Assignment task:
Dear tutors, the following assessment is to make a report Decision Making Model. Johnson needs to help solve his business problems. Using the steps of the decision-making process, provide a solution for Johnson. Do not forget to conduct an Ethics Double Check.
The five-step decision-making process is:
Identify and define the problem: Focuses on information gathering, information processing, and deliberation. Decision objectives should be established. Common mistakes in defining problems: Defining the problem too broadly or too narrowly. Focusing on symptoms instead of causes. choosing the wrong problem.
Generate and evaluate possible solutions: Potential solutions are formulated and more information is gathered, data are analyzed, and the advantages and disadvantages of alternative solutions are identified. approaches for evaluating alternatives. stakeholder analysis. cost-benefit analysis.
Make decision and conduct ethics
double checkImplement the decision
Evaluate results
Johnson's Reading Room
Johnson had always wanted to be an entrepreneur and own a bookstore. He graduated from the University of Toronto with a Bachelor's degree in English and a McMaster University with an MBA. Johnson started Johnson's reading room, a small bookstore that sells all types of books. The store is located in Toronto in an area called The Beach. The Beach is a large neighbourhood with many residents and a variety of stores. These stores include restaurants, gardening, clothes, decorating, and many others.
Johnson had owned Johnson's Reading Room for over 15 years. It employed seven other people including an assistant manager and six sales clerks. Most employees had worked for the business for over five years. Johnson believed in treating his employees well and rewarding them for excellent work. He also hired a custodial service to clean the store once a week and an accountant to do the books. The store has a loyal clientele and has been very successful over the 15 years. Traditionally, profits have been over $120,000/year. Johnson finds owing the store to be a rewarding career.
However, in the past three years, profits have dropped approximately $10 000/year. Johnson has just received notification from his accountant that last year profits were $92 000. The accountant expects that profits will continue to decrease the coming year unless Johnson makes some changes. Johnson is very worried about this situation. He cannot afford to have the profits decrease anymore because he needs to support his family. He has three children, all of which will be attending university in the next five years.
One of the major reasons that Johnson's Reading Room has lost profits is that an Indigo Bookstore has moved into The Beach. Also, Johnson has not advertised his business but relied on word of mouth and reputation to be successful. He is worried about the possibility of having to lay off one of his staff members. He has not told the employees about the problems but he is sure that they know something is wrong.