What Defines a Decision Problem? step 1. The decision-making process begins with the identification of a problem or, more specifically, a discrepancy between an existing and a desired state of affairs. ' Take the case of a sales manager for Pfizer. The manager is on the road a lot and spent nearly $6,000 on auto repairs over the past few years. Now her car has a blown engine and cost estimates indicate it's not economical to repair. Furthermore, convenient public transportation is unavailable. So. we have a problem-a discrepancy between the manager's need to have a car that works and the fact that her current one doesn't Identifying problems is IMPORTANT... and CHALLENGING! In our example, a blown engine is a clear signal to the manager that she needs a new car, but few problems are that obvious. In the real world. most problems don't come with neon signs identifying them as such. And problem identification is subjective. A manager who mis- takenly solves the wrong problem perfectly is just as likely to perform poorly as the manager manogml Exhibit 4-1 The Decision-Making Process Identification Identification Allocation Development Analysis Selection Implementation of a of Decision of Weights of of of an of the Problem Criteria to Criteria Alternatives Alternatives Alternative Alternative Evaluation Decision Effectiveness