Portfolio
Student Name
Student ID
Module Name
Business Decision Making
Module Code
3IM001
Instructor Name
Dr. Gurmak Singh
Date
Utilization of Information in Business Decision Making
Introduction
Information is undeniably the most vital part of any business decision making and without an inadequate source of information, a business decision cannot be properly executed. The business decision requires complete, detailed, structured, organized and credible information, as these are the factors that can help the business owner to reach out to any conclusion and to avoid any serious blender information from all the aspects of a certain issue must be thoroughly and diligently analyzed.
There are different types of information and each information can occur in different forms within an organization and depending upon the need of the issue the information from different sources can be judged. Each type of information plays a different role at each stage of business decision making. Information can flow from lower to higher hierarchy in the business in the form of reports and analysis and information can also occur from higher to lower hierarchy in the form of applications and letters. Information is necessary for making a good and productive business decision and it is impossible to make a business decision without properly analyzing all the information related to the matter.
Importance of Information in Business Decision Making 商业学论文代写
Information is very substantial to make an informed business decision and without proper information, a business analyst cannot make a certain decision that can result in productive outcomes. There is no imagination in which a business decision can be made and executed without exploring different option and to explore each different option a person needs to have a structure and detailed set of information that can help the business analyst to come up with a decision that aligns with the strategic requirements and goals of the company.
Information is not only related to certain decisions in an organization, but each of the functioning departments in the organization also needs different types of information depending upon the requirement of the department and the tasks that need to be executed by the department (Ježovita, 2015). Information is needed at different stages in business decision making and with the utilization of information at each stage a good and informed decision can be made. In business decision making each problem is divided into different stages and each stage plays a great role in the result.
This could be justified by an example where the head of the sales department needs to make an informed business decision in which he has to calculate the profit from the sales and then based on the profit evaluated he needs to order the same product in another batch.
This business decision can only be made if the head of the sales department is provided by different types of information that will help him in coming up with an informed business decision.
He needs to have information regarding the number of sales of that product, the target audience which purchased the product the most, the time that was acquired to sell the first batch of the product, and the demographic information where the product is mostly consumed. This all information and a thorough analysis of each point will help the head of the sales department to come up with a logical business decision about the restocking of the product. Information is imperative for all the business decisions taken by the business owners and it is not very productive for the business owners to calculate the business decision without having the required information. 商业学论文代写
Types of Business Information
There are many forms of business information that are required by the members and employees of the organization, to make informed decisions. The most common and primary forms of information are listed below:
- News Information
- Market Research Information
- Financial and Credit Information
- Management and Marketing Related Information
- IT Research Information
- Industry, Economic and Political Information
- Information Regarding Market Trends
- Information About Competitors
- Information Regarding the Company and Executives Profiles
- Information Regarding Profits and Sales
There are a plethora of other types of information that can be utilization by a business organization and the purpose of each information is to serve the fundamental goal of business decision making related to different issues, and projects and matter in the organization.
Information is principally required for various business operations and decisions such as financial decisions, tax decisions, marketing, management, performance, and appraisals decisions and employee resourcing, retaining, and promotion decisions (Houhamdi and Athamena, 2019).
Forms of Information
Information can take place in different forms and each of these forms can vary depending upon the type of business decision. Information can occur in two forms primarily:
- Verbal Information
Verbal information can take place in the forms of meetings, presentations, lectures, and other ways in which discussion are required and this type of information is required while making important business decisions which needs to be thoroughly discussed with a lot of opinions from other people and also through analysis on the matter.
- Non-Verbal Information
Non-verbal information can take place in the form of documents, letters, applications, journals, and other statements that have to be communicated in written form. This type of information is always recorded and can be accessed later while making the business decision.
To establish an online business venture all the important authorities and founding officials of the company need to first thoroughly research the various opportunities that can be explored digitally. The information regarding the type of online venture, the type of digital website should be properly analyzed. In addition to this, it is also very important to note the competition from the other business that have already established digital platforms. 商业学论文代写
This can allow the business owners to learn about how they can further improve their services and provide customers with the uniqueness in the online experience which can also be considered as a competitive advantage. The information regarding a particular niche, market viability information and the information regarding market research, information regarding competitive analysis, information regarding all the laws required for the establishment of online business, information regarding target audience, and information regarding the choice of the digital platform are necessary to make an informed business decision relating to the establishment of online business (Kazimieras Zavadskas, Antucheviciene and Chatterjee, 2018).
Information Aid for Business Decision Making at All Levels
There are different types of decision-making processes and each process requires different types of information. The following are the ways how information can aid business decision making at different levels.
Information Aid in Strategic Decisions
Strategic decisions are taken by the higher authorities of the organization and they are non-repetitive and that is why they should be made after carefully analyzing every aspect of the issue (Grigorova, 2019). Critical information is needed in such type of decision making and these decisions are usually related to the attainment of organizational objectives and goals. Without descriptive information on every aspect, such decisions can not be executed. For example, a strategic decision in the organization may be related to all the funding and investing matters and to execute these decisions, detailed information is required on the finance of the organization.
