Summary of

Managerial Decision Making

Under Risk and Uncertainty
The case study is about those managers which take decisions at certain moments according to the
situations. Many mangers make decisions on the base of different criteria. There are few people in this
world who take’s decisions on bases of calculations. While some people take’s decisions by following
well know and predefined paths. The decision-making and risk taking is always a great challenge
for the managers.
They face many problems and issues and they solve these issues in different manners. They said that a
risky situation is a situation where the outcome is unknown to the decision-maker. When we asked them
about some risky decisions in career they more than half of them associated this with different kinds of
investment activities and divided them into such categories given as bellow:-

1) Investing in new machines and new techniques

2) Acquisition of new companies
3) Development of new productsGood
and new effort!
markets
This study was carried out in two major Swedish forest companies; it includes the interviews of
twelve managers. If you discuss the managers about taking risks so you will receive different answers
Could be better presentation!
from it like that different types of risks, like:-

 Financial risks
 Fire risks
 Technical risks
 Commercial risks
 Investment risks

Now about Risks and Returns, are they related? Managers have different concepts about risks which
we are discussing bellow:-
 There is a relationship between risk and return, means “if you don’t take risks there will be no
returns.”
 Some says that they were no gamblers and therefore were very careful when taking risks
 Some said that risk could be managed if you have correct information, sufficient knowledge
about the problem
 Some of them say’s that they use their intuition or feeling to decide what is right or wrong
According to the managers it is relatively easy to identify whether a person is risk-prone or risk-
averse. In other sense risk-prone behavior is something positive and risk-averse behavior
is something negative.
Concluding the whole summary of case study is that managers should take decisions very
carefully and risks bravely for gain more outcomes. Furthermore managers should use good
techniques to overcome the crises and risks because good managers always used good techniques
to overcome the crises. One main problem that has been identified is lack of information of
problems which managers usually face. This problem can be resolved by using computer
based system. Using computer based decisions is more valuable than making decisions
by taking risks.