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‘Businesses love certainty, and dislike uncertainty’. Is this true? If you think it is, explain why it is true, with examples. If you think it is not true, explain why you think this, and provide some examples of businesses that demonstrate your point. Essay

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    1
  • Words:
    322

It is true that businesses likes certainty and dislikes uncertainty but nothing can be absolutely certain and uncertainty will be involved. When business looks at certainty they look at weighing the different risk by determining the variables and the results it will generate so that uncertainty of the results is reduced. Businesses thereby look to reduce the uncertainty by weighing the risk so that the situation becomes more certain and the results are as desired (Decision, 2014). For example suppose a business is looking to set up a new plant. The business cannot be certain that the plant will be successful so to reduce the risk associated with uncertainty managers looks at finding out the state taxes at the location, the roadways leading to the plant, the availability of resources and similar other factors so that the risk level gets reduced and the business is able to generate better opportunities of being successful.

It is difficult for businesses to find out all the variables and risk associated with the business so steps are taken to reduce those uncertainties so that more certain results can be achieved. This requires gauging the different and identifying the different impact it can create so that policies and strategies can be developed for better decisions. Businesses look to undergo the process of identifying the different risk variables so that the decisions which are taken are better and will reduce the chances of losses (Burrus, 2013). The process of being certain and looking and identifying the different variables and fundamentals further provides a certain degree of leverage and ensures that the business is in a better position and the decisions which are taken are sounder and less uncertain.

References

Burrus, D. 2013. Using The Power of Certainty to Drive Growth in an Uncertain World. Retrieved on June 17, 2014 from http://bigthink.com/flash-foresight/using-the-power-of-certainty-to-drive-growth-in-an-uncertain-world

Decision. 2014. Decision Making for Managers: Certainty, Risk & Uncertainty. Retrieved on June 17, 2014 from http://education-portal.com/academy/lesson/decision-making-for-managers-certainty-risk-uncertainty.html#lesson