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S.N o Decision Analysis Strategic Decision 1 Defination: Discipline Philosophy Methodology Professional Decisions

Decision analysis deals with formal procedures and quantitative methods for assessing important decisions, focusing on representing uncertainties. In contrast, strategic decisions consider the whole environment in which a firm operates, its resources, and interface between them. Strategic decisions are complex, long-term decisions concerning an organization's mission, vision, and growth in an ever-changing environment.

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31 views2 pages

S.N o Decision Analysis Strategic Decision 1 Defination: Discipline Philosophy Methodology Professional Decisions

Decision analysis deals with formal procedures and quantitative methods for assessing important decisions, focusing on representing uncertainties. In contrast, strategic decisions consider the whole environment in which a firm operates, its resources, and interface between them. Strategic decisions are complex, long-term decisions concerning an organization's mission, vision, and growth in an ever-changing environment.

Uploaded by

shivani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Write down the difference between Decision analysis and Strategic Decision.

s.n Decision analysis Strategic Decision


o
1 Defination Decision analysis (DA) is Strategic decisions are the decisions that
the discipline comprising are concerned with whole environment in
the philosophy, methodology, which the firm operates, the entire
and professional practice necessary to resources and the people who form the
address important decisions in a formal company and the interface between the
manner. two
2 Deals with Decision analysis deals Strategic decisions deal with harmonizing
many procedures, methods, and tools organizational resource capabilities with
for identifying, clearly representing, the threats and opportunities
and formally assessing important
aspects of a decision,
3 Resources Decision analysis, a prescriptive Strategic decisions have major resource
approach,its resources especially propositions for an organization. These
concerned with quantitatively dealing decisions may be concerned with
with uncertainties possessing new resources, organizing
others or reallocating others
4 Used Decision analysis is used by major Strategic decisions are used for long-term
corporations to make multibillion- decisions. These are considered where
dollar capital investments and can be The future planning is concerned.
used to make more complex but
personal decisions like planning
retirement or planning a vacation
5 Functional The term "decision analytic" has often Strategic decisions are taken in
Area been reserved for decisions that do not Accordance with organizational mission
appear to lend themselves to and vision .These are related to overall
mathematical optimization methods Counter planning of all Organization.

6 Nature It involves Uncertainties are Strategic decisions are complex in nature.


represented through probabilities.

7 Methods Decision analysis is all about


Strategic decisions deal with the range of
& organizational activities. It is all about
quantitative methods but in reality,
Activities what they want the organization to be like
many decisions and strategy decisions
and to be about.
may be developed solely using framing
methods without or with little
quantitative methods required.

8 History Graphical representation of decision These deal with organizational Growth


analysis problems commonly use
framing tools, influence
diagrams and decision trees
9 Performan Decision analysis involved choosing Strategic decisions involve a change of
ce that decision whose consequences have major kind since an organization operates
the maximum expected utility (or in ever-changing environment
which maximize the probability of
achieving the uncertain aspiration
level). Such decision analytic methods
are used in a wide variety of fields,
10 Applicatio Decision analytic methods are used in a Strategic decisions are used at the top
ns wide variety of fields, most level, are uncertain as they deal with
including business (planning, marketin the future, and involve a lot of risk
g, negotiation), environmental
remediation, health care, research,
and management, energy, exploration, l
itigation and dispute resolution, etc.

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