Literature Review On Decision-Making Style

Literature review

2.1) General decision making styles

Scott & Bruce (1995) have identified two main approaches to decision-making style. Firstly, decision-making styles can be understood as a habitual pattern which individuals use in decision-making. Secondly, decision-making styles can be understood as individuals’ characteristic mode of perceiving and responding to decision-making tasks. In their later work, the same authors defined decision-making styles as “the learned habitual response pattern exhibited by an individual when confronted with a decision situation. It is not a personality trait, but a habit-based propensity to react in a certain way in a specific decision context.”(Scott

Competitive advantage was developed by Porter to enable organizations sustain their ability to improve performance and be more innovative in their approaches in enhancing the quality of their products. The essence of competitive strategy is to enjoy superior profit margins and remain competitively relevant in the marketplace to attain success (Porter, 1985). Therefore, competitive strategies that are used mostly in business organisations, including construction businesses, as categorised generically by Porter, are to strive to be the industry’s low-cost producer through cost-based business strategy, practice different strategies based on quality, superior performance or technological dominance and concentrate on a market segment using a focus strategy to achieve a competitive advantage by performing better than their competitors in providing more value to the product required by the buyers. Porter (1980, 1985) identified two strategies: product differentiation and cost leadership. A differentiation strategy involves the firm creating a product or service. Cost leadership emphasizes low cost relative to competitors. A number of studies have suggested that many manufacturing firms view a strategy of differentiation as a more important and distinct means to achieve competitive advantage than a low cost strategy

Organizational performance could be effectively achieve, when all the parts of an organization work together to achieve great results with results being considered in terms of the value we deliver to customers

2.5)Porter 's five forces

In 1979 Michael E. Porter of Harvard Business School identified five key forces that determined the fundamental attractiveness of a market or a market sector in the long term.This became known as Porter’s Five Forces Analysis and it provides a model that enables organizations to analyze their industry in a way that takes your competitors’ activities into account. This is a vital part of creating a strategy, and it is important that managers understand how it works and how to contribute to it.

There are five important forces that determine competitive power in a business situation. These are:

Supplier Power: You assess how easy it is for suppliers to take up prices. This is motivated by the number of suppliers of each key input, the matchlessness of their product or service, their strength and control over you, the cost of switching from one to another Product. The fewer the supplier choices you have, and the more you need suppliers '