Certainty Risk and Uncertainty
In making decisions, both managers must consider weighing alternatives. Most of which include future hard-to-predict events. Such as a competitive response to a new price list, interest rates over three years. The trustworthiness and reliability of a newly established supplier in decision-making situations (highly unpredictable).
Certain Decisions:
We have precise, observable, credible knowledge on each option we consider under conditions of certitude regarding our objectives. Consider the director, for example, who has to order festival telling tale programmes. She has well aware of the purpose of having programmes printed. The price quotes for different amounts of programmes easily compared with representative samples of local prints. You should find a printer with this knowledge and know that it would cost you for certain. This detail won’t help her make a harder decision:
How many programmed would she have to order? When taking this action, she must understand how much of the money. She has to spend on ordering souvenirs of high margins such as tea t-shirts. Sweatshirts is not short of programmed. If these circumstances become conditions of danger or instability, the director now transfers from them. Many problems are unfortunately much more prevalent than some conditions.
Risk Decisions:
Risk exists if we cannot with certainty predict the result of an option. However, we have sufficient knowledge to predict the likelihood of it being produced. You have dealt with odds whether you have ever tossed a coin to make a decision or played a wheel. As it has at this time, the director will review the available data to assess. The number of services likely to be expected, albeit with certain risks. If this is the tenth annual storytelling festival held in this area.
The mixture of experts expected the concentration in 1992. When banks from the Bank of America and the Security Pacific fused. But it turned out to unsure what had seen as ‘certainty. The banks have closed combined transactions in more than 450 branches. Other, smaller banks of California took advantage of the chance to improve public safety and branch availability. For example, actor Dennis Weaver used by the Great Western Bank in television ads: used as a bank. It was at work one day. It had gone the next day.
Customers have attracted to a range of tactics by the Bank of Fresno, Redlands Federal, and Sanwa Bank in California. For example, for Sanwa to register new clients, you have to set up sidewalk tables across the street.
Uncertainty Decisions:
Little has understood about the alternatives or their results under situations of uncertainty. Two potential origins give rise to uncertainty. Firstly, managers may confront external factors that are partly or wholly outside their influence. The weather, which is critical for a three-day outside festival.
Second, the manager cannot access crucial information that is equally critical Perhaps. The director has not built a network with another director of the festival. That may exchange relevant information on possible attendance documents of the new festival. Or maybe nobody can foresee the attendance of a new festival in the autumn. Because many families will be involved in school activities or other events.