1.  Decision Making is the process of identifying problems or opportunities, developing alternative courses of actions, choosing an alternative and implementing it.  Problem Solving uses the decision making process to eliminate the difference between the current and desired performance or situation (a problem).

2.  Opportunity Management uses the decision making process to “seize the moment" to make improvements to an organization.  You make a decision regarding the purchase of a new car. Financially, this is an opportunity because you can lower monthly payments, improve gas mileage, etc.  You choose to take a course of action to repair a leaking toilet. This is likely not an opportunity, but a problem.

3. Other Classification Systems  Structured, Semi-structured and unstructured problems  Structured Problems  Repetitive, routine, definite procedure, certain choices  Semi-structured problems  One or more factors are not structured, there is some risk

4.  Unstructured Problems  Unique, non-routine, uncertain, required judgment

5.  Well structured: Which computer to buy?  Semi structured: Which investment to make?  Unstructured: What new product to develop?

6. More structured or unstructured?  2+2  How can we maximize our water resources?  When should we announce a new product?  What salary should we to offer a new employee?  What should the price of the new product be?  How can we reduce our costs?  Should we go international?

7.  Strategic Planning  Long-range goals and policies for resources allocation  General direction, philosophies and values.  Least structured and most imaginative  Most risky and most uncertain outcome

8.  Tactical Planning  Focus on effective utilization of resources  Support strategic decisions  Medium range and significance

9.  Operational Planning Decisions  Every day decisions used to support tactical decisions.  Focus on effective and efficient execution of tasks  Things happening today  Often made with little thought

10.  Strategic: Wal-Mart decisions to go beyond the U.S. and Canada  Tactical: How to select specific sites in Europe and Asia  Operational: What is the best way to add fresh vegetables to a Wal-Mart store

11.  Strategic: What should I do with my life?  I want to be a forest ranger  Tactical: Where should I go to school?  I’m going to MSTC  Operational: Where should I buy the book I want to read?  I’ll buy my books at amazon.com

12. Assume you own a car dealership. What kind of decision would you make that could fit into each box? Operational Strategic Structured Unstructured

13. Why do we care about type?  Judgment needed  Amount and type of data may be different (Example: Strategic decision often use aggregate data and operational decisions have detailed data)  Time span to assess accuracy of decision  Accuracy of decision possible  People involved in decision making

14.  Resources:  http://virtualsalt.com/crebook6.htm