Decision Making and It's Steps

Decision Making

Decision making is a process by which a person, group and people identifies various alternative and selects the best one in various alternatives according his objectives or goals, desires, life style, values and so on. Decision is based on knowledge, skills and observable action. Decision making is the most difficult and essential task a manager performs. (Kearney, Richardson & Giulio, 2000).

Decision Making Steps

Decision making is a process which consists of various steps. These are:

Define the problem and objectives: The first stage of decision making is to identify and define the problem or analyze the opportunities. It is the most important step in decision making process. If the problem is not clearly defined or understand then decisions will be not provide the accurate result. In this step, identify the objective and set the goal so it is providing the guideline in the process of decision making.

Gather information: In this step decision maker is gathering data or information for the relevant of decision. The problem-solving process taken enough time to gathering information related to the problem. The collection of information must be analyzed according to the problem (Harvard Business School, 2006).

Identify alternatives: After define the problem, the next step is identifying the various alternatives. This stage is dedicated to finding solutions to identify the available alternatives. In the searching of various alternative decision maker should focus on merits and demerits of the various alternatives and the nature of the problem.

Analyze alternatives: After identify the various alternatives decision maker evaluate the various options. Comparison of various alternatives is based on time, cost, risk and other benefits. Alternative should be timely, acceptable, desirable and ethical so it will provide a good decision result. After evaluate for various alternative selected the best of them (Vermeulen & Curșeu, 2008).

Develop Solution: Every problem suggest more than one alternative solution. This step is done carefully for each alternative solution. The decision maker thinking, values, skills and knowledge will play a crucial role in the analysis and evaluation of the various alternatives and they affect the problem solving decision.

Make a decision: After analyze each situation or alternative, select the best solution. This is the action taking stage. Review all the details of the remaining alternative so that decision will be clear in the mind. If the decision maker has gathered the data and facts, used logic, assumption and common sense than they are easily get a right decision (Huber, 2006).

Implement the decision: Once the decision is selected, decision maker must taken action to implement it in the right way. In this process, every related persons support is necessary in the implementation of decision. Effective implication of decision is solving the problem and given the best result.

Evaluate result: Decision making process is not completed without evaluation of result. This is a form of control of the result. It involves measuring performance result according to the goals and objectives and measure both positive and negative outcomes (Schermerhorn, 2009).
Decision making is a continuous process. If the decision maker follows each step in the decision making process, best possible decision is most likely to come.


References:
Harvard Business School. (2006) Harvard business essentials: decision making: 5 steps to better results. USA: Harvard Business Press.
Huber, D. (2006) Leadership and nursing care management. 3rd ed. USA: Elsevier Health Sciences.
Kearney, N., Richardson, A. & Giulio, P.D. (2000) Cancer nursing practice: a textbook for the specialist nurse. China: Elsevier Health Sciences.
Schermerhorn, J.R. (2009) Exploring Management. 2nd ed. USA: John Wiley and Sons.
Vermeulen, P.A.M. & Curșeu, P.L. (2008) Entrepreneurial strategic decision-making: a cognitive perspective. UK: Edward Elgar Publishing.

Brand Strategy

A brand is a name, image, symbol, and design that give an identity to a product or a company. An effective brand can be established through a plan or strategy. A brand strategy is a planning process that defines company’s position in the market. It includes many activities done by business such as defining the brand idea, brand design, and brand personality (Graham, 2007). Brand strategy can be defined as the process of creating brand identity in the industry. This post could be used by students for help with their assignments related to brand strategy.

Brand equity, brand loyalty, brand awareness are the basic component of brand strategy. Brand equity is significantly related with the brand strategy as it is a process of evaluating market situation for brand. That helps the marketer to create brand identity effectively by analyzing all the aspects of an environment. This involves brand perception, financial performance, satisfaction and overall value etc. (Knapp, 2000). Brand equity also compares the other brands that are available in the same market that helps to implement the brand strategy effectively.

A marketer uses several branding strategies to increase the brand awareness and identity for its product and services. The major branding strategies are as below:

Family Branding: Through this strategy company introduce new product in existing brand. A business go for family branding, when it feels that its brand has a good position in market and customer’s are going to give good response to new product (Kotler, Pfoertsch & Michi, 2006). For example: Sony introduced its product in electronics like radios, televisions, stereos etc. after the success of Walkman (Lamb, 2009).

