whats is in their decision making process(How Gerber Used a Decision Tree in Strategic Decision-Making), can someone explain it to me because i don't get it. I'm going
to need it for my assignment which is to Present and Give Observation on a Sample Decision-Making Process. thank you :)
The decision-making process refers to the series of steps that individuals or organizations follow to make a choice or reach a conclusion. In the case of strategic decision-making, a decision tree can be used as a visual tool to help analyze options, weigh potential outcomes, and make informed decisions.
Gerber, a well-known baby food company, used a decision tree to aid their strategic decision-making process. Here's an explanation of how they utilized this tool:
1. Defining the problem: The first step in any decision-making process is to clearly understand the problem or challenge at hand. Gerber would have identified a specific issue they needed to address, such as declining sales or increased competition.
2. Gathering information: Once the problem is defined, data and information are collected to help evaluate potential options. Gerber would have gathered market research, sales figures, consumer feedback, and any other relevant information that could provide insights.
3. Identifying objectives: The next step is to determine the desired outcomes or objectives that Gerber wants to achieve. This could include increasing market share, improving profitability, or expanding into new markets.
4. Generating options: Based on the gathered information, Gerber would have brainstormed and developed various possible courses of action. These options could range from launching new products, diversifying their target audience, or revising their marketing strategy.
5. Evaluating alternatives: In this step, Gerber utilized a decision tree to visually map out the different options and their potential outcomes. A decision tree is a hierarchical structure that uses branches and nodes to represent decisions, probabilities, and consequences. Each potential outcome is assigned a probability of occurring, and the expected value of each alternative is calculated.
6. Selecting a decision: Gerber considered the expected values and probabilities of each alternative and made a selection based on their strategic objectives and risk appetite. The decision tree helps visualize the potential benefits and risks associated with each option, aiding in a more informed decision-making process.
7. Implementing the chosen option: Once a decision is made, Gerber would have developed an action plan to implement the chosen option. This could involve allocating resources, assigning responsibilities, and setting deadlines.
8. Monitoring and evaluating: After implementation, Gerber would continuously monitor the outcomes and evaluate their decision. This ensures that the chosen option is delivering the desired results and allows for adjustments if needed.
To present and observe a sample decision-making process for your assignment, you can follow a similar structure and explain each step in detail. Start by describing the problem, followed by the collection of relevant information. Then, outline the objectives and brainstorm potential options. Next, explain how you evaluate the alternatives using a decision tree or a similar technique. Finally, discuss the selection of an option, implementation, and ongoing monitoring and evaluation.