Business Decision Making Report: Strategic and Operational Levels

This report analyzes business decision-making, focusing on the strategic and operational levels within an organization. It examines the nature of problems encountered, categorizing them as tame or wicked, and evaluates the decision-making approaches employed. The core issue addressed is the choice between business acquisition and organic growth strategies, with the report exploring the pros and cons of each. It applies Williams' rational problem-solving approach to evaluate the decision-making process, offering recommendations for improvement. The report highlights the importance of understanding the business environment, the role of decision analysis, and the impact of good and bad decisions. The report also discusses the importance of adapting to the current competitive environment, the need to expand operations, and the strategies that companies adopt to deal with issues related to the change in logistics and satisfying the needs of the customers. The report concludes by emphasizing the significance of a well-defined decision-making process for organizational success.

Business Decision Making
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Executive summary
In the business environment, an organisation’s decision-making process is considered as one of
the crucial and vital elements for the companies. The report aims to conduct the business meeting
which includes the operational and strategic management level steps. The nature of the problem
is identified that is related to the revenue and meeting the needs of the clients. The concerned
topic is the rationale of business acquisition versus organic growth or is both a better strategy for
the business. The findings show that the decisions of the company are evaluated and then
William’s rational problem approach is applied. All these approaches are decided to take the best
strategy which is presented in the form of recommendations.

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Contents
Introduction......................................................................................................................................3
Decision making meetings...............................................................................................................3
Nature of problem............................................................................................................................4
Approaches......................................................................................................................................4
Organic growth strategy..............................................................................................................5
Business acquisition.....................................................................................................................5
The rationale of business acquisition versus organic growth or is both a better strategy for the
business............................................................................................................................................5
Pros of organic business growth..................................................................................................6
Cons of organic business growth.................................................................................................7
Pros of Business acquisition strategy..........................................................................................7
Cons of Business acquisition strategy.........................................................................................8
Evaluate the decision-making process.............................................................................................8
Williams’s rational problem solving approach................................................................................9
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
The procedure of decision making allows businesses to make the selections by determining the
choice, collecting the evidence, and assessing the substitute purposes. The process of the
decision making allows the businesses to adopt the right strategy for their business which is
essential for the growth of the business. The strategies that are adopted by the organisation
depend upon the problems that are faced by the business in the market. The report aims to
conduct the discussion on the two types of business strategy and decides the suitable one. The
topic that has been considered is the rationale of business acquisition versus organic growth or is
both a better strategy for the business. The discussion is supported by the theory of Williams’s
rational problem-solving approach.
Decision-making meetings
In the organisation, the managers need to sit together with the motive to decide in the meeting.
These decisions are taken in the meetings which are conducted at the operational and strategic
levels within the company. In the operational level, the managers need to perform the day to day
operations that directly influence the external customers of the company. On the other hand,
strategic management levels include corporate level, business level and functional level. The
meeting is conducted to take the decisions at different level and areas which are needed to
operate in this competitive market. In the present competitive environment, it becomes vital for
the business to expand its operations in different nations. The major common for the rapid
growth shows that there is not enough space for everyone to work efficiently. This needs the
decisions to expand the business for which operation expansion and change in the strategy is
required to be considered. The meeting will allow decisions for expansion in terms of operations

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which can be opening new stores at a regional or international level. Along with this, the
decisions related to the strategy of expansion is needed which can be organic strategy or business
acquisition.
Nature of problem
At every level, there is a possibility of the different types of issues that might arise which needs
the attention and implementation of the right strategy. The nature of the problem needs the
attention of the company. The company generally find the wicked problem in nature as they need
to meet the needs of clients which mean they want to satisfy their customers. The customers
demand the products in different areas across the world due to which they need to adopt a few
strategies that help them to expand the business and meet the growing needs (Poniachek, 2019).
Thus, satisfying the customer is a majorly wicked problem.
The lack of profit in the current market due to high competition makes the business to expand
because they believe the fact that the greater sales lead to the rise in the profit while making the
companies more attractive to the shareholders. The rise in the growth allows improving the
market size, market share, and power that leads to high profitability. This is a toned problem as
an expansion of the business leads to the major changes in the logistics as the expansion will
bring the major changes.
Approaches
The approaches that can contribute to deal with the issues are organic growth strategy and
business acquisition strategy. Both the approaches are qualitative as they are present in a
descriptive form which is used to deal with tone and wicked issue.

