BUSS 4: Managing Change Organisations operate in a changing environment and change creates opportunities and threats. Candidates should understand how businesses plan for and manage change, and how external and internal change is linked. Specification section Making Strategic Decisions Contents the significance of information management the value of different approaches to decision-making assessing influences on corporate decision-making. Amplification Influences on corporate decision-making include ethical position (real or perceived), resources available and relative power of stakeholders. The range of management approaches to decision-making from scientific to intuition.

A01: What’s the difference between a tactics and strategy? Tactical decisions… Strategic decisions… Information management

There are different approaches to decision making… ScientificIntuitive Marketing model Decision trees To do: What is the approach? Analyse the approach After hearing all 3 methods; make a judgement: which methodology is better? A01 A02 A03 A04 Opportunities:

Making strategic decisions... Significance of information management; the ability to process information to make a decision. The value of different approaches to decision making; (ST to LT, functional to organisational, tactical to strategic...decisions are going to be constrained by INTERNAL & EXTERNAL factors. ScientificIntuitive Marketing model Decision trees

[1] Scientific approach to decision making... ScientificIntuitive Marketing model Decision trees 1 Set objectives 2 Gather data3 Analyse data 4 Select a strategy/make a decision 5 Implement and review the decision Logical & research- based approach to decision making

[2] Intuitive approach...  Based on a HUNCH...a feeling/ instinct  Most likely to be used by small business  To be appropriate; individual must have expertise & experience  May lead to more creative & innovative decision making.  HOWEVER.... ScientificIntuitive Marketing model Decision trees

Factors to consider between scientific & hunch-based decision making.... Speed of decisionInformation availableSize of businessPredictability of the situationCharacter of the person/culture of the company The marketing model = SCIENTIFIC APPROACH to decision making REMEMBER THE OTHER DECISION MAKING TOOLS.... Ansoffs Porters Decision trees

[3] The Marketing Model 2 Market information & analysis 3 Alternatives & choices 4 Planning the marketing mix 5 Control & review 1 Objectives Market research Forecasting Draft market plans Budgetary control What are the constraints at the different stages? ScientificIntuitive Marketing model Decision trees

[4] Decision Trees ScientificIntuitive Marketing model Decision trees Visual approach to decision making Maps out the different options available Possible outcomes are listed which decisions have to be made  Most effective when...  What must be considered is....  Advantages & disadvantages of this tool are...  However I recommend that.... Remember:  = decisions  = uncertain outcomes

Influences on corporate decision making : Very similar to SWOT factors (think both internal & external...) Consider...  Ethical position  Resources available  Power of stakeholders

Important influences on strategic decisions making Jim McCarthy, Poundland's chief executive, said: "The online shopping market is a rapidly growing channel and one which could provide a significant potential opportunity for us. "This trial is an important first step towards giving more customers access to our amazing value.”

A01 A02 A03 A04 PPQ: June 2010