Q1) (a) Explain the Decision-making process with the help of an example.

Ans: The method of business decision-making is a step-by-step process that helps professionals
to solve issues by assessing facts, evaluating alternatives and selecting a direction from there. In
the end, this defined process also offers an opportunity to examine whether the decision was the
right one.

Identify the decision

You must first define the issue you need to address or the question you need to answer in order
to make a decision. Define your decision clearly. If you need to accomplish a clear purpose from
your decision, make it visible and timely so that at the end of the process you know for sure that
you reached the target. Eg: You are considering to expand the same business or to diversify into
another business, so first decides and confirm whether you are expanding or diversifying.

Gather relevant information

It's time to gather the information relevant to that choice once you have identified your decision.
In areas related to your decision, do an internal assessment to see where your organisation has
succeeded and failed. Seek information from external sources, including research, market
research, and in some cases, assessment from paid consultants, as well. Eg: Get information
about the business you want to diversify that what will be cost of production, overheads and
other expenses and what’s the product market price so that you can sustain in new market.

Identify the alternatives

Identify possible solutions to your problem with relevant information now at your fingertips.
When attempting to achieve a target, there is generally more than one choice to consider. Eg:
You want to advertise the product so for advertisement you will decide whether to for social
media, newspaper , TV commercial etc.

Weigh the evidence

Weigh the evidence for or against such alternatives once you have identified multiple
alternatives. Eg: Decision for opting alternative, you have to check past records of company.

Choose among alternatives

Here is the part of the decision-making process where the decision is made by you, you know.
Hopefully, you have recognized and clarified what decision needs to be taken. E.g.: First
confirms that what will be more suitable according to targeted audience

Take action

Act on it once you have made your decision! To make your decision tangible and achievable,
develop a plan. E.g.: you have opted for social media advertisement because your target audience
is young generation.

Review your decision

Take an honest look back at your decision after a predetermined amount of time, which you
described in step one of the decision-making process. Eg; As discussed above in the examples
that you want to expand the business or to diversify, and in other situation about the
advertisement method so in both the cases you want review your decision once again and then
act confidently.