Describe the eight steps in the decision making process PDF

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Case study about 8 steps in decision-making process...

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Describe the eight steps in the decision-making process. Case Study: Taco Bell 4-lane drive-through in Brooklyn Park, Minnesota

You may doubt that isn’t this restaurant concept will go the way of the dinosaur once when the pandemic ends, and everything goes back to normal? I'm here to tell you that taco bell is playing a much bigger game than what you think Step 1: Identify a Problem Every decision start with a problem, and a problem usually happens when the existing products are not in their best condition => which lead the manager to make choices But you may ask, most of my daily life problems don’t come with a visible red flat and you may have to try and try again to see a problem. Then why the manager be able to make a critical choice that might financially damage the cooperation? Well, although not all identify of a problem ever made are 100% correct, managers often noticed their companies’ problem by carefully look at the sales, their social media reputation, their appearances in the newspapers or journals and they have to take the responsibility for their research as an adult) so I like to call this stage, a lot of brain cells was lost. In addition, a great manager has to be very sensitive in differentiating between problems and their symptoms. * There's been a huge shift towards a more contactless fast-food experience over the past year due to Covid and it's turned everything on its head for instance people are less likely to eat outside at the restaurant but make digital orders on a third-party app like Uber Food, Grab Food, Now, etc Step 2: Identify Decision Criteria Once a manager has identified a problem, he or she must identify the decision criteria. What are decision criteria, you may ask, it can be simply put at factors that cause the problem. And interestingly, every decisionmaker has criteria guiding his or her decisions even if they’re not explicitly stated * Taco Bell wants to give their customers the contactless experience that they desire but to be able to do so, it must list some decision criteria, and here is my interpretation of some of them

• Serving time for customers • Drive-thru customers • Structural alterations • Third-party apps • Serving hour Step 3: Allocate Weights to the Criteria If the relevant criteria aren’t equally important, the decision-maker must weigh the items in order to give them the correct priority in the decision. How? A simple way is to give the most important criterion a weight of 10 and then assign weights to the rest using that standard Serving time for customers

10

Third party apps

8

Drive-through customers

7

Serving hour 6

Structural alterations

5

- For Taco Bell, reduce the Serving time for each customer is a must since shorter wait time equal more satisfied customer and increase the number of customers for the company as well, it is a win-win situation - Third-party delivery apps are booming, and it is a double-edged sword sure it brings more customers to the restaurant but it can come at a steep cost (which often is 30% of the total revenue). - Next taco bell need to increase its drive-through customers because a customer who orders a burger in the drive-through is more valuable to the restaurant than a customer who sticks around and enjoys their hamburger in the dining room it costs money to clean the dining area each day, it costs money to lease that extra square footage each month, the dining room needs air conditioning and lighting and décor . - Serving hour: The ultimate goal for a franchise restaurant is to run its full capacity for 24/24 hours. However, in reality, all restaurants face problem with unequally costumers numbers throughout the day -Structural alterations: (make the building smaller) since renting an area is expensive in the situation when people are no longer dining out Taco bell go mobile locations which do away with the dining room all together resulting in a building that's 47% smaller than a traditional restaurant Step 4: Develop Alternatives The fourth step in the decision-making process requires the decision-maker to list viable alternatives that could resolve the problem. In this step, a decision-maker needs to be creative, and the alternatives are only listed—not evaluated just yet.

Criteria

Serving time for customers

Possible Solution Reducing the number of items offered on the menu or, turning to digital menu boards that collect data on customer behavior and then use that to predict what they going to order

Third party apps

Developing its own delivery app

Drive-through customers

Opening more drive-through stops along the side roads. Open a 4-lane drive-through restaurant

Serving hour

Structural alterations

Taco bell's lowest performing time of day is breakfast to hedge against this they could team up with a restaurant that does perform well in the morning like starbucks or krispy kreme that the way the restaurant can run it full capacity morning, noon, and night Opening ‘mobile-friendly” locations which do away with the dining room all together resulting in a building that's 47% smaller than a traditional restaurant

Step 5: Analyze Alternatives Once alternatives have been identified, a decision-maker must evaluate each one. How? By using the criteria established in Step 2. Sometimes a decision-maker might be able to skip this step. If one alternative scores highest on every criterion, you wouldn’t need to consider the weights because that alternative would already be the top choice. As we can see in Step 4, Open a 4-lane drive-through restaurant is the best choice. Since it has 4 lanes, serving time for customers is reduced by 4 and this model fits perfectly to drive-through customers and therefore reduces the structural space. In addition, it can flexibly collaborate with other restaurants (each lane a restaurant), shippers would be able to pick up multiple orders on one trip through the same drive-through. Besides, with the huge revenue from efficiency, Taco Bell and start developing its app and skip third party delivery.

Step 6: Select an Alternative The sixth step in the decision-making process is choosing the best alternative or the one that generated the highest total in Step 5. However, since I have already discussed the best choice, we can skip this step. Step 7: Implement the Alternative In Step 7 in the decision-making process, you put the decision into action by conveying it to those affected and getting their commitment to it. We know that if the people who must implement a decision participate in the process, they’re more likely to support it than if you just tell them what to do * That is why Taco Bell publicly stated its idea as “so different that it has never been constructed anywhere before”

Step 8: Evaluate Decision Effectiveness

The last step in the decision-making process involves evaluating the outcome or result of the decision to see whether the problem was resolved. If the evaluation shows that the problem still exists, then the manager needs to assess what went wrong. *When it opens in the summer of 2022, the new location will be Border Foods’ 230th Taco Bell restaurant and the 82nd Taco Bell restaurant it helped construct, the announcement said. "Partnering with our franchisees to test new concepts is a huge unlock of learning for us," Mike Grams, Taco Bell’s president, and global COO said in a statement. "What we learn from the test of this new Defy concept may help shape future Taco Bell restaurants." Sources: https://www.youtube.com/watch?v=LbuoZYZLipc https://www.foxbusiness.com/lifestyle/taco-bell-restaurant-4-lane-drive-thru...