Decision Making: Economical Vs Business Development

posted by: Mark Duvall on 06/29/2008 @ 11:01 pm

Decision Making: Economical Vs Business Development

What is the difference between economical decision-making and business development decision? Well the difference is economical decisions are made for increasing the immediate financial situation and business decisions are made for the purpose of growing the business as a whole…

The advantages for making economical decisions are that you have your target finical goals in mind all the time… Every decision is going to be made for the highest profit or the lowest expense. This type of decision-making will allow maximum profitability for the business. However, the downfall of the type of decision making is that core values, long-term planning, friendship, partnerships, customer, client, and working relationships can be strained by the fact that the decision will always land where the higher dollar is. When making a decision about the business one has to look at not just at the money making side of the business.

Business decisions, occur where you make a decision solely on the development of the company. For example, the partner’s income, employee payroll, customer satisfaction/service, manufacturing, productivity, all of these are parts of the business decision making process. When presented with a question one must consider the cause and effect of the decision, all aspects of the business are in the balance and you must make a decision that doesn’t tip the scale. The pros are even decisions where all aspects of the business benefit/suffer from the decision can balance out in the long term. The cons are the economics my get lower priority thus hurting the cash flow of the business…

In business decisions are made daily, minute by minute, it is important to weigh the business vs. financial. You have to now when to buy, and when to sell, in investment terms. Deciding what the balance should be between economics and business outlook is what makes a good businessperson.

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2 Comments

ShyGirl1 at 12:27 pm on October 13, 2008

Hey Mark,
Decision of business making not every times succeeds,smileand i think fact-based decision-making too difficult to sustain,is it?Some times we cant even learn from the failure to grasp a competitive advantage!Executive decisions typically lingers!


ShyGirl1

asas at 3:33 pm on November 11, 2009

great article. thank you very much.

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