Economic Decisions and Strategy - Example

The paper "Economic Decisions and Strategy" is a perfect example of a report on macro and microeconomics. This project is aimed at assessing the students’ knowledge in judgment and managerial decision-making. In business, the process of decision-making is critical and it can be the difference between the achievement of the goals set and the failure of the business. The system of thinking is largely attributed to the kind of decision one makes and so this work will look at the two systems of thinking i.e. system 1 thinking and System 2 thinking.

In this section, the conditions that prompt one to use either will be addressed. Managers and other leaders in a business have to make decisions daily and so a small hitch can lead to failure in the business. Therefore, there will be conditions that will prompt one to employ one system more likely to compare it to the other. Any business involves a group of individuals who come together and are synchronized to deliver a given mandate. In a typical business, there will be managers and employees all with a given goal that involves playing different roles towards the actualization of the dreams of the organization or company.

Therefore, to look at the individual and group dynamics in a working setup, this paper will look at bounded awareness of groups in comparison with bounded awareness of individuals. Still under group dynamics in a working setup, the paper will address the concept of over placement and under placement and its effect in a business setup that involves a number of employees. Bounded awareness earlier addressed will be compared with availability heuristic with the decision-making process and the effects to the whole business being a major concern.

Lastly, to conclude the first section, we must look at some theories that help us understand the topic better. Therefore, the multiple-selves theory will be discussed bearing the effects of the disagreements between the two selves that could be existing in an individual. Referring to the theory, it shall be established how the two selves in the theory mentioned interacting in evaluations of an option that bears short-term gratification and long-term costs. In the second section, evaluation of scenarios aimed at understanding real-life situations.

The two scenarios critically analyzed will employ the understanding borrowed from the understanding of the decision-making process in a business setup. Considering the slogan used by Trident Company in the 1970s in selling gums claimed to have medical benefits, the issue of bias in business shall be discussed.