The Application of Decision-Making Criteria in Business Environment: An Econometric Analysis
The Application of Decision-Making Criteria in Business Environment: An Econometric Analysis
Harutyunyan Viktorya,
Grigoryan Hermine
Summary
Key words: market, statistics, risk, investment, demand, information
Decision-making theory originated in mathematics and statistical forecasting and was later expanded through economic research. In today’s rapidly developing market environment and in everyday business practice, the ability to make decisions based on reliable data is especially important. International business statistics indicate that companies investing more heavily in research tend to grow at a faster rate. In conducting research for decision-making, individuals may rely on previous experience, professional education, or intuition. However, in order to have a guaranteed result, reliable data and analysis are necessary to have a complete picture of the market in the decision-making process. High-quality market research can greatly reduce risks by applying various criteria and guide decision-making.
Organizations use accurate data and qualitative information about business activities. Analytics are used mainly in decision-making. In this case, market research conducted by an independent and professional company is the best solution for each business. Thanks to research, it is possible to make more intelligent investments in markets that continue to grow, reviewing investments in markets with lower demand. The methods and recommendations examined in the article, the application of various decision-making criteria can help to correctly assess the expected financial result of economic activity, possible risks and make the best decisions.