Business decisions are intricate in nature largely due to the short-term ripple effect of that decisions may have throughout an organization as well as the long term effects that decisions may have. The process of decision making in business must be strategic, and the strategy that is employed may take a variety of forms depending on the organization and the needs of the organization. Regardless of the form taken, essential to effectiveness is knowledge that is facilitated by analysis of key factors pertaining to the issue for which a decision must be made. Decision making and the role that analysis plays in decision making will be discussed in this essay.
As previously mentioned, at the core of effective decision making is analysis of the key factors associated with the business issue. Analysis means considering not only the benefits associated with considered options, but also with any and all costs that may be incurred as a result of this decisions. The purpose of analysis is a determination of what is best for the business as a whole via consideration of both internal and external factors that may impact the ability to achieve the desired business results. The employment of analysis is what makes decision making in business strategic. It assists in minimizing the risks of business decisions via the use of knowledge and information (past, present, and future performance indicators of the company) to make educated decisions.
In summation, analysis is an integral aspect of business decision making. It involved a consideration of internal and external factors as well as the costs and benefits of the options that are available. Business decision making must be a strategic process if risk is to be reduced. Analysis provides the needed information for knowledgeable decision making thus making it an integral aspect of the business decision making process.