Three steps to solve problems: problem identification, problem diagnosis, and action selection

Various opportunities arise when market demand changes significantly

All resources are limited (resource scarcity assumption)

Decision-making is to choose the most suitable solution for the enterprise among multiple feasible solutions.

Strategic decisions are particularly important

Different decisions lead organizations to different destinations and strategic decisions determine the success or failure of an organization.

decision → path selection

Management→How to take this path

Making decisions using incomplete, one-sided information

Relying on past information to make decisions

There are limitations in managers’ ability to use information for decision-making

Manager’s own risk appetite

1. Conduct sufficient research

2. Filter information well

1. Improve one’s decision-making ability

2. Establish an effective decision-making mechanism