We can make a choice among alternatives employing certain strategies. Under conditions of certainty, we can usually work through the alternative and predict their outcomes with various models. The alternative we choose is the one that best achieves our objectives. However, most decisions are made under conditions of risk and uncertainty. When this is the case, managers must select a choice strategy that is congruent with their personal risk taking philosophy.
Many strategies are available.
Decision trees result in alternatives with expected values. Noneconomic criteria evaluation uses utility as a criterion. Other strategies include minimax, maximin, equal probability, optimum, pessimism, etc. These strategies for selecting one from a set of alternatives allow managers to exercise a rational judgement when making decisions. International Dimension of Decision Making Decisions in an international environment require the generation of many more alternatives.