Business people are faced with the challenge of making decisions on a daily basis. Decision making is an essential element as it will determine if the business will achieve its mission and visions which are mostly to make a profit and meeting the needs of the customers. The decision making can also negatively affect the organization. Thus, owners have to ensure they make a right decision. A good decision is one that will trigger growth in the business which means that more customers will be attracted to the product or service offered by the venture. Increased customers will lead to more profits that will help the owner expand the business and provide better services. On the other hand, a wrong decision is one that will negatively affect the business processes. Some of the adverse effects of a wrong business decision are reduced sales, reduced profitability, increased expenses, fewer clients and lack of satisfaction by the stakeholders including the employees. Making a good decision takes time and should include the views of all the stakeholders since they will all be affected. A good decision is first made by analyzing the positive and negative impacts it will have on the business, therefore, enabling the owner of the business to make up their mind.
One of the elements that make a good business decision is one that will positively impact the lives of other people. The decision made has to cater to the views of all the stakeholders and assure them they will benefit from the judgement made. Customers are seeking for goods and services that add values to their lives. A good business decision will ensure that all the processes are seamless to produce a good result that will meet the needs of the customers. Employees are other stakeholders that will be influenced by a good business decision. People want to be associated with businesses that are performing well and one that appreciates the services they give (Abrams, 2017). A good decision, for instance, will ensure that the employees enjoy their work and are better compensated regarding wages and their rights are respected. A wrong decision, on the other hand, will make employees quit their job as they have a different mission and vision as compared to that of the business. It will also make them unsatisfied hence will not put maximum effort in what they do therefore end up affecting the business. Investors and stockholders are other essential people who would benefit from a good decision. When they are satisfied by the decision made, the company will attract investors who will help to provide financial support that can be used to grow the businesses and fight off competition from other related ventures. Bad decisions will scare off these stakeholders as they do not view how they will be impacted.
The second element that makes a good business decision is one that will lead to the growth of the business. Every owner when they start a business, they usually focus on how they can grow the business to a national or international scale. Daily decisions made on the business will determine if there will be growth or not in the venture. One of the decisions that can lead to the growth of a business is improving the market strategies. Using new approaches will help to capture the customers will still maintain the old customers who will help to improve the revenue generated from the business. Another one is incorporating new technologies such as information technology to improve the business processes. Using old methods can make the business not meet the demand of the market and as competition is rising every day, using these technologies can help businesses stay ahead of their competitors. A good business decision will lead to more customers which mean increased sales and better and efficient processes. For the owner, the decision made can lead to the short or long-term growth of the business. Therefore, one needs to do a careful analysis of the impact the decision will have on the business.
Another essential element that makes a good business decision is one that is executable and inclusive. Based on the factors at hand, a good decision will look at the positives and the negative impact it will have on the business. A bad decision has no clarity, and there is uncertainty that can make the stakeholders scared. By being executable, it will mean it has a timeline and the resources present will support the execution of the decision. Right decisions will also guarantee there are no hidden details that only a few people know and that can come to affect the business in future. Also, a good decision is one that caters to the opinions of other people, therefore inclusive. When a decision is made by one person or a few people who want to protect their interest, it will lead to disagreements that will affect the business. A manager, for instance, should seek for the views of the employees, customers and investors first and come up with a conclusive decision. Before the implementation of the decision, all the stakeholders should be consulted, and their sentiments took into consideration. Making the stakeholders part of the decision-making process will make them feel valued as their views are implemented in the business.
(1, premise) Since people will use the service offered, a good business decision is one that positively impacts the lives of other people. (1, conclusion) Therefore, the decision makers should ensure the decisions made will positively influence people and add value to them.
(2, premise) Because owners are looking for opportunities that will change their ventures, a good decision will ensure the business will grow. (2, conclusion) Growth will help the business expand to meet the needs of more people on a national or international scale.
(3, premise) For a decision to be considered good, it should be executable and inclusive. (3, conclusion) Feasibility of the decision will make it implementable thus try to meet the mission and vision of the business.
One way I used deductive reasoning is when I elaborated how a bad business decision can make an employee quit their job. Since they don’t believe in the new strategies set by the new decision, they will look for other ventures that will add value to their lives. For inductive reasoning, I applied it when I stated that when a decision is made to protect the interests of a few people, that will lead to disagreements.
References.
Abrams, R. M. (2017). Entrepreneurship: A Real-World Approach. Planning Shop.