Information Aid in Programmed and Non-Programmed Decisions
In business, organizations programmed decisions are concerned with the functionality of the routine tasks which are already planned. For such type of business, decision information is usually sorted out by a lower level of management, and such decisions are operated and made in the same order as in the previous routine. Whereas non-programmed decisions are the decisions that are sudden and propose complexity of matter and information needed for such decisions needs to be carefully proposed to devise a certain solution or decision for the problem.
Information Aid in Tactical and Operational Decisions
Tactical decisions are concerned with the policy-making of an organization and they are usually made by the higher officials of the organization. Such decisions required careful assessment of past, present, and future information because such decisions have a huge impact which will last forever on the organization. To make goo tactile decisions information relating to all the functionality of the organization and all the working force of the organization must be evaluated (Kocabıyıkoğlu, Göğüş and Hekimoğlu, 2017). On the other hand, operational decisions are related to the operations of the organization and such decisions require great observatory information from the day to day execution of the organization.
Information Aid in Organizational and Personal decisions 商业学论文代写
Organizational decisions are those decisions that are taken by a certain authority of the organization and they are associated with the management of the organization. Information regarding the managemental operations of the organization is required while making such official decisions. Personal decisions are associated with the matters that are sorted out in a personal capacity by one person of the organization and it also requires great analysis of various facets of the organization. Both personal and organizational decisions require business and organizational information.
Information Aid in Major and Minor Problems
Major decisions are those decisions that will affect the whole organization at a bigger level. For example, decisions regarding the purchase of a new factory or installing a new plat t a different site is considered to be a major decision. Major decisions require verbal or non-verbal both types of information and such decisions are usually made by the leading management of the organization, after properly investigating every information and data associated with the matter.
Such decisions require great diligence because such decisions will have a long-lasting impact on organizational growth. Information is also needed while making minor decisions such as while deciding between the purchase of office stationery. Such decisions are called minor decisions because they usually don’t require much analysis of the information and they can be made by any working force within the organization.
Information Aid in Individual and Group Decisions 商业学论文代写
Individual decisions are particularly associated with a single person of the organization. Such as an employee might decide to leave the organization and to join another organization, in this case, he carefully needs to evaluate the information regarding the new organization and also regarding his position in the current organization. Doing so will help him in weighing out the better option for him. Group decisions are taken by all the members of the group while doing a project or a task, all the members are equally responsible for discussing the matter and sharing and evaluating information that can help them in making an informed decision (Kashi and Franek, 2014).
Types of Information Needed for The Launch of New Product Line
Introducing a new product in the market can be crucial for businesses and it can take a lot of research and analysis on different matters. Information is needed at each stage in the process of launching a new product. Different types of information can be required at different stages in different formats and this can help the business owners to come up with a more productive and effective decision at that stage. Following is the list of stages each requiring different genres of information, involved in launching a new product line.
Calculating the Worth of Product
This is the first stage of launching the product and it holds ample importance in the collective process. At this stage information regarding the product should be evaluated. Information about the product should be collected through primary and secondary research and this can help the business owners identify whether it is worthwhile to launch this product in the market?
Is this kind of product already available in the market or not? What is the new and unique feature this product offers in comparison to the other products? Evaluation of the products offered by the competitor’s company should also be considered. These questions and analysis will help the business owner to identify the value of the product and whether they should take the risk of launching a new product or not. The decision at this stage can only be made if the business owners have access to a variety of information answering different analysis questions. 商业学论文代写
Identifying Target Audience
Identifying the target audience is very necessary while launching an entirely new project. Identifying the target audience can be a sensitive task because this stage can serve as the basis for incorporating all the features in the products that the audience will like and to know that it is important to identify the target audience (Khasanov, 2016). Information about the choices and selections of the audience can be gathered through various polls, surveys, and interviews and research could be done that will show the stats related to the success of similar products in the past.
Selecting the Right Team
Selecting the right team is very important because it will help the business owner in the effective delegation of tasks. If the business owners and management team are well equipped with the information regarding each individual, then they will be able to assign different tasks to different people that appropriately fit their skills. Information regarding the team member could be related to their experience, their expertise, their interests, their education, and all the information will help the business owner in landing a great team that will be very beneficial for the launch of the product.
Evaluating Timeline
A proper and thorough analysis should be conducted regarding the proposed timeline for the project. This could include the stages such as production, packaging, promotion, advertisement, and launch of the product, and these stages can only be calculated when the business owners are well equipped with the information regarding different stages. This stage is the amalgamation of different other stages and together with proper evaluation, a timeline for the proper launch of the product can be calculated.
