The Importance of Decision Tree Analysis on Strategic Management Practice: Evidence from Retail Industries in US

Abstract

Decision trees have generally become an important tool for every decision maker, both as individuals and as an organization. Individuals are prone to strategic decision making every day of their lives as there are always various options for their daily activities. Organizations on the other hand need to be meticulous in their decision making as decisions can make or mar such organization and as well, can help in achieving the aims and visions of such organizations, hence, the need for strategic management practices. This study therefore seeks to examine the importance of the decision tree analysis in strategic management of US retail industries such as Amazon, Walmart and Costco. The study therefore adopted the case study research design among other research designs in order to achieve its objectives due to the concentration of the study on US retail industries (Amazon, Walmart and Costco) while employing the deductive research approach to draw conclusions from the observations made from the case study. The population of the study were the retail industries in US and data was collected from secondary sources such as journals, publications and so on. These data were analysed using the systematic review method which gave room to buttress some salient information concerning the case studies. The study therefore revealed that these retail industries have utilized the decision tree to make salient decisions in their various companies while strategically managing their organizations and recommends that organizations should have a clear description of the decision tree in any decision they are making as it has proven to always have an optimal result.

Keywords:Decision Tree, Decision Theory, Strategy, Management, Leadership, Cost minimization, Profit maximization.

DOI: 10.7176/JMCR/87-04

Publication date:October 31^st 2022