The assignment is for Critical Thinking in Analytics- Analytics for creating business models and valued companies

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Critical Thinking in Analytics

Managers can have tough responsibility of making the right decisions which lead the company to effective progress. During this time managers also have to solve various problems. Different methods and models are used by the managers for solving the problem. However, they also have to follow ethics during the decision-making procedure.

Use of Analytics in Solving Business Problems

                Most of the businesses rely on analytics for creating business models as well as companies of significant value. No matter which the industry is, there is a huge amount of data which is present in the storage device but can be utilized for getting a competitive advantage. Managers need to be efficient enough to deal with a wide variety of data for finding the solution of the problems which were not effective with past problems. However, some of the companies hire data scientists and analytics to resolve this issue. They are experts in analysing the wide variety of data in an effective and profitable manner. The managers can work in collaboration with these scientists. Data scientists can teach the managers that how different models should be used and incorporate in the decision-making procedure (Galit, Bruce, Yahav, Patel, & Lichtendahl, 2017). To take an effective decision, managers can subdivide the problems into small parts that will help them to critically examine the situation and then take the best decision.

                There are various areas in which the managers have to focus, for example, some of the managers have to make the decision about what is the best offer which they can make to the customers to boost their sales. For effectively dealing with this problem the previous data of purchases of the customers can be evaluated and analysed in collaboration with the experts. Various points can be noted during the analysis such as what are the main factors which lure the customers to purchase the items. Either customer buy more things during sales or during the time when the company is offering them gift hampers or discount coupons. All such information will help the managers in making the decision which is good for the long run. Due to enhanced technology various software solution packages can be used for the data analysis. Most of these software solutions include different options by which managers can analyse the data in more than one forms.

Use of Reasoning

                Logic is the tool which enables the managers in making better decisions. Logic can be described as the procedure of using rational reasoning for making a valid argument. For solving the business problems, managers use two types of reasoning.               

Inductive Reasoning

                Inductive reasoning can be described as the logical thinking that moves from the specific to the general. In this reasoning, generalizations are formed on the basis of specific incidents. Managers can develop this soft skill by interacting with people, ideas and social situations (Samuel, Landis, & Burke, 2017). As inductive reasoning is not a hard skill, therefore, there is no need to acquire specific knowledge. For example, if the production manager of the company has observed that cases of injuries have increased at the end of long shifts so he can purpose that 10-hour shift should be moved to 8 hours.

Deductive Reasoning

                Deductive reasoning largely relies on a general statement or hypothesis which is supposed to be true for reaching a specific and logical conclusion. In this type of reasoning, the thinking moves from general to the specific approach. Deductive reasoning provides an innovative approach to the thinking and actions of managers. The method of their work and how they lead the whole team completely change in a good way (Mike, 2015). For example, if the company is planning to introduce a new product for the women but they are not sure what it should be then managers can use deductive reasoning approach for presenting a suitable solution for this problem. The consumer company can easily accept the premises that professional women are very busy because they have a dual duty of house and work. They do not have sufficient time for their own selves. From this, they can deduce that the company can introduce a new hair colour which can be applied in minimum time, but its results remain for a few months. This product will gain effective attention and can provide a significant market share to the company.

Ethics of Analytical Approaches

Businesses involve the use of analytics that integrates the prospects for the management to take competent decisions. However, the use of the analytics requires ethical preservations as well as insight on the moral beliefs, which makes the organizational processes more competent with the advent of the collection of information and the forming or business policies based on the decisions made required integration of the ethical values within the decision-making process (McLeod, Payne, & Evert, 2016). Moreover, the business ethics apply to numerous business aspects, which ensures that the organization can provide sanction to the beliefs and thoughts of others as well as respect their privacy of information.

Many different cases have been seen in the advent of ethical business proceedings such as the case of Tyco, Enron, NIKE etc. NIKE had severe moral disruption when it was expanding globally and forced the employees to work overtime and multiple shifts with low paid wages. In addition, the company did not observe the issue even after constant reporting and failed to abide by the rules of ethical preservation, which caused significant loss to its reputation in the international and domestic market (McVeigh, 2017). However, the companies are now integrated comprehensive ethical frameworks into their workability as well as forming effective corporate strategies that observe the ethical issues within the pertaining problems. Moreover, the observation of the ethical preferences has been deemed necessary in the compliance requirements that allow the companies to integrate competent sourcing of ethics in decision-making processes of the company (Nersessian, 2018). Moreover, standard practices, as well as written ethics code of practice, is maintained for the organizations to address the necessary elements within controversial tasks. Particular processes are also formed to assimilate the practices for confidential reporting of unethical practices within the organization. The promotion of the ethical environment is highly necessary and critical within the organization and requires competent addressing from the management.

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