Question

Apply a business decision model to something you do every day, such as select an outfit, order lunch, or determine your exercise routine. Be creative in your approach. How did you select the model? Include rationale with support from the readings.

Answer 1

Answer:

In business, the decision model is each decision that the entrepreneur makes in order to organize and manage a company.

This helps an organization to establish a particular knowledge that leads them to make a good business decision.

In this case we will choose the satisfying model, where we choose an option without considering the others, just because it meets our needs.

Suppose we go to shopping. We need to buy a jacket for the winter.

We go through the different stores and see different types of jackets with different prices. At one point, we see jeans that we like very much, therefore we decide that if there is money left over we will buy them.

We found a jacket that does not seem very good quality, but the price would be enough to buy jeans too. The seller offers us a much better jacket, of very good quality but its price is more expensive. Without considering that the best quality jacket can be better, we buy the first option, in order to buy jeans.

When winter comes, the jacket we buy is torn, because it was of poor quality.

The same can happen in a business if we make decisions without considering all options, just to meet our needs.