'The importance of analysis and analytical skills to the manager making decisions in business'

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'The importance of analysis and analytical skills to the manager making decisions in business' Introduction Throughout this report I shall analyse the approach to decision making, and identify the benefits and limitations of decision making methods. It is becoming increasingly important for Managers to select the most suitable option in relation to their objectives, and make the correct decision especially in a dynamic business environment. In carrying out decision making methods, Managers can benefit as it allows them to plan and control, assess risk and analyse what options are available for selection, and the implications each decision will have, which puts the decision to be made into perspective and allows the Manager to gain a clearer picture. As a manager there are many different tools available in aiding you with decision making: Decision Tree A decision tree is a visual and analytical decision support tool that displays decisions in a model and the possible consequences of taking such decisions; the model is based on expected monetary value. The expected values of competing alternatives are calculated allowing the Manager to visualise clearly, which is especially useful if there is a large selection of decisions. Advantages This model incorporates chance event outcomes, resource costs and utility, and because of this it gives the Manager a clear representation on the effects each decision can have. The Manager is able to weigh up the different decisions and go through with the most suitable decision which is inline with the goal that is set. The decision tree gives the Manager the power to make a comparative analysis between the different decisions. The decision tree is beneficial as it can be applied to real life problems. This analytical tool can be used by Managers to optimize an investment portfolio. A manager could use the

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