Sample Answer

The quantitative methods have a number of attributes, such as: they employ measurable data to reach comparable and useful results, assume alternative plans for achieving objectives, plan data, concerning observations collection, configuration and elaboration by statistical and econometric stochastic methods, check data reliability, choose appropriate sampling method, use carefully the estimates of the parameters for forecasting and planning purposes, etc. since they derive from ex-post data concerning past.

In an increasingly complex business environment managers have to grapple with a problems and issues which range from the relatively trivial to the strategic. In such an environment the quantitative techniques have an important role. It is obvious that life for any manager in any organization is becoming increasingly difficult and complex. Although there are many factors contributing to this, figure 1 illustrates some of the major pressures making decision making increasingly problematic. Organizations find them selves operating in an increasingly complex environment. Changes in government policy, privatization, increasing involvement of the European Union contribute to this complexity. At the same time, organizations face increasing competition from both home and abroad.

Because of the increasing complexity of the business environment in which organizations have to function, the information needs of a manager become more complex and demanding also. The time available to a manager to asses, analyse and react to a problem or opportunity is much reduced. Managers and their supporting information systems need to take fast, and hope-fully appropriate, decisions. Finally, to add to the problems, the consequences of taking wrong decisions become more serious and costly. Entering the wrong markets, producing the wrong products or providing inappropriate services will have major and big consequences for organizations.

All of this implies that anything which can help the manager of an organization in facing up to this pressures and difficulties in the decision making process must be seriously considered. Quantitative techniques provide information about a situation or problem and a different way to examining that situation that may well help. Naturally such quantitative analysis will produce information that must be assessed and used in conjunction with other sources. Business problem are tackled from the quantitative perspective. The decisions that must be made lie at the centre od the process. These will be strongly influenced by the chosen organisatons strategy with regard to its future direction, priorities and activities.[4, pg.2] Before reaching a decision many factors and information must be considered. Also, techniques have potentially important role to play in helping a decision but they are not sufficient by themse