Pages in this set

Page 1

Preview of page 1
Chapter 33: Making operational decisions
Businesses of all sizes have to make many decisions each day some are fairly simple
and routine, whilst others are more complex and require significant management time
and effort. Some examples of decisions that all businesses need to make are:

Where should we locate the…

Page 2

Preview of page 2
8. Evaluate the outcome. Did the decision work ? Was it the best course of action ?
How can it be improved next time? What went wrong?

Businesses can rarely carry out their decisionmaking in a totally open and riskfree
environment, and there are often many constraints which exist, that…

Page 3

Preview of page 3
The tree diagram points in favour of delaying the sale of the land for 12 months, since it
predicts that IF THE DECISION WAS TAKEN MANY TIMES then Mr.Smith would ON
AVERAGE receive £283,000 (£290,000 minus £7,000 costs), instead of the £245,000
(£250,000 minus £5,000 costs) that he would receive…

Page 4

Preview of page 4
1.The probabilities are only estimates and are, therefore, subject to change.

2.They can only show quantitative data they do not take account of peoples' feelings,
legal constraints, etc.

3.The results can be biased, in order to show just one side of an argument.

4.There can be significant time delays whilst…

Page 5

Preview of page 5
Effective promotion

Several of our products are reaching the end of their lifecycle

Too many marketing personnel are leaving the business

Restricted product range

Opportunities: Threads:

New markets in Far East

A joint venture with a foreign chocolate manufacturer

Product extensions, such as different sizes of bars

Competitors are threatening…

Page 6

Preview of page 6
efficiently if they do ever occur. These potential scenarios are often computersimulated,
and they can predict to a high level of accuracy the likely effects of a crisis on the
finances and resources of a business.

Crisis management is the response of an organisation to a crisis (e.g. a fire,…


Aishah W


Complicated and doesnt cover all topics in this section.

Similar Business Studies resources:

See all Business Studies resources »