MBS5022 Strategic Management: Decision Making Techniques

This report delves into the intricacies of decision-making techniques within the realm of strategic management, drawing insights from various sources including articles and videos. It examines the decision-making process, highlighting the importance of forming a productive atmosphere, understanding the underlying challenge, generating multiple options, assessing those options, selecting the optimum choice, evaluating the strategy, and communicating the decision. The report contrasts corporate and personal decision-making, providing examples such as on-boarding a new distributor at Coca-Cola Zambia and the choices individuals make when purchasing a car or clothes. It also references Elon Musk's scientific, evidence-based approach to decision making, which involves asking questions, collecting information, formulating axioms, drawing conclusions, disproving the conclusion, and validating the decision. The report concludes that using structured decision-making processes is beneficial for both individuals and corporations, emphasizing the importance of effective choices and recognizing the current and desired future states. The paper highlights the importance of efficiency and effectiveness in the decision-making process.

Decision Making Techniques
Mundia Ngubai
Module 6 Assignment
MBS5022 / Strategic Management
Dr. Raj Parikh
21 June 2022

Decision Making Techniques
Decision making Process
Taking into account the guidelines given on decision making in both the video
‘Decision Making Techniques’ (2016) and the article ‘How to Make Decisions’ (2016), both
articles offer same guidelines on decision making process and go on to posit seven stages on
how to formulate the optimum decision possible out of an array of available alternatives. In
the article “7 Steps to Effective Decision Making” from University of Massachusetts
Dartmouth (2017), the university likewise posits seven stages which complement the ones in
the video. (Scott, 2020) elucidates that decision is the practice of making selections among
feasible options. The idea is to select the most suitable and most feasible choice that responds
to your needs. The decision making is subject to other factors such as life experiences i.e.
personal and professional, culture and other stakeholders.
Discussion
The article and the video both bring to the fore the following steps.
1. Forming a productive atmosphere that involves requiring the right individuals in
the decision making and guaranteeing that all sentiments from stakeholders are
considered,
2. Appreciating the underlying challenge by probing more on the given challenge,
3. Come up with as many options as conceivable,
4. Assess the options and explore all the threats linked the options,
5. Select the optimum option out the many that have been conceived,
6. Appraise your strategy, and
7. Communicate the decision and taking action on the decision made.

Decision Making Techniques
As earlier alluded to the University of Massachusetts Dartmouth (2017) elaborate
further on the ‘7 Steps of Effective Decision Making’ and these comprise 1. Ascertain the
decision, 2. Gather pertinent facts, 3. Find the options, 4. Weigh the evidence, 5. Pick among
options, 6. Take action, and 7. Evaluate your decision its results or impacts.
All the 3 article basically talk to each and are thus aligned. In making decision,
professionally the author utilises a structures process in accordance with guidance and
policies from the company, this is line with the 3 sources. It is further worth noting that in
professional spheres, decision making is robust and involves a lot of other stakeholders thus
the process involved is rigorous. For instance when on boarding a new distributor at Coka
Cola Zambia, decision will involve stakeholders such as risk and compliance department, that
will look into compliance issues of the client such does the client comply with company
registration certificates?, does the client have trading permits?, do they have proper secure
premises to trade from? Etc. The marketing department will also look at issues such as
exposure of premises to customers in terms of visibility. Accounts department will have to
verify if the business has minimum capital requirement in their bank account. In summary
corporate decision follow process and policies and will thus take longer and the author will
have to consider all the stakeholders. On a personal level, the author does not go through all
the stages but will rather focus on what is rational based on past experience and gut feeling.
This leads to skipping of all other stages. For instance in purchasing a car, it is normal for
individuals to quickly focus on what worked well previously thus other alternatives may not
be considered or evaluated. Same as when buying cloths individuals will certainly go straight
to a shop where they usually buy from without considering alternatives as this may be
deemed time wasting. In an article authored Strauss (2017) which appeared in Rolling stone
magazine and www.incafrica.com in which Strauss interviewed Elon Musk on his decision

Decision Making Techniques
making process, Musk outlined that he adopts a scientific evidence based decision making
process which involves 6 steps.
The steps according to Strauss (2027) typically involves the following: (1) Ask a
question (2) Collect as much information as possible about it.(3) formulate axioms based on
the information collected, and attempt to assign a probability of fact to each one. (4) Pull a
conclusion based on cogency in order to determine: Are these axioms accurate, are they
pertinent, do they necessarily lead to this conclusion, and with what probability? (5)Attempt
to disprove the conclusion. Seek refutation from others to further help break your conclusion.
(6) If nobody can invalidate your conclusion, then you are probably correct, but you are not
certainly right (Strauss, 2017).
According to Strauss (2017), Musk uses these six questions any time he needs to
come up with an idea, solve a problem, or decide to start a business. Strauss (2017), further
reports that Musk values this kind of evidence-based decision making and this is very similar
to the steps provided in the 3 sources above.
Evaluation
Using the suggested decision making process from the three articles can be beneficial
to both individual and corporations. As mentioned above, decision making involves
procedures and steps. These steps are often times utilized in combinations which result in
efficient and effective outcomes. As outlined decision making processes in corporations is
time consuming and rigorous. The outcome in most cases is an effective decision. Entities
that cut corners have been known to face dire consequences as such it is important to allow
the process to take its course. Any adopted decision making process otherwise must
guarantee effective choices. Decision making typically comprises recognising your current
condition and your future perception followed by creating alternatives on how you will attain

Decision Making Techniques
your perceived future position. It should be emphasized that making decision with fewer
option often leads to ineffective decisions.
As per the various articles resources, selecting among alternatives can be a daunting
task. Every choice made has to be made within certain constraints and usually the ultimate
goal of an organization of an individual is typical of what will shape the selection.
Summary
As mentioned in the paper, decision making is about establishing where you are,
where you want to be and how you want to get there. Central to this is efficient and effective.
This entails that to get where you want to be, the means of how to get to your perceived
position must be efficient and effective. The efficiency and effectiveness of the “how” and
the “where” will be seen in the quality of decision made. The quality of the decision made
will determine if you will get to the perceived future position. At individual levels and indeed
at corporate levels the growth of entities is seen by the everyday decisions made and the
process thereof.

Decision Making Techniques
References
How to Make Decisions (2016). Retrieved from
https://www.mindtools.com/pages/article/newTED_00.htm (Links to an external site.)
Decision-Making Techniques (2016). Retrieved from https://youtu.be/YqWiHtX2-z0 .
Scott, D. (2020). Evaluation National Social Outcomes. Retrieved June 23, 2022, from
https://cals.arizona.edu/sfcs/cyfernet/nowg/sc_decision.html
University of Massachusetts Dartmouth (2017). 7 Steps to Effective Decision Making. Retrieved June
23,2022, from
http://www.umassd.edu/media/umassdartmouth/fycm/decision_making_process.pdf
Strauss, N. (2017, November). Inc.Africa. Retrieved June 23, 2022, from
https://incafrica.com/library/business-insider-how-elon-musk-makes-decisions-
rolling-stone