Excel as a tool for managerial decision making

The Administrative Sciences have evolved rapidly in concepts and techniques to optimize management results, this added to computer technology further streamlines the operations of organizations and the rapid reaction to new paradigms generated in the markets.

In this context, the modeling of business realities makes it possible for the Administrators to provoke simulated scenarios in their decision-making process in the various functional areas of the organization, integrating the variables involved in each case.

One of the most used tools for this purpose is the Excel spreadsheets that allow to orderly quantify, integrate and configure models proposed with visual effects and attractive graphics for anyone who wants to analyze them.

business-decision-making simulators

In the market there are countless computer software for the simulation of organizational realities, so why should we procure the Excel spreadsheets to develop these models.

The keys are the "Personalization" of the variables involved, the "Familiarity" of the users compared to the tools that the MS Excel has, the easy "Transfer" of files, the "Connectivity" with data from different sources, the "Compatibility ”With other software and the“ Automation ”of operation through macros.

Although it is true that not all users are fully aware of the potential of Excel spreadsheets, it is only a matter of research, provision and preparation in this regard. With this, it is not affirming that we must discard simulation computer alternatives or personalized business applications programmed on various computer platforms, but rather that MS Excel represents, for many professionals, university professors, company managers and Business Administration students, an indispensable tool for your decision-making processes.

I will mention some models and practical applications related to managerial decision making:

1. Interval Estimation

Model 2. Linear and Nonlinear Trends

Model 3. Vulnerability Model against Threats

4. Center of Gravity

Model 5. “ABC” Inventory

Model 6. Educational Management

Model 7. Evaluation Model of Investment Projects

8. Market Segmentation

Model 9. Perceptual Maps

Model 10. Integral Business Management Model

(See examples in PDF)