4-3 What Aids Decision Making
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Transcript of 4-3 What Aids Decision Making
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7/31/2019 4-3 What Aids Decision Making
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3.4 How do businesses operate 1
Unit 4.3
What Aids Decision Making?
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By the end of the lesson, you
will understand How information helps decision making
That there are different types of information
How to give examples of information
helping in decision making
What is a simple decision making model
What are the stages in a complex decision
making model
3.4 How do businesses operate 2
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How Information helps
Decision Making How will Helen decide whether to open on
Sundays?
How will Asda decide whether to open a
new store in Tobermory?
Information used to decisions like the above
must be ACCURATE and UP-TO-DATE.
3.4 How do businesses operate 3
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Informationhelps decision-making
Information can be accessed from a variety ofsources:
Internal computer files www
Newspapers/Books
Letters
CD-ROM
People
TV
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Different Types of Information
There are 4 main types of information that
you must be aware of:
Primary
Secondary
Internal
External
3.4 How do businesses operate 5
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Primary Information
This is information gathered by the organisationfor a specific purpose. For example, getting
feedback from staff or customers by using a
survey
observing
interviewing
questionnaires
surveys
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Secondary Information
This is information gathered from publishedsources outside the organisation. It may not be
used for the purpose for which it was gathered.
For example, Asda may look at published
population figures to decide whether to locate anew store in a particular area
Firms own reports
Government statistics Libraries
Internet
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Internal Information
Gathered from within the organisation. Forexample the company sales figures for the
last 3 years final accounts
sales statistics staff turnover
training costs
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External Information Gathered from outwith the organisation.
For example newspaper articles. population census information
competitors company reports buying habits of 14-18 yr olds
new employment regulations
3.4 How do businesses operate 9
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Quick Quiz
3.4 How do businesses operate 10
Primary or
Secondary?
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3.4 How do businesses operate 11
Internal or
External
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Simple Decision Making Model
Define theproblem
Implement
the solution
Measureresults
Select the
best
solutionAssess
differentoutcomes
Develop
alternative
solutions
Collectrelevant
information
Start
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Complex Decision Making Model(POCGADSCIE)
Identify the Problem
Identify the Objectives of the solution (what is the outcome tobe)
Identify the Constraints (what problems may be encountered)
Gather information
Analyse information
Devise possible solutions
Select the best possible solution
Communicate the decision
Plan andImplement the solution (put the solution into practice)
Evaluate the effectiveness of the solution (how successful wasit)
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Qualities of Good InformationFeature Description Explanation
Timely Information should be
available when required
Eg Business final accounts must be
prepared in time for shareholdersmeeting
Accurate Information should becorrect
Eg accurate market research
(field) required to make decisions
on new products
Relevant Information shouldrelate to the decisionbeing made
Eg Prices of similar products maybe used to help pricing decisions
Complete All the informationshould be available to
allow decision to be
made
Eg Information on all systems on
the market should be available
when deciding which new
computers to buy
Up-to-
date
Most recent information
should be used
Eg using up-to-date ferry
timetables when planning business
trip
Cost
Effective
Information should not
cost too much to gather
Field research may be expensive.
Desk research cheaper.