Product Branding: This strategy is used, where business gives a new brand name to each of its product. It has an advantage that a company is not losing its total control over the brand in case of the failure of any product (Kotler, Pfoertsch & Michi, 2006). For example Procter & Gamble segmented laundry detergent with the name of Bold, Oxydol, Tide, Cheer, Gain, Era and Solo, etc. (Lamb, 2009).

Company Branding: This strategy is used by the businesses as a whole. It denotes that a business use a single brand in all the product lines and industries (Kahn, 2011). For example, Virgin Group has a large and wider product portfolio in different markets such as Finance, Airline, Music, Mobiles etc. (Virgin, 2011).

Manufacturers Branding: This strategy used by the manufacturers rather than distributors to brand the product in a large region. It is introduced by large firms that have good financial position and can take risk of failure in one region. Ford and McDonald’s are the brands that used this strategy for their products and services in the different regions (Kahn, 2011).

The above discussed are some of the important branding strategies that are used by the marketers to create brand identity for their products and services.

References
Davis, J. A. (2009). Competitive Success, How Branding Adds Value. USA: John Wiley and Sons.
Graham, T. (2007). CIMA Exam Practice Kit Management Accounting Business Strategy (3rd ed.). Holland: Butterworth-Heinemann.
Kahn, K.B. (2011). Product Planning Essentials (2nd ed.). USA: M.E. Sharpe.
Knapp, D.E. (2000). The Brandmindset. New York : McGraw-Hill Professional.
Kotler, P., Pfoertsch, W., & Michi, I. (2006). B2B brand management. Germany: Springer.
Lamb, C.W. (2009). MKTG. China: Cengage Learning.
Virgin. (2011). About it. Retrieved July 26, 2011, from http://www.virgin.com/

Budget - Types of Budget

Budget

A budget is a financial document or pre-plan of action for organization. It is a systematic process to anticipated the expenses and return for a given period. It’s a plan for managing money. Through this, one can know the expenses against its income (Harvard Business School Press, 2009). By making a budget, one can anticipate that how much money they have and what actions will be taken by this as well as the return over it within given time frame. It is also a useful technique to avoid the unexpected expenses and it leads saving. Business organizations are using budget to analyze the cost-benefit of their business operation. It helps to know that should they continue business operation or not. This post would be useful to students looking for assignment help related to budgets and types of budgets.

Types of budget

Fixed budget: It is financial plan which does not change throughout the budget period as it is also said to be static budget. Generally, the organization where sales volume is predictable use fixed budget. This helps to single level of business activity. It is also used for controlling, planning and evaluating business operations (Grossman & Livingstone, 2009).

Flexible budget: The budget that can be change according to the volume of services of business, said to be flexible budget. It is also called variable budget. It allows adjustment of revenue and expenses accordingly to up and down. This budget provides better management in all circumstances (Shim & Siegel, 2008). It is very useful for business as it can be changed throughout the budget period.

Cash Budget: Cash budget are important for cash management. Cash planning and controlling are undertakes in cash budget. It’s meant to know expected cash flow and outflow during a specified period in the organization. Cash management helps in avoiding to keep idle cash and also unexpected borrowings in business. It is a very important aspect of organization as its help in smooth functioning of business.

Capital Expenditure budget: This budget is related to the long term project of organization. It includes management of those funds, which requires for acquiring long term project in business. It helps in calculating the cost of project as well as the timing of capital expenditure. It’s also list out the sources of capital for financing the project as it increases the cost and time effectiveness of business (Shim & Siegel, 2008).

Program budget: This budget is concerned with the different programs of organization. Research & development, marketing and training are some examples of program activities. It’s majorly concerned with the problem of resource allocation and helps the manager to improve their managerial skills.

Master budget: An organization carries many activities. Master budget involves all operational areas of organization such as sales, production and so on. All the operations of organization are interdependent to each other and also effected to each other. This budget is considered this factor and includes all budgets in one. It is called master budget (Needles, Powers & Crosson, 2010). Master budget is not only flexible but also includes all the operations of organization. If any change occurs, only master budget has to be change. It creates time and cost effectiveness for organization as it’s save time and cost.

