Decision Making In The Business Ecosystem

Decision making in the business ecosystem

The business ecosystem where thousands of companies that seek on a day -to -day basis that result in their sustainability and profitability, is a dynamic and retantness. At the management level, decision making is of the utmost importance to direct the success of the company, but what aspects are evaluated? How do they do it? In the economic context there are many recommended tools to make corresponding analyzes in decision -making. Raffino (2020), affirms that decision making is a process that faces the determination of selecting among several options in terms of conflicts that are presented for which they have to find a solution. As presented in the article, what is the difference between efficiency and efficiency? (s.F.), companies seek to be efficient, defining this concept as the relationship between the resources used in a project and the achievements achieved with the same.

The concept of efficiency is linked to the optimal. When can we say that a decision is optimal? The article optimal decisions (s.F.) establishes that in economics a situation is optimal when no one can improve their well -being if it is not at the expense of harming another;For example, a consumption of one is increased at the cost of reducing that of another. When the resources that use in the best possible way, it has an impact on a problem of choice of the most preferable option in each situation;recognizing that the choice of one implies the renunciation of other.

This is why CORVO (S.F.), states that marginal analysis is an evaluation in terms of the additional benefits of an activity regarding the additional costs incurred by that same activity. This tool is used by companies for decision -making regarding maximizing their potential benefits;focusing on small changes that cause a waterfall effect on the company. Marginal analysis relates variables such as volume (quantity), price, costs (fixed and/or variable) and offer (amount to be offered/sell), Pedrosa (2016). Marginal decision making means considering a little more or a little less than what you already have. It is decided through marginal analysis, which means comparing the costs and benefits of a little more or a little less.

According to Ricardo (S.F.) Marginal analysis plays a crucial role in the management economy, the study and application of economic concepts, as a guide to make management decisions. The purpose is to predict and measure the impact of the changes per unit of the objectives of an organization, ultimately identifying the optimal allocation of resources given the limitations of the business. Alfred Marshall, professor and economist at the University of Cambridge, established that production is only beneficial for a company when marginal income exceeds the marginal cost, and is more beneficial when the difference is greater, Ricardo (S.F.).

It is of the utmost importance that the managers of the companies evaluate all the variables before a decision making ensuring that this is an optimal. The tools are available, it remains that they are used and well applicable. This goes from aspects of human resources, production, raw material, time, among others. The times have changed at collective, individual and business level, that is why each decision must be worked cautiously, since however lasting, it will have a short and long term effect.