Analytical Thinking and Decision Making


In a business organisation, Individual uses various methods and thinking style to come up with specific decision. All these activities are based on their learning approaches as well as interpersonal skills. Analytical thinking and decision making is a most important procedure that assist in finding appropriate solution of a specific problem (Daellenbach, McNickle and Dye, 2012). This process include a proper framework to analyse conclusion of specific task on the bases of its effectiveness and strength. Decision making process consider several tools and techniques as analysis, monitoring and controlling to get a best possible result for management. The examination and elimination of issues is not an easy task because it require proper consistency, creative ideas and positive behaviour of individual to diagnose grounds and effects. This report is based on Roli which is a medium size music technology company. The firm was founded in the year of 2009 by Roland Lamb. Roli identify some issues and problems while choosing a new office location for expanding their operational and functional business activities. This project represent decision making approaches in the context of a clear business case.

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“Project - Assortment of a new office location for expanding business structure- A case study on Roli.

The case undertaken for this section revolves around Roli, which is a music instrument company operating in United Kingdom. This enterprise is aiming to expand their operations through venturing to a distinct location in the market. However, there has been some complexities when it comes to choosing ideal location for business which will be dealt effectively with the decision making capability of this enterprise.

1. Importance of decision making and the application of decision analysis

According to Dane, Rockmann and Pratt, (2012) Decision making is a most important process that use to opt a better choice among the available options. This process is basically uses by management and manager of firm to grab best possible opportunity for their business organisation. By implementing such activities and approaches, Roli can easily achieve their target objective and goals. Decision making process is essentially uses to maximise performance of employee and getting higher profitability by utilizing sufficient resources. There are some other element of decision making which are given below as -

Importance of decision making-

  • Better utilisation of resources– As per the views of Rafindadi and Ozturk, (2015)The management of an organisation requires to analyse best possible resources that assist in getting higher profitability and growth. For this, they need to analyse impactful utilisation process to attain their target objectives easily. Decision making process is used to analyse resources that can be machinery, money, material and methods. Through this, management of Roli can easily make impactful strategy to utilize them in proper manner. Implementation of all these planning aid to getting best possible outcomes and results.
  • Facing challenges– As per the views of Choi, (2012) Decision making is a most specific procedure that uses to faces challenges from external factors. For this, management of Roli needs to make an impactful strategy to resolve such issues and problems easily. These challenges assist in grabbing maximum business opportunity by choosing most appropriate option. In this process, management needs to take quick and impactful decision that maximise criteria of several business possibilities. Challenges and problems aid to enhance skills and abilities of organisational workforce.
  • Maximum business growth– According to Duggan, (2012) Management of an organisation is works to take better decisions for their organisation and its success. Main objective of them is to getting maximum business growth by implementing effective strategy in business organisation. Decision making procedure is basically uses to resolve issues and conflicts from working environment of a firm. In Roli, decision of management is based on exploding business structure with impactful strategy and planning. Through this, they can easily get business growth and success.
  • Facilitate innovation –According to Wang and Wang, (2012) In a business organisation, innovation play a most important role in order to maximise values of existing products and services. implementation of innovation is introduce creative ideas and thoughts in business organisation to rebuild a new market image with quality services. For Roli, it is required to adopt such options in their business firm to make desirable alterations and modification in their instruments on the bases of customer's requirement and need. Implementation of innovation is aid to provide higher competitive advantages to Roli from target market.
  • Motivate employees– In a business organisation, management takes a best decision to motivate employees toward their target goals and objectives. Through this, they can easily get desired outcomes of their business strategies.

Application of decision analysis tool-

As per the views of Greco, Figueira and Ehrgott, (2016) For a business organisation, it is required to take a best possible and impactful decision in order to get maximum opportunities. In this procedure, management of firm can opt impactful tool and technique to getting desirable growth and success. Application of decision can be based financial and non-financial decisions terms (FentonO'Creevy and et. al., 2011). For this, firm need to choose best option in order to increase performance and profitability. Financial decisions can be -

  • Cash flow– As per the words of Libby, (2017)It represent organisation's total cash related activities approaches. These activities can be inflow and outflow of cash that requires to manage in appropriate manner. Management of firm needs to take best decision to reduce extra cost upon products and services. Through this, they can easily maximise sales of firm in order to getting higher cash inflow.

