The Importance of Decision Tree Analysis on Strategic Management Practice: Evidence from Retail Industries in US (original) (raw)
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Method of Decision Tree Applied in Adopting the Decision for Promoting a Company
SSRN Electronic Journal, 2000
The decision can be defined as the way chosen from several possible to achieve an objective. An important role in the functioning of the decisionalinformational system is held by the decision-making methods. Decision trees are proving to be very useful tools for taking financial decisions or regarding the numbers, where a large amount of complex information must be considered. They provide an effective structure in which alternative decisions and the implications of their choice can be assessed, and help to form a correct and balanced vision of the risks and rewards that may result from a certain choice. For these reasons, the content of this communication will review a series of decision-making criteria. Also, it will analyse the benefits of using the decision tree method in the decision-making process by providing a numerical example. On this basis, it can be concluded that the procedure may prove useful in making decisions for companies operating on markets where competition intensity is differentiated.
The Strategic Decision-Making Process in Organizations
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This paper intends to describe the evolution of the strategic decision-making processes in organizations and propose an integrate view to these processes. This paper seeks to make a number of contributions to the literature on strategy development processes. It explores a multidimensional conceptualization of strategy development and inquires specific process characteristics, such as creativity, development of resources and rationality. Further, the paper provides a critical evaluation of the nature of the relationship between decision-making and performance. Finally, the author emphasizes the need for identifying the different levels of analysis, the need for a continuous temporal analysis, the need for evaluating the events with their natural complexity In summary, the author argues that what is needed in strategy field are "process" models which are more environment-focused. In doing this, the paper highlights promising directions for the development of process models by drawing upon lessons learned in organization-focused strategy process research, taking as an example the development of the "decision-making school" as it moved from a content focus to a process focus.
Strategic decision making is perceived as a crucial component of organizational development and change management. Consultants and managers are expected to make strategic decisions that affect organizational performance. This analytical paper weighs the strategic decision making processes and their effectiveness in organizational cultural context.
Strategic Decision Making: Process, Models, and Theories
The theories and models underpinning strategic decision-making (SDM) are somewhat eclectic that demand multidisciplinary approach and appears non-differential from decision-making (DM) theories. This paper is a first attempt that puts the discipline into perspective of its coherent whole. We start by defining strategy and SDM in order to set the expectations for the rest of the paper. Next, we make an outline on the contribution of management science (MS) to SDM before establishing the relationship with MS and its application to micro, small, and medium enterprises (MSMEs). Subsequently, we make a discussion on the SDM process, SDM theories and models before concluding that the discipline has reached maturity.
International Journal of Strategic Management, 2017
This research examines the effect of industry type, firm characteristics and strategic decision situation on the use of strategic decision-making tools, and extend a previous research (Hashem 2017) where the effect of decision-maker characteristics on the selection and utilization of strategic decision-making tools was studied. Following the previous research design and results, nineteen out of thirty five tool classified into three categories, eight industry types, three main characteristics of a company, and two dimensions of strategic decision situation, are analyzed and investigated. According to this research conceptual model, three main hypotheses are formulated and tested. The results are discussed in terms of the importance of tools in strategic decision-making. to achieve a high level of comprehensiveness and soundness" Hashem (2017). Understanding and analyzing strategy tools and how they support managers making decisions has been the focus of several studies during the last two decades (Clark, 1997; Frost, 2003; Afonina and Chalupský, 2012; Elbanna, 2007). According to Hashem (2017), the number of tools investigated in the different studies varied according to the research objectives, and this reflects the difficulty of determining the exact number of strategy tools and techniques; in most of the studies, however, there is a common set of tools and techniques. Afonina and Chalupský (2012) showed that the number of strategic management tools and techniques is continually expanding. This shows the need for additional investigation of the strategy tools and techniques used by organizations (Jarzabkowski and Kaplan, 2015). The importance of analyzing and understanding strategy tools summarized by Gunn and Williams (2007) in three main reasons: 1-To explore the motivations of managers when using strategic tools, 2-To determine the factors behind the application of tools, 3-To help academics and practitioners move toward more humanistic and practice-based approaches regarding the use of strategy tools and techniques. Furthermore, field studies have shown that tools and techniques perform a number of significant tasks includes: 1-Assisting decision-makers in transforming valuable data into decisions and actions; in addition, tools help to "increase awareness, reduce the risk involved in making certain decisions, establish priorities in large complex companies, and provide a framework for evaluating the relative importance of different business portfolios." Aldehayyat and Anchor (2008), (P.282). 2-Providing a structure for analysis, communication, and coordination in decision-making situations, Clark (1997). 3-Promoting the strategic thinking in the organizations, Clark (1997). 4-Generating information, providing an analysis structure, and encouraging the communication of ideas, Frost (2003). These tasks denote to the role of tools in supporting the appropriateness of strategic decisions (Gunn and Williams, 2007).
Using Decision Trees to Evaluate Courier Companies from the Perspective of Online Retailers
Logistics and Transport, 2017
The analysis of the research problem started from listing the issues of decision theory and the decision-making process that support the process of building decision trees. The area in question covers a procedure for building and proceeding when creating decision trees. The solution to the research problem consists in defining decision variables and arranging them into logical statements by writing down all possible variants and only accounting for the true ones. True solutions derived from coding were detailed and the number of occurring decision trees was calculated in the case under consideration. The decision problem was presented in the form of decision trees, which made it possible to select the optimum decision tree. The obtained results were considered and the optimum decision tree was chosen. At the same time, the record of decision variables was analyzed, providing the answer as to which courier company will best meet expectations of entrepreneurs and ensure the most satis...
Strategic Decision Processes: Critical Review and Future Directions
Journal of Management, 1993
This article develops an integrative framework of strategic decision processes based on a review of the past literature. The framework incorporates environmental, organizational, and decision-specific antecedents of process characteristics, and their process and economic outcomes. Key empirical studies are reviewed in the context of the framework and major patterns and contradictions are identified. Based on this review, useful implications for theory building, research methods and managerial practice are identified and several directions for future research are presented.
Knowledge and Choice based Decision Trees for Manufactures
Global Journal of Enterprise Information System, 2017
With recent advances in data-driven analytics, and the resultant improved capabilities in working with huge datasets, strategic planning has become more complex for business units, and subsequently for the retail domain. The purpose of this study is to understand and define the hierarchy of decisions that leads to the purchase of consumer packaged goods. Consumers are driven by a much complex decision making process inside a store that finally leads to the purchase of a product. In this paper we are trying to emphasize on the consumer decision process and how it could be utilized by the retailers as well as the manufacturer to meet the needs of the customers. In a way it will help to make more successful sales conversion which in turn helps the manufactures of different products. The focus here is to capture the decision pyramid by using core statistical techniques.
2018
This research examines the factors that affect the selection and implementation of strategic decision-making tools. Following a literature review, thirty five tools classified into three categories, and a set of factors related to decision-maker characteristics, are analyzed and investigated. According to the research model, three main hypotheses are formulated and tested. The results are discussed in terms of the importance of tools in strategic decisionmaking. Two main hypotheses out of three are supported, hypothesis one which focused on the variation of decision-maker characteristics’ effect on the selection of specific strategy tools, and hypothesis three which focused on the effect of awareness of different strategic decision-making tools on the selection of these tools, while hypothesis two regarding strategic decision-makers’ preference to select simple and easily applied tools, was not supported.