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ADMS 2511 Chapter Notes - Chapter 9: Decision Support System, Data Mining, Data Cube

62 views7 pages
salmonshark649
21 May 2013
School
York University
Department
Administrative Studies
Course
ADMS 2511
Professor
Donna Rex

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Document Summary

Explain the impact of current trends that create major difficulties in decision making. It is difficult to make good decisions without valid and relevant information. Information is vital for each phase and activity in the decision-making process. A key to good decision making is to explore and compare many relevant alternatives. The more alternatives that exist, the more computer-assisted search and comparisons that are needed: typically, decisions must be made under time pressure. Frequently it is not possible to process information manually fast enough to be effective: due to increased uncertainty in the decision environment, decisions are becoming more complex. It is usually necessary to conduct a sophisticated analysis in order to make a good decision. It is often necessary to rapidly access remote information, consult with experts, or conduct a group decision- making session, all without incurring large expenses. Decision makers can be in different locations, as can the information.

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Related Questions

Tactical decision making

Tactical decision making means choosing among alternatives withan immediate or limited end in view. For example, a company mayaccept a special order for less than the normal selling price touse idle capacity. Tactical decisions tend to be short-runin nature; however, it should be emphasized that short-rundecisions often have long-run consequences. A general tacticaldecision-making model is outlined here.

1. Recognize and define theproblem.
2. Identify possible alternativesolutions to the problem, and eliminate any unfeasiblealternatives.
3. Identify the costs and benefitsassociated with each feasible alternative. Eliminate the costs andbenefits that are not relevant to the decision.
4. Compare the relevant costsand benefits for each alternative.
5. Assess qualitative factors.
6. Select the alternative with thegreatest overall benefit.

Identifying and comparing relevant costs and revenues is theheart of the tactical decision model. Relevant costs (revenues) arefuture costs (revenues) that differ across alternatives. (Revenuesare treated in the same way as costs, so we will simplify thediscussion by referring to costs.) All decisions relate to thefuture; so, only future costs can be relevant. In addition, thecost must differ from one alternative to another. If a future costis the same for more than one alternative, it has no effect on thedecision. Such a cost is an irrelevant cost.

Assume that Reeves Company is considering accepting a specialorder for $25 per unit when the normal selling price is $30 perunit. Reeves has enough excess capacity to make the order withoutdisplacing normal sales. The alternatives facing Reeves Company are(Select "Yes" for the statements that are applicable and "No" forthe items that do not apply):

Accept the special order. - Select your answer -YesNoItem1
Reject the special order. - Select your answer -YesNoItem2
Sell normal sales for $25 perunit. - Select your answer -YesNoItem3

Choose which of the following are relevant in deciding whetheror not to accept the special order. (Select "Yes" for thestatements that are applicable and "No" for the items that do notapply)

$25 price. - Select your answer -YesNoItem4
$30 normal price. - Select your answer -YesNoItem5
Variable cost of making the unitsin the special order. - Select your answer -YesNoItem6
Depreciation on factory equipmentused in making the special order units. - Select your answer -YesNoItem7
Increased property taxes on thefactory building which are due while the special order would bemade. - Select your answer -YesNoItem8

While cost and revenue information is important, otherinformation may be needed to make an informed decision. Thesenon-financial factors are termed qualitative and are often relevantin decision making. For example, in deciding whether to make acomponent in-house or purchase it from an outside supplier, thecompany may consider any difference in quality or in responsivenessto the company's production schedules.

Business management

QUESTION 1

  1. Which of the following outlines the organization's purpose, assumptions, values, and direction?

    Mission

    Purpose

    Strategic plan

    Strategic goal

    Tactical goal

2 points

QUESTION 2

  1. Scientific management focuses on

    improving the efficiency of the individual worker.

    managing the overall organization.

    using capital more efficiently.

    enhancing the social aspects of the workplace.

    creating mathematical models of organization processes.

2 points

QUESTION 3

  1. The idea that manufacturing costs per unit decrease as the number of units produced increases is known as

    economies of scale.

    venture capitalism.

    a franchising agreement.

    first-mover advantage.

    None of these.

2 points

QUESTION 4

  1. The component of strategy that indicates how the organization intends to allocate resources is

    resource deployment.

    scope.

    competitive advantage.

    synergy.

    None of these.

2 points

QUESTION 5

  1. The process of choosing one alternative from among many alternatives is called

    satisficing.

    problem solving.

    bounded rationality.

    decision making.

    None of these.

2 points

QUESTION 6

  1. Mercedes-Benz sells high quality automobiles at high prices. It uses a(n)

    differentiation strategy.

    low-cost strategy.

    diversification strategy.

    related diversification strategy.

    BCG strategy.

2 points

QUESTION 7

  1. Which of the following is NOT generally considered to be a role performed by small businesses?

    Creation of new jobs

    Development of new products

    Manufacture of materials for large businesses

    Distribution of products made by large businesses

    Provision of capital for expansion of large businesses

2 points

QUESTION 8

  1. Which of the following is a disadvantage of group decision making?

    More alternatives are likely to be generated.

    More information will be brought to bear on the problem.