References
Grossman, T. & Livingstone, J.L. (2009). Portable MBA in Finance and Accounting (4th ed.). USA: John Wiley and Sons.
Harvard Business School Press (2009). Preparing a budget: expert solutions to everyday challenges. USA: Harvard Business Press.
Needles, B.E., Powers, M. & Crosson, S.V. (2010). Financial and Managerial Accounting (9th ed.). USA: Cengage Learning.
Shim, J.K. & Siegel, J. G. (2008). Budgeting Basics and Beyond (3rd ed.). USA: John Wiley and Sons.
Warren, C. S. (2008). Survey of Accounting (4th ed.). USA: Cengage Learning.

Steps of Developing Contingency Plan

In the contingency plan development, following steps are followed:

a) Development of contingency planning policies in written format
b) Organize or conduct of the business impact analysis
c) Planning or creating contingency strategies
d) Development of effective information system under the contingency plan
e) Ensure to the effectiveness and success of the contingency plan in terms of testing, training and exercise
f) Support plan maintenance (Swanson, 2011).

So, these steps are followed by the firms under the contingency plan development.

(Source: Swanson, 2011)

Involvement

Development of contingency plan is an important action of the firm due to having base or a hope of success in the adverse condition in terms of failure of the project of the firm. So, to develop effective contingency planning, higher authorities, experienced employees, project manager, etc. should be included by the firm. In other words, key stakeholders of the firm should be involved in the development of contingency planning of the firm. In this, call tree is presented that shows the involved individuals in the development of contingency plan (Swanson, 2011).

(Source: Swanson, 2011)

Importance of Involvement

Involvement of these individuals in the development of contingency plan is important to establish effective contingency plan to turn adverse situations into positive situations. Along with this, it is important to involve whole employees to ensure their support for the high chance of success of contingency planning (Khosrowpour, 2004). Additionally, expert comments and effective communications system is also supported by involving all discussed individuals in the development of contingency plan. In addition, employee involvement and relationship with them is also supported through involving them in the development of contingency plan (Broekhuis & Donk, 2011). Apart from this, involvement of employees helps in identifying new ideas and opinions for developing effective and successful contingency plan.

References
Bowers, A. R. (2011). Clinical Risk Assessment and Management of Service Users. Clinical Governance: An International Journal, 16(3), pp. 1-24.
Broekhuis, M & Donk, D. P. V. (2011). Coordination of physicians’ operational activities: a contingency perspective. International Journal of Operations & Production Management, 31(3), pp. 251-273.
Khosrowpour, M. (2004). Information Resources Management Association. USA: Idea Group Inc (IGI).
Swanson, M. (2011). Contingency Planning Guide for Federal Information Systems. USA: DIANE Publishing.

Contingency Plan and Risk Analysis

This blog by the team of homeworkhelpexperts.com would discuss about the contingency plan and risk analysis. This would highlight similarities and differences and their importance for an organisation.

Contingency plan refers to the framework that is planned and implemented by the organizations for facing the adverse situation to minimize negative impact of the failure plan on the organizational functions and growth. So, it works as an alternative for directing the firm’s management in negative situations (Payne, 1999). On the other side, risk analysis refers to the technique and process that is used or followed by the firms to assess present or future threats and vulnerability that may affect success of the firm or project (Westfall, 2008).



Similarities and Differences

Similarities

Risk analysis and contingency plan both are related with the frameworks that are used by the firms to minimize the chances of failure of the firm or any project. Along with this, main aim of both frameworks is to increase the chances of success of organizational operation or any project (Melnick and Everitt, 2008).

Differences:

Risk analysis and contingency plan both are different terms. Risk analysis is used to assess threats for the firms and face them effectively. At the same time, in the condition of failure of any plan or project, contingency plan is followed and implemented by the firm. Risk analysis is related with the running plans. On the other side, contingency plan is related with the adverse condition of any plan (Koenig, 2003).

Importance of Risk analysis and Contingency Plan

To assess available threats and adopt present opportunity in the marketplace for the firm, risk analysis plays an important role. Additionally, to analyze barrier that may affect organizational growth and success, risk analysis is useful for lodging organizations. At the same time, contingency plan supports the dealing with risks that can be faced by the firm in the future (Bowers, 2011). So, both are important for lodging organizations to run their business without any loss or failure.

