If you are reading this, I assume somehow you are connected to a business. In today’s world, business leaders have to make thousands of decisions every day. You might be one of them. What do you think about how leaders take their decision?
There are plenty of decision-making tools for business that help business leaders in making their decision. With the help of these tools, you can see what is going on within your organization. These tools will show you how your internal and external aspects affect opportunities. Here are ten tools for business decision making.
SWOT
SWOT probably is the most used tool around the world. Swot analysis stands for strengths, weaknesses, opportunities, and threads. You may already know about this tool.
This tool will show you the internal strengths and weaknesses that your company has. Then it shows you how you can utilize opportunities with your muscles and eliminate threads. It also shows which weakness you should focus on to eliminate lines.
Decision Matrix Tool
Imagine you have a company; now you want to buy raw materials for your organization. Three suppliers supply the raw materials.
Now you will make three columns to help you make the decision. The columns will be titled reputation, quality, price, and you can weigh them accordingly. So you can go for the supplier that offers better pricing and quality. This way, you can have the data more visually, and you can decide with better confidence.
Pareto Analysis Tool
The Pareto tool is an excellent analyzer for business. It is an 80/20 distribution rule that occurs every day in the world. Imagine you have a company that has 1000 dollar revenue every month from 100 customers. Now 800 dollars come from 20 of your high engaging customers. The rest of the income comes from the other 80 customers.
Now would you like to invest in getting 20 more high School engaging customers, or would you invest in just increasing customer numbers? The investment in getting 20 more customers like the engaging ones will give you much more ROI (return on investment). So now you know where to invest your money and time.
Marginal Analysis Tool
This can be a tremendous analyzing tool for your business. This tool visualizes the ROI. It shows how much cost or benefit you will get by changing an internal aspect of your business. Imagine you have a cake shop. Your cakes are praised around your area.
Now you want to expand your business. What will be the cost and benefit if you grow your business. There will be many factors here. For example, the production also has to increase if you want to expand the business. Considering all these variables, you have to decide if it will be beneficial for you to grow your business. These decisions can be taken much more accurately with the help of marginal analysis tools.
Now you don’t need a business degree to analyze your business through this analysis matrix. Some software will do the work for you. There is created for swot analysis, mindtools for decision matrix, visual paradigm for Pareto analysis. Many software will make it easier for you to analyze your business with these tools efficiently and accurately.
