Decision Making

Decision Making
Name:
Institution:
Date:
Framing the Decision
Allison and James have to decide on how they can grow and expand their business in the most sustainable and economical way.
Framing the Decision: explanation of how the group applied the model to the case study
A well-defined decision problem goes a long way in coming up with the right decision to a problem. Allison and James must have been aware of this fact when they were formulating the decision problem because it is evident that they considered many factors. A key element that triggered the decision problem formulation was the projected increase in demand for the FNS products in the holiday season, which meant they needed to increase output. Also, as rightly argued by Mehentee (2013), the decision-problem formulation is partly informed by constraints. In this case, they considered the financial constraint that the business could face if they increased their output. The limited financial resources consequently informed the inclusion of the phrase “most economical way” in the formulation. The relationship with friends once they are employed also greatly influenced the framing. In this regard, Allison and James must have considered whether it was possible to have friends work for them beyond the holiday season, hence the inclusion of the term ‘sustainable.’

Step One: Frame the Decision
Step Two: Determining the Decision Objectives
Decision Objectives
Expand the business
Create a self-sustaining business
Increase business profits
Keep costs low
Maintain a good relationship with family and friends
Attain financial independence and security
Objectives: explanation of how the group applied the model to the case study
While creating the list of objectives, Allison and James will ask themselves a number of questions.

These questions include, What do they want? What do they need? What are they hoping for? And what are their goals? These questions will, in turn, lead them to further questions that will lead them to the final objectives listed above. According to Mehentee (2013), answering these questions also helps in determining what information is required to arrive at the objectives. It also helps in giving explanations and outlining the importance of the objectives.
Potential Stakeholders
Business owners; Allison and James
Family and friends
Explanation of how the group applied the model to the case study
The decision to be made will directly affect Allison and James because they are the owners of the business. It is highly likely that they will set clear objectives since the objectives will affect their financial security and independence. Family and friends would also like to see the business succeed hence the advice they will give in relation to the objectives is likely to match that of the business owners.
Reference
Mehentee, J. (2013, January 4). Decision Making Toolkit: PrOACT – Lesson 1, Problem [Video file]. Retrieved from https://www.youtube.com/watch?v=QQZw_S2kAH0