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Organic growth strategy
The organic growth strategy allows the business to utilize all its resources (without the need to
borrow) to expand their operations and grow their business. The terms organic growth is marked
by the rise in the output, higher efficiency, and speed with the manufacture along with the higher
income (Vance, 2020).
Business acquisition
Business acquisition is the process of acquiring a company to construct the advantages or
disadvantages of the acquiring company. The literature shows that acquisition consists of
procurement business and altering it to fit the way corporate activities are conducted. The
foremost goal is to form a new business that made the finest portions of their business and
established parts of another.
The rationale of business acquisition versus organic growth or is both a
better strategy for the business
In the research, this has been witnessed clearly that growth through acquisition is a viable
decision that is taken by small and medium-sized companies. This is heard in news most of the
time that the big companies merging and acquiring other enormous business in contracts
measured in tens of billions. The research shows that most of the entrepreneurs believe that
growth through acquisition is considered a vital decision considering the operational and
strategic level decisions (Business matters, 2015). However, there are most of the companies
who adopt the organic growth strategy over the acquisition. It becomes essential for the business
to take the decision of which strategy is important for the business and considered as the best

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considering the problems faced by the business associated with the change in logistics and
satisfying the needs of the customers.
Pros of organic business growth
Management knows inside and out: - In the small and medium business, there is the high
importance of the organic business growth which shows that management known the business
inside and out. Since the organic growth happens in a comparatively tighter-knit business,
management recognizes the business policies and processes more closely as comparing it to the
business that is currently undergone a merger or acquisition (Sudharshan, 2019). Thus, this
shows the company is characteristically able to adapt to the fluctuation within the marketplace
more rapidly and also to satisfy the needs of customers.
Fewer integration challenges and restructuring: - Another benefit that is attained by the
companies includes fewer integration issues and restructuring. At the time of the acquisition, it
has been found that most of the companies restructure their employees as well as their operations
which help them to improve the new business volume and to meet their goal of profit. This
restricting can often include the layoff changes in the leadership team and the way they monitor
the employees as well as their assets (Asef, Perpina, Habte and Babaeian, 2017). When the
companies decide to adopt the organic growth strategy then they don’t find the issue of the
integration issues related to logistics or personnel changes that are typically additional gradual
that can feel more comfortable as well as usual for inner values.
The use of organic business growth leads to continuous improvement in marketing efforts and
also the product or service. It helps in determining the new or more profitable markets which
allow the company to make the successful entry for the business opportunities.

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Cons of organic business growth
Lack of competitive edge: - For the companies, the best way to achieve success is to play with
the competitors. The rise in the number of competitors needs the urgent merger and acquisition
because organic growth is slow which won’t allow to quickly taking over by the competitors
(Hammer, Knauer, Pflücke and Schwetzler, 2017).
Resources: - The organic growth within the business takes place when the company decides that
they want to grow for which they make use of the resources. However, the lack of resources
affects the continuous growth of the business which is considered as a major hurdle for attaining
the goals. The rise in the business needs for the resources improves when they want to expand
the business effectively within the market (Sudharshan, 2019). Considering the needs, the
resources also grow with other consuming items by the company. The lack of these resources
will directly lead to an impact on the growth of the business.
Pros of Business acquisition strategy
Fast growth: - The organic growth is considered as much slow while comparing it with the
acquisition strategy. This strategy makes big companies increase their clients double and triple
with the help of the business merger (Mawson and Brown, 2017). The acquisition will allow the
companies to get the maximum of the operations under the control in a short period and they can
easily earn the profit and deal with the tough competitors present in the market.
Rise in market share: - In the research, this has been found that the companies are dealing with
the issue of market share due to the rise in the competition which makes them take the strong
decision which includes the strategy that the company will adopt to deal with the issue (Yun,
Won, Park, Jeong and Zhao, 2019). This can better be understood with the help of the example

