MEMORANDUM
DATE:
TO: The Chief Executive officer (CEO)
FROM: Senior Manager
RE: Making Important Decisions
Due to the frequent decision-making processes needed in an organization. The important-decision making process is a very vital asset for the day to day undertaking of any organization. Deciding between the two alternatives is very critical. To arrive for the most reliable and best decision, different choices and their assumptions must be assessed and analyzed. In the process of making a right or a suitable decision, the manager should consider the possible outcome of the decision.
Many criteria can be used to determine whether a good decision is made; first, if a successful project can result from the decision. It should always be noted, that a good decision should give birth to a suitable and more successful project for a firm. Another criterion that can determine whether the manager is making the right decision is the ability of the decision to meet the firm’s budget. Stating the financial problems that may arise and the future risks that cannot be estimated easily, with the contingency of the firm to meet and control them. For a firm to achieve success, the decision or the right decision made by the management should come up with a well-structured decision that is free from many difficulties. A good decision needs to consider the whole process in the implementation of a project, from its initial stages to the final analysis of the results.
The decision making process is a complex process which at many times involves stipulation of pragmatic assumptions scenarios. However, the general outlay of the decision making process is capable of taking various perspectives. Literally the primal idea underline this notion implies that a manager is accountable for many assumptions he or she dares. The most important of all is the assumption regarding information. The urgency of achieving the limited minimum information to minimum and also getting the required information within a short period. The manager should also possess tacit and implicit capability to maneuver through problems and involve others in the decision making process. Ability to understand and define the nature of the problem and ascertain necessary solutions. However, the tact to materialize these assumptions into the prospective ability to achieve the firm’s goals will portray how competent the manager is.
To conceptualize the prime ideologies underlining proper decisions, experimenting a couple of more diverse examples is essential. To confirm the credibility of the assumptions, we are going to base our arguments on two real life scenarios. That is, the assumption that the demand for SUVs will continue because gas prices will continue to rise and the Airline’s that there was a need for an airline that provided no added amenities. The first scenario is a legit assumption in decision making. The reason being that SUVs are more efficient, and possess low fuel consumption. It is therefore logical that consumers will go for low fuel consuming SUVs in case there is an increase in fuel prices. This is because they will always go for something that suits their economic standards. The credibility of this assumption can be determined by researching the car buying statistics during the low and high fuel prices periods.
The second scenario can be deemed as a bad assumption in the decision making process. The outcome of this decision was that there was no additional profit made from the increase of the number of airplanes. Those who formulated this assumption failed to conduct a conclusive experimentative study on the urgent necessities and prospective objectives of the company.