Table of Contents
1. Description of decision making techniques
2. The effectiveness of decision making to run the company efficiently
3. The application of decision making tools for having competitive advantages
Appendix 1: Decision analysis process
Appendix 2: Linear decision making process
Effective decision making skills are helpful for a company to have the expected value from their business process. There are various models and strategies that help to explain the effectiveness of strategic decision making. In this assignment, the decision making skill of a Saudi Arabian company namely Almarai is taken into consideration. Various decision making techniques such as linear model of decision making is taken into consideration to determine the competitive advantages that are gained by the company in global marketplace.
Effective implementation of decision making techniques appears to be helpful for allowing an organization to improve their service process. As mentioned by Al Garni et al. (2016), the various types of decision making techniques incorporated by a developing organization are such as multiple criteria decision analysis, game theory, cost/benefit analysis, decision analysis tools, linear model of decision making and so on.
- Multiple criteria decision analysis
This framework of decision making helps to make a good understanding between the organization and the formation of a systematic framework. In words of Beckley, Foley & Herzog (2017), this model helps to evaluate a number of criteria to have success for running a business. It is greatly regarded as the effective technique for business decision making procedure.
Figure 1: Multiple criteria decision analysis
(Source: Influenced by Beckley, Foley & Herzog, 2017, p.65)
- Game theory
In the view of Birkinshaw, Zimmermann & Raisch (2016), this decision making technique is beneficial for analyzing the responses of a large number of consumers of an organization. It provides a potentially important decision making technique. Basically it helps to generate solutions by making effective decisions for a number of solvable game problems.
Figure 2: Game theory
(Source: Influenced by Birkinshaw, Zimmermann & Raisch, 2016, p.37)
- Cost/benefit analysis
This type of decision making technique is helpful for determining the financial growth of a business organization. As opined by Gibbs, Malyon & Fritz (2016), the cost benefit model is helpful for making decisions for the fir financial growth.
- Decision analysis tool
It is largely considered as the most effective technique for incorporating several strategic decisions for overall growth of the business process. As stated by Hassanain et al. (2015), the decision making tool includes a number of types such as market research, cost benefit analysis, decision making matrix, feasibility study which are critically important for a business organization. The implementation of decision making tools are helpful for assessing the probability of the growth of their market share along with meeting the objectives in comparison with other competitor companies.
Figure 3: Steps to analytical decision making
(Source: Influenced by Hassanain et al. 2015, p.232)
- Linear model of decision making
As described by Hesse et al. (2015), the linear model of decision making helps to perform a quantitative decision analysis in respect to an uncertain condition. Moreover, it focuses on determination of a number of variables that are essential for predicting future outcome from the business process.
Figure 4: Linear model of decision making
(Source: Influenced by Hesse et al. 2015, p.40)
Figure 5: Decision making techniques
(Source: Influenced by Hesse et al. 2015, p.50)
The above mentioned decision making techniques are wide applied by the authority of an organization to develop their decision making ability. Similarly, the authority of Almarai focuses on proper development of their business process by effective implementation of the decision making techniques.
Effectiveness of multiple criteria decision analysis
It is helpful for varieties of tasks performed by the management of a business organization. The authority of Almarai can use this technique to analyze their business objectives, network processing, and market research and so on. Moreover, incorporation of this technique is essential for managing the relationship of the stakeholders. Thereby, the management of the concerned organization becomes able to form a strategic framework of planning (Almarai.com, 2019).
Effectiveness of game theory
As mentioned by Hesse et al. (2015), the proper application of game theory is helpful to understand which pricing strategy will be more applicable for the particular business organization. This, in turn, helps the management of the concerned organization to incorporate healthy pricing strategy. The management of Almarai involves low pricing strategy for the food products which have high demand in global market. Thus, those products are sold to a large number of customers and the amount of profit increases (Almarai.com, 2019).
As stated by Mardani, Jusoh & Zavadskas (2015), the application of this technique is helpful for assessing the cost of production along with the development of outcome. For this purpose, the management of Almarai is critically involved in analysis of their benefit from the business process by efficient application of this technique. They minimize the rate of investment for producing a large variety of milk products which makes them enable for increasing the net profit amount annually (Almarai.com, 2019).
Figure 6: Cost benefit model
(Source: Influenced by Mardani et al. 2015, p.13948)
- Decision analysis tool
The authority of Almarai incorporates this technique which helps them to take proper decisions while recruiting the employees. In this respect, efficient job interviews are helpful to diagnose the performance abilities and the efficiencies of the applicants. Moreover, the authority emphasizes on determining various uncertain consequences that can appear in order to run the business process smoothly. Hence, the incorporation of decision making tool appears as critically essential for developing the overall business growth of Almarai (Almarai.com, 2019). [Refer to appendix 1]
- Linear model of decision making
This model helps to improve the decision making pattern. As opined by Mohamed, Lamsali & Sathyamoorthy (2015), this is helpful for judging the business environment and the organizational behaviors. Thereby, the authority of Almarai can introduce this decision making technique in their business model for recruiting the workers based on their age, height, weight, efficiency and gender (Almarai.com, 2019). [Refer to appendix 2]
Figure 7: Importance of various techniques
(Source: Influenced by Gibbs, Malyon & Fritz, 2016, p.54)
The appropriate application of these decision making techniques can help the Saudi Arabian company to achieve their business objectives within 2030 (Vision2030.gov.sa, 2019).
- The application of MCDM technique will be helpful to invest money for long term sustainability of economy. Formation of a logical framework and giving equal importance to various agreements and disagreements of the organization can help a company to make a loyal customer base. Thus, in turn, the authority of Almarai will be able to attain a larger market portion within 2030 (Vision2030.gov.sa, 2019).
