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Report I

i. System Thinking in Decision Making


What is the definition of System
o Is a model or structure of an elements which has interelation with each
other.
What is systems thinking
o Process of understanding on how to solve a problem and make it
reliable inferences about behavior by developing an increasingly deep
understanding of structures.
o an approach that focuses on analyzation in the way that the system
interrelates and work over time within the constituent parts and
context of a larger system.
o is a way of disciplining and shaping the behavior and tuning with
natural processes and economic world.
Opposite concept against system thinking
Dis-intergrated approach typically reveals lasting, elegantly frugal solutions
with multiple benefits, which enable us to transcend ideological battles and
unite all parties around shared goals (system approach).
How macroscopic phenomena emerge in the system
ii. Procedure of Scientific decision making and the concept of management cycle
a. Define problem as a difference between the state to be and the state in
reality
b. Define aspiration level (Satisfactory decision criteria
c. Create alternative plans to do
d. Predicted the outcomes of each plan
e. Assess the predicted results
f. Decision making, selecting the plan whose predicted result is better than
the aspirated level
g. Define execution items and methods (Plan)
h. Change the plan if necessary (Action)
iii. Roll of information and the importance of information technology in decision
making.
Management information systems combine hardware, software and network
products in an integrated solution that provides managers with data in a format
suitable for analysis, monitoring, decision-making and reporting. The system
collects data, stores it in a database and makes it available to users over a secure
network. Role bof inform at decision making
Information access
Managers need rapid access to information to make decisions about
strategic
Data collection

Management information systems bring together data from inside and


outside the organization
Collaboration
In situations where decision-making involves groups, as well as
individuals, management information systems make it easy for teams to
make collaborative decisions. In a project team, for example, management
information systems enable all members to access the same essential data,
even if they are working in different locations
Interpretation
Management information systems help decision-makers understand the
implications of their decisions.
Presentation
The reporting tools within management information systems enable
decision-makers to tailor reports to the information needs of other parties.
If a decision requires approval by a senior executive,
iv. Explain the procedure and underline concept of soft systems approach.
Soft systems Approach or soft system methodology is a systemic approach for
tackling real-world problematic situations. There are 7-stage approach of Soft
system Methodology
1.
2.
3.
4.
5.
6.
7.

Entering the problem situation


Expressing the problem situation
Formulating root definitions of relevant systems
Building conceptual models of human Activity Systems
Comparing the models with the real world
Defining changes that are desirable and feasible
Taking action to improve the real world situation

Report II on Economic
i.

Basic Difference between Microeconomic and Macroeconomics


Differences
No
1

ii.

iii.

iv.

Macroeconomics

Microeconomics

Looks at higher up country and


government decisions

Generally the study of individuals


and business decisions

Focuses at the behavior of the


conomy as a whole and not just on
specific compines, but the entire
industries and economics
Would look at how an
increase/decrease in net exports
would affect a nations capital
account or how GPD (Gross
national Product) would be
affected by unemployment rate

Focuses on supply and demand


and other forces that determine
the price levels seen in the
economy
Would look at how a specific
company could maximize its
production and capacity so it
could lower prices and better
compete in its industry

Theories that compose microeconomics


Theory of Product pricing with its two constituents, namely, the theory of
consumer behavior and the Theory of production and costs
Theory of Factor pricing
Theory of Economic Welfare
Procedure and underline concept of econometrics
Econometrics is concerned with the tasks of developing and applying
statistical method
Combines Economic theory with statistics to analyze and test economic
relationships.
Agent based modeling and the underline concept
o Agent Based Modeling is a modeling method with bottom-up approach
for social system. There are two Classification of ABM theres Economic
system on the computer and Actual Economic System.

v.

In economic systems, money substantially flows from the one who owns less to
the one who owns much, causing welfare inequality. Explain the reason why it is.
a. Monetary substantially flow to the one who owns lesser amount of value than
to the one who owns higher amount of value since the profit is getting higher
the value of goods are getting lower which will help the country to become
economically wealthy.

Report III MOT


1.

2.

3.

Experience Curve
Experience Curve is Production cost of any products or business rapidly
decrease with increasing cumulative amount of production obeying power law
distribution.
Concept and procedure Product portfolio Management
Develop new technologies, products and services in a specific domain of
business in which potential increase in demand can be expected in the near
future.
Do the development as quickly as possible so that top share can be attained
during the beginning stage of the growth of market size in the life cycle of the
business
While the business is in the growth stage and maturity stage, develop another
new technology and business
Supported by the Experience Curve
What are the Condition for a firm to sustainably grow? Explain reason Why
Condition for a firm to sustainably grow
To posses specific technology or strong area in business which is
necessary to realize differentiation
o Core competence ( Source OF core competitive power)
To develop new technologies, products and services which will meet the
potential demand expected in the near future in the domain of core
business and technologies, utilizing and strengthening core competence.
To conduct above as quickly as possible , aiming to attain the top share in
the field while the relevant market is in the introduction or growth stage. If
it could not be done, exit from the market
To develop new products and services of next generation, during the
period where sufficient profit can be obtained in the already develop
market
To change and strengthen the core competence during the cycle of P.P.M.
so that the core competence always fits the generational trend in time.
Why ?

The value of goods or technology tends to decrease in time


The leading industry in economics is always changing

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