    More time will be needed to make the decision.

    More communication about the decision will result.

    All of these.

2 points

QUESTION 9

  1. Which of the following is an example of an owner of a business?

    Individual investors who buy stock in that business

    Partners

    People who have legal property rights to that business

    Individuals who finance and start up a new business

    All of these.

2 points

QUESTION 10

  1. The best alternative is the most ____ alternative.

    efficient

    controllable

    profitable

    effective

    valid

2 points

QUESTION 11

  1. Which of the following decision-making models is based on the belief that human behavior is often imperfect?

    Rational

    Emotional

    Classical

    Behavioral

    Sequential

2 points

QUESTION 12

  1. A disadvantage of using interacting groups to make decisions is

    group politics.

    a void of expert opinion.

    an increase in programmed costs.

    faster decision making.

    too much brainstorming.

2 points

QUESTION 13

  1. Nokia and Samsung make cell phones that operate on the Microsoft system. They operate in the ____ industry.

    transportation

    manufacturing

    retailing

    services

    wholesaling

2 points

QUESTION 14

  1. All of the following are advantages of group decision making EXCEPT

    groupthink may occur.

    better decisions generally emerge.

    enhanced communication may result.

    more information and knowledge are available.

    None of these.

2 points

QUESTION 15

  1. Facebook operates in which industry?

    Construction

    Wholesaling

    Manufacturing

    Services

    All of these.

2 points

QUESTION 16

  1. Four friends home from college want to start a moving business to earn money during the summer. To determine whether this is a good idea, they need to find the answer to which of the following questions?

    Who are my customers, and where are they?

    Who are my competitors, and where are they?

    How can I differentiate my product from that of my competitors?

    In what quantities and at what price will my customers buy my service?

    All of these.

2 points

QUESTION 17

  1. The classical management perspective consists of

    scientific management and administrative management.

    management science and scientific management.

    behavioral management and the operations management.

    contemporary management and behavioral management.

    contingency management and universal management.

2 points

QUESTION 18

  1. Which of the following persons is a manager?

    Cardinal Timothy Dolan, Archbishop of New York

    Nick Saban, football coach at the University of Alabama

    Linda Kaplan Thaler, chief creative officer of Kaplan Thaler Group

    Marissa Mayer, CEO of Yahoo

    All of these.

2 points

QUESTION 19

  1. Organizations that provide resources to other organizations are known as

    suppliers.

    competitors.

    regulators.

    interest groups.

    importers.

2 points

QUESTION 20

  1. A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.

    importing/exporting

    licensing

    joint venture

    direct investment

    global sourcing

2 points

QUESTION 21

  1. All of the following are included in the task environment of organizations EXCEPT

    competitors.

    customers.

    regulators.

    suppliers.

    the economy.

2 points

QUESTION 22

  1. "Decision making under risk" means the decision maker

    has no data on which to base his or her decision.

    is risk-averse, avoiding risky investments.

    knows all the risks involved in the decision.

    can estimate decision data with some probability.

    is making an important decision with long- term consequences.

2 points

QUESTION 23

  1. A standing plan that outlines the steps to be followed in a particular circumstance is called a(n)

    SOP.

    single-use plan.

    policy.

    contingency plan.

    program.

2 points

QUESTION 24

  1. Which of the following is NOT one of the reasons for new business failure described in your text?

    Sufficient capital

    Incompetence

    Neglect

    Weak control systems

    Inexperience

2 points

QUESTION 25

  1. Interpersonal skills enable managers

    to take an overall view of how the parts of the organization interrelate and to think strategically.

    to solve detailed problems for their subordinates.

    to understand and interact effectively with others in the organization.

    to diagnose organizational problems correctly.

    None of these.

2 points

QUESTION 26

  1. Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon?

    Satisficing

    Bounded rationality

    Brainstorming

    Rational decision making

    Decision framing

2 points

QUESTION 27

  1. Nike and Reebok are best described as

    strategic allies.

    competitors.

    customers.

    regulators.

    suppliers.

2 points

QUESTION 28

  1. The first person to identify the managerial functions of planning, organizing, leading, and controlling was

    Elton Mayo.

    Lillian Gilbreth.

    Henri Fayol.

    Hugo Munsterberg.

    Mary Parker Follett.

2 points

QUESTION 29

  1. Strategic goals are set by

    first-line managers.

    middle managers.

    top managers.

    stockholders.

    All of these.

2 points

QUESTION 30

  1. Using the BCG matrix, SBUs are classified on the basis of

    market growth rate and cash generation potential.

    market share and market growth rate.

    competitive advantage and financial strength.

    a strategic business unit and product life cycle.

    None of these.

2 points

QUESTION 31

  1. ____ skills are needed for specialized tasks within the organization.

    Human

    Organizational

    Conceptual

    Technical

    None of these.

2 points

QUESTION 32

  1. McGraw Hill operates in publishing and construction. This is an example of ____ diversification.

    differentiation

    unrelated

    single-product

    BCG

    related

2 points

QUESTION 33

  1. The management pioneer who performed the Hawthorne studies at Western Electric was

    Lillian Gilbreth.

    Elton Mayo.

    Henry Gantt.

