The Decision- Making 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