Models of Decision Making :: Business Management

MODELS OF DECISION devising SWOT abridgment Model Posters Five Forces Analysis PEST AnalysisSWOT AnalysisSWOT Analysis is the virtually common and renowned model for decision devising in the trade world today. It is apply for conducting the audit, study and analyze the overall strategic arrangement of the business and the environment in which the business operates SWOT is an abbreviation of Strengths, Weaknesses, Opportunities and Threats. The chief(prenominal) objective of SWOT synopsis is to devise the best strategy for the organization, exploitation it to prepare the business model for the company while keeping in view the resources, capabilities and constraints that are applicable. It is in fact used to assess the indwelling potential of the organization and how it can be utilized to exploit the avenues in stock(predicate) in the environment. It takes into consideration all the favorable and unfavorable factors associated with the organization. This tool when used consistently can help in the predicting the future outcome and including those forecasts in the organizations strategy.Conducting SWOT analysis is not a labyrinthian task but includes a very simple and interesting activity. It similarly includes brainstorming sessions. SWOT analysis may be used to formulate the business idea, assessing an opportunity to make an acquisition, analyzing a potential partnership or making decision about a brand, product, an investment opportunity. SWOT analysis is conducted using a template which is usually in the form of a grid and consists of four sections.An example of the template is produced below STRENGTHSFinancial Resources gentleman ResourceMarket AccessBrandsPatentsCopy RightsTechnology Infrastructure fictional character Cost minimizationEffective managementGeographical edge expertise and ExperienceBackward and Forward IntegrationOther assetsWEAKNESS capital shortage or lack of entrance to financial resourcesLack of access to marke tIncompetent human resource and managementLack of bagNon availability of technologyLack of rivalrous strengthsIneffective supply kitchen range managementNarrow Product RangePoor Decision devisingHuge Debts broad(prenominal) employee turnoverObsolete equipmentComplex decision making processLarge wastage of raw materialOPPORTUNITIES new-sprung(prenominal) marketNew Government insurance or change in recent policyLifestyle or industryNiche marketIncrease in level of income of individualsNew Products and services THREATSPolitical factorsLegislative issuesEnvironmental factorsHigh turnover of staffTakeover by a big freakNew technology by competitorDisagreement with key contractors and customers seasonal impactsChange in attitude, tastes or lifestyleInternational market impacts on local marketChange in the market demand constantly changing technologyPrice war leading to decrease in profitabilityIncreased competition leading to access capacity Lets own a view on each of the four fact orsStrengthsStrengths are the competitive edge or the capabilities an organization has to be utilized when competing with its competitors.