If you have any query or need homework help, please do send us an email info@homeworkhelpexperts.com

References
Bowers, A. R. (2011). Clinical Risk Assessment and Management of Service Users. Clinical Governance: An International Journal, 16(3), pp. 1-24.
Koenig, D. T. (2003). The engineer entrepreneur. New York: ASME Press.
Melnick, E. L & Everitt, B. (2008). Encyclopedia of quantitative risk analysis and assessment, Volume 1. USA: John Wiley and Sons.
Payne, C. F. (1999). Contingency plan exercises. Disaster Prevention and Management, 8(2), pp. 111–117.
Westfall, L. (2008). The Certified Software Quality Engineer Handbook. USA: ASQ Quality Press.

How to Build or Make a Marketing Plan

This is an article about how to make a marketing plan. Marketing plan includes defining objectives, analyzing environment, describing target market, analyzing competitors and deciding marketing mix of the product or service.

Stages in Marketing Plan

Marketing plan is an overall business plan that contains a list of actions. It helps to focus on the objectives and intended to accomplish those objectives. Whether a company is providing products or services marketing plan is very essential (McDonald, 2007). While writing a marketing plan, following are the major issues which kept in mind:

Define Objective: This is the first step while writing a marketing plan in which the objective of company and the product to be marketed must be mentioned clearly. It also includes the sales figure that a company wants to achieve. Product Strategy focuses on all the elements of the product, instead on single element (Ferrell & Hartline, 2008). The company must have an idea what their customer expect from them, this type of activity helps in creating customer satisfaction and loyalty.

Climate: After defining objective, analysis of internal and external climate of the organization is requires. This includes PEST (Political, Economical, Social, and Technological) analysis and SWOT (Strengths, weakness, Opportunity, Threats) analysis.

Describe Target Market: Target market is described on the basis of age, sex, income level, education level and their residence status. With the growth in business, the target audience is also increases hence contently evaluate their likes, dislikes and expectations (Hiebing, Hiebing & Cooper, 2004).

Competitor Analysis: Competitor analysis plays an important role in setting a marketing plan. It helps in creating marketing strategy and promotional plans. Analyze the competitor with their market share and find their weakness and strengths (Ferrell & Hartline, 2008). In this step, company has to describe its USP (Unique Selling Point) and determine the difference between its products and competitors’.
Pricing: Deciding the pricing of product is the most complex decision to make a marketing plan. It helps in generating revenue for the organization. The price of product is highly influenced by competitors pricing strategy and the rule of demand and supply (Ferrell & Hartline, 2008).

The price of product is decided on the basis of the quality difference between its product and competitors, and also it is based on target audience.

Perceived Value=Customers Benefits/Customers Cost

The pricing is decided on the basis of type of market. Market is divided into four type, perfect competition, monopolistic competition, oligopoly and monopoly (Ferrell & Hartline, 2008).

Place: The location of the product is selected on the basis of customers’ prospective i.e. ease to approach, safety aspects and the availability of public transport. The location should be built around customers; it should be accessible and should provide a sense of security.

Promotion: After deciding the price of the product, promotion plan is decided which is according to the personnel requirement. It includes special offers either to customer or to salesperson to promote the sales of product (Westwood, 2002). Promotion strategy can be developed through various sources like radio, TV, print media, t-shirts, pens and business card.

Set Budget: Fund allocation is also required to carry out these processes. The fund is required to cover advertising, promotional and all other costs associated with marketing (McDonald, 2007).

Review and Update: Continuous reviewing and updating is necessary for making the market plan more effective and also to reduce the cost of planning (McDonald, 2007).

We hope that this post would help you to make a good marketing plan, if you have any query regarding marketing or marketing plan or need homework help, please send us email to info@homeworkhelpexperts.com or call us now at 001-877-839-9989

References
Ferrell, O. C. & Hartline, M. D. (2008). Marketing Strategy. USA: Cengage Learning.
Westwood, J. (2002). The marketing plan: a step-by-step guide. USA: Kogan Page Publishers.
McDonald, A. M. (2007). Marketing plans: how to prepare them, how to use them. Italy: Butterworth-Heinemann.
Hiebing, R. G., Hiebing, R. & Cooper, S.W. (2004). The one-day marketing plan: organizing and completing a plan that works. USA: McGraw-Hill Professional.