Introduction Applying the PrOACT decision model to Joan’s dilemma will establish a decision making model that will assists the decision makers to make the best decisions based on the defining the problem, identifying objectives, establishing alternatives, understanding consequences, and using tradeoffs. Defining the problem a crucial step involves identifying the root cause of a problem that needs a decision to be made or the best direction to steer the company to meet current and future needs based on the alternative to make the best decision. If the company is faced with increased demand, the problem statement could revolve around whether to purchase new equipment, increase size, or seek to outsource additional work. Framing the decision …show more content…
This step depends on defining the right problem at the beginning of the process too create usable alternative to the objectives that will be used to make a decision. Identifying as many alternatives as possible will offer a wide range of possible solutions that can be used to make a decision. The alternatives selected should be the ones that will enable the decision made to achieve the objectives of the decision problem. Joan’s next step in the PrOACT decision making model is to understand the consequences and repercussion of every alternative identified. When she reaches this point of the PrOACT decision making model Joan can map the alternatives she selected for the objectives statement for her decision problem. At this point Joan can use decision matrix to identify the best alternative that can be used to accomplish the objectives of the problems she identified. The final step in Joan’s PrOACT decision making model is wrestling with trade-offs equalizing some alternative in order to apply the same weight when used in the decision making process. This is not a complex process but identifying similar items or process that can be weighted equally should be used when making trade-offs. This step involves identifying what will be given up by choosing one alternative comparatively to what will be given up by choosing another alternative for the decision that is being made. …show more content…
The first alternative solution to the decision problem is vertical integration. The first consequence of this strategic option is that it could be a costly venture to implement. The company will require funds to purchase raw materials and it will also require significant amounts of money to set up card stores and stationeries in the location it chooses to locate. The firm will also incur costs in hiring and training additional employees to undertake the new activities. The next alternative is divestiture. This strategy will require that a consultant firm that is competent in divestiture strategy is hired. The strategy may involve laying-off some staff which would cost the company in terms of severance pay to those affected. The strategy could also lead to poor morale among the survivors. The strategy could also lead to a lot of resistance to change especially when it will be substantial. This will be costly as well. The next strategic option alternative is market development. This strategic option is also expensive especially when it involves developing new products or moving into new markets. These activities will require an increase in promotional activities and investment in new infrastructure such as new delivery vans, new sales staff etc. The next strategic option is market penetration which involves identifying and eliminating
The first step in using the technique is to diagram the sequence of decisions and chance events that the decision maker faces.”
2.)Identify the best decision making model. To identify the most appropriate approach to solving the issue facing Vail Health it is important to identify the factors surrounding the issue to include the time available, the importance of the desired outcome and the alternatives
In this step, you draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. You must evaluate whether the need identified in Step 1 would be helped or solved through the use of each alternative. In going through this difficult internal process, you begin to favor certain alternatives which appear to have higher potential for reaching your goal. Eventually you are able to place the alternatives in priority order, based upon your own value system. I believe this is where I lost my way. I compromised my value system and became a “yes
The six steps of the model are as follows: Identify the ethical dilemma, collect information, state the options, apply ethical principles to those options, make the decision, and implement the decision (Beemsterboer, 2010). The first step is to identify the ethical dilemma, which Beemsterboer describes as the most critical step in the model. To identify the ethical dilemma, one must recognize that the problem is an ethical dilemma with no one clear answer, and expound upon what the ethical question is. The next step is to collect information about the situation and values involved “as a basis for an informed decision.” (Beemsterboer, 2010, para. 8). After defining the ethical dilemma and gathering information about it, one must then state as many options as possible which may resolve the problem (Beemsterboer, 2010). Due to that fact that more than one decision may remedy an ethical dilemma, it is important to discuss all available options to better understand all angles of the situation and how to deal with as many of them as possible. Once all alternatives have been stated, each must be weighed against ethical principles. Beemsterboer suggests in the discussion of each option a list of pros and cons be made to demonstrate how the option may protect of violate ethical principles and values (2010).?? After analyzing each alternative it is much easier
In order to address the above components, five decision making steps have to be put in place, these are; being attentive, being intelligent, being reasonable, being responsible, and being reflective. The first step, being attentive, involves evaluating the whole situation and coming up with the data and information about the problem at hand. In so doing the following questions are viewed; what facts to bear in mind, what direction to take so as to get the expected solution, and what is the main issue to work on. In the second step, being intelligent, the information is clearly studied to determine whether the collected data is revealing the correct details concerning the problem. Determine the stakeholde...
