The Art of Decision Making for Businesses

The video discusses decision-making in businesses, highlighting the challenges faced by companies in making strategic and tactical decisions. It explains the importance of understanding uncertainty, risk, rewards, and opportunity costs. Tactical decisions are short- to medium-term and rely on data, while strategic decisions are long-term and involve senior management's experience and intuition. The video also outlines factors influencing decisions, such as mission objectives, ethics, external pressures, and resource constraints.

What is one of the key challenges businesses face when launching new products?

• Determining the pricing strategy

• Deciding on the product color

• Choosing the company logo

• Finding the right location

Why is there uncertainty in business decision outcomes?

• Because of predictable market trends

• Due to changes in the external environment

• Because all decisions are based on facts

• Due to fixed customer preferences

What is tactical decision-making primarily based on?

• Customer feedback

• Market rumors

• Numerical data and statistics

• Intuition and experience

What is a potential downside of relying too heavily on data for decisions?

• Data is too expensive to collect

• Data is always reliable

• Data can be too detailed

• Data might be outdated or inaccurate

Who is primarily responsible for making strategic decisions in a company?

• Interns

• Junior staff

• Middle managers

• Senior management

Which factor is NOT mentioned as influencing business decisions?

• Mission objectives

• External environment

• Employee personal goals

• Corporate social responsibility

What is a key consideration when making decisions with limited resources?

• Reducing product quality

• Increasing office space

• Opportunity cost of alternatives

• Maximizing employee benefits