Masters of Business Administration (MBA)

July Intake 2021

Second Semester

Assignment 2

Business Decision
Tips for making a business decision

Submitted By: Submitted To:

Rajesh Shrestha Kartik Mehta

Submitted for the partial fulfillment of the assignment of 'Innovation Management and
New Product Development' (MBA)

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 Acknowledgement

I am delighted to bring out this summary of an assignment entitled "'Innovation

Management and New Product Development" as part of the MBA 2 nd Semester.

This assignment is designed to meet the requirements for the second semester degree of
Master of Business Administration (MBA) under the Faculty of Management,
Infrastructure University, Kuala Lumpur, Malaysia.

I would like to thank the Himalayan College of Management for giving me the opportunity
to exchange practical experiences in various activities in a practical environment that will
be fruitful and beneficial for the future.

I would like to thank Mr. Kartik Mehta Sir, Course Instructor of Innovation Management
and New Product Development for providing me this opportunity to develop my knowledge
and understanding of Business Decision.

I would also like to thank the team of Himalayan College of Management for their
assistance for preparing this assignment.

Finally, I would like to thank all those who have contributed directly and indirectly to this
Assignment.

With Sincere thanks,

Rajesh Shrestha

MBA 2nd Semester, 2022

Himalayan College of Management

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 Assignment on Business decision
Tips for making a business decision
Decision quality (DQ) is the quality of the decision at the moment of decision making,
regardless of its outcome. Decision quality concepts allow assurance of both effectiveness
and efficiency in the analysis of decision problems. In that sense, decision quality can be
seen as an extension of decision analysis.
Every year, business owners and entrepreneurs make hundreds of decisions, but it's crucial
to consider any potential risks. It can be challenging to identify errors in your selections,
though. It is impossible to foresee whether the choices we will soon make will lead to
unexpected outcomes or circumstances that call for damage management. Only 20% of
respondents to a survey said their company excels at making decisions. Although this
number is quite unsettling, there are practical approaches for business owners to enhance the
caliber of their decision-making.
1. Take into account your mental state: Making decisions today involves a lot of
pressure to act swiftly. It's vital to remember that sometimes we're not in the best
possible mental or emotional shape to make decisions. When you're anxious, scared,
or angry, you could take hasty action that could have long-lasting bad effects.
It's critical to take a minute to collect our thoughts if we feel that something is wrong
with our mental condition. Exercise, meditation, and deep breathing are excellent
ways to enhance our mental health and can help us be more effective decision-
makers.

2. Carefully consider the situation and the data: Sometimes the information we have
doesn't cover everything. Making choices based on insufficient information can
result in poor choices. Give the situation a thorough evaluation. To ensure you have
all the information you require to make an informed decision, be inquisitive and ask
lots of questions.
When making judgments, statistics can be both our best friend and worst enemy.
Avoiding information overload is crucial. According to the "State of Decision
Making Report 2021" poll, 44% of respondents said it was difficult for them to make
decisions since there was too much information available. Additionally, we don't
have to base our conclusions solely on quantitative information. Other aspects,
including human emotions, are very challenging to convert into data.

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3. Review the desired outcomes: Dr. Stephen Covey advises his readers to "begin with
the goal in mind" in his best-selling book The 7 Habits of Highly Effective People.
When you are confident that your choices will advance your achievement of your
goals or strategic objectives, choosing decisions becomes noticeably simpler.
Reviewing your personal objectives or the mission statement of your business should
be done before making any decisions. A solid indication of the direction you should
follow is whether the choice supports your objectives.
4. Identify your blind spots: These are places where your knowledge, experience, or
abilities are insufficient and could have a detrimental impact on how you make
decisions. For instance, choosing to merge with another business without a firm grasp
of contract law could be disastrous. To help you recognize your limitations or blind
spots, enlist the aid of a buddy or business partner. Join a peer board of business
owners who aren't competitors. The next time you have to make a choice that could
potentially involve one of your blind spots, this will enable you to move more
cautiously.
5. Involve others in decision-making: Business owners and entrepreneurs are ultimately
accountable for the success or failure of their organizations, but they do not have to
make choices by themselves. You can frequently benefit from the assistance of other
experts (such as senior managers, human resources, attorneys, CPAs, etc.).
Participating in the decision-making process with others can introduce fresh
viewpoints you may not have thought of.
Just make a choice: While it's important to make sure you've properly evaluated all
your options before making a choice, sometimes being silent is worse than choosing
poorly. You have to choose a side and stick with it.
Think about the worst-case scenario as a smart tactic. You'll at least feel assured that
you can correct the issue if it doesn't turn out as you had hoped if the worst-case
scenario is something you can live with.
6. Inform those who will be impacted by decisions: Once a decision has been taken, it
is crucial to make sure that all those who will be impacted are aware of the course
you have decided to take. Your decisions may be received differently depending on
how you convey them. There are superior delivery techniques than others. An email
or note will do just fine for straightforward judgments. A face-to-face meeting may
be a better venue for delivering difficult decisions that call for in-depth explanations.