Managerial Economicsintermediate
Arrange the following steps of the rational decision-support process in the correct chronological order from first to last: - Evaluate alternative means of achieving the goal - Identify the problem - Draw relevant conclusions - Take a decision - Obtain relevant data and related facts - Process and analyze the facts
Answer
Identify the problem, Obtain relevant data and related facts, Process and analyze the facts, Draw relevant conclusions, Evaluate alternative means of achieving the goal, Take a decision
Explanation
### The order
1. **Identify the problem**: analysis must begin with a clear issue to solve.
2. **Obtain relevant data and related facts**: evidence is gathered to address that issue.
3. **Process and analyze the facts**: the evidence is examined using suitable reasoning and tools.
4. **Draw relevant conclusions**: analysis produces findings that can inform action.
5. **Evaluate alternative means of achieving the goal**: possible courses of action are compared.
6. **Take a decision**: the manager selects an action after assessing the alternatives.
### The concept
This sequence prevents arbitrary decisions by connecting a defined problem to evidence, analysis, alternatives, and action. Skipping evidence or comparison risks choosing an option without understanding its likely consequences.
### Remember
Define the problem before collecting and analyzing its evidence.
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