Question

The directors of​ x-lam inc., a manufacturer of electric water​ heaters, meet to discuss ways to increase their net profit. they decide to manufacture electric toasters and thus invest in a new product line. this investment is an example of​ a(n) ________ decision.

Answer 1

This investment is an example of​ a managerial decision. This process is done to aid the executives to be able to make the best possible decision that is needed by the business at that certain point of time. There are five steps that is involved in a managerial decision making. First would be establishing what is the main objective of the business. Then, like any other decision process, defining the problem and its the nature at that certain time is next. The third step would be listing all possible solutions present. Then, evaluating each possible solution listed. Listing all pros and cons would be recommended. In this step, we look at which would be the most favorable solution. The last step would be the implementation of the solution chosen.