Question

Using the Five Step Decision Making Process presented in Chapter 1, examine a recent decision you made (e.g., go to college, take a new job, buy a house, or buy a phone). Identify each step of your decision by the criteria of this process.

Answer 1

Steps in 5 STEP DECISSION making process:-

1) Define the problem

2) Collect information

3) Consider the consequencies

4)Take the decission

5) Evaluate the decission

Decission making regarding " Starting a new business"

1) Define the problem :- To start a business is not a simple one. Inorder to start a business we have to face lot of internal and external problems moreover challenges. First to face those problems or challenges we should define what the actual problem was. Whether it can be internal and controlable or it is external and un controlable.

Some of the problems which I need to define while starting a new business are

Where to get the finance, development of product, finding a place for new business, registraions and licensing process etc.. which are internal to the business

Competion with the existing suppliers, arrival of products simillar to our products, changing laws and regulations, changing customers tastes and preferences etc are external to the business.

2) Collect information:- Here in this step we have to collect proper information regarding the problems we are going to face in starting a business. Information can be collected through primary or secondary sources.

Here in the present case information regarding the banking or financial institutions which provide loans at low interest, market research to know the demand for productbir service, which place is suitable for starting our business i.e place with low rent and can be identified by our customers very easily, what are the present laws regarding our business and complete details for registration i.e what forms we have to file, what is the fee, what are the docunents are proofs we have to attach with the application etc... shall be collected.

3) Consider the consequencies:- We should consider the consequencies of starting a new business. In general the consequences of staring a new business would be ready to face any business risk or finance risk, ready to do hard work untill we reach our goal, consequence of effecting our personal financial position, impact on our own life etc shall be considered.

4) Take the decission:- It is the important step where we take the decission to start a business after getting solution for our problems by analysing those through collected information and also ready to face the consequences which may be positive or negative with a strong zeal to acheive profits in our busines.

5) Evaluate the decission:- Up to now what we have done is the paper work and planning which is easy to say but evaluating those planning into real is completely very tough job. So it is very important and crucial step. It is the practicle one. Staring a business by taking a room for rent as our place of business, applying a loan for financial assistance, appointing helpers, making advertisements, just having a look on over competitors etc. But thus step need lot of patience. Because for any business we get results very slowly. We have to work hard by considering all those consequencies inorder to acheive our goal.