Models of Decision Making :: Business Management

MODELS OF DECISION MAKING elevate Analysis Model Posters Five Forces Analysis PEST AnalysisSWOT AnalysisSWOT Analysis is the most common and renowned model for decision making in the business world today. It is used for conducting the audit, study and analyze the overall strategic position of the business and the environment 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 organization, use it to prepare the business model for the company while keeping in view the resources, capabilities and constraints that are applicable. It is in fact used to assess the internal potency of the organization and how it merchantman be utilized to exploit the avenues available in the environment. It takes into consideration all the favorable and unfavorable factors associated with the organization. This tool when used consistently can help in the predic ting the future outcome and including those forecasts in the organizations strategy.Conducting SWOT analysis is not a complex task but includes a very simple and interesting activity. It also includes brainstorming sessions. SWOT analysis may be used to develop the business idea, assessing an opportunity 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 four sections.An example of the template is produced below STRENGTHSFinancial ResourcesHuman ResourceMarket AccessBrandsPatentsCopy RightsTechnology al-QaidaQuality Cost minimizationEffective managementGeographical edgeExpertise and ExperienceBackward and Forward IntegrationOther assetsWEAKNESS currency shortage or lack of access to financial resourcesLack of access to marketIncompetent human resource and managementLack of infrastructureNon handiness of tech nologyLack of competitive strengthsIneffective supply chain managementNarrow Product RangePoor Decision MakingHuge Debts game employee turnoverObsolete equipmentComplex decision making processLarge wastage of raw materialOPPORTUNITIES New marketNew Government policy or change in recent policyLifestyle or industryNiche marketIncrease in level of income of individualsNew Products and services THREATS governmental factorsLegislative issuesEnvironmental factorsHigh turnover of staffTakeover by a big giantNew technology by competitor dissonance with key contractors and customersSeasonal impactsChange in attitude, tastes or lifestyleInternational market impacts on local marketChange in the market implyEver changing technologyPrice war leading to decrease in profitabilityIncreased competition leading to access capacity Lets confirm 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 c ompetitors.