In the business world we are constantly asked to make business decisions in the presence of uncertainty. For example, here at Cochise College we need to create semester schedules without knowing exactly how many students will register, and without knowing exactly what mix of class formats students will want.
Think about a business you have worked for, or a business you might consider working for in the future. In about 150-200 words:
– Describe one or more decisions company management would need to make ‘in the presence of uncertainty’. Then describe different tools or approaches the company might use to help them make decisions.
Business decisions in the presence of uncertainty at a tech company
Imagine you are a product manager at a tech company. One of your key responsibilities is to decide which new products and features to develop. This involves making decisions in the presence of uncertainty, such as:
To make these decisions, you can use a variety of tools and approaches, such as:
Example:
Imagine that you are considering developing a new product feature. You have conducted market research and analyzed data from your existing products and services. You have also collected feedback from customers. Based on this information, you believe that the new product feature is likely to be popular with users.
However, you are still uncertain about a few things. For example, you are uncertain about how much it will cost to develop and launch the new product feature. You are also uncertain about how long it will take to develop and launch the new product feature. Finally, you are uncertain about how the market will change over the time it takes to develop and launch the new product feature.
To help you make a decision, you can use the following tools and approaches:
By using these tools and approaches, you can make more informed decisions about which new products and features to develop, even in the presence of uncertainty.
Other examples of business decisions in the presence of uncertainty:
Conclusion
Business decisions in the presence of uncertainty are a fact of life. By using the right tools and approaches, companies can make more informed decisions and reduce the risk of making mistakes.