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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

Ananya Textiles must choose a supplier. She decides that cost, delivery time and quality matter, and assigns them weights of 5, 3 and 2 respectively. Under this approach, which step of the decision-making process is she performing?

She is identifying decision criteria and allocating weights to them. In the rational process, a manager first decides what factors matter and how important each is, so that alternatives can later be evaluated and compared against these weighted criteria.

  1. AIdentifying decision criteria and allocating weights to themCorrect
  2. BImplementing the decision
  3. CEvaluating the results of the decision
  4. DDefining the problem

Explanation

Identifying the criteria relevant to the decision and weighting them by importance is a distinct step in the rational model, done before alternatives are analysed. Ananya has not yet implemented or evaluated anything, and the problem (choosing a supplier) was already defined.

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