Question $2($Unit $4,$ CLO$3)$

Nova Apparel, a growing fashion retailer, is considering expanding its product line by introducing a sustainable clothing collection. The idea has gained traction within the company, but the leadership team is divided on the best approach. Some executives advocate for an aggressive launch, believing that the sustainability trend is a long$-$term market shift. Others suggest starting small with limited designs to test customer interest before scaling up$.$

The CEO, a long$-$time advocate for bold moves, is inclined to pursue the aggressive launch, drawing comparisons to a past successful product expansion. However, market research presents mixed signals, indicating that while sustainability is a growing concern, price sensitivity remains high among Nova's primary customer base. Some team members are reluctant to voice opposition to the CEO's vision, as the last product expansion yielded strong returns, reinforcing confidence in similar strategies.

As the deadline for the decision approaches, the leadership team recognizes the need for a structured decision$-$making process to avoid repeating past mistakes or overlooking market signals. The goal is to ensure that the expansion aligns with customer demand while minimizing potential risks.

Outline the rational decision$-$making process and demonstrate how Nova Apparel can apply it to the product expansion decision.

$(35$ marks$)$