Non-financial decisions -

  • Decision tree –According to Sindhu, Geetha and Kannan, (2012) It include a most specific tool that represent model of decision procedure which is based on major consequences and its results. Decision tree consider cost, changes and utilities. This is a graphical representation that used to introduce conditional control segmentations of firm. Decision tree is generally used in decision and operational analysis approaches to reach on specific target and goal easily.

Features of effective decision-

As per the views of Griffin, (2013) Decision making is a most specific process that used to choose a better option for getting desired results. This process consider selection of a better choice that helps to attain well defined objectives properly. A decision should have to be well defined and purposeful to maximise several opportunities for business firm. It concern definite commitments to utilize resources and getting desired outcomes. Decision making process is always based on a situation and defined term to opt a impactful option by analysing them properly. This is functional business approach in which management of an organisation play a most important role which is differ from another level of employees. Manager of an organisation needs to take a better decision on the bases of several situations and its impacts.

Decision analysis could be applied to support the performance of an organisation– According to Fish, (2011) Decision analysis is a functional approach of an organisation in which manager choose one specific option among others. All these activities should have to be based on certain and uncertain terms to getting desired outcomes easily. Manager of firm can easily take a decision in order to maximise performance of employees. Through this they can easily accomplish defined goals and objectives by quality performance and services. Decision analysis always should have to be based on specific purpose that maximise opportunities for employees and organisation. Main objective of decision making process is to implement policy and procedure by management approaches.

2. A decision problem relating to an external organisation, which involves several objectives

In a business organisation, management faces several issues and problems in order to take a specific decision. According to the above chosen scenarioRoli is an music instrument company operating in the UK now they aiming to expand their operations through venturing to a distinct location in the market. It can be a beneficial move of an organisation but it require impactful strategy before further operational changes. Assortment of a new office location for expanding business structure can be a major problem for Roli because they needs to analyse market of specific location, customer's requirement and culture of specific place. Firm needs to analyse most popular area where consumers have to be fond of music instruments and activities. Through this , Roli can easily maximise organisational sales and profitability. Decision making process of this objective should have to clear and impactful that helps in accomplishing future objectives and goals in effective manner. A decision problem relating to several objectives of firm as -

Management of resources and new location –Decision to choose a new location for a business organisation can be a major problem because for this, management of firm needs to analyse existing and required resources that assist in maximising profitability and growth of firm. New location for an organisation always required proper analysis on customer's demand, market effectiveness and requirement (Gigerenzer and Gaissmaier, 2011). Through this, Roli can easily expand their business structure in different location. This firm basically deals in music technology and its effectiveness. For this, management of Roli require to implement innovative ideas and advance technology to make proper modification on the bases of customers requirement and need. All these activities maximise goodwill and market image of Roli in customer's mind. Problem regarding specific decision require proper analysis and monitoring to getting higher competitive advantages easily. In this process management of Roli needs to bring resources and appropriate location that aid to provide desired success, growth and outcomes.

Finance and human capital –For Roli, it is required to manage their operational and functional business approaches properly while intentto expand their operations through venturing to a well-defined location in the market. This process required sufficient funds and human capital to implement business ideas effectively. Funds and finance of an organisation are based on their investment and reserves that should be appropriate and sufficient. Through this, Roli can easily accomplish their business ideas and target objective (Gregory and et. al. 2012). Management of firm needs to analyse most specific sources that helps to provide appropriate funds to business organisation. These institutions can be a banks, financial bodies and shares of firm that helps to maximise fund and facilities to implement new as well as appropriate idea in business firm. Roli also need to manage human capital in order to conduct recruitment and selection process for new employees. Through this, management of firm can easily hire new ideas and skilled candidates on the bases of organisational requirement and need.

