Quantitative Analysis: This is the aspect where we use a scientific approach to

Question

Quantitative Analysis:

This is the aspect where we use a scientific approach to solve a problem at hand and make the necessary decisions which encompasses a logical mathematical approach to solving our problem.

To apply any quantitative analysis, first the technique, its specific applicability and limitations must be known and understood. Only then can we apply them to achieve results which would be applicable to our decision making process and allow us to make the correct assumptions where needed.

The process is perfectly summed up using the following flow diagram:

Hence, we see that raw data is turned into useful information by using Quantitative tools like Logic, Historic Data, Scientific Analysis and Modelling.

Qualitative Analysis:

Not all information will be quantifiable in a situation. Therefore, we need qualitative analysis as well to make informed decisions.

Here are the steps for the same:

First, Managers recognize the need for a decision to be made. Here the qualitative analysis begins with the defining of the problem. This might be the most difficult step and an important one as well since all the steps going forward will be defined by this. The next step is to develop feasible alternatives for the course of action. Many times, there would be multiple paths which can be taken to achieve a common goal. But here comes the need to choose the right step to take and weigh our options clearly keeping in mind all the factors which may affect our processes and have a say in the final decision to be made. Once the suitable path is chosen, we start implementing the respective alternative related to that path. As this goes on, we constantly keep an eye on the processes and make sure that all feedback is regularly monitored and our plan is one that is capable of self improvement at every step.

Hence, we see how important both quantitative and qualitative analysis are in their own way and affect our decision making to a large extent. One or the other might be prominent and more worthy in some situations, but both contribute in their own way and none of them is to be neglected.

Explanation / Answer

Q 3 Ryan Company is having some non routine decisions to be made during the current period. Describe quantitative analysis and qualitative analysis used in non routine decisions, and explain why both are important in management decision making..

note: ( word count not required)

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