- Implementation of healthy pricing strategy will be helpful for the organization to maintain a unique position in global market range (Vision2030.gov.sa, 2019).
- As described by Sagbansua & Balo (2017), the strategic incorporation of cost benefit model will help the authority to analyze their rate of profit annually. Thereby, it will help them to have a strong business infrastructure and a loyal customer background (Vision2030.gov.sa, 2019).
- The ability to make effective decisions will help the authority to analyze the performances of the employees before recruitment. This, in turn, will help them to promote their products and service method by making effective collaboration with government and foreign merchandises (Vision2030.gov.sa, 2019).
Figure 8: The application of decision making tools
(Source: Influenced by Sagbansua & Balo, 2017, p.357)
Thus it can be concluded that application of various decision making techniques is greatly essential to develop the overall business process of an organization. Decision making tool, linear model, cost benefit analysis model are some of the technique for incorporating effective strategies to make proper decisions. Here, the management of the concerned organization focuses on spreading their market range globally within 2030. For this purpose, they introduce various decision making techniques in their business process to increase the rate of production and have the required amount of profit.
Al Garni, H., Kassem, A., Awasthi, A., Komljenovic, D., & Al-Haddad, K. (2016). A multicriteria decision making approach for evaluating renewable power generation sources in Saudi Arabia. Sustainable Energy Technologies and Assessments, 16, 137-150. Retrieved on 30/1/2019. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S2213138816300285
Almarai.com (2019). About Almarai, Retrieved on 30/1/2019. Retrieved from https://www.almarai.com/en/
Beckley, J. H., Foley, M. M., & Herzog, L. J. (Eds.). (2017). Accelerating new food product design and development. UK: John Wiley & Sons. Retrieved on 29/1/2019. Retrieved from https://books.google.co.in/books?hl=en&lr=&id=zTwtDwAAQBAJ&oi=fnd&pg=PR13&dq=decision+making+skills+of+a+food+company&ots=B819aeTU0y&sig=HThwJ76D0NmPezEHW6YfQ2_dCd8#v=onepage&q=decision%20making%20skills%20of%20a%20food%20company&f=false
Birkinshaw, J., Zimmermann, A., & Raisch, S. (2016). How do firms adapt to discontinuous change? Bridging the dynamic capabilities and ambidexterity perspectives. California Management Review, 58(4), 36-58. . Retrieved on 29/1/2019. Retrieved from https://link.springer.com/article/10.1007/s10661-017-6075-3
Gibbs, A. J., Malyon, A. C., & Fritz, Z. B. M. (2016). Themes and variations: an exploratory international investigation into resuscitation decision-making. Resuscitation, 103, 75-81. Retrieved on 30/1/2019. Retrieved from https://www.sciencedirect.com/science/article/pii/S0300957216000460
Hassanain, M. A., Assaf, S., Al-Hammad, A. M., & Al-Nehmi, A. (2015). A multi-criteria decision making model for outsourcing maintenance services. Facilities, 33(3/4), 229-244. Retrieved on 30/1/2019. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/F-01-2013-0003
Hesse, F., Care, E., Buder, J., Sassenberg, K., & Griffin, P. (2015). A framework for teachable collaborative problem solving skills. In Assessment and teaching of 21st century skills (pp. 37-56). Berlin: Springer, Dordrecht. Retrieved on 29/1/2019. Retrieved from https://www.semanticscholar.org/paper/Chapter-2-A-Framework-for-Teachable-Collaborative-Hesse-Care/4031a3600bcc62f9a5c2ae742b1fb783b19303b6
Mardani, A., Jusoh, A., & Zavadskas, E. K. (2015). Fuzzy multiple criteria decision-making techniques and applications–Two decades review from 1994 to 2014. Expert systems with Applications, 42(8), 4126-4148. . Retrieved on 29/1/2019. Retrieved from http://tarjomefa.com/wp-content/uploads/2018/02/8646-English-TarjomeFa.pdf
Mardani, A., Jusoh, A., Zavadskas, E., Cavallaro, F., & Khalifah, Z. (2015). Sustainable and renewable energy: An overview of the application of multiple criteria decision making techniques and approaches. Sustainability, 7(10), 13947-13984. Retrieved on 29/1/2019. Retrieved from file:///D:/feb_7/sustainability-07-13947.pdf
Mohamed, N. H., Lamsali, H., & Sathyamoorthy, D. (2015). Multi-criteria decision making (mcdm) for technical evaluation of tenderers: a review of methods employed. Defence ST Tech Bull, 8(1), 90-102. Retrieved on 30/1/2019. Retrieved from https://www.researchgate.net/profile/Dinesh_Sathyamoorthy/publication/274070675_Multi-criteria_decision_making_MCDM_for_technical_evaluation_of_tenderers_A_review_of_methods_employed/links/551416310cf23203199cd828.pdf
Sagbansua, L., & Balo, F. (2017). Decision making model development in increasing wind farm energy efficiency. Renewable Energy, 109, 354-362. Retrieved on 30/1/2019. Retrieved from http://iranarze.ir/wp-content/uploads/2018/09/E9228-IranArze.pdf
Vision2030.gov.sa (2019). Retrieved on 30/1/2019. Retrieved from https://vision2030.gov.sa/en
Looking for best Statistics Assignment Help. Whatsapp us at +16469488918 or chat with our chat representative showing on lower right corner or order from here. You can also take help from our Live Assignment helper for any exam or live assignment related assistance.