Decision Making

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Routine

  • Taken Regulary
  • Not Unexpected
  • People are ready to make them
  • Lower level decisions taken by more Junior staff

E.G. agreeing with staff rotas; ordering stock; changing the layout of the store to help boost sales.

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Non-Routine

Managers do 'Non-Routine Decisions'

  • irregularly - doesn't happen often
  • Often because of an unexpected event
  • Can be taken by managers at all levels within the business

E.G. Responding to emergency; new business location; deciding to sell a new market

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Tactical Decisions

  • Based on short-term factors
  • Often in response to what rivals are doing
  • Decision often made by middle managers, but sometimes senior management

E.G. Lower prices due to business not reaching expected figure

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Strategic Deciosions

  • Long-term implications
  • Likely to affect the whole business
  • could have major implications on the success or failure of teh business
  • Not taken quickly
  • Made by managers with most authority

E.G. Moving production abroad as it is cheaper to make there; to sell exclusively online instead on shops.

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Proactive Decisions

  • Taken before the event happens - contigencies plan
  • Managers at all levels can make these decisions
  • Taken by more innovative firms i.e. Apple that want to lead a market and stay ahead of events and the competitive

E.G. Junior managers order in more stock before an expected busy sale

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Reactive Decisons

  • Decisions made repond to events
  • Less risky
  • Less profitscould be made as other rivals have got their first
  • Businesses could rush to respond and then make mistakes

E.G. Samsung brings out its tablet in response to the Apple IPAD

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