About This Chapter
Introduction to Strategic Decision Making - Chapter Summary
In this chapter, you'll get a high-level introduction to strategic decision making. The chapter's bite-sized lessons and self-assessments show you how organizations and managers go about making effective business decisions. You'll also take a look at a variety of decision making barriers, errors, biases and ethical considerations. Following each lesson is a short quiz to help you remember important business terms and concepts. The chapter is accessible whenever you need it, and you can use any computer or mobile device to review the material. When you're finished, you should be able to:
- Compare types of decision-making methods
- Describe the role and importance of strategic decision making in management
- Recognize the seven steps of decision making
- Outline the organizational decision-making process
- Identify hidden traps, common biases and judgment errors that can occur in decision making
- Discuss a stakeholder-based ethical decision making approach
- Explain how business decisions can impact stakeholders
1. Decision Making: Definition & Types
How do you make decisions? When we talk about deciding between choices we can break the processes into types. This lesson will fill you in on the different ways to make decisions and give you a few examples of each.
2. What is Strategic Decision Making? - Definition & Management
After completing this lesson, you'll understand how important it is for managers to think of the big picture during strategic decision making. Learn how this helps a business to achieve and maintain its mission.
3. The Seven Steps of Decision Making
Effective decision-making is an essential skill for every manager. In this lesson, you'll learn about a seven-step process for effective decision-making. You'll also have an opportunity to take a short quiz after the lesson.
4. The Decision Making Process for Organizations
We will be discussing the formal decision making process for managers. The process will show you how to look at a problem and use a series of steps to address that problem. It is a key element of managerial decision making and one that is very practical for the business environment.
5. The Hidden Traps in Decision Making
The hidden traps in decision making can affect the profitability of a company. In this lesson, we will discuss the anchor trap, status-quo trap, overconfidence trap, and the sunk-cost trap.
6. Common Biases and Judgment Errors in Decision Making
In order for companies to be successful they have to be able to learn from their mistakes. One way they can do that is to identify biases and errors that might occur during decision making.
7. A Stakeholder-Based Approach to Ethical Decision Making
Good managers make ethical decisions that balance the impacts they may have on other parties. In this lesson, you will learn about identifying stakeholders and considering their interests in the ethical decision making process.
8. The Impact of Business Decisions on Stakeholders
In this lesson, you will learn about the impact of business decisions on stakeholders and the various difficulties in making appropriate ethical decisions that result in fair outcomes for all constituents.
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Other chapters within the Business 316: Strategic Decision Making course
- Strategic Thinking in Making Business Decisions
- Decision Making Models for Business
- Statistical Tools for Decision Making
- Quantitative Tools for Decision Making
- Financial Data for Strategic Decision Making
- Technological Support for Strategic Decision Making
- Strategic Decision Making & Risk Management
- Group Dynamics in Strategic Decision Making
- Strategic Decision Making for Managers
- Decision Making in International Businesses
- Analyzing Business Decisions
- Communication in Strategic Decision Making