First, you explain the rational decision$-$making process to Matt by outlining the steps typically followed by effective decision makers.

In the following table, identify the order in which these steps are usually taken.

Decision$-$Making Steps

Order

Identify the alternatives.

Evaluate the results.

Select the best alternative.

Evaluate the alternatives.

Define the decision.

Implement the chosen alternative.

After you review the six steps with Matt, he asks for an example of how to define the decision as he decides whether Gingerforge should start manufacturing patio furniture. Which of the following is the correct example to give to Matt?

Matt would assess each option in terms of feasibility, satisfactoriness, and consequences; he will want to consider how difficult or costly each option would be to implement and whether each option would provide a satisfactory financial return.

Matt would make a list of actions Gingerforge might take, such as leaving its product line as it is$,$ adding patio furniture, or deciding to enter some other niche market $($such as manufacturing wrought$-$iron bird cages$).$

Matt would decide that Gingerforge should keep its product line as it is to avoid the financial risk of making new products that may not sell, if its priority is to strictly adhere to its current budget and the company is risk averse.

Matt would articulate the specific issue to be decided: whether Gingerforge should add wrought$-$iron patio furniture to its product line.

While Matt likes the structure provided by the rational decision$-$making process, you caution him that it has some shortcomings. Why is the rational decision$-$making process difficult to apply completely in many situations? Check all that apply.

Managers usually have the resources to consider numerous alternatives.

Managers cannot always obtain complete and accurate information.

Managers do not always evaluate situations rationally.

Managers are limited by their values and unconscious beliefs.