Give an example of an organisational decision. Briefly describe the decision phases and characterise it from the perspective of decision scope and decision structure.
Question
Give an example of an organisational decision. Briefly describe the decision phases and characterise it from the perspective of decision scope and decision structure.
Solution
An example of an organisational decision could be a company deciding to launch a new product.
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Intelligence Phase: This is the first phase where the need for a decision is recognised. In this case, the company may have identified a gap in the market or a new opportunity for a product.
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Design Phase: In this phase, the company would generate and evaluate different alternatives. They might consider different types of products, target markets, pricing strategies, etc.
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Choice Phase: After evaluating the alternatives, the company would choose the best option. This could involve deciding on the final product design, target market, pricing strategy, etc.
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Implementation Phase: This is the final phase where the decision is implemented. The company would start producing and marketing the new product.
From the perspective of decision scope, this would be a strategic decision as it could have a significant impact on the company's overall direction and success. It could affect various aspects of the company, such as its brand image, market position, and financial performance.
From the perspective of decision structure, this would be a non-programmed decision as it involves a complex, novel situation that requires a unique, customised solution. The company would need to use judgement, intuition, and creativity to make this decision.
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