SWOT and Cost-benefit Analysis -Decision Making Tools
Decision making is an important leadership skill. When one learn how to make well-regarded, timely decisions, and then one can lead an organization to well-deserved success. There are a number of tools and techniques employed to assist in decision-making. These tools and techniques assist managers to enhance the overall process quality. They are commonly employed in the logical or rational decision making, though they can also be used in any decision making environment (Bacon & Arsham, 1997). This paper discusses two most effective decisions making tools or techniques based on personal evaluation.
SWOT Analysis and Cost-benefit Analysis Decision Making Tools
In an attempt to evaluate the best strategies to better the organization competitive advantage I employed two decisions making techniques that include SWOT analysis technique and cost-benefit analysis techniques. SWOT analysis is a tactical planning tool which assesses the weaknesses and strengths of a business as well as the opportunities and threats a business faces. This tool can assist managers to take advantages of their firms’ strengths and apply various
strategies to lower weaknesses or modify them into strengths. Evaluating external opportunities and threats can assist in tactical process of decision-making as it permits managers to schedule for things such as new competitors’ presence or the effect of new government regulations. This technique gave an overall picture of the company in the market. With this strategy, was easier to know where the company has loopholes, where it is stronger, where it can take advantage, and where to put more effort. This general picture gave me an opportunity to identify various possible and reliable solutions to the company’s problems in which, the company can easily defeat its competitors in the market and rise to glory after a short period of time (Alptekin, 2013).
Cost-benefit analysis technique is a form of tactical decision-making tool which involves evaluating the costs as well as the possible benefits related with various courses of actions and selecting the most beneficial coat of action. In this case, I applied the cost-benefit technique to evaluate the best strategy to employ to increase the competitive advantage of a company. Among the evaluated aspects include marketing, product differentiation, research and development, lowering of production cost by employing new production technology, and outsourcing some of the most highly paid employee but with minimal work. In this evaluation, I was comparing the cost of applying each solution and the possible benefits this may have on the company. The strategy that demonstrated higher level of benefits at a lower cost was marketing. Although this will not be a complete solution to the company’s competitive advantage, it will boost the company’s position in the market and bring more benefits to the company after a short period of time than all other strategies (Bacon & Arsham, 1997).
Decision making tools are very important in assisting managers to make the right and reliable decision regarding the company’s problems and development issues. To improve competitive advantage of a company, managers need to understand a number of factors that influence the competitiveness of a company. This can make it easy to understand what is not done right, where to take advantage and strategies to employ to outshine competitors. In this regard, to make effective decision regarding competitive advantage of a company, SWOT analysis decision making technique is more reliable than cost-benefit analysis decision making technique.Order Unique Answer Now