Business Management Decision Tree

Advantages

1. Visually clear and logically mannered

2. Shows all the potential choices and their outcome at the same time thereby speeding the decision making process

3. Consider risks/possibilities involved in the decision making process including the negative effects

4. They enable scientific and objective decision to be made

5. They show the insight of the problem

Disadvantages

1. The calculations are estimated and are subjected to forecasting errors

2. The probabilities are subjective and the results can be biased and be justified

3. It does not reduces the scope of risk of decision making

4. Taking time to make a decision can invalidate the data

5. It looks at the quantitative side completely ignoring the qualitative side

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