Planning the Campaign, Marketing and Advertising Process 商业学论文代写
At this stage, all the other factors associated with the product will be evaluated. Proper information on what marketing strategies could be used to get success, what promotional and advertisement campaigns can be conducted which will help in the publicity of the product. All of these decisions can only be made if the business owners are well equipped with both verbal and non-verbal types of information. Information can also circulate in the form of written reports, charts, presentations, meetings, and other sources and all this will eventually fulfill the purpose of providing an extensive amount of information to all the stakeholders of the company (Tholkea, Hultinkaa* and Robbenbb, 2001).
Communicating and Launching the Product
This is the final stage in the long process of launching a new product in the market. At this stage, all the promotional and advertisement related activities will be finished and the product will be finally launched and distributed in the market. Before this, the company needs to effectively communicate the new product to the targeted audience and this can be done only when information on communication strategies will be thoroughly evaluated and then decisions can be made on the selection of appropriate communication strategies. Information regarding the types of launching styles and strategies can be used to gain benefits at this stage and the decisions regarding the distribution of the product can also be made at this stage.
Identified Constraints During the Communication with Different Stakeholders
Effective communication in the organization is very important, as through it the organization will be able to coordinate with the working force more innovatively. An organization cannot afford to have ineffective communication practices because it can result in the overall negligence in the organization and this way all the stakeholders will not be able to communicate policies, and procedures to the other members of the organization. Communication constraints are the restrictions or hindrance in the communication processes that may occur in the workplace and it can affect the efficiency of the organizational matters (Abdin, 2008). 商业学论文代写
Communication constraints can take place in both verbal and non-verbal forms decreasing the overall work productivity of the organization and also increasing the inefficiency and sloppiness in the organizational working. In the organization’s communication, the constraint can occur between various working forces such as stakeholders, employees, customers, and other people. Communication constraints can cause organizational matters to decline and it can also cause inefficacies in the management of the organization. Communication constraints can cause conflicts, friction, lack of collaboration, the decline in leadership, and poor teamwork in the organization, Communication constraints can occur from various factors such as technology, policy, and other organizational legislations (Zhang and Saari Kitalong, 2015)
Employees
Employers can experience a barrier to their communication with their employees in terms of both non-verbal and verbal communication. Emotional, physical, and psychological barriers can compromise the quality of communication between employees and employers. Employees may not get the true meaning of written documentation and they can have difficulties while understanding policies and procedures which is an example of non-verbal communication. In verbal communication, employees might not pay attention to their subordinates and this can compromise the verbal communication occurring between them. Employees can also suffer communication constraints in verbal meetings, discussions, etc.
Stakeholders
Various stakeholders in the organization may also face communication constraints in verbal and non-verbal communication form. They can face communication barriers by not properly documenting the required policies in the documents and this can stir great confusion in the organization. Office norms and cultures can also serve as the cause of inefficiency in communication. Various barriers such as noise, inappropriate gestures, and lack of attention can be from the side of the stakeholders which can ultimately compromise the quality of communication practices.
Conclusion 商业学论文代写
Decision making is fundamental in executing the business and it is a vital part of managing the organization. Hence after a thorough analysis and research, it can be concluded that information is imperative for effective decision making in business, and to derive good results in the organization, it is necessary to evaluate all sorts of information related to the concerned matter. Information can help the business officials to run their business smoothly with more efficacy and it can help them in achieving their goals and objectives aligning to their strategies.
References
Abdin, J., 2008. The Barriers of Communication & Guidance of Effective Communication. SSRN Electronic Journal,.
Grigorova, V., 2019. Strategic Marketing Decisions of Industrial Business Organizations. Economic Herald of the Donbas, (4 (58), pp.132-137.
Houhamdi, Z. and Athamena, B., 2019. Impacts of information quality on decision-making. Global Business and Economics Review, 21(1), p.26.
Ježovita, A., 2015. Accounting Information in a Business Decision-Making Process – Evidence from Croatia. Zagreb International Review of Economics and Business, 18(1), pp.61-79.
Kashi, K. and Franek, J., 2014. Applying Group Decision Making and Multiple Attribute Decision Making Methods in Business Processes. Applied Mechanics and Materials, 693, pp.237-242.
Kazimieras Zavadskas, E., Antucheviciene, J. and Chatterjee, P., 2018. Multiple-Criteria Decision-Making (MCDM) Techniques for Business Processes Information Management. Information, 10(1), p.4.
Khasanov, A., 2016. THE EVOLUTION OF NEW PRODUCT LAUNCHING THEORIES. Business Strategies, (1), p.6.
Kocabıyıkoğlu, A., Göğüş, C. and Hekimoğlu, M., 2017. The Impact of Decision Types on Revenue Management Decisions: An Experimental Study. Decision Sciences, 49(2), pp.225-249.
Tholkea, J., Hultinkaa*, E. and Robbenbb, H., 2001. Launching new product features: a multiple case examination. Journal of Product Innovation Management, 18(1), pp.3-14.
Zhang, Y. and Saari Kitalong, K., 2015. Influences on Creativity in Technical Communication: Invention, Motivation, and Constraints. Technical Communication Quarterly, 24(3), pp.199-216.
