Quantitative business analysis
There are many factors and variables which are to be taken into consideration by the managers before they make any decisions in an organization. At the same time, they play a significant role in the success and failure of the products in the market. For the health care industry, the products have to be updated and they should be able to outperform its competitors in terms of price and quality. There are different decision making approaches that can be evaluated and used by the managers in the healthcare industry to identify and implement ideal solutions for the different problems pertaining to the organization. In these different type of approaches, the two approaches which are to be considered by the managers according to me is the rational perspective of decision making and the Psychological perspective of decision making.
The rational perspective is important as it helps the managers to act like economists and this would help them to develop solutions and make decisions which would be financially feasible and profitable to the health care organization. This would help them to generate higher revenues from the decisions and strategies developed by the managers through the rational perspectives. The psychological perspective is also very important as it would help the managers of the healthcare company to develop and maintain healthy relationships with its suppliers as well as its customers. This would help in reducing the pressure on the managers regarding the brand image of the product.
The two problems of increase in costs through staffing and overhead costs like capital and supplies, are very well handled by the two decision making approaches which have been mentioned above. These two approaches would not help in overcoming the problems, but would also help in increasing the profits and value of the health care product in the market. The decision making process involves considering the various factors through the two approaches which have to be adopted for the purpose of fulfilling the motives of the organization and achieving good profits through a specific products in the health care industry as well as develop credibility among the customers in the market. This would help the mangers to overcome the problems of decision making pertaining to the health care industry across the market. The main purpose of decision making would be to help the people in leading a better life through the products developed by the company in the health care industry. This approaches would help in achieving profitability without compromising on the quality of the product as it is directly related to the health and safety of the patients (Gwo-Hshiung, 2010).
Group decision making refers to a process of decision making in which there is involvement of specific group of individuals that would be considering and developing various alternatives and then evaluating them for implementing the best possible alternative in the organization. This would help the company to sustain itself in the health care industry and at the same time, it would help in increasing the profitability of the products and operations carried in the company.
Advantages of Group Decision making
• Group decision making involves considering the opinions of a group of people which are gathered for a specific decision making process in an organization. This ensures that there would not be any personal bias involved in the decision making process. This is very important for our case as our case has products and services related to the health and safety of the patients.
• Using group decision making process, we can get a large and wide number of different alternatives available because of the number of people involved in the process of decision making. This features is not achieved by individual decision making process as there would be very limited number of alternatives developed by an individual. This would help the managers to have a better understanding of the needs and requirements of the patients in the health care industry.
• A group would be able to see both the sides of the alternatives, that is, they could develop the pros and cons of many alternatives. This is not possible in individual decision making process because, decisions taken by an individual may either be considering the positive or the negative side of the alternative. An individual will not be able to consider both the sides of the options and alternatives available. Hence, this would help in obtaining the most optimum solution of the problems related to the healthcare industry.
• Implementing the decisions taken through group decision making process would be much easy and smooth as compared to the decisions which are taken by individual decision making process. This is because, the decisions which are to be taken largely affect the members of the organization and they would help in its successful implementation across the organization and help them to sustain itself in the health care industry (Kiesler & Sproull, 1992).
Disadvantages of Group Decision making
• The selection of groups from the organization consumes large amount of time of the employees as the participants of the group have to wait for each other and then get together at a specific location. This would consume time and incur high costs in the decision making process. This would be very time consuming in the health care industry as the members involved in the group are very significant and have large value of their time and efforts.
• There are possibilities of mutual conflicts and disagreement which would be due to personal relationship issues and bias among the members of the group. In such situation, individual decision making process carried by a senior and experienced management staff would be the best alternative to the above problem. This would be due to bypassing or misunderstanding when the sender and receiver in the small group miss each other with their meaning. This is possible when the managers would not be able to effectively handle the problems which occur during the development of the product in the healthcare industry.
• While carrying group decision making process, there are chances that the members would create unnecessary and irrelevant issues regarding the social influence and moral context of the alternatives which is to be developed. This would not be observed in individual decision making process, where a single participant would carry the entire process of decision making. This would be possible as the products developed by the health care organizations are responsible for its effects on the society and the health of the people in the society (Kiesler & Sproull, 1992).
