Business management: week 4

4 forms of ownership

• sole propriter

• partnership

• limited liability company (llc)

• corporation (inc.)

types of decisions?

• programmed

• non programmed

• classical decision making

• rational decision making

reasons for failure

• lack of sales

• lack of skills

• unwilling to do what it takes

• weak control systems

reasons for success

• committed hard work

• understanding of market and business

• managerial competence

• persistence

• luck

factors in decision making: 

• political forces

• intuition

• commitment

• risk

• bounded rationality

• satisficing

what is bounded rationality

manager decisions may be rational but not optimal bc of

• limited knowledge

• limited manager ability

• time limitations

what is satisficing

• dont maximize outcome

• find a “good enough” solution

group decision making techniques

• interactive groups (teams)

• delphi groups

• nominal groups

• manager implications

concerns in group decision making

• careful you dont abdicate your responsibility

• careful you dont empower group and take it back

• set deadlines

• carefully select members

• all decisions will be subject to testing and scrutiny