Quantitative Methods in Decsion Making

Topics: Decision making, Ethics, Statistics Pages: 5 (1574 words) Published: March 11, 2013
Decision Making
Betty Pittman
Grand Canyon University
Quantitative Methods
November 16, 2011

Decision Making
Analytics competitors are leaders in their varied fields consumer products, finance, retail, and entertainment. For organizations to become and prosper as an analytics competitor they must use analytics data because many industries offer similar products and use comparable technologies, business processes are among the last remaining points of differentiation. And analytics competitors use every possible analytics value from these processes. In order for organizations to prosper they must know what products their customers want, what prices those customers will pay, how many items each will buy in a lifetime, and what triggers will make people buy more. They must know the compensation costs and turnover rates, and they can also calculate how much personnel contribute to or detract from the bottom line and how salary levels relate to individuals’ performance (Davenport, 2006). Organizations can prosper when they rely on analytics date to help them know when inventories are running low, and they can predict problems with the demand and supply chains, to achieve low rates of inventory and high rates of prefect orders. We have already established that analytics are leaders in a varied of fields, and the important an organization need these top leaders to coordinate strategy and pushed down to decision makers at every level. These leaders are trained to recognize and used their expertise to get the best evidence and the best quantitative tools to make the best decisions, whether big or small every day to help their organizations succeed. The key source of strength for an analytics competitor is to find your competitive advantage. When you define your key industrial competitive pressures can provide a framework for developing strategies for your growth. Analyzing your primary competitor and identifying their Strengths, Weakness, Opportunities, and Threats (SWOT Analysis) help determine target markets, marketing plan, customer service, sales forecasting and sales planning. Gaining an advantage is the key to success and even survival. You must examine the following: • Identify the level of rivalry among competing sellers in the industry • Review strategies of companies to encourage customers to switch from a competitor • Analyze ease of entry for new competitors

• Determine bargaining power for suppliers of key materials and components • Determine bargaining power for buyers of the product • Discover options for product/service distribution
Competitor analysis is a critical part of a firm’s activities. It is an assessment of the strengths and weaknesses of current and potential competitors, which may encompass firms not only in their own sectors but also in other sectors, competitor analysis, together with an understanding of major environmental trends, is a key input in strategy formulation and should be developed properly. The key objectives in competitor analysis are to develop a greater understanding of what competitors have in place in terms of resources and capabilities, what they plan to do in their businesses, and how the competitors may react to various situations in reaction to what the organization does. Analytics competitors are more than number-crunching factories. They apply technology with a force and finesse to multiple business problems. The direct energies toward finding the right focus, building the right culture, hiring the right people to make optimal use of data they constantly churn. In the end, people and strategy, as much as information technology, give such organizations strength (Davenport, 2006). This article has helped me to understand the important of having a quantitative analysis model in any business whether that business is large or small. Having a quantitative analysis system will take the guess work out of...
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