Skills and competencies –Changes in an organisation always require a impactful decision and business approach. It is basically used to make desired changes to getting higher business opportunities. Roli is a musical technology company that provide several instruments to their customers. Organisation opt a option to expand their business structure at new location, for his they need to maximise skills and competencies of firm to getting desired goals and objectives easily. For this, they needs to conduct a specific training and learning program in order to enhance interpersonal skills and working approaches of their employees. Through this, management of firm can easily grabbing maximum possible opportunities by providing higher satisfaction to target customers. These decision making approaches of business organisation are used to maximise business structure by cater quality services in target market. This is a major objective of firm that used to introducing new and quality products to target customers (Pearson, 2013).

Competitive advantages –For a business organisation, it is require to get higher competitive advantages on the bases of impactful decisions and business ideas. In this, external factors of environment impact on operational and functional approaches of firm. For this, management of Roli needs to improve their decision making formulation to opt a better option for their business organisations. External business factors can be Political, economical, social and technological that has major impact in decision making procedure. These factors are beyond the control but management of firm can make impactful strategy to reduce its negative impact easily. Through this, Roli can easily expand their business structure at new location and getting maximum business growth in effective manner. All the business activities requires a proper decision making approach to opt better idea for getting higher competitive advantages. Through this Roli can easily maximise their business structure at new location to serve quality services proper to their customers.

Marketing and promotions –For a business organisation, it is require to choose several ideas and tools to promote their activities effectively in target market. All these activities are based on a authentic decision decision which is based on choosing a particular technique for promoting new business and its products properly. Through this employees and management of firm can easily build their positive relation with target customers by analysing their desires and render exact services. Basic promotional tolls that Roli can adopt are Advertising, e-marketing, door to door promotion and online dealing (Reyna and Brainerd, 2011). All these activities are require appropriate funds and business approaches to promote their business at several locations. Through this, Roli can easily make their new image and goodwill in target market.

All these objectives of Roli requires to be accomplish in order to getting higher competitive advantages and business growth from new business location. Problem relating to a decision making approach cane be resolve by such business approaches and ideas.

3. Simple multi-attribute rating technique (SMART) to the outlined decision problem

For a business organisation , it is require to use specific methods and ideas to resolve issues in decision making procedure. Roli is music instrument company that wants to expand their business structure on new location. The decision of firm can be beneficial or poor in order to getting future objectives. For this, management of firm needs to identify several areas that require to analyse issues and problem in specific business approach. It will helps to render several alternative for a new business idea (Schmoldt and et. al., 2013). For this, Roli needs to implement SMART idea and technique in their business process to get effective and appropriate outcomes as -

Identification of various problems- In a business organisation, management needs to identify several issues and problem that occur while making a decision in organisational context. Through this, employee of firm can easily make impactful strategy to resolve them in effective manner. In this procedure, decision making approaches of management takes place in order to resolve such issues by analysing its cause and impacts. These are the most effective business approaches that assist in creating positive environment within a business organisation.

Identification of criteria- Decision Making is a process where managers identify organizational problem and try to resolve it. It is one of the most important function for manager as an individual and as a team leader (Subramoniam and et. al., 2013). It has a direct impact on an organization. Decision making is done in a group or a team, in result, when several people contribute to a final decision. It is often used in complex and important situation and a subject to factors such as social influence, group dynamics and includes peer pressure. The sharing of information can increase clarify issues, understanding and facilitate movement towards a collective decision. The advantages of decision making towards an expansion of a business enterprise.

Identification of options- This process includes the activities related to the determination of different options which are helpful to overcome from the problems which are faced by the managers of organisation while making decisions. There are many options which helps to improve decision making which includes gathering of important information related to topics and taking the review of colleagues etc. This will helps the management of organisation is to effectively take the decisions regarding expansion of business operations through opening of office in new location. This will helps in achievement of desired results.

Recognition of decision makers- It is important aspect which includes the activity related to determination of decision makers which have the authority to take the important decisions on behalf of organisation. Assignment of responsibilities to particular person helps in creation of sense of responsibility in such person which provides the opportunity is to improve decision making process and effectively make the strategies after consideration of the factors which are involved in the process of opening of new office at new location (Wierenga, 2011).

