Tools Used in Managerial Decision-Making and Their Effectiveness

This report provides an in-depth analysis of various tools and techniques employed in managerial decision-making processes. It explores the significance of tools such as SWOT analysis, cost-benefit analysis, and organizational decision support systems (ODSS) in achieving organizational objectives. The report evaluates the effectiveness of these tools, discussing their strengths, weaknesses, and limitations. It highlights the importance of SWOT analysis in identifying strengths, weaknesses, opportunities, and threats, as well as the role of cost-benefit analysis in evaluating projects and investments. The discussion also includes the benefits of ODSS in supporting decision-making and enhancing organizational planning. The report concludes by emphasizing the importance of these tools in improving managerial decision-making, enhancing strategic capabilities, and ultimately, achieving business success. The report also provides recommendations and references to support the analysis.

Running head: TOOLS USED IN MANAGERIAL DECISION-MAKING
Tools used in managerial decision-making
Name of the Student
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1TOOLS USED IN MANAGERIAL DECISION-MAKING
Table of Contents
1. Introduction............................................................................................................................2
2. Different tools and techniques...............................................................................................2
3. Discussion of the two types of tools and techniques..............................................................4
4. Conclusion..............................................................................................................................6
5. Recommendations..................................................................................................................6
6. Reference................................................................................................................................7

2TOOLS USED IN MANAGERIAL DECISION-MAKING
1. Introduction
There are diverse categories of tools as well as technical software which are deployed
in the managerial decision making procedure across various global commercial
establishments. The achievement of the organizational objectives are the prime intentions of
these software and tools (Troyansky, Gibson & Leichtweis, 2015). Time and budget required
for a specific project can be identified in the first place using these software and tools.
2. Different tools and techniques
The incorporation of the tools and technical software like SWOT analysis, Cost
Benefit analysis and Organizational Decision Support System are very much significant for
the managers of the commercial establishments regarding any decision making of this
business (Sunstein, 2017). The following unit of this paper shall be evaluating the
effectiveness of these three different categories of tools and software.
SWOT analysis: It is one of the most significant decision making tools which are
deployed regarding the managerial decision making procedures. This tools is very much
significant regarding the identification of the prime strength and probable weaknesses of the
commercial establishments. This tool is also very much significant regarding the
identification of the probable opportunities and threats (Phadermrod, Crowder & Wills,
2019). The internal as well as the external factors which might play an important part
regarding the managerial decision making procedure can be identified after the deployment of
this strategic planning tool. This tool is very much beneficial for the commercial
establishments as new strategies can be created using this tool (Akkermans & Van Oorschot,
2018). This tool can also be very much significant to identify capabilities and the
competencies of the workers who are working for a longer period of time. Corporate planning
is one of the most significant contribution of this strategic tool, at the same time the strategic

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issues of the organizations can also be maintained using this tool. New marketing strategies
can be created by the marketing manager using this tool (Newcomer, Hatry & Wholey,
2015). However, there are few constraints associated with this tool also in terms of the lack of
brainstorming procedures. Adverse and volatility of the market cannot be predicted using this
tool. Prioritization of the issue cannot be done using this tool, at the same time this tools does
not provide any alterative decisions. Numerous irrevalent decisions can be obtained from this
tool also which is one of the significant limitation of this tool.
Cost Benefit analysis: Evaluation of the managerial decisions is one of the most
significant contribution of this tool. Systems and projects of each global establishment can be
evaluated using this tool. The benefits of any action taken by the managers such as the
calculation of the rate of return and break even occurrence can be evaluated using this tool.
The different categories of cost associated with any specific projects considering the available
discount can be calculated in the first place using this tool. Subtraction of the cost from the
benefits of a project can also be identified in the first place using this decision making tool.
The goals as well as the necessities of the project can be evaluated in the first place using this
tool as well (Nash, Manning & Heiser, 2019). The investment of time and resources for any
particular activity in an organization can be evaluated using this tool as well. Clarity in the
unpredictable situations is the other positive associated with this decision making tool.
However, there are few limitations associated with this tool in terms of the lack of
considering the variables associated with organizations and projects. Subjectivity for the
intangible cost are the other limitation associated with this decision making tool (Bratianu,
Vãtãmãnescu & Anagnoste, 2018). The calculation of the present value of a project cannot
always be predicted using this decision making tool. Setting the unrealistic goals is the other
limitations associated with the decision making procedure of this decision making tool.

