INFORMATION FOR MANAGERIAL DECISION

Presented by:Jincy Chacko Geevarghese T.Y.BBA Roll No- 46

1. Identify Objectives. 2. Search Alternative Course of Action. Planning Process 3. Gather Data About Alternatives. 4. Select Alternative To Course of Action . 5.Implement The Decision . 6. Compare Actual and Planned Outcome. 7. Respond To Divergences from plan.

Control Process

First stage of decision-making process specify the objectives of organization. Objectives of the organization :1. Maximize the Profits of the firm. 2. Maximize present value of future net cash inflows Reason for choosing the objectives:1. No other objective helps in measuring the ability of organization to survive in the future. 2. Practically not possible to maximize value of future cash flows but if necessary principles established we can learn ways to increase present value of future cash flows.

Search for various strategies to achieve the objective. Company must consider one of the following actions:1. Develop new product for sale in existing market. 2. Develop new product for new market. 3.Develop new market for existing product.

Identify potential areas of activity. Management should assess the following:1.Potential growth rate of the activities. 2. Ability of the company to establish market share. 3. Cash Flows for each alternative.

Decision Makers in practice select between competing alternatives course of action and select alternative satisfy objective of organization. If organizations is to maximize profits it will rank alternative accordingly and select alternative showing highest benefits.

Control process consist measurement, reporting and correction of performance to ensure firms objective and plans are achieved. To monitor the performance accountant prepares performance reports. Performance reports provides feedback information by comparing planned and actual outcome.

Performance report highlight activities not gone according to plan. It helps managers to focus on those items and take corrective actions.