Applying The Proact Decision Model Essay

Applying The Proact Decision Model Essay

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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 problem is the most important single step. A decision problem framed properly will be driving force behind the entire decision making process. A good decision statement will help Joan develop the best alternatives to be used to solve her problems. Her next step using the model will involve identifying the objective to be used for the decision to be made. What is the objective of installing additional capacity or outsourcing some of the functions? What the decision maker intends to accomplish has an impact on the decision to be made.
Her next step in the process will involve creating alternative courses of action to attack the problem. 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...

... middle of paper ...

... sales Total
Weights: 5 4 2 1

Online Sales
10 0 4 2 16
Company owned Stores 25 20 4 2 51

Rented space in other stores 15 0 4 2 21

Increase midlevel card sales 10 1 4 2 17

The least risky alternative for Joan is to establish internet sale for the company.
Using the PrOACT decision model Joan has identified the least risky alternative to reach her goals of increase sales, increase market share, and company growth. She was able to make a decision based on the objective and alternative she developed from her problems statement. The decision will allow company funds to be invested to create a company internet sales site and to advertise directly to the customer to increase sales of all invitation card stocks. She was also able to identify tradeoffs and consequences that could be mitigated or the risk accepted.

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