SMART analysis free essay sample

Introduction to Business Decision Making Case study- The Sun Wind Corporation (SMART analysis) Nowadays there is an increasing environmental awareness in the world. I am now given the Job of choosing a site for the construction of a medium-sized wind farm with a potential 100MW generating capacity of Sun and Wind Energy Corporation. There are five potential locations for which the I-JK government will issue a licence, although there will be consultations with interested parties like local residents and environmental groups, which may lead to the company have to pay compensation fees. The Simple Multi-Attribute Rating Technique would be used here to address the problem. It is a technique that aid to help decision makers trade-off advantages and disadvantages appropriately, as sometimes there are a number of objectives involved in the decision problems. A choice needs to be made from a set of discrete alternatives; it is the location of the new wind farm in this case. We will write a custom essay sample on SMART analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Also, the reasons for using SMART is it structures and simplifies decision problem and gain more understanding, as we as maximizes or minimizes scores on an attribute. There are eight steps in the SMART Methodology. Step one: Identify the decision maker(s) We usually assume the person is the business owner. In this case I will be the decision maker of choosing the location of the wind farm. Step two: Identify the alternative courses of action In my case there are different locations of wind farm I can choose, which are Allen Banks, Bingham Heights, Caworth Castle, Deeply Sands and Eppington Plain. They are the five potential locations, for which the I-JK Government will issue a licence, Step three: Identify the attributes that are relevant to the decision problem The attributes that distinguish the different locations will be the factors based on costs and benefits. To determining attributes of alternatives, the initial attributes elicited from the decision maker (me) have to be distinct i. e. choice of the location that is the best for The Sun Wind Energy Corporation. Step 3 output: Constructing A Value Tree for the Wind Farm Location Problem condition apart from the attributes that provided from the company. Then, it is necessary to assess the adequacy of the Value Tree once it has been constructed. It should be Judged in terms of whether or not the tree is accurate and whether it reflects what I concern. It is suggested that there are five criteria are used (Keeney nd Raiffa Criteria,76). ) Completeness As all the main concerned attributes have been included and they were advised from professional consultants, my colleagues and me believed that all attributes are well considered. Result of an optimum wind farm is likely to be built with appropriate strategies. 2) Operability Aspects of costs and benefits are clearly defined by the lowest- l evel attributes. From a monetary angel to weight costs like construction and land costs would give a more concrete and quantitative results while a long term vision of benefits can be given by evaluate qualitative attributes like climate.