SMART analysis
Introduction to Business Decision Making
Case study- The Sun & Wind Corporation (SMART analysis)
Nowadays there is an increasing environmental awareness in the world. I am now given the job of choosing a site for the construction of a medium-sized wind farm with a potential 100MW generating capacity of Sun and Wind Energy Corporation. There are five potential locations for which the UK government will issue a licence, although there will be consultations with interested parties like local residents and environmental groups, which may lead to the company have to pay compensation fees. The Simple Multi-Attribute Rating Technique would be used here to address the problem. It is a technique that aid to help decision makers’ trade-off advantages and disadvantages appropriately, as sometimes there are a number of objectives involved in the decision problems. A choice needs to be made from a set of discrete alternatives; it is the location of the new wind farm in this case. Also, the reasons for using SMART is it structures and simplifies decision problem and gain more understanding, as we as maximizes or minimizes scores on an attribute.
There are eight steps in the SMART Methodology.
Step one: Identify the decision maker(s)
We usually assume the person is the business owner. In this case I will be the decision maker of choosing the location of the wind farm.
Step two: Identify the alternative courses of action
In my case there are different locations of wind farm I can choose, which are Allen Banks, Bingham Heights, Caworth Castle, Deeply Sands and Eppington Plain. They are the five potential locations, for which the UK Government will issue a licence,
Step three: Identify the attributes that are relevant to the decision problem
The attributes that distinguish the different locations will be the factors based on costs and benefits. To determining attributes of alternatives, the initial attributes elicited from the decision maker (me) have to be
Case study- The Sun & Wind Corporation (SMART analysis)
Nowadays there is an increasing environmental awareness in the world. I am now given the job of choosing a site for the construction of a medium-sized wind farm with a potential 100MW generating capacity of Sun and Wind Energy Corporation. There are five potential locations for which the UK government will issue a licence, although there will be consultations with interested parties like local residents and environmental groups, which may lead to the company have to pay compensation fees. The Simple Multi-Attribute Rating Technique would be used here to address the problem. It is a technique that aid to help decision makers’ trade-off advantages and disadvantages appropriately, as sometimes there are a number of objectives involved in the decision problems. A choice needs to be made from a set of discrete alternatives; it is the location of the new wind farm in this case. Also, the reasons for using SMART is it structures and simplifies decision problem and gain more understanding, as we as maximizes or minimizes scores on an attribute.
There are eight steps in the SMART Methodology.
Step one: Identify the decision maker(s)
We usually assume the person is the business owner. In this case I will be the decision maker of choosing the location of the wind farm.
Step two: Identify the alternative courses of action
In my case there are different locations of wind farm I can choose, which are Allen Banks, Bingham Heights, Caworth Castle, Deeply Sands and Eppington Plain. They are the five potential locations, for which the UK Government will issue a licence,
Step three: Identify the attributes that are relevant to the decision problem
The attributes that distinguish the different locations will be the factors based on costs and benefits. To determining attributes of alternatives, the initial attributes elicited from the decision maker (me) have to be