"In the day to day business of organizational life, decision making is seldom the logical, rational, systematic process suggested by the management textbooks. It does not unfold in identifiable stages where a problem is defined, alternative solutions are generated, the alternatives are weighed against a known criterion, and a choice is made (1998, p. 50)."
Make the decision through the integration of ideas and data, and negotiation and prioritization of ideas
The problem solving and decision-making processes are commonly used in management throughout all business models. Both processes share a similar uniqueness by combining an analysis and perception along with systems and outcomes. Much like the steps of the decision-making process, problem solving also follows a similar sequence of steps. Despite the fact that problem solving and decision-making are somewhat related, they are completely different. The main difference between the two is that problem solving is considered to be a method whereas decision making is more of a process. Management uses problem solving to reach a resolution with hope of achieving a positive outcome. Decision-making is frequently used during problem solving to help reach a resolution. Decision-making generates criteria for problem solving and develops alternative solutions. It also evaluates possible solutions and chooses from among the solutions (Huitt, 1992).
A sequence of steps must be following in the decision-making process (Dunn, 2010). These include defining the problem, analyzing the problem, developing alternatives, evaluating the alternative and choosing the best, and finally taking action and following up (Dunn, 2010). According to Dunn (2010), the problem cannot be addressed until the true root of the problem has been defined. Once the source has been defined the next step is to gather
Therefore, to achieve this objective, managers have to make choices in decision-making, which is the process of selecting a course of action from two or more alternatives (Weihrich & Koontz; 1994, 199). A sound decision making requires extensive knowledge of economic theory and the tools of economic analysis, that are directly related in the process of decision-making. Since managerial economics is concerned with such economic theories and tools of analysis, it is very relevant to the managerial decision-making process.
For assessing the industry profitability, Porter 5 Forces analysis tools were used to analyze one organization evaluation. In this case, the technique were used to analyze 7-Eleven Convenience Store specifically in Malaysia. Porter 5 Forces consists of 5 important area which is Threat of New Entrants, Bargaining Power of customers, Threat of substitute Products and services, Bargaining Power of suppliers, and competitive rivalry within the industry. Theoretically, the more powerful these forces in an industry, the lower its profit potential. The strength of each force differs by industry and changes over time. The competitive advantage that 7-Eleven has using these five forces is it has raised the barrier of entry for other competitors to enter the convenience store market as new competitors will require a huge capital investment in order to implement the information technology in their business in order to be competitive. Also, hypothetically being the first in the market, 7-Eleven could have made contracts with the Malaysia government to not allow other 24-hour convenience stores in the market for a certain time period, such as Astro had done, thus having a monopoly market in the beginning of their operations which will allow them to target a bigger market share.
Making decisions is an important part of our everyday life. Decisions define actions and lead to the achievement of goals. However, these depend on the effectiveness of the decision-making process. An effective decision is free from biases, uncertainties, and is deeply dependent on information and critical thinking. Poor decisions lead to the inability to achieve set objectives and could lead to losses, if finance is a factor. Therefore, it is important to contemplate about quality and ways to achieve it in decision-making, which is the focus of this paper. The purpose is to look into the needs of decision-making, including what one should do and what one should not do.
“Decision making is a process of first diverging to explore the possibilities and then converging on a solution(s). The Latin root of the word decision means "to cut off from all alternatives". This is what you should do when you decide.” (Kotelnikov, 2008). In fact, the decision making process helps reduce doubt and uncertainty about alternative choices to allow individual to choose the best reasonable choice. In addition, the decision making process can make the difference between a successful and an unsuccessful organization. Consequently, management tries to use the best techniques and tools possible to make the best decision. Nowadays, most organizations seem to think that they have the most effective and efficient decision making process. So what are the different styles of decision making processes have organizations implemented? In order to answer this question, the team members will investigate and observe the decision-making processes most prevalent in their organization. As a result, these papers will first compare and contrast the problem identification and formulation styles in the team members’ organizations. Then the most favorable aspects of each style will be discussed to describe a process by which a problem can be identified and described to stakeholders in a manner that is sensitive to their perspective.
Effective decision making involves the ability to identify consistently and select the best choice among multiple options. This is true both personally and professionally. For the decision making process one may use a decision making model. A decision making mo...
Decision making is one of the most important aspects in life and work because of its strong link to success and effectiveness. Actually, successful people achieve their goals in life and work through effective and efficient decision making. The decision making process is usually guided by an individual’s beliefs, values, and attitudes as well concepts. While a person can use various concepts in making decisions, they should be very careful to select a concept that is effective and contributes to huge success. Nonetheless, these concepts exist to help an individual become a better decision maker in the world around him/her.