
Name of Student:
Name of Institution:
Date:

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Executive Summary
Decision making is one of the critical components that improves optimal business
performance. Decision making is a process for determining the appropriate steps to take to
ensure that revenues or profits are maximized and costs minimized. Decision-making is applied
when there are various options for action that can be taken by business stakeholders. Decision-
making should follow a number of steps. The initial step in decision making is to identify the
objective of the decision. The objective of the decision should be designed to avoid
misalignment of the decisions that stakeholders make.
The report applied a descriptive study design. The main sources of data for decision
making are: company records, customer feedbacks and internet/social media. There are a number
of tools and decision-making systems that help stakeholders choose the best choice from a
variety of alternatives. The main decision-making tools that have been discussed in this report
are the decision matrix, decision trees, pareto analysis, joint analysis, SWOT analysis and PEST
analysis. On the other hand, the main decision-making systems that have been discussed in this
report are: The graph T-, Multi-voting and cost-benefit analysis.
SWOT is an abbreviation of Strengths, Weaknesses, Opportunities and Threats. Strengths
are evaluated to investigate what the alternative can best offer to other alternatives. Weaknesses
are assessed to find areas that need improvement if the alternative is chosen. A peer review is a
decision-making tool that is applied when there are several (more than one) decisions that need
to be made. A decision tree is a representation of available alternatives in the form of a graph
that looks like a tree. The graph has a main node and the branches of the node. The branches
represent the alternatives and their possible or expected outcomes. A decision matrix is a

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technique that is applied to evaluate all available options in a decision-making process. Building
a decision matrix involves creating a table of all available alternatives or decision options. PEST
is one of the techniques that are used by business stakeholders to make decisions. PEST is an
abbreviation of Political, Environmental, Social and Technological Factors. Therefore, the whole
process of PEST analysis requires that political, environmental, social and technological aspects
are taken into consideration before a final decision is made.
Table of Contents

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Introduction.................................................................................................................................................4
Objectives of the Study...............................................................................................................................6
Research Question...................................................................................................................................6
Methodology...............................................................................................................................................6
Decision making Tools................................................................................................................................6
Decision Tree..........................................................................................................................................7
Pareto Analysis........................................................................................................................................8
SWOT analysis........................................................................................................................................9
PEST analysis........................................................................................................................................10
Sources of Data.........................................................................................................................................10
Decision making Systems..........................................................................................................................10
T-Charts.................................................................................................................................................10
Multi-voting..........................................................................................................................................11
Cost-benefit analysis.............................................................................................................................11
Conclusions...............................................................................................................................................12
References................................................................................................................................................14

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Introduction
Decision making is one of the critical components that improves optimal business
performance. Decision making is a process for determining the appropriate steps to take to
ensure that revenues or profits are maximized and costs minimized. Decision-making is applied
when there are various options for action that can be taken by business stakeholders. Decision-
making should follow a number of steps. The initial step in decision making is to identify the
objective of the decision. The decision goal should be outlined to avoid misalignment of the
decisions that stakeholders make (Jian & Naveed, 2018).
The next step in decision making involves the collection of relevant information that can
assist in the decision-making process. The information collection process involves the
identification of the available courses of action. The information collection process also involves
the identification of possible alternatives. The information collection process also involves
conducting an appropriate research on all available courses of action (Nathalie, et al., 2016).
The next step in decision making is to make a choice. After conducting an adequate
research on all available choices, an adequate choice is then made. The final step in decision
making involves the evaluation of the decision. Stakeholders should evaluate the choice that was
made in order to find out if it is feasible. The feasibility of the choice made is assessed both long
and short term (Shyi-Ming, Shou-Hsiung, Cheng, & Tsung-En , 2015).
There are several tools and decision-making systems that help stakeholders to choose the
best choice among several alternatives. The main decision-making tools that have been discussed
in this report are the decision matrix, decision trees, parity analysis, joint analysis, SWOT
analysis and PEST analysis. On the other hand, the main decision-making systems that have been

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discussed in this report are: The graph T-, Multi-voting and cost-benefit analysis (Rolland,
Emanuel, & Torke, 2017).
Objectives of the Study
The objectives of the study are as follows:
1. To select and evaluate the usefulness of a range of decision-making tools and reflect on my
decision-making styles and contrast with other styles to determine their respective levels of
rationality and intuition used.
2. To compare, contrast and critically evaluate data sources as influences for decision making in
various business contexts.
3. To examine and evaluate decision-making systems and techniques to engage group decisions
and analyse how these can improve sustainable outcomes.
4. To critically examine emerging tools and technologies for decision making.
Research Question
The research question is to identify and evaluate the usefulness of a range of decision-
making tools and reflect on my decision-making styles and contrast them with other styles to
determine the respective levels of rationality and intuition used. The report aims to compare,
contrast and critically evaluate the data sources used in the decision-making process.
Methodology
The report adopted the descriptive design of the study. A descriptive study design is a
technique that is used to explore the relationship between the variables. In this report, the main

