Models of Decision Making :: Business Management

MODELS OF DECISION MAKING prep be analysis Model Posters Five Forces depth psychology PEST Analysis ram AnalysisSWOT Analysis is the most common and illustrious model for ratiocination making in the disdain world today. It is utilize for conducting the audit, study and analyze the overall strategic position of the business and the purlieu in which the business operates SWOT is an abbreviation of Strengths, Weaknesses, Opportunities and Threats. The main objective of SWOT analysis is to devise the best strategy for the disposal, using it to prepare the business model for the company while keeping in face the resources, capabilities and constraints that are applicable. It is in fact used to assess the internal potential of the organization and how it cigaret be utilized to exploit the avenues available in the environment. It takes into regard all the favorable and unfavorable factors associated with the organization. This tool when used consistently can help in the predicting the future outcome and including those forecasts in the organizations strategy.Conducting SWOT analysis is not a complex task solely includes a very simple and interesting activity. It also includes brainstorming sessions. SWOT analysis may be used to develop the business idea, assessing an luck to make an acquisition, analyzing a potential partnership or making decision about a brand, product, an investment opportunity. SWOT analysis is conducted using a template which is usually in the form of a grid and consists of quartet sections.An example of the template is produced below STRENGTHSFinancial ResourcesHuman Resource merchandise AccessBrandsPatentsCopy RightsTechnology InfrastructureQuality Cost minimizationEffective managementGeographical edgeExpertise and Experience rearward and Forward IntegrationOther assetsWEAKNESSCash shortage or lack of access to financial resourcesLack of access to marketplace clumsy human resource and managementLack of infrastructureNo n availability of engineeringLack of competitive strengthsIneffective supply chain management particularize Product RangePoor Decision MakingHuge Debts game employee turnoverObsolete equipmentComplex decision making process medium-large wastage of raw materialOPPORTUNITIES virgin marketNew Government insurance policy or change in recent policyLifestyle or industryNiche marketIncrease in level of income of individualsNew Products and services THREATSPolitical factorsLegislative issuesEnvironmental factorsHigh turnover of facultyTakeover by a big giantNew engineering by competitorDisagreement with key contractors and customersSeasonal impactsChange in attitude, tastes or lifestyleInternational market impacts on local marketChange in the market demandEver changing technologyPrice war leading to decrease in profitability change magnitude competition leading to access capacity Lets have a view on each of the four factorsStrengthsStrengths are the competitive edge or the capabilities an organization has to be utilized when competing with its competitors.