4. Analyse the strengths and limitations of decision problems

The assessment emphasise over numerous determinants and judgements employed by Roli to measure its influence on the productivity, operation effectiveness, brand values and sales increment etc. The analysis procedure is carried out to manage numerous standard outcome and manage suitable output evaluation efficiently. Roli has shifted their office to the new location in regard of expanding their business operations and managing work at the destination significantly. Hence, the decision of transferring their headquarter at new places and setting up operations at distinct destination can tend to numerous consequences to the company which they had to cope up with. This judgement consist of their various strengths and weaknesses which are briefed as below:

Strengths: While deployment of company's activities and spreading across the multiple nations, this decision can strengthen their recognition and widen their visibility in the competitive marketplace (Zhong, 2011). The whole practices enable enterprise to operate from more than one dimension delivering actual output evaluation to the organisation that can assist in more significant manner. Adopting and opting mathematical techniques which executing decisions, Roli can establish and conduct authentic market evaluation in business analysis form. The whole practices can strengthen their business identification in the global market place ensuring high range of profitability and productivity that can create distinct positive consequences in context of company's existence. These are describe in detailed as below:

  • More information: To expand an organization it is necessary to collect the information about a place , locality, transportation facilities and many more. Without collecting an information it will be tough for an enterprise to survive for a long period of time. More information includes discussion, recommendation from seniors, questioning for expanding business idea and so on.
  • Greater acceptability and alternatives: The views expressed by a group is more easily acceptable rather than from an individual. A group decision is automatically assumed more democratic rather than decision of an individual can perceived as dictatorial. In alternatives, there should be always second option in expanding the organization.
  • Encouraging people participation: In expansion of a business enterprise, it is not easy for an individual to encourage employees for participating in new activities. Therefore, manager should adopt an effective ideas to resolve the problem of change in environment of an organization (Gervais and Norenzayan, 2012).
  • Expert opinion: At the time of extension, expert opinion should be taken by there seniors which help them in guiding and directing instruction to there managers or juniors. Some experts are called from outside to sort out the particular issues.
  • Quality of decision: Decision making helps in to improve the quality by doing it in groups. When quality is maintained it will help in increasing the efficiency of a company and enhance the skills, ability and knowledge of the employees (Saaty and Peniwati, 2013).

Weakness: As per the evaluation methods undertaken to measure their strengths and weakness, several drawbacks has been identified in the report which can not be neglected by Roli while undertaking decision-making. These limitation consist of various variables such as its complex and long procedure that one company need to organise while expanding business in the different location. Roli is a medium sized instrument making organisation with limited financial resources that can be restrained while growing or expanding company due to its long procedure. The entire techniques is less efficient for small companies and are complicated for small companies that can tend to direct negative consequences while managing their growth. Also the drawback lies when the performed prospects led to negative consequences and impact to Roli (Daellenbach, McNickle and Dye, 2012).

Hence, the notion affirms analytical perspective by analysing strengths and limitations of assess sources which claims that through opting SMART objectives process and suitable tactics, Roli can control their actual outcome with standard one. Decision making is a very complex procedure that avail significant changes in more suitable and paramount way so as Roli that can employ vital changes through managing proper decision in disciplined manner.

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As per the above report, it has been summarised that analytical thinking and decision making is a most important business procedure that uses to resolve issues and conflicts by choose a specific option. This process include a proper framework to analyse conclusion of specific task on the bases of its effectiveness and strength. Decision-making process consider several tools and techniques as analysis, monitoring and controlling to get a best possible result for management. This process is basically uses by management and manager of firm to grab best possible opportunity for their business organisation. This process include a proper framework to analyse conclusion of specific task on the bases of its effectiveness and strength. Decision making process consider several tools and techniques as analysis, monitoring and controlling to get a best possible result for management.

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  • Pearson, H., 2013. Science and intuition: do both have a place in clinical decision making?. British Journal of Nursing.22(4). pp. 212-215.
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