Unit 3 - Decision Making - Unit 3 Decision Making...

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Unit 3 – Decision Making Introduction Decision maker must select a course of action Sources of Organizational and Entrepreneurial Decisions o Decision making: process through which managers identify and resolve problems and capitalize on opportunities o Begins with recognition or awareness of problems and opportunities and concludes with an assessment of the results taken to solve those problems o Problem: a situation in which some aspect of organizational performance is less that desirable o not all decisions made because of problems – opportunities also arise o Opportunity: a situation that has potential to provide additional beneficial outcomes ex) cola wars, battery industry, ipods 3M 7 Steps in the Decision Making Process 1) Identifying Opportunities and Diagnosing Problems 1 st step in DMP is the clear identification of opportunities or the diagnosis of a problem that need a decision discrepancies between actual and desired conditions alert a manager to a potential opportunity or problem manager must pay particular attention to ensure that problems and opportunities are assessed as accurately as possible managers put a premium on obtaining accurate, reliable information pay millions to ID market trends sometimes things flop “New Coke” may be misinterpretations over time and information is misunderstood or managers have accurate info and interpret it different ways 2) Identifying Objectives objective: the desired result to be attained when making decisions
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This note was uploaded on 03/18/2008 for the course B A 304 taught by Professor Colangelo,augustu during the Spring '07 term at Pennsylvania State University, University Park.

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Unit 3 - Decision Making - Unit 3 Decision Making...

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