MGT502 GDB idea solution Spring 2011

[Xpert]

Mr. Usman wishes to buy a new and expensive cellular phone. He searches internet, and consults with his friends and relatives to get some information about the latest models in the market. After one week, he decides to purchase Apple iPhone. While at the store, the salesman explains and proves that he can buy much better phone within the same budget if he goes for Black Berry Torch. Black Berry Torch gives better value for money with respect to performance, design, advance features and warranties. Relying on the available information, Mr. Usman finally decides to buy Apple iPhone.
In the light of above scenario answer the following questions.
Q.1: Identify and explain the decision making model being applied by Mr. Usman for the purchase of a new mobile. (10)
Q.2: In your opinion, what other decision making models can be applied by Mr. Usman for such purpose?(10)

Schedule
Opening Date and Time
25th April , 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time
29th April , 2011 At 11:59 P.M. (Mid-Night)

[Vuhelper]

[size=12][COLOR="red"]full solution in attachment
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Rational Decision-Making
Model
“A decision-making model
that describes how individuals
should behave in order to
maximize some outcomes”
Steps in the Rational Decision-
Making Model
1. Define the problem.
2. Identify the decision
criteria.
3. Allocate weights to the
criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.
The optimizing decision maker is rational. He or she makes consistent, value-maximizing choices
within specified constraints.

The Rational Model
Step 1: Defining the problem
• A problem is a discrepancy between an existing and a desired state of affairs.
Many poor decisions can be traced to the decision maker overlooking a problem or defining the
wrong problem.