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Essay from the year 2020 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of applied sciences Frankfurt a. M., course: Strategic Management, language: English, abstract: 1. Introduction 2. Decision making 2.1 Decision making in the classic economic theory 2.2 Behavioural economics 2.3 Heuristic and bias 3. Strategic decision making 3.1 Using heuristic and bias for strategic decision making 3.1.1 Debiasing 3.1.2 Nudging 3.2 Decision making with management tools - SWOT analysis 4. Conclusion Bibliography Internet Sources 1. Introduction Decision making is part of the management process. Before making decisions, certain variables are assigned to the various possible alternatives to assess their advantages. However, our decisions are far from being as rational as we think, and as classical economic theory suggests. This fact has far-reaching consequences - not only for strategic business areas such as the finance function and the management consulting function. How decisions are made, how they can be improved, and the methods involved are described in this essay. The essay is divided into two main parts. The first part includes a theoretical discussion of the process of decision making and provides an introduction to the concept of different approaches of the decision-making process in light of economic theories. The second part reflects the strategic approach to decision-making. It will be explained how neuroscience can be used and how basic management tools can be exploited; these will be explained at the example of the swot analysis. In the end, there will be a summary with a conclusion of this scientific essay.
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