decision trees permits the user to gain a wide

Question

Decision trees permits:

• The user to gain a wide idea of possible outcomes of the project/decision, i.e. in this case the selection of two locations
• Easier understanding of the decision to prevent confusion or misunderstanding
• Easy and simple calculations to be made to aid decision making
• Easy accessibility for all users to make scientific/rational decisions
• Offer a quantitative tool in decision making

However, decision trees:

• Are based on approximate figures only and the actual outcomes may well be very different
• Can be incorrect unless all costs, possibilities and benefits are considered
• Only consider quantitative issues in decision making, so might be considered too basic a model

• Qualitative factors could be inspect, e.g. familiarity with the two dissimilar locations, availability of skilled labour, cultural issues and training concerns, recruitment , legal issues, tax systems or simply management preferences
• Similarly, other quantitative process could be considered, e.g. investment evaluation to see which location would generate the greatest revenue
• Other decision making equipment might also be useful to Peckham Traders Ltd. such as PEST analysis or force field analysis in order to minimize any resistance to change.