Essay- HIGHER BUSINESS MANAGEMENT

Business Enterprise- Section 3 (Decision Making)

a. Using a structured decision making model it has obviously its own costs but also it has benefits, both of them being clearly defined as following. First of all the time-scale is necessarely required as time is taken to collect, asses and analyse information, so the more important or complicated the decision the longer it will take to make. Secondly, the ability to collect all information it is important, beacuse gathering accurate, relevant and valuable information, can be problematic and time cosuming. Also, there is a problem in the quantity of information, beacuse when choosing from a range of possible solutions can often be very difficult to do in practice. Otherwise a structured process can stifle creativity and gut reactions to problems, this being the main reason why it is not suitable for all decisions, for example quick decisions. The benefits of using any kind of decision making model are first of all as well, related to time, as no rash decisions are made, time is taken to gather information and analyse the situation carefully. The second benefit is that decisions are made using

relevant knowledge of facts and information that have been gathered. The availability of alternative solutions is also very important as time has been taken to develop alternative solutions rather than jumping to thr first possible solution. As well, by following a logical process, ideas ar enhaced beacuse a range of alternative solutions will have been analysed.

b. Business cannot make decision with complete freedom, and here appear the constraints. Internal constraints that could affect the success of decisions are: -availability of finance- a decision may not be possible if the organisation is unable to finance it;-existing company policy- e.g. no promotion for the pro-active employees with good ideas and initiatives- a lack of the appropiate technology might make the organisation fall behind the one with the latest equipment.

c. These are 5 stakeholders that can influence decision making process:

Local Business Owners – could raise concerns investment in the are and sugggest areas for development

Community- petition local council over matters they are unhappy with to prevent similar problems in the future. Meet with their councillors to bring up topics that they are unhappy with.

Council employees- provide a good service through working efficiently, no absences put forward good suggestions for improvement of services, go on strike.

Council Managers- at regular meetings can discuss staffing levels, suggest areas of investment, areas needing improved to provide a better service, ensure objectives are met.

National Gouvernment- take action if council overspends, legislation, eg, recent recycling laws could force local council to take action in certain areas.

d.Three reasons of why a firm would want to grow are:

1. Earn more profit- this is the main reason of a business actually, of earning profit by offering services, but once the target is achieved, the firm will think of new solutions of how to increase the profit, as much as possible.

2. Launch new products or services- this is one of targets that any organisation with a rooted reputation would achieve, of course this happens to a higher level

3.To monopolize the market of the respective product or services- This is the highest grade that a business can achieve, monopolizing the market area of the respective products, making the highest sales by having the best reputation. It’s very hard to achieve this target, as well the maintaing at this level. e. First of all the problem must be identified, therefore that is already mentioned, the existing mini bus is old. The

objective is to find out if it’s a good decision to buy a new bus or not. The only information that we got is that the existing mini bus is old, and it might be a need of a new bus. The physical constraints are the pupils that must be brought to school by bus (especially the ones that cannot be brought by their parents ), the financial constraints are the limited resources of the school that are used for constant exepnditure and the human constraints are the need of a bus driver ( in case they don’t already have one ). Some solutions might be a found request from the gouvernment, a bank loan or finding a sponsor. The best solution would be the one of calling the gouvernment founds, as it’s the easiest way to acces tangible founds. The decision can be communicate to the gouvernment by the director or the representative of the school, following to put the solution into effect. After the evaluation, the school will conclusionate that they made the best decision.

Raluca Timbala