Rational Decision Making Essay

1898 Words8 Pages
Introduction

Classico Garden Café is a newly opened cafe located in Subang Parade shopping mall. The owner and the manager of this café is Mr. S. Deena. He is from a corporate background; however he has some experiences in running a cafeteria and a small scale catering business. His partnership the café with few other friends, as investors but Deena is also the play his part as the floor manager. Classico Garden Café is ideally located in Subang Parade, shopping mall. Subang Parade itself has an average of 200 shops with 20% of food and beverage outlets. The café operate from 9AM-10PM. The café cater a variety of Asian & Western food and beverages. The café has indoor & outdoor setups with a total of 70 seating capacity. Deena runs his café
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He will require reviewing relevant facts, to do more observations and possible outcomes before choosing a particular solution. Decision making process can be a very short or in other situation it could be a process where can drag on for few week or months. To be more systematic while taking a rational decision there are six steps or process to be followed. These six steps are listed as;
I. Defining
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The profit of each month has shown as no improvements. In this situation, Deena must use the six step of rational decision making to achieve the high volume of profits. The rational decision making process is an ideal process where the steps can determine the outcomes and alternatives before arriving at the final destination. Deena must first define the problem in order to rectify the café’s financial situation. The problem here is already defined by the shareholders as the restaurant is not gaining enough monthly profits to meet the spending every month. So, all he needs to do is to find a best fit solution to increase the monthly profit. As he have defines the problem, next he will need to do is to identify the decision criteria. This step will make him to choose variable of reasons that will determine the decision outcomes. In Deena’s case, he will need information that is relevant and help him to increase the café’s profit. As for the café there are many criteria to take in to consideration to increase the profits. Deena may consider cutting the cost to increase the profit. For an example, the number of his current staffs and salary margin, Utility bills, stock or inventory, cost price of raw items and ingredients. Once he is list out the criteria, he should give a weightage or preferences on each of it. As Deena go through
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