Six Steps of Decision Making
Which are the Six Steps of Decision Making Process?
One of the Six Steps of Decision Making is to define the Problem. According to Samuelson and Marks (2015), it is worthwhile to write down the problem that requires decision making though it appears to be obvious. Writers who offer strategic management assignment help at Edudorm essay writing service notes that in this case, the problem that needs to be written down is to market a new carbonated beverage with 25% fruit juice. This will help the organization to adhere to the target of the firm during the decision making process (Mankiw, 2014).
Determining the Objective
In determining the objective for this decision/problem, the firm might use the benefit-cost analysis to decide on the objective to adhere to (Samuelson & Marks, 2015). Therefore, in this case, the firm might use profit maximization as the objective since it is the major goal that every organization adheres to while marketing their products.
Exploring Alternatives As One of the Six Steps of Decision Making Process
Exploring alternatives is another one of the six steps of decision making process It is factual that the more complex the defined problem, the more significant this step becomes. Therefore, in this case since the problem is not complex, the alternative that can be explored is not to market new carbonated beverage juice.
Predict Consequences As One of the Six Steps of Decision Making Process
One the alternative has been defined and written down, the firm can assess the probable consequences of the alternative. Experts who offer MBA assignment help at Edudorm essay writing service indicates that on the other hand, the consequences of the problem are determined and later weighed and compared to those of the alternative. Thus, in this case, the consequences of marketing and not marketing the new carbonated beverage juice will be predicted and weighed.
Make a Choice
To make a choice is another one of the six steps of decision making. After predicting the consequences of both the problem and the alternative, the firm will figure out which among the two accomplishes the objective. Here, the firm can use different techniques such as benefit-cost analysis and mathematical models among others.
Performing Sensitivity Analysis As One of the Six Steps of Decision Making Process
After making a choice, the firm needs to assess the appropriateness of the optimal decision. Authors who offer strategy assignment help at Edudorm essay writing service points that in this case, the firm will have to analysis the stableness of the choice particularly during the inevitable economic and market changes. These changes can be economic recession, change in consumer demand, or even stiff competition (Antonioni & Flynn, 2013).
References
Antonioni, P., & Flynn, S. M. (2013). Economics for dummies. Hoboken, N.J: John Wiley & Sons.
Mankiw, N. G. (2014). Principles of economics. Stamford, CT: Cengage Learning.
Samuelson W.F. & Marks S.G. (2015). Managerial Economics. Hoboken, NJ: Wiley & Sons Inc.
https://afaeducation.org/blog/essential-guide-to-the-6-stages-of-decision-making-process
