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Effective Decision Making in Management

Effective Decision Making

Structure Of Larger And Smaller Organization Influenced By Size And Operations

Decision-making is process of evaluation, thinking of alternatives, different managerial styles etc.  There are risk factors while making decisions, which can lead organization towards failure. Decision-making can be affected by rational or non-rational decision example, organizational factors, situations that occur in organization. Structure of larger and smaller organization might be influenced by it size, but the companies who do effective planning on the performance of its organization can get success, no matter what size its have. Any organization big or small can get success if they exactly measure the quality of their performance, their speed and effort. If they set up the decision priorities, what decision should be taken first? Every company has different size and operations, the size of company not matters but matters that how greatly decisions are affective. If any organization has talented and capable employees, then company can get success in market place. Employee-involvement plays an important role in effective decision-making.

Knowledge Management 

Knowledge management is process, in which the decisions are taken efficiently by the organization. To use best knowledge to obtained best outcomes is also known as knowledge management. The competitive advantage is the success of one organization in market, the situation when the competitor shows better and superior performance. The competitive advantage could only be achieved if there are effective decisions making. One must improve its decisions and should not copy other decision it may not beneficial for his organization. Through innovation, adaptability and evaluation one can get success and can get significant competitive advantage. There should be strategies, which support effective decision-making example; the strategy should be made for customers if one want competitive advantages, satisfaction of customers could be achieved through giving them best services. Constant response of customer could also be the strategy of effective decision-making planning (Fraser, 2011).

Effective Decision Making in Management

Internal And External Audit Of An Organization 

To conduct internal and external audit of any organization is very important to know that where it s lacking and where it is present. The audit committee is responsible, if company assets and services and not good quality. Through internal audit committee, decide the compensation planning, new appointments and staff. They do accountability if every internal issue through which new decisions could be made more properly. Through external audits committee comes to know the where organization is currently standing. Threats and opportunities are also part of external audit, that how competitive market is effecting the company. In internal audits, all weakness and strengths are discussed, after audits an appropriate evaluation and planning is needed to get success in the future. The organization should learn from the audits and make effective plans if they want achievement.

Balanced Scorecards Or Bench Marking

Bench marking means to produce, develop and to improve quality. Bench marking also improve business performances by comparing and analyzing other companies, by evaluating other the organization can improve its decision making process and can get success in competitive advantage. Planning, controlling and implementing new strategies could also take place after bench making process. Objective could be target through bench making process, after evaluating the strategic management and corrective actions take place if needed (Chiang & Lin, 2009).

Balance scorecard could also be used to manage the organization performance, mission and goals. Organization can best access its organization through taking balanced view of its performance. It is the process of learning and growth; organization can measure its status after reviewing scorecard and can make effective plans, which are beneficial for the future.

Working And Managing A Growing Company

Coca-Cola and Pepsi are the business I think successful in this modern world. They are rival parties, and most people preferred the taste of Pepsi. There are many reasons of their success; they applied the strategies, which make them best and different from other market beverages. They are leaders at all levels. They made the strategies by using their wisdom that how could they improve their results and by knowing the demand and value of their customers. They applied effective communication skills and take feedback from their customers. They did audit timely and follow the traditions and cultures of different countries. They spend huge amount on advertisements, find new opportunities and respect the market conditions. They make strategies to target the groups and age of people. There are also strategies about social and personal factors, that how could they target market with different perception (Miller, 2014).

Strategic Fit Of The Resources To The Changing Environment

Audit is the most important thing every company should do; a company could know its strength and weaknesses through doing audit of it strength, weaknesses, threats and opportunities. In the case of coca-cola and pepsi, they also carry out their audit timely to know about where they are present. The strengths of these two brands are they are well established globally and giving their services to many different companies. They have strong local and fiscal business. They have many opportunities as if they can pursue many successful brads and can increase the trend of healthy food. They are threats for each other and if any local manufacturer takes place in market then their worth could be diminish. They also have efficient supply chain. Both the companies Coca-cola and Pepsi are strategic fit, as they have enough resources and have opportunities to grow in the market. They make new strategies and execute the strategies, according to the external changing environment. They know how to prioritize the wants and needs of their customers and how mange quality with the price.

Use Of A BCG Model 

The BCG model is the long-term strategic planning model, it help the business to consider its growths and breakdowns, through reviewing its portfolio. There are four quadrants of this model, in which there are dogs (low growth and low market share), question marks (high growth and less market share), stars (high growth and high market share) and cash flow (low growth and high market share) (Arline, 2015). This model is not accurate sometimes, because marketing budget is not clear or have errors. The BCG model was designed for big organization that has many small and big business inside, BCG model is not suitable to use in small businesses. The companies or business, which has large range of products, cannot identify its dogs and cash cows products. Market is not clearly defined in this model, the four-cell approach make it so straightforward. This model don’t tell the exact nature of the business; model tell only high level and low level of the business, however, business could be at medium level sometimes.

Conclusion

To describe the parts of our assignment, we choose example of best-known companies Coca-cola and Pepsi, that how they are getting competitive advantages. All internal and external issues were discussed in dynamic manner. External, internal audits were also discussed, that how they are retaining in the market. For successful business and for sustainable development to study the business from all the aspects is very important. Initial planning is needed for the growth of the business, the resources should also be examined and the weaknesses should be managed. Basic investment and loans should also seek out. For the development of business, one should update the plans and try to secure the financing.

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References
  • Arline, K. (2015, Feburary 3). What Is a BCG Matrix? Retrieved March 4, 2016, from http://www.businessnewsdaily.com/5693-bcg-matrix.html
  • Chiang, C.-Y., & Lin, B. (2009). An integration of balanced scorecards and data envelopment. 12 (11), 1153-1172.
  • Fraser, C. (2011, September 23). Statistics for Decision Making and Competitive Advantage. Retrieved March 4, 2016, from http://link.springer.com/chapter/10.1007/978-1-4419-9857-6_1
  • Miller, A. (2014, May 13). 5 Characteristics Shared by the Most Successful Organizations. Retrieved March 3, 2016, from http://www.entrepreneur.com/article/233526

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