Decision making is crucial in business. Taking the right decision at the right time leads to success. Right decision alone is not sufficient; it has to be taken at the right time. We are living in a world in continuous churn. New products and services are flooding the markets. Technology is changing at a rapid pace. The horizon of human aspirations and expectations is widening. To survive and prosper in such a fast changing world companies have to adapt and innovate. This involves taking quick and important decisions and formulating plans based on those decisions.
Decision making means deciding what to do and what not to do. It involves selecting the best course of action from among several alternatives. A firm may not have the resources or time to choose many alternatives. Therefore, it will have to choose the best from several alternatives, Decision making involves the following steps
Forward planning means , planning for the future. It is said, "falling to plan is planning to fail." To succeed in the fast changing modern world, firms have to anticipate changes and formulate plans for the future based on that anticipation.
Business history is replete with examples of business fortunes made from right decisions and bankruptcies caused by wrong decisions. Let us take two examples from recent business history; one, a spectacular success, the other a colossal failure. Apple is presently the world's most valuable company [in market capitalization it is worth $600 billion]. This company, started by Steve jobs and Steve Wozniak in a garage, grew continously through innovations.
Similar examples can be found in every country. In India, in recent times, many companies became hugely success through right decisions in the fast changing economic and business environment.
Decision making means deciding what to do and what not to do. It involves selecting the best course of action from among several alternatives. A firm may not have the resources or time to choose many alternatives. Therefore, it will have to choose the best from several alternatives, Decision making involves the following steps
- Recognize the need for decision making
- Define the problem
- Identify and evaluate alternatives
- Choose the best alternative
- Assess the result
- This should be a continuous process.
Forward planning means , planning for the future. It is said, "falling to plan is planning to fail." To succeed in the fast changing modern world, firms have to anticipate changes and formulate plans for the future based on that anticipation.
Business history is replete with examples of business fortunes made from right decisions and bankruptcies caused by wrong decisions. Let us take two examples from recent business history; one, a spectacular success, the other a colossal failure. Apple is presently the world's most valuable company [in market capitalization it is worth $600 billion]. This company, started by Steve jobs and Steve Wozniak in a garage, grew continously through innovations.
Similar examples can be found in every country. In India, in recent times, many companies became hugely success through right decisions in the fast changing economic and business environment.
