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A senior or executive manager of an organization would represent the strategic level of decision making, as the article, How Information Supports Decision Making (n.d.), notes. The article explains further that members of the strategic level handle company-wide trends. They would have to consider issues such as the viability of a product line or segment. Competent executives will use their firm’s IT systems for this task.
Information Technology can be useful for maneuvering through these risky and potentially costly decisions. In this example, some information about the sales generated, and the expenses involved in the production, would be urgently necessary (Walther, n.d.). Aggregating the revenues and costs from a database is the first step. Next, the strategic level would assess whether, at the expected level of activity, total revenues would equal or exceed total expenses (Walther, n.d.).
How Information Supports Decision Making. (n.d.). Retrieved August 25, 2021, from https://learn.umgc.edu/d2l/le/content/614401/viewContent/23105662/View
Walther, L. (n.d.). Break-Even And Target Income. In Principlesofaccounting.com. Retrieved August 25, 2021, from https://www.principlesofaccounting.com/chapter-18/break-even-and-target-income/
Managerial is one of the three basic levels of decision making in an organization. A general manager of a retail business may take upon many different skills they need to provide such as customer service skills, organization and communication. At the managerial level, a general manager may make a decision about monthly invoices. One area they can focus on is managing inventory for their store. "By managing inventory, retailers meet customer demand without running out of stock or carrying excess supply." (Luther, 2020).
In a clothing store the general manager may see how the changing of seasons may affect the sales of that certain store in a specific area. This can result in making the decision to move those clothing items to a different location where the sales are higher. This way they can target people to buy those clothing items that may live in a different climate area then most. For an example the store American Eagle sells jean shorts in store during the warmer months here in Maryland but if you live somewhere like Florida where it doesn't get as cold as Maryland till around January, a manager may suggest to move all the shorts to an area where they can still be purchased rather than just taking them down for the season. This way the store in Maryland wont be carrying excess amounts of shorts for the colder months approaching. The manager could also decide to shift the warmer clothing to the sales rack with lower prices to help sell them before the seasons change. The general manager would need to collect the sales of jean shorts from different stores in order to make that shift in their inventory.
Luther, D. (2020, September 16). Your guide to retail store inventory. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/inventory-management/retail-inventory-management.shtml.
Caramela, S. (2020, April 15). How to effectively manage your inventory. Business News Daily. https://www.businessnewsdaily.com/10613-effective-inventory-management.html.