Probability helps in estimating the occurrence of a certain event or a chain of events. There are two forms of probability which hare to be developed while discussing it for estimating the possibilities and its feasibility. Zero is one form of probability which depicts that the process is impossible and one is the other form of possibility which indicates that the event or activity can certainly occur. It provides an estimation of the vent to the managers and this would help them in developing the effects of various decisions and strategies which hare to be adopted by the managers.
Statistics refers to the simulation of data through organization and collection of information and then displaying it through various charts and other forms of presentation. It is carried out for analyzing different alternatives available to the managers. This would be helping in forecasting the effects of a specific decision on the basis of the past sales and revenue generation in the health care industry.
Mutually Exclusivity refers to the situation in the probability calculation where there are two alternatives available and either of these two alternatives can be applied. It implies that both the alternatives are not collectively applicable for the situation. For Example, there are two sides of the coin head and tails. When the coin is tossed in the air, there is probability of only one option either from head or tails to come. This shows the mutually exclusiveness among the two options available through probability.
Dependent Events are the events in a probability which are dependent on the effects or outcome of their earlier event. They are the effect of the earlier effect or are the next step to be considered after the first event. This helps in developing a sequential approach towards probability. Independent events, on the other hand, are the events which are not related in any terms with the earlier events occurring in the organization. These events are totally independent and have no dependency on the other events which have occurred in the past. These are the two form of events which hare occurring in probability and they provide the characteristic of an event which has to be considered by the managers while making any decision (Mendenhall, Beaver, & Beaver, 2012).
Project Life cycle:
There are mainly four stages in a project life cycle and they are:
In the initiation stage of the project, the needs and requirements of the product has to be identified. An appropriate market research would help in developing an understanding of the actual needs of the customers in the market. Various options are developed through evaluation and analysis of the available alternatives and different course plan are to be developed to check the feasibility of each and every alternative and option available or developed.
In the planning stage, the methods and alternatives that have been selected in the earlier process are developed in detail. The advantages and disadvantages of the process is determined through the appropriate scaling of the alternatives available. It involves developed solution and strategies for the different operation which are to be carried out in the market. Planning stage involves considering the capabilities of the staff, managing their timelines, considering the availability of resources and checking the feasibility of different processes which are to be carried out in the organization.
In the implementation stage, the methods and alternatives which have been developed in the planning stage are executed and implemented. The strategies that have been developed by the organization are implemented in this stage. It involves carrying regular training sessions and meetings for ensuring that the project or activity is carried out as per the planning and the desired results are achieved. It involves developing various alternatives and solution to the problems witnessed during the implementation of the strategies and alternatives developed earlier. The measures which have to be adopted for production have to be developed in this stage and the product is developed in this stage.
The closing stage includes the end of the product development process and it is the last stage after which the product gets delivered to the customers. It involves handling the demands in the market and the flow of the suppliers available to a specific organization. It involves sharing of information and data that have been useful in the development of the product as it would help the other teams to learn from the experience of the current team (Burke, 2013).
ABC analysis is a technique and strategy which would help in developing alternatives for managing the inventories (Flores & Clay Whybark, 1986). It is a kind of selective inventory control which an organization adopts to manage the decisions regarding the different products which are available with them. It involves categorizing the products in a list of 3 items which are as follows:
It is the category where about 20% of the total stored items is responsible for developing about 70% of the value acquired through yearly consumption of these items. The items which are categorized in these type requires high level of control and precise data collection.
In this category, about 30% of the total stored items is responsible developing about 25% of the value acquired through yearly consumption of these items. The items which are categorized in these type requires moderate level of control and moderate data collection.
It is the category where about 50% of the total stored items is responsible for developing about 5% of the value acquired through yearly consumption of these items. The items which are categorized in these type requires lowest level of control and minimum data collection.
Burke, R. (2013). Project management: planning and control techniques. . New Jersey, USA.
Flores, B. E., & Clay Whybark, D. (1986). Multiple criteria ABC analysis. . International Journal of Operations & Production Management, 6(3), , 38-46.
Gwo-Hshiung, T. (2010). Multiple attribute decision making: methods and applications. . Multiple Attribute Decision Making: Methods and Applications.
Kiesler, S., & Sproull, L. (1992). Group decision making and communication technology. . Organizational behavior and human decision processes, 52(1),, 96-123.
Mendenhall, W., Beaver, R., & Beaver, B. (2012). Introduction to probability and statistics. Cengage Learning.