Decision-making skill is one of the most important aspects of every company’s leadership as it allows to make the right choices and minimize risks in connected parts of the business. According to Klien (2017), statistics is closely related to decision-making as specific numbers and exact data can make the production of policies and programs easier. This paper will explain the importance of statistical data in the specific case study and explain what decision might become beneficial for the general performance of two main businesses.
A printing company considers buying new printers and increasing customers’ experience through this strategy. It is a primary responsibility of the business to provide people with high-quality papers and other included services with the use of printers. Consequently, by purchasing new technology, the organization can expand and become more competitive in the market. However, buying a new printer might not be the single factor that can increase performance, and such aspects as finance control and past years’ statistics should not be underestimated (Rajesh, 2021). To ensure the growth of the company, the owner can adjust formal and informal changes. For instance, Nguyen and Canh (2021) stated that informal funding is related to the individual investing in the organization which is not related to the investors’ help. Nevertheless, formal financial change in small businesses can help to become more popular in the market and shift to the medium size organization.
Even though the owner is optimistic about future success and increased sales, it is important to make changes in the company. By adjusting new features, managers can ensure that employees stay trained and do not lose motivation because of the common routine. In case of low sales, the business will earn less, and it is a risk to make changes. However, risk management can help to predict all negative sides and increase efficiency by changing policies (Bjornsdottir et al., 2021). The change in income is not significant which makes the risk of loss less possible. Consequently, even if the predicted future of the business is successful, new equipment can be bought to make services more advanced.
In a small organization, the role of the owner is crucial as there are not many people employed and the hierarchy is not built on the first steps of the development. Arafaina and Efrata (2017) believe that the owner’s attitude and motivation is the key aspect that builds values and culture inside the company. Consequently, the general mood, optimism, and pessimism have a straight influence on the profit. Lack of motivation and humiliation may make workers quit or loos excitement which is important for business performance and growth. Therefore, the owner’s attitude to the work and employees is the only factor that creates many benefits or problems that increase or decrease the general efficiency. In the case of the printing company, the attitude of the owner is optimistic, and many changes can be applied to increase profit in the future.
Purchasing and supporting new printing equipment is beneficial for two parties which are the main organization and the organization that proposes the good. The equipment used in the organization can be subjected to depreciation and replacement of old but working printing machines can be expensive (Adkins and Paxson, 2017). The trends are changing, and it is important for the company to stay sure that they receive technical support and do not worry about purchasing other equipment in the next five years. This benefit can help the printing business to follow the latest changes and continue providing clients with high-quality printing services.
References
Adkins, R., & Paxson, D. (2017). Replacement decisions with multiple stochastic values and depreciation. European Journal of Operational Research, 257(1), 174-184. Web.
Arafaina, S., & Efrata, T. C. (2017). The role of owner in implementing organizational culture on start-up company. The 6th International Conference of Entrepreneurship, 346- 353. Web.
Bjornsdottir, S. H., Jensson, P., & DeBoer, R. J. (2021). The importance of risk management: What is missing in ISO standards. Risk Analysis, 42(4), 659-691. Web.
Klien, M. (2017). Statical analysis: Global study on the aggregation of water supply and sanitation utilities. World Bank Group. Web.
Nguyen, B., & Cahn, N. P. (2021). Formal and informal financing decisions of small businesses. Small Business Economics, 57, 1545-1567.
Rajesh, R. (2021). Flexible business strategies to enhance resilience in manufacturing supply chains: An empirical study. Journal of Manufacturing Systems, 60, 903-919. Web.