Decision Analysis for Small Business

Abstract

Decision analysis is a relatively recent subject to enter the field of managerial decision-making. The application of decision analysis to managerial decision problems is useful especially in situations where the problem is complex, outcomes are risky, and intuitive judgments are rather difficult. This paper discusses the fundamental concepts of decision analysis and illustrates its utility to small business executives in analyzing and resolving their problems more effectively. It is shown that the decision analysis approach is an extension of the executive's natural problem solving style—that of analyzing contingencies—and can increase the information base useful in making better intuitive decisions.