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objective is to explore the relationship between the various decision-making instruments and
decision-making systems (Alessio, 2018).
Decision making Tools
Business decision making tools are the strategies that are used by business leaders and
business stakeholders to choose and optimal course of action from the various available
alternatives. The main decision-making tools that have been discussed in this report are decision
matrix, decision trees, pareto analysis, joint analysis, SWOT analysis and PEST analysis (Jian &
Naveed, 2018).
Decision Matrix
A decision matrix is a technique that is applied to evaluate all available options in a
decision-making process. Building a decision matrix involves creating a table of all available
alternatives or decision options. The alternatives or options are listed in the first (Heiko, Silja, &
Stefan, 2009). On the other hand, the factors affecting the alternatives or options are all listed in
the first row.
The next step is to assign a score to each of the alternatives or options that have been
listed. The scores are given based on the importance of the alternatives (Fontanella, et al., 2018).
The final step is to count the scores for each alternative to determine the alternative with the best
option. An example of a decision matrix is given below.

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[source: https://www.idashboards.com/blog/2019/04/10/4-tools-strategies-for-enhanced-
decision-making/]
Decision Tree
A decision tree is a representation of the available alternatives in the form of a graph that
looks like a tree. The graph has a main node and the branches of the node. The branches
represent the alternatives and their possible or expected outcomes (Luis, Dan, Francisco, &
Enrique, 2009). The following is an example of a decision tree.

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[source:https://www.google.com/search?
q=Decision+tree&rlz=1C1CHBF_enKE858KE858&source=lnms&tbm=isch&sa=X&ved=0ahU
KEwixsNmH4KPkAhUPJhoKHZc9C0IQ_AUIESgB&biw=1821&bih=833#]
Pareto Analysis
A peer review is a decision-making tool that is applied when there are several (more than
one) decisions that need to be made. A peer review is based on the prioritization of all available
alternatives for a decision that needs to be made (Karen, Maggie, Charles, Christopher, & Erik,
2016). An example of a pareto diagram is described below.

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[source: https://www.projectsmart.co.uk/pareto-analysis-step-by-step.php]
SWOT analysis
SWOT is an abbreviation for Strengths, weaknesses, Opportunities and Threats. The
strengths are evaluated to investigate what the alternative can offer better the other alternatives.
The weaknesses are evaluated to find out the areas that need improvement if the alternative is
chosen. The opportunities are evaluated to find out the areas that the company can leverage on if
an alternative is chosen from the rest of the choices (Martin, Thomas, Sonya, & Christos, 2016).
On the other hand, the threats are evaluated to find out the possible determents to the intended
goal of the decision.
PEST analysis
PEST is one of the techniques that is used by the business stakeholders to make
decisions. PEST is an abbreviation of Political, Environmental, Social and Technological factors.

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Therefore, the whole process of PEST analysis requires that the political, environmental, social
and technological be taken into consideration before a final decision is made (Karen, Maggie,
Charles, Christopher, & Erik, 2016).
The decision-makers and the various stakeholders apply PEST analysis to track, organize,
discover and evaluate the four macro-economic factors: political, environmental, social and
technological. The framework that guides decision-making using PEST analysis involves the
evaluation of the threats as well as the strengths of making a decision given the underlying
political, environmental, social and technological conditions of the market (Karen, Maggie,
Charles, Christopher, & Erik, 2016).
Sources of Data
The data that is used in decision-making are drawn from several sources. The major
sources of data include: Company or business record, internet and social media as well as
customer/clients’ feedbacks.
Decision making Systems
The major decision-making systems that have been discussed in this report are: The T-
chart, Multi-voting and cost-benefit analysis.
T-Charts
A T-chart is a decision-making system that involves evaluation of the both the positive
and negative consequences of making a given decision. Therefore, a T-chart system requires that
all the positive and negative consequences of a decision are clearly outlined. The decision-
makers or stakeholder then takes a keen interest on the weights of both the negative and positive

