Transcript Decision Making Process

The DecisionMaking Process
Introduction to Business & Marketing
The Decision-Making Process
• Use in day-to-day decisions you make
• Can help you make good choices
• Businesses and individuals use the process as they
chose the best uses for their limited resources
• Helps you identify and consider your various
alternatives and their consequences before you
make a final decision
6 Step Process
• Step 1: Define the problem
• Step 2: Identify the choices
• Step 3: Evaluate the advantages and disadvantages
of each choices
• Step 4: Choose one
• Step 5: Act on your choice
• Step 6: Review your decision
Step 1
• Define the problem:
o The problem must be clearly defined in order to
make a decision that will lead to a satisfying
solution
• Example: You have $75 to spend, but need
a new pair of shoes for work and are hungry
for a pizza.
Step 2
• Identify the choices:
o It is common for you to face choices with many
alternatives
o Important to identify and then consider all of the
alternatives when making a decision
• Example: deciding the best way to spend
$75: on shoes or movie and pizza
Step 3
• Evaluate the advantages and
disadvantages of each choices:
o Might find it helpful to write down your choices
and then list then advantages and
disadvantages of each choice.
• Example: if you buy the new shoes you will
be able to wear them numerous times rather
and a one-time snack with the pizza.
Step 4
• Choose one:
o Select the choice that you believe will be the
best for you at this particular time
o This is a difficult step
o Realize that choices have consequences in the
future
• Example: How would choosing the pizza
would affect you later? How would
choosing the shoes affect you later?
Step 5
• Act on your choice:
o Once you have made what you believe is the best
decision, do whatever you have chosen
o Try not to worry about the choices you have decided
against
o Agonizing over a choice or regretting your decision
after it is made can take away from the activity you
decided upon
• Example: If you have decided to spend your
money on a pizza – enjoy yourself. If you
decided to buy the shoes do not fret over
how much you paid.
Step 6
• Review your decision:
o After you have had a chance to experience the
results of your choice, it is important to review your
choice.
o On a scale of 1 to 10 – how would you rate your
decision in terms of level of satisfaction?
o This step gives you an opportunity to think about your
decision and learn from it.
• Example: How satisfied are you with your
pizza? Would you rank your shoe purchase
a 10?
Class Activity
• Identify a current decision you need to make
• Apply that decision to the Decision-Making Process
on the provided chart
The Decision-Making Process
Step 1:
Define the problem
Step 2:
Identify the choices
Step 3:
Evaluate the advantages and disadvantages of
each choices
Step 4:
Choose one
Step 5:
Act on your choice
Step 6:
Review your decision