The main factors that affect the decision-making of a firm are the factors related to personal, organisational, social, environmental and behavioural factors. All these factors harm the decision-making of the company. These factors are beyond the control of the organisation and cannot be influenced by their power.
The factors that affect the business decision can be classified into 2 types. Mainly internal and external factors. Internal factors arise within the organisation and are controllable by the authorities of the business. These factors can be influenced by the decision-makers and make factors favourable to them. External factors are beyond the control of the business as it arises outside the organisation. These factors affect the day-to-day functioning of the business with a higher impact than internal factors.
The factors that influence the decision-making are mainly the alternatives available to them, the uncertainty that arises in the organisation, interpersonal issues between the employees and the organisation, complexity in the procedure of decision making and the risk of the consequences of these decisions. All these factors adversely affect the decision-making decision of the firms. A firm should keep in mind all of this before committing to a decision.
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