    Frank Gilbreth.

    Frederick Taylor.

2 points

QUESTION 34

  1. An organization's obligation to protect and enhance the society in which it operates is called

    legal responsibility.

    ethical responsibility.

    social responsibility.

    cultural responsibility.

    societal responsibility.

2 points

QUESTION 35

  1. An entrepreneur does all of the following EXCEPT

    operate.

    organize.

    plan.

    assume risk.

    hire a professional manager.

2 points

QUESTION 36

  1. The primary purpose of the management process is to

    develop organizational goals and make logical decisions.

    organize the various functions in a logical manner.

    ensure that all employees are working together effectively.

    achieve organizational goals efficiently and effectively.

    make sure things go as planned.

2 points

QUESTION 37

  1. How do top managers spend most of their time?

    Overseeing day-to-day operations

    Routine administrative tasks

    Implementing plans of first-line managers

    Making decisions and creating goals

    Coordinating the work of first-line managers

2 points

QUESTION 38

  1. In the classical decision making model, "optimization" means

    implementing two or more alternatives simultaneously.

    choosing the alternative with the best overall expected outcomes.

    gathering the most complete information before making the decision.

    reaching a satisfactory level of performance.

    None of these.

2 points

QUESTION 39

  1. A written summary of the business strategy and its implementation plan is known as

    a niche summary.

    a first-mover advantage.

    a business plan.

    economies of scale.

    a franchise agreement.

2 points

QUESTION 40

  1. The aspects of a business that the firm performs at a higher level than its competitors are known as the firm's

    niches.

    capital-intensiveness.

    distinctive competencies.

    strategic weakness.

    first-mover advantage.

2 points

QUESTION 41

  1. For a Perkins restaurant, which of the following would be considered to be a supplier?

    A family of 5

    Wendy

Match the definitions or complete the statements in the first part of the quiz with the appropriate terms found in the second part.

Definitions/Statements

1. _____ refers to marketers’ focus on a product rather than on the needs of the market.

2. _____ companies do not try to persuade consumers to buy what the firm has already produced, but rather to produce only products that they know they can sell, thereby satisfying consumers’ needs and turning them into loyal customers.

3. The impact of technology on buyer behavior relates to factors such as ____; the use of technology to engage customers and build relationships; customization of products and promotional messages; and better prices and distribution.

4. In the case of situational influences, this relates to the situation in which or the occasion on which the product will be used, e.g., special occasion or everyday use.

5. In the case of situational influences, this relates to the fact if we are in a store, point-of-purchase displays could influence us to buy something. We could also make unplanned purchases because we remembered something from seeing the brand while we are in the store.

6. This discipline on which consumer researchers draw focuses on society and large groups in society such as family and social class.

7. This discipline on which consumer researchers draw focuses on cultures and differences among cultures.

8. These are temporary circumstances that affect consumer purchase decisions.

9. In the case of situational influences, this refers to the fact that the person and the occasion for which we are buying something influence our purchase decisions.

10. According to the simple model of consumer decision making, reference groups, family, social class, culture, and subculture are among the _____ on buyer behavior.

11. According to the simple model of consumer decision making, motivation, personality trait, perception, and attitudes are among the _____ on buyer behavior.

12. According to the simple model of consumer decision making, advertising, buzz agents, customized messages, social media, and word-of-mouth are examples of ____.

13. This discipline on which consumer researchers draw focuses on behavior in small groups and helps consumer researchers to understand issues such as opinion leadership, diffusion of innovations, and communication.

14. In the case of situational influences, ______ are consumer mood states or physiological state (for example, hunger, thirst) that influence consumer decision-making.

15. The selection of one or more segments by a marketer to serve.

16. Developing a distinct image for a brand in the mind of consumers.

17. This is an effort by a marketer to change the existing perception that consumers have of a brand.

19. ___ segmentation involves segmenting based on variables such as urban, rural, suburb, state, cities, counties, and regions.

20. ____ segmentation is based on variables such as consumers’ lifestyles as indicated by their activities, interests, and opinions.

21. This criterion for effective targeting says that marketers should have some way of deciding which consumers fall into which segments.

22. This criterion for effective targeting says that marketers should be able to reach segments with appropriate media and distribution channels.

23. This is the most popular segmentation system combining lifestyles and values of consumers.

24. This household segmentation model is based on a combination of geographic and demographic information and the principle that “Birds of a feather flock together.”

25. ______ is defined as “sending consumers personalized and prompt offers and promotional messages designed to reach the right consumers and deliver to them highly relevant messages at the right time and more accurately than when using conventional segmentation techniques.”

Terms

A. Positioning

B. Accessibility

C. Anthropology

D. Situational influences

E. Consumption situation

F. Task definition

G. Identification

H. Marketing-oriented

I. Targeting

J. Psychographic

K. Marketing myopia

L. PRIZM

M. Interactive and novel communication channels

N. Sociology

O. Demographic

P. Purchase situation

Q. Behavioral targeting

R. Antecedent states

S. Communication sources

T. Geographic

U. Sociocultural influences

V. VALS

W. Psychological influences

X. Social psychology

Y. Repositioning