Improving Management Decision Making

The aim of this essay is to evaluate the extent to which insights from behavioural economics mightimprove strategic decision-making in organisations. In order to see how this works in practice, thisessay will consider one of the largest airline companies in Germany. Within the airline company,the most important question is this: What is the best way to make decisions in a large company likethis? In the current economic environment, competition is tougher than in previous years. As aresult, a wrong decision can lead to greater losses than before. Some airline companies might losetheir market leadership position through a wrong decision or by being unprepared for a specificsituation. Because of this, strategic planning becomes a key factor in a company’s decision-makingprocess. Avoiding mistakes and wrong decisions by improving the decision-making process withinthe company should be the aim of any firm that tries to defend or increase its market share.