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of the Coles and Woolworths, a well-known supermarket present in the Australia market. The
companies have the competition of the market share as both want to acquire the market which
means maximum customers and revenue. The acquisition decision will allow the company to
gain the market as well as the prior relationships of the company with the sellers, suppliers and
many others (Nelson, 2018).
The growth through acquisition is considered as faster, inexpensive as well far fewer dangerous
proposition than the tried as true approaches for marketing and sale efforts. It leads to simpler
financing as well as economies of scale.
Cons of Business acquisition strategy
Significant upfront cost: - Funding acquisition or merger refers to the sizable upfront cost. The
business doesn’t have cash on hand as they are probable to depend on taking on debt that makes
acquisition less attractive to investors.
Challenges for management: - The sudden growth from the acquisition leads to the rise in the
difficulties related to the correctly climbing processes (Lamont, et al, 2019). The lack of proper
management of growth will affect the integration of the entire business activities.
Evaluate the decision-making process
The decision related to the best strategy is based on the evaluation of the decision-making
process which is done with the help of Peyton’s four-step approach that is given below: -
Step 1: Demonstrate: - Company demonstrate the issues that they are facing within the
organisation which is lack of profit and growing needs of clients.

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Step 2: Deconstruction: - According to the demonstration there will be a procedure which will
include the step by step steps to deal with the issue. The expansion of the business is a solution
which is based on two strategies like Organic and business acquisition.
Step 3: Comprehension: - In the meeting, the head will explain all the steps related to the
strategic and operational plans which are required to deal with the issues at every level. The
analysis of the pros and cons of strategy shows that both the strategies are effective depending on
the needs of the company.
Step 4: Performance: - The performance includes dealing with the issue and performing well by
achieving success.
Williams’s rational problem-solving approach
In the research, this is witnessed that most of the companies are implementing the rational
decision-making process by Williams which is a multi-step process for making the selection
between the alternatives (Williams, 2002). For the right decision, the companies abide by the 7
steps which include: -
 Confirm and describe the problem: - This step includes the identification of the
problem at the strategic and operational level which includes satisfying the growing
needs of clients and attaining high profit.
 Conduct research and brainstorm likely solutions for the issue: - The expansion of
the business is the solution where two strategies are present which include organic
strategy and business acquisition strategy.

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 Setting out the standards of achievement as well as failure for the possible answers: -
Setting the standards that if the company will be able to attain profit then it will be
considered as successful (Koechlin, 2020).
 Flesh out the possible consequences of every solution: - In the organic strategy, there
will be the use of the maximum resources in organic strategy. On the other hand, in the
acquisition, the company will face high loss if it will not take place properly.
 Select the best solution and test it: - The best solution is to conduct the meetings and try
that expansion will not get fail anytime.
 Track and evaluate the results of tests: - The analysis of the strategy is done with the
different steps of Peyton’s.
 Implement the right solution: - The implementation of the best solution is required but
considered both the strategy it has been found that both the strategies are effective.
All these 7 steps are implemented while making the right decision for the expansion of the
business when they need to expand the business which helps in reducing the issue of high
competition and lack of profit.
Recommendations
Presently, the major decision that is required to be taken by the companies is related to the best
strategy considering all their issues which they are facing within the market. The companies need
to select whether they need to acquire or purchase their competitors or to open a satellite location
which is essential to growing organically (Hakutizwi, 2017). However, in both the cases, the
company needs the effective strategic planning which contributes in ensuring that both the
strategies are attainable and sustainable over the period which contributes in attaining the goals

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of the business and also to justify the expense along with effort required. The company should
analyse whether the buying of one or more trades will support or hinder growth towards the
growth objectives then it is required to save a sharp eye on the large and small companies who
are competing with each other. On the other hand, the market is not that much competition due to
which slow growth will be fine for a company which means that they can go for organic growth.
In the research, this has been witnessed that if the company have enough funds with them then
they can incorporate both the techniques into your business models because these both strategies
will provide the growth and expansion to the business (Meglio and King, 2019). Along with this,
the use of the business will make marketing as a relevant and fastest route through which the
business can grow within the market. The companies who are dealing in the highly competitive
market and found that the business floundering of the late acquisition can give it a much-required
boost and also providing the potential to promote the improved organic growth in the long term
(Poniachek, 2019). However, on the other hand, companies are flourishing it can further excel
your growth in the long and short term. The use of both techniques is considered as vital as
together it could potentially allow the company to expand the business effectively.
It is suggested to the companies that in the meetings they should ask for the different opinions of
other employees which helps them to finalize the strategy that will remain appropriate for them.
Along with this, the evaluation of the decision is required to be considered after analysing the
benefits and drawbacks of strategies for the right decision. According to the nature of the
problem, the companies should adopt the strategies from organic strategy or business acquisition
strategy.