Topic 4 Decision Making Strategies

There are four types of strategic decisions you can begin to apply straight away, whether you are dealing with a familiar situation or a novel one. [18]

Analytical Decision Making

• Be careful with this method, however, as the comfort of logic can sometimes be misleading. You might decide that you have enough money to keep your business going for the rest of the year without actually looking into your cash flow situation.

Heuristic Decision Making

• This strategy is most appropriate when you don’t have all the information you need but have a mix of some information and experience at your disposal.

Expertise Decision Making

• This kind of decision making relies on your expertise and competence in an area. This is when you know so much about something and have enough experience that most of your decisions are intuitive.

Random Choice Decision Making

• This might seem weird, but flipping a coin can and often is, a very good way to make decisions. It is the simplest method and can save you time and even be effective when you use it appropriately.