Analytical Thinking and Decision Making Report for ACME Analysis

This report provides an analysis of decision-making processes within the context of ACME, a company that provides production equipment and services. The report focuses on the application of decision analysis techniques, such as decision trees, to aid in strategic choices, particularly in the selection of software packages. It examines the challenges faced by ACME and iResearch, including the assessment of software design firms and the evaluation of different software options based on cost, probability of success, and overall profitability. The report highlights the importance of analytical thinking, behavioral approaches, and the use of statistical tools in making informed decisions. It concludes that by employing these methods, both ACME and iResearch can enhance their decision-making capabilities and gain a competitive edge in the market. The report also references various academic sources to support its arguments.

Analytical Thinking
and
Decision Making
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Table of Contents
INTRODUCTION...............................................................................................................................3
Q,1 Discussing the value of decision analysis to ACME ...............................................................3
Q.2 Outlining the challenges which are facing by iResearch .........................................................4
CONCLUSION....................................................................................................................................4
REFERENCES.....................................................................................................................................5
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INTRODUCTION
In order to attain success in the strategic business environment manager is required to think
in a analytical manner. The present report is based on the case scenario of ACME which provides
production equipment and services to the manufacturing industry. In this, the present report will
describe the ways through which business unit can aid in the profitability by making cost effectual
decisions.
Q,1 Discussing the value of decision analysis to ACME
On the basis of the cited case situation ACME is planning to provide customers with the
integrated software. However, company does not have enough research and programming
capabilities. In order to resolve such issue business unit has taken decision in relation to
subcontracting the project to the software design firm. Still, iResearch is facing problem in relation
to the selection of software.
Theme 1: Components of decision making tools
According to the given case situation, by drawing decision tree business unit can select the
suitable alternative from several. Moreover, it clearly presents the proposal which will prove to be
more beneficial for the firm. Hence, by considering such aspect ACME can invest in the best
software designing company (What Is a Decision Tree? - Examples, Advantages & Role in
Management, 2016). On the other hand, it can be criticized that if business unit fails to draw
decision tree in an appropriate manner. Thus, by conducting the brainstorming session within the
firm business entity can take suitable decision to the significant level.
Theme 2: Approaches
Presented case situation depicts that by considering the behavioural approach ACME can
take good and effectual decision. On the basis of this aspect, by making use of theories manager can
take profitable decisions. However, on the critical note, it can be said that ACME needs to employ
classical approach of decision making (Pennycook, Fugelsang and Koehler, 2015). Moreover, in
this, business unit has information regarding the alternative solution. Hence, by adopting such
approach company can select suitable software package.
Theme 3: Use of decision analysis to the company
By considering the given case situation it can be stated that by making use of theories and
disciplinary aspects ACME can take appropriate decision. Moreover, by evaluating each and every
aspect such as time frame and benefits associated with it company can make effectual decision
(Siebert and Kunz, 2016). However, on the critical note, it can be argued that statistical tools such
as decision tree provides high level of assistance to the company in making selection of suitable
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project.
Theme 4: Challenges which are facing by firm in the decision making
From the cited case situation, it has been assessed that ACME is facing problem in relation
to assessing the best software designing firm. In this regard, business organization needs to select
the firm which has effectual image at marketplace (Singh and Chaudhary, 2015). However, it can be
argued that business unit faces difficulty in identifying the firm for the contractual purpose which is
capable in relation to offering the software with less development cost and high possibility of
success.
Q.2 Outlining the challenges which are facing by iResearch General challenges of decision making: According to the given case situation different
software packages such as A, B, C and D are significantly varied in terms of their
development cost as well as probabilities in relation to the success or failure (Pennycook,
Fugelsang and Koehler, 2015). This in turn imposes problem in front of iResearch in relation
to the decision making aspect. Challenges associated with project management: Undefined goals, changes in scope as
well as inadequate skills etc. are the main aspects which closely influence the effectual
execution of project plan. Estimation of probability: By taking into account the output of decision tree it can be stated
that iResearch needs to design web based software A which will offer higher profit margin to
them (Reyna and et.al., 2015). Further, probability of getting success is also higher in the
case of software A rather than others.
 Availability of iResearch: iResearch will get benefit by designing the software A. Moreover,
from the several alternatives software A will prove to be profitable for the company.
CONCLUSION
From the above report, it has been articulated that by drawing decision tree AMCE and
iResearch both can undertake suitable decision to the large extent. Further, by investing money in
software A company can build and sustain competitive edge over others.
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REFERENCES
Books and Journals
Pennycook, G., Fugelsang, J.A. and Koehler, D.J., 2015. Everyday consequences of analytic
thinking. Current Directions in Psychological Science. 24(6). pp.425-432.
Reyna, V.F. and et.al., 2015. Development of Risky Decision Making: Fuzzy‐Trace Theory and
Neurobiological Perspectives. Child Development Perspectives. 9(2). pp.122-127.
Siebert, J. and Kunz, R., 2016. Developing and validating the multidimensional proactive decision-
making scale. European Journal of Operational Research. 249(3). pp.864-877.
Singh, A. and Chaudhary, A.K., 2015. SETP: A new powerful tool for improving problem solving,
decision making and creativity in teenagers. Int. J. Indian Psychol. 2. pp.10-15.
Online
What Is a Decision Tree? - Examples, Advantages & Role in Management, 2016. Online. Available
through: <http://study.com/academy/lesson/what-is-a-decision-tree-examples-advantages-
role-in-management.html>. [Accessed on 18th October 2016].
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