Business Decisions Unit 4: Agribusiness Management Lesson: AM1
Objectives Lesson Objective: • After completing the lesson on business decisions, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on Let’s Buy a Car Evaluation. Enabling Objectives: • Personally identify what drives the decision-making process, what interferes with the decision-making process, the consequences for making a poor decision, and the rewards for making an educated decision. • Define a problem and illustrate each step in the decision-making process in order to solve that problem. • Use the SWOT Analysis to evaluate a person and/or business decision.
Key Terms • SWOT
Making Decisions • Read the assigned article • Complete AM1.1 using information from the article and personal conclusions drawn from the article. • What drives the decision-making process? • What interferes with the decision-making process? • What are the consequences of making a poor decision, whether it is personal, financial, business, or other? • What are the rewards for making an educated decision, whether it is a personal, financial, business, or other choice?
Personal Decision Making • What drives the decision-making process? • What interferes with the decision-making process? • What are the consequences of making a poor decision? • What are the rewards for making an educated decision?
Classroom Cash • Who would buy the right to sit wherever you want to sit in class? • Who would like to earn money in class to pay a teacher for an assignment instead of having to do the work yourself? • Who wants to earn money for good behavior? • Who wants to earn money just for showing up for class? • What if you lost money for missing an assignment? • What if you had to pay me for every minute you were tardy to class?
Why do we need to be able to make decisions? • In order for a business to run smoothly, decisions are constantly made and occur at all levels of the business or organization. • How those decisions are made is an important factor in the success of a decision. • The leader of an organization must decide whether to take full control of the decision-making process or to allow input from other employees when making decisions.
SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats
Strengths • What advantages does your organization have? • What do you do better than anyone else? • What unique or lowest-cost resources can you draw upon that others can't? • What do people in your market see as your strengths? • What factors mean that you "get the sale"? • What is your organization's Unique Selling Proposition (USP)?
Weaknesses • What could you improve? • What should you avoid? • What are people in your market likely to see as weaknesses? • What factors lose you sales? • Again, consider this from an internal and external basis: • Do other people seem to perceive weaknesses that you don't see? • Are your competitors doing any better than you?
Opportunities • What good opportunities can you spot? • Of what interesting trends are you aware? • Useful opportunities can come from such things as: • Changes in technology and markets on both a broad and narrow scale • Changes in government policy related to your field • Changes in social patterns, population profiles, lifestyle, and so on • Local events
Threats • What obstacles do you face? • What are your competitors doing? • Are quality standards or specifications for your job, products, or services changing? • Is changing technology threatening your position? • Do you have bad debt or cash-flow problems? • Could any of your weaknesses seriously threaten your business?
Conclusion • Making decisions is just another part of operating a business. Even with the best plans, decisions must be made and implemented to meet changing situations. If an owner or manager follows a logical decision-making process, however, changes may be more easily made.
Shout It Out! • What drives the decision-making process? • What interferes with the decision-making process? • Consequences of poor decisions • Rewards of making educated decisions • Decision-Making Process • SWOT Analysis • SWOT Strengths • SWOT Weaknesses • SWOT Opportunities • SWOT Threats
Exit Card • What did you learn today about decision making? • What questions do you still have about decision making?