Decision Analysis

Through this essay it is intended to briefly describe the topic of decision analysis, then to briefly describe the application of decision analysis in different companies based on published literature, then to finally list the benefits of the decision analysis approach. To do this, the first stage is to illustrate the theory of decision analysis in general then to apply it to actual businesses and show the theory in practice. Two cases that will be discussed in this essay. The first is the case of Concorde planes, and the second being the government's embracement of the Millennium Dome project.
Organizational success or failure is determined by the business decisions made each day in every facet of operations. From interacting with customers to transaction processing, you need the best possible decisions to maximize revenues, minimize costs, and effectively manage business processes. According to Professor Paul Nutt, professor of Management Sciences at Ohio State University's Fisher college of Business, approximately half of all business decisions are unsuccessful. This is found in his new book, which is a multi decade study of real life organisational decisions. Paul Nutt states "vast sums of money are spent to make decisions that realize no ultimate value for the organization, and managers make the same mistakes over and over again as they formulate the decisions." Nutt came to this conclusion after carrying out a 20 years project of investigating over 400 major decisions. …