5.By direction of influence :

Internal – focused on the tasks of the enterprise and its subdivisions;

External – identify the ways and methods of interaction with the environment

6.By means of adoption :

Individual – are taken individually;

Collegial – those that are accepted by a group of relevant experts and specialist ;

Collective – a decision taken by all of the enterprise or its unit.

7.By terms of decision making:

Decisions taken at enterprise level – taken high level management

Decisions taken by functional agencies – accepted functional managers

Decisions made by individual workers- taken liwer-level managers.

8.by degree of efficiency:

Optimum solution – their goal is to choose the best option

Rational decisions- choices include a solution that will help eliminate the problem , but not the best.

9. by methods of preparation:

Creative – using creativity to solve problems and tasks

Heuristics – decision making based on expertise and models

Reproductive – using well-known and previously used methods of solving problems

10.by degree of structuring :

Structured

Not structured

Poorly structured

11. The degree of validity :

Science-based – decisions based on data from scientific experience;

Intuitive – a decision based on personal experience and intuition.

3.Stages of decision making process.

Operation of collecting information in the process of international management consist of sequence of actions:

first – determing goals and objectives in gathering information

second – determination methods and means of collecting and grouping data;

third- definition sources from which incoming information;

fourth- the organization of operations for the collection and grouping of primary data;

fifth- the creation of databases (inf.)in accordance with the objectives of their future use.

Companies in foreign trade activity use the inf.to:

-revenue growth and market expansion;

-reduce the risk and reduce uncertainty in conducting foreign operations;

-receipt of the adm.authorities and of the ompact on other plants;

-monitoring,evaluation of performance and efficiency of his company.

Transactions with foreign information gathering carried out by the method associated with the functional processes in the enterprise. Selecting a particular method of determining the economic, legal, organizational, technical and technological aspects.

External sources of information

1.Market inf.

Inf.about consumers (number,classification structure,the share of consumption,trade and regional distribution of consumption)

Inf.about the condition and market condition(market size,market structure,the dynamics of market prices in the market and their distribution depending on the condition and regional supply and demand);

Inf.about the producers(the number,classification structure,the share in production, trade and regional distribution of output).

2.Inf.about competitors:

Inf. On business competitors (volume,dynamics and structure of production and marketing of products for purchase and sale of products, delivery conditions, payment terms);

Information about the production activities of competitors (facilities and technology, storage and transportation of products, sourcing raw materials, components, materials);

Information on financial and investment activities of competitors ( financial performance (profit revenues, expenses, taxes, return of) the financial position of competitors ( receivables and paybles , solvency, financial stability, liquidity, money velocity) investment plans and capabilities of competitos, sources of investment)

Information about the marketing activities of the enterprise (pricing and marketing policies, promotional activities and publicity budget, arrangements for communication and of PR, distribution channels, inf. about customers and partners, competitors);

Information about state management of competitors ( information about leaders and experts , staff, wages, social benefits, organizational structure, plans for its reorganization and changes) .

3. Macroeconomic and geopolitical information:

Information on ME indicators of the real economy to individual countries, groups of countries, the region of the world (the dynamics of GDP growth , investment and foreign trade and balance, the level of income and its purchasing power );

Information on ME indicators of the monetary sector of national economies (dynamics growtfh of gross foreign exchange reserves, inflation, the discount interest rate, exchange rate, stock quotes, traffic in the capital market, the level of accumulation of population and enterprise);

Information on ME indicators of the budget sector to individual countries (size, structure of revenues, expenditures and balance the state budget, the level of internal and external public debt.

4. Information on regulation and taxation:

Internal sources of information

1.Information about the production:

The dynamic scope, structure and product line;

The quality of products derived raw materials and components, waste and emissions of production;

The amount and composition of fished products, spare parts, raw materials, components in stock.

2. Information on human resources:

The provision and use of human resources; On productivity; The extent and level of remuneration

3.Inernal financial inf:

On the financial performance of products and services of other activities

The distribution of income,taxes and fees;

The amount and composition of fixed and working capital.

Preparation of management decisions consist of the following administrative actions:

diagnosis of the problem; collect inf.about the problem; develop alternative solution evaluation of alternative solution;

the diagnosis of the problem involves sequential steps:

-identification and description of the problem situation (meaning awareness of the contradiction between changes in the environment of operation of the business and its capabilities to provide for such conditions to achieve its goal);

-establishing of objectives (determination of the desired and result solving the problem situation);

-identification of criteria for decision making (defining characteristics for which evaluation will be conducted solve a problem situation and arrangement of these features in order of importance).

Criteria of inf.

-objectivity (completeness of inf.,accuracy of the inf.,consistency of inf.and credibility of inf.)

-concise –brevity and clarity of presentation of inf.

-relevance – whether inf., objective inf.problems;

-timeliness – the ability to meet the inf.needs of adopted for the term;

-communication – property inf.to be understandable to the recipient.

Evaluation of alternatives is to test each alternative on such criteria as:

-realism- the possibility of it done at all, taking into account external circumstances beyond the organization ( legal restrictions capabilities of existing technologies, moral and ethical standards etc.

-adequacy to company resources;

-acceptability of the consequences of alternatives (both main and side, both in the period of implementation alternatives, and in the future period).

The process of making adm.decisions in the m.of economic activity is influenced by many different factors:

-the risk – means that there is always a chance of making the wrong decision which could adversely affect the foreign trade enterprises/

-the degree of support the team manger – this factor into account that new managers perceive at once, so without the support of colleagues, the problem should be resolved through personal experience and personal traits manager.

-Personality of managers of FEA – one of the most important factors. Regardless of how managers make decisions and are responsible for them, they should have the ability to make the right decision.

-The policy of the organization – on this case takes into account subjective factors when making decisions. Status,power,prestige – all can affect the adoption of a decision.

Theme 6. Crisis management in FEA