Management Decision Making A System Approach Essay

Management Decision Making A System Approach - Essay Example Management decisions are gaining extraordinary and unprecedented importance in the present changed business situation. Governments and business houses have to think beyond the territories while making a decision. They can make an impact all over the world, and the prevailing world business trend could make immediate impact on them. Management theories have evolved and have been applied mainly to change management and control management1. System approach is another, perhaps highly effective way to apply on a company that is targeting a certain achievement2. 1. Alamarai is a flourishing company, but a system and every work in the company is done as clockwork, without any change at all in the daily routine. It has its hierarchies, branches, transport system, distribution system and works like a well-oiled machine, noiselessly. 2. It has its own performance criteria and system objectives. Its performance criteria is mainly running its huge farm, stocked with yielding cows, cooling and pasteurising this milk, make connected milk products and supply them to the decided outlets along with other food products. Alamarai had been one company who had been performing flawlessly, even though a cooling project in Saudi Arabia is not an easy matter. 3. Alamarai is ruled by its environments, political, social, cultural and religious. It is also ruled by the economic environment of the present day world. These signals, the company is unable to ignore any more. 4. It has its own humanistic and psychosocial subsystems, but till recently controlling the humanistic conditions as they are mainly from foreign countries and hence, were mainly biddable, it had found comfortable, compared to the present psychosocial subsystem, that had been brought into the company through Saudisation. 5. Alamarai's aim had been integrating these subsystems with the whole wider society. The psychosocial subsystems are not only originated from the prevailing society, but also have to be improved and bettered in the same society and Alamarai is trying to integrate them. It increases options, reduces errors during achievement and the achievement could be anything. It need not be only the highly market victory. It could be connected socially, politically and culturally to the company, for which company is either forced or willingly inspired to work for.4 System approach is one of the decision support systems, that had been in vogue for sometime and had been found unquestionably effective by many organisations and has amply proved its efficiency, mainly because it works along with its subsystems, and hence, more scope for checking, correcting, evolving and finalising5. a) Company overview: Almarai (Green Pastures), a very famous company of Saudi Arabia, a household name in diary products was established in 1976, under the direction of the Prince. It is based in Saudi capital Riyadh, with its operations spread not only in Saudi Arabia, but also through the Arabian Peninsula, covering almost all the Gulf countries. It is a pioneer in agricultural, diary processing and food distribution field. It is a well known entity with a

Basics of finance and investment Essay Example | Topics and Well Written Essays - 1500 words

Basics of finance and investment - Essay Example Bad news is always remembered more because it is human nature that people’s miseries create a stronger impact in our minds. But it should also be remembered that if there is a Leeson, there is also a Warren Buffet. Money was lost on internet stocks, but just before that, money was also made on the same internet stocks. And Bernard Madoff was one of a kind, who took advantage of people’s confidence to him as a SEC consultant. There was nobody before or after him who operated at the level he did, because the there is usually in place an effective regulation of the market and most such operators are caught early on (Arnold, 2004). If there are no extreme developments such as market crashes and financial crises, investing for value long-term has always been sound strategy for enhancing wealth. There are several vehicles for investment: the savings account, the money market, certificates of deposit and common stocks are some of them. Each of these instruments is associated with a particular level of rate of return. The rate of return is the percentage gain an investment makes – in short, how much yearly earnings are expected as a proportion of the capital invested. The rates of return fluctuate, but they maintain a more or less consistent relationship with those of the others. For instance, the savings account in a bank would normally have the lowest rate of return which is denoted by its interest rate. The money market placement has a slightly higher interest rate, followed by certificates of deposit, and then the stock investment. The average rates of return for each of these instruments is shown in th e second row of Table 1 (source: UK National Statistics Online). The rate of return plays an important part in the concept of compounding. In compounding, the returns that have been accumulated for one year becomes part of the