4TOOLS USED IN MANAGERIAL DECISION-MAKING
Organizational Decision Support System: Each of the decision making procedure of
a business can be supported by this decision making technique. Flexibility as well as the
adaptability of an activity can be supported using this system. Organization and planning
activities can be supported using this system. Managing with any kinds of change is one of
the other significant contribution of this system. Each of the organizational process can be
evaluated in the first place using this decision making technique. The decision making
approach of the managers is generally enhanced to a significant extent due to the deployment
of this decision support system (Held et al., 2016). The inventories of the business can also be
identified using this system. It can be said that most of the decision making procedure of the
managers depends upon a formal documentation procedure and the deployment of this system
can be very much useful to identify the reliability of this system. Revenue figures based on
the product sakes can be obtained from this system. The managerial decision making
procedure in data warehouse and the data marts can also be enhanced after the deployment of
this decision making system. This system can play a huge role validation of any managerial
decisions in a business environment. Argument mapping and morphological analysis are the
prime decisions which are usually taken by this decision making technique (Butler et al.,
206). On the other hand, there are few limitations associated with this technique as well in
terms of the management of the information overload. Shift in focus is the other negative
associated with this decision making system.
3. Discussion of the two types of tools and techniques
Based on the above discussion, it can be understood that the tools which are generally
deployed in the managerial decision making such as SWOT analysis and Cost Benefit
analysis can be very much significant to identify the effectiveness of the managerial decision
making procedure (Boardman et al., 2017). These tools can be very much significant to take

5TOOLS USED IN MANAGERIAL DECISION-MAKING
advantage of the opportunities which are associated with the managerial decision making
procedure. Any changes which can provide a competitive advantage to a firm can be
identified using these decision making tools. These tools are also very much significant in
order to enhance the decision making by te creation of a constructive environment (Hansen &
Schaltegger, 2016). Exploration of the best solution is one of the other significant
contribution regarding the use of these decision making tools. It can also be said that most of
the personal decision making procedure as well as the consumer decision making can be
enhanced using these tools.
Based on the above discussion it can be said that analysing the business data is one of
the most significant contribution of this decision making procedure. Operations and planning
are one of the two most significant aspects of the organizational decision support system.
Identification of the issues as well as the inconsistencies of the decision making of the
operational managers as well as the project managers can be enhanced in the first place using
this system (Gürel & Tat, 2017). The ability of the manager to take critical decisions can also
be enhanced using this system.
Managers from organizations like Telstra uses both organizational support system as
well as SWOT analysis regarding any decision making procedure. Each one of these tools
and techniques are used in specific scenarios (Burgess et al., 2015). The sales and marketing
strategies of this telecommunication organization is generally done using the SWOT analysis
tools. Incorporation of the organizational decision support system is very much useful for this
organization regarding the management of the cash flow, fixed operating cost and capital
budget decisions.
According to García et al. (2018), there are diverse categories of technical software
which are deployed during the decision making procedure in a business such as the balanced

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scorecard, stratgraphics, riskturn and Qlikview. These analytical software are very much
useful regarding the financial decisions making procedures. On the other hand, there are few
limitations associated with these software as well in terms of considering the futuristic
financial predictions (Celli et al., 2018). This paper helped in identifying that strategizing
capability of the manager can be improved hugely if these software are successfully installed
on the computer systems of the managers as compared with Cost-Benefit analysis technique.
4. Conclusion
There are different categories of tool and techniques which are widely deployed
across business organizations such as SWOT analysis, Cost Benefit analysis and organization
decision support system. The competency of each workers of the business and the
improvement of decision making ability of the managers can be enhanced after the
introduction of these tools and techniques. Major global business like Telstra uses both
SWOT analysis and organizational decision support system in order to improve their
managerial decisions. The report successfully identified that the financial decisions and the
investment decisions can be enhance to a significant extent due to these tools and techniques.
5. Recommendations
Based on the above discussions it can be said the incorporation of the organizational
decision support system can be very much beneficial for the managers to take any managerial
decisions without any sort of confusions and inconsistencies. The financial decision makings
in terms of the working capital management, capital budgeting and capital structure can be
significantly benefited if this system is successfully installed in the business environment.
The investment decisions of the managers can also be enhanced using this system.

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6. Reference
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balanced scorecard development using system dynamics. In System Dynamics (pp.
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Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2017). Cost-benefit
analysis: concepts and practice. Cambridge University Press.
Bratianu, C., Vãtãmãnescu, E. M., & Anagnoste, S. (2018, September). The Influence of
Knowledge Dynamics on the Managerial Decision-Making Process. In European
Conference on Knowledge Management (pp. 104-XXVII). Academic Conferences
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Burgess, S., Sellitto, C., Cox, C., & Buultjens, J. (2015). Strategies for adopting consumer‐
generated media in small‐sized to medium‐sized tourism enterprises. International
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Butler, M. J., O'Broin, H. L., Lee, N., & Senior, C. (2016). How organizational cognitive
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Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International
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