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Strategy

A strategy is a way of achieving an objective
Decisionmaking
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…

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3. Analyse the data. Look at the different courses of action and decide which ones look the
most achievable and realistic to meet the objective.
4. Make a decision. This stage is vital to the whole process. The decisionmakers must
ensure that they follow the correct course of action and…

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competitor, or breaking into foreign markets). Three types of decision making tools are shown
below:
Decision tree
A decision tree is a diagram that sets out the different options that are available to a business when
making decisions and it also shows the chance (or probability) of their occurrence. It…

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3.Node B is represented as a circle and is called a chance node (i.e. there are several possible
outcomes from this node, one of which will definitely happen).
4.Each event stemming from a chance node has a probability attached to it (these probabilities must
always add up to 1).
5.The…

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A threat represents a potential future problem which the business may face in the future, such as
new competitors entering the industry, new legislation restricting the use of certain raw materials, or
the possibility of being takenover by another company.
Remember, the strengths and weaknesses are internal factors which the…

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Before contingency planning can take place, a business must consider many possible threats and
crises that it may face, in order to be able to react to them swiftly and efficiently if they do ever
occur. These potential scenarios are often computersimulated, and they can predict to a high level…

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