1. IB Business & Management Topic 1 – Business Organisation and Environment ORGANISATIONAL PLANNING TOOLS

2. Learning Objectives Apply a formal decision making framework to a business situation Prepare a SWOT analysis for a business situation Analyse an organisations position using a SWOT analysis HL - Apply decision making processes and planning tools HL - Compare and contrast scientific and intuitive decision making processes HL - Construct and interpret decision trees and evaluate this technique

3. The Framework This framework is adopted by managers who use a scientific approach to decision making

4. 1.Set Objectives 2.(SMART) 2. Assess and clarify problem 3. Gather data to analyse problem 4. Consider ideas and options 5. Use appropriate tools to decide between options 6. Plan and implement decision – ACTION! 7. Control and review against objectives Internal constraints External constraints

5. Internal and External constraints These are other issues that need to be taken into account when decision making Internal Constraints Limiting factors in decision making that can be controlled by the organisation External Constraints Limiting factors in decision making that are beyond the organisations control

6. Internal Constraints Organisational structure – may limit the authority given to managers to put the decision into effect Financial constraints Labour and other resource constraints Attitude of the workforce External constraints (PEST) Changes in the business cycle Changes in legal constraints Decision making in most organisations is a continuous process. Experience gained from taking a recent decision will assist in the next decision making cycle and intuition could become more important