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consequences. Finally, a decision is made based on the weights of the positive and negative
consequences (Nathalie, et al., 2016).
Multi-voting
A multi-voting system is a decision-making technique that is applied when the decision
makers are more than one. The voting system varies depending on the internal organization of a
business. In most cases, the voting is done on a one-man one- vote basis (Nathalie, et al., 2016).
Cost-benefit analysis
A cost-benefit analysis is a decision-making technique that is used to evaluate the
financial implications of making a decision or choosing a given alternative (Martin, Thomas,
Sonya, & Christos, 2016). Therefore, the major task of the stakeholders and the decision-makers
is to attach a financial implication to all the available alternatives. In cases where the direct costs
cannot be determined, the decision-makers apply approximation to estimate the expected costs
and benefits. The decision-makers then chose the optimal decision or alternative based on and
alternative that its benefits outweigh its cost (Karen, Maggie, Charles, Christopher, & Erik,
2016).
Emerging Tools and Technologies for making decisions

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There are several emerging trends and technologies in decision-making. Some of the
major trends and technologies include big data analytics and leaving room for emotions. Major
decision-makers use big data analytics in making decisions. Big data analytics is reliant on the
numerous research and developments as well as the presence of massive amounts of data.
Conclusions
Decision-making is a key aspect in the operation of any business. Decision-making is
applied when there are several options for actions that can be taken by the stakeholders of the
business. Decision making should follow a set of steps (Fontanella, et al., 2018). The initial step
in decision making is to identify the objective of the decision. The objective of the decision
should be delineated in such a way as to avoid misalignment of the decisions that stakeholders
make. There are several tools and decision-making systems that business stakeholders can
choose from. Therefore, it is important that stakeholders conduct adequate research on a
decision-making tool before it is actually put into practice. A decision-making process should be
carefully evaluated because decision making directly influences the benefits and revenues of a
company. Similarly, decision making determines the sustainability of a business (Heiko, Silja, &
Stefan, 2009).
SWOT is an abbreviation for Strengths, weaknesses, Opportunities and Threats. The
strengths are evaluated to investigate what the alternative can offer better to other alternatives.
Weaknesses are assessed to find out which areas need improvement if the alternative is chosen.
A peer review is a decision-making tool that is applied when there are several (more than one)
decisions that need to be made. A decision tree is a representation of available alternatives in the
form of a graph that looks like a tree. The graph has a main node and the branches of the node.

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The branches represent the alternatives and their possible or expected outcomes. A
decision matrix is a technique that is applied to evaluate all available options in a decision-
making process. Building a decision matrix involves creating a table of all available alternatives
or decision options. PEST is one of the techniques that are used by business stakeholders to
make decisions. PEST is an abbreviation of Political, Environmental, Social and Technological
Factors. Therefore, the whole process of PEST analysis requires that political, environmental,
social and technological aspects are taken into consideration before a final decision is made.
References
Alessio, I. (2018). Are multi-criteria decision-making tools useful? An experimental comparative
study of three methods. European Journal of Operational Research, 12-45.
Fontanella, P., Benecchi, L., Gross, A., Patel, V., Albala, D., Abbou, C., . . . Bianchi, G. (2018).
Decision-making tools in prostate cancer: from risk grouping to nomograms. The Journal
of Europe PMC, 34-38.
Heiko, H., Silja, M.-N., & Stefan, P. (2009). Electric load forecasting methods: Tools for
decision making. European Journal of Operational Research, 23-34. Retrieved from
European Journal of Operational Research.
Jian, D., & Naveed, M. H. (2018). Methods and systems for intelligent predictive aircraft takeoff
rejection decision making. Jouranl of wordwide applications, 12-21.

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Karen, R. S., Maggie, B., Charles, G., Christopher, R. C., & Erik, P. H. (2016). State of the
Science: Tools and Measurement for Shared Decision Making. The Journal of Academic
Emergency Medicine, 12-17.
Luis, M., Dan, R., Francisco, H., & Enrique, H.-V. (2009). Linquistic decison making: Tools and
Applications. The Journal of Information Sciences, 12-15.
Martin, P., Thomas, M., Sonya, C., & Christos, V. (2016). Systems modelling and simulation in
health service design, delivery and decision making. The Journal of Quality and Safety,
11-21.
Nathalie, D., Magdalini, S., Yuki, S., Anne, G., Eeva, L., & Robert, D. (2016). The Adverse
Outcome Pathway Concept: A Basis for Developing Regulatory Decision-making Tools.
Sage Journals, 33-45.
Rolland, J. S., Emanuel, L. L., & Torke, A. M. (2017). Applying a family systems lens to proxy
decision making in clinical practice and research. Jouranl of APA PsycNet, 7-17.
Shyi-Ming, C., Shou-Hsiung, Cheng, & Tsung-En , L. (2015). Group decision making systems
using group recommendations based on interval fuzzy preference relations and
consistency matrices. The Journal of Information Sciences, 10-18.