Presentation: form of presentation, handouts and level of presentation Resources available: amount of data and information that is required to present I simply affected by the resources we have available 2. What are the three major resource constraints that may be placed by budgets? Briefly explain each constraint. Scope: The scope has to be set how wide the information is going to be – depending on the coverage of the topics. When defining the scope of the information required it will allow you to set the amount of data we need to gain and the amount of processing that might be required. Time:
The time depends on the project – the wider it is the more time it takes to work through the resources. The money that we get to finish this project also affects this. So when the budget is not that high, we won’t be able to spend much time for it. Expertise: The expertise is affected by the money we have. A hired specialist for a project cost money and if the budget is not enough for someone to assist us we need to research and study the topic to help ourselves. The disadvantage of not having an expert is that it could affect the results, as it might not be that accurate without having the 100% knowledge about it. 3.
Information for management decision-making comes from two different sources. What are they? Explain each source. Information for management decision-making can come from either internal or external sources. Internal sources are giving us information, which was obtained within an organization by our employees and the relative database management Systems. External sources come from outside an organization that can be statistical information centre, industries, government, suppliers or general organizations. Those sources can have disadvantages though as they could slightly differ from the specific information we are looking for. Name two disadvantages of internal sources. When using internal data from our accounting and management information systems, it can have disadvantages: The first disadvantage is that when we are using that gathered information is, that the systems are made to satisfy many different information needs – so this means the data can be too rigid and may be inappropriate for the decision we have to make. The second disadvantage is that we could have a problem in regards to accuracy. For example sales reps can be exaggerate wit their activities. So this leads to a problem when we have to analyses the data. . Name a few questions that should be considered when deciding if the information for decision-making is relevant? Who? (Applies to the agency that is collecting the data for us. Will their work be honest? ) Why? (Why was a particular piece of data collected? This reveals the intentions and motives behind information being created) How? (How did we do the research? What methods were used? ) What? (It is important to determine whether the information gathered is difficult to use or inadequate for our needs) ELEMENT 2: ANALYSES INFORMATION AND KNOWLEDGE 6.
Name FIVE forms of reporting information and briefly explain each form. Statistical information: generated by using statistical computerized applications such as SPAS. In most cases the result is put in numbers or a table (or chart, graph). Graphical information: giving a very good overview of data using a chart, graph, diagram, tables or others. Easy to look at and giving us a quick understanding. Computer generated spread sheets: allows complex calculations to be shown in an easy way. A printed form offers a good overview of the data.
They are very flexible as they can be produce graphs and tables – and are also easy to create. Database reports: we can gain powerful information from database reports. Large databases can be complicated to produce and use. Nevertheless it is customizable and gives flexibility. Data given can be presented professionally or online via intranet. Word-processed information: the word processed information is the most useful to managers and the ones who produce the information because the output from any above mentioned application can be integrated into the report.
You can either print it or send it electronically via email. 7. Provide a few examples of the requirements that need to be met when documenting a report. Briefly explain each requirement. Conciseness: Every report that is produced needs to provide information in a concise manner. Concise presentations lead to concise writing and information that is simple to understand and gets to the important points quickly. Accuracy: When giving information accuracy is very important. Just if the data source is accurate with the information we need, then we can make sure the results we are getting and presenting is usable.
If it is not we need to change for another data source. Implications needed: When presenting data it is (sometimes) useful to comment where and how this data was being gathered and any limitations of the data. You can interpret the results to make sure there is a better understanding of the results. 8. What are the three main processes used to transform raw data into meaningful information? Explain each process. Summarizing: transforming a huge load of data into a summarized information Sorting: taking data and attempting to put it into some form of pattern.
Sorting can be done in tables or charts Formulate: application of a particular formula set of data. This results in new data being generated where before there wasn’t present. E. G. Monthly sales figure to get the annual figures. 9. Explain the term correlation and give it an example to explain its usefulness. Term correlation belongs to the most useful statistics. With one single figure we can describe a degree of a relationship between two variables. E. G. Within an organization we have money spend for advertising (X) and sales (Y).
With the Excel-sorrel function we are able to distinguish if the marketing activities had a positive impact on the sales or not. (pictures: www. Excel-easy. Com) A correlation coefficient of +1 indicates a perfect positive correlation. As variable X (advertising) increases, variable Y (sales) increases. As variable X decreases, variable Y decreases. A correlation coefficient of -1 indicates a perfect negative correlation. As variable X (advertising) increases, variable Z (sales) decreases. As variable X (advertising) decreases, variable Z (sales) increases. That’s means that the marketing doesn’t have any impact on our sales at all and we loose our money by spending it for useless marketing activities. ELEMENT 3: TAKE DECISIONS ON BUSINESS ISSUES IDENTIFIED 10. What is decision-making? Decision-making is the study to choose and identify alternatives. Every time when there is a decision to make there should be at least two alternatives strategies that also could be used. By studying and identifying the as many alternatives as possible we can decide which one is the best we can choose and therefore we are placing ourselves in the best position possible when making the informed decision. 1 . What are the five environmental variables that affect business decision- making? 1 . Information 2. Data 3. Alternatives for problem solving 4. Preferences 5. Policies and procedures 12. Name four strategies that help business decision-making? Briefly explain each. Optimizing: involves choosing the best strategy to resolve the problem. Also requires an extensive range of alternatives to be effective. Satisfying: involves choosing the most satisfactory decision than choosing the best alternative. Does not require much thinking and can be decided quickly.
Maxima: maximizing the maximum. Involves choosing alternatives, which allows getting the best possible result. Should be a decision with the highest value to the company regardless of the risks that are connected to it. Maxim: maximize the minimum. Involves attempting to reduce the connected risks with a special option and tying to choose the one option which will have the smallest amount of problems, regardless if the that plan ill have a positive effect. 13. What are some of the major tools that can be used to make effective decisions?
There are different methods for decision-making: 1. Decision by authority: the leader will make all decisions without anybody else’s opinion 2. Expert Opinion: asking someone with a considerable knowledge to make a decision on behalf of a group 3. Considering Individual opinions: ask every individuals opinion and find a solution suiting the middle of all opinions 4. Team leader makes decision after discussion: team leaders first have a discussion with and listens to the individuals opinion and afterwards they make their decision 5.