Creative Thinking And Problem Solving

Question 1

Creative thinking

Answer 1

The process of thinking of new, innovative, out of the bos ideas. Unconventional thinking

Question 2

Decision making

Answer 2

Choosing which idea best fits the vision and mission of your business after considering all alternatives

Question 3

Problem solving

Answer 3

Involves creative thinking and decision making to choose the best solution

Question 4

Benefits of creative thinking

Answer 4

• To solve business problems: new products, services, creative marketing, adapting to changing product needs
• creative working environment: spirit of play, positive feedback, working in teams, recognition and reward, freedom to express ideas
• promoted teamwork and non-conventional solutions
• improves quality of production
• motivates employees to improve their skills
• improves productivity

Question 5

Problem solving cycle

Answer 5

Identify the problem
Define the problem
Formulate a strategy
Implement the strategy
Allocate the resources
Monitor the solution
Evaluate the process 
(Repeat from top)

Question 6

Pros and cons chart

Answer 6

• this technique helps management to make a decision based on advantages and disadvantages of specific option

Question 7

Tools used in three business environment

Answer 7

Micro: SWOT and Analysis of 8 business functions
Market: porter’s 6 forces model and influence of all the role players
Macro: PESTLE

Question 8

Decision tree

Answer 8

• is a mathematical model used to help managers make decisions
• uses estimates and probabilities to calculate likely outcomes
• is a visual representation of different outcomes to a single event
• helps decide wether the net gain from a decision is worthwhile

Question 9

Parts of decision tree

Answer 9

• outcome A
  - option one: - outcome B
  Decision:
  - option two: - outcome A
  - outcome B
  - do nothing.

Question 10

Value chain analysis

Answer 10

• a business needs satisfied customers to be successful
• therefore the concept of adding value for the customer and other stakeholders should be the aim
• it is important to look at the entire business process to decide where value should be added in a cost-effective manner to enhance the quality of the product or service rendered
• if a business is not involved in something that is not in their core-strength, that particular activity will probably not add value to the business process

Question 11

Steps in value chain analysis

Answer 11

1. Divide business into different activities
2. Describe each process required to complete the production
3. Identify those areas that are critical to gaining competitive advantage
4. Decide whether these areas remain in the business or are outsourced