Decisions MGT/230 Management Theory Practice Decision-Making Process

DECISIONS

MGT/230 Management Theory Practice Decision-Making Process Paper Resource: Management: Leading & Collaborating a Competitive World Identify a time life make a personal professional decision buying a home, changing jobs, enrolling school, relocating state region.

Decision-making process in real life: Buying a new car

Buying a car is a serious decision. It is an expensive purchase -- for many people a car is the most expensive item they own, after their house. When I decided to buy a car, my first step could be called the 'pre-decision' or reflective process. I asked myself: do I really need another car? My old car had broken down, and based upon my calculations, the mileage of my old car, and the cost of the repairs, I decided that buying a new one would be more sensible and cost-effective in the long run.

My second decision involved a major aspect of my research that would affect my search: should I buy a new or a used car? On one hand, a new car is more likely to be reliable and not have preexisting conditions. On the other hand, a new car loses its value immediately upon leaving the car lot. "A new car can shed a third of its value in its first two or three years on the road. If you have financed the new car with a low down payment, you can easily find yourself 'upside down' on the loan, where you owe more than the car is worth" (New vs. used, 2012, Consumer Reports). I decided to buy a reasonably new used car that was not as expensive as a new car, but was still as reliable as a new car. I believed that if I bought a used car from a reputable dealer or seller that I could feel confident that I would be driving the car for many years.

Next, I began to research various models, to narrow my search. I compared the benefits of an SUV vs. A compact car. SUVs tend to be less fuel-efficient on one hand, but on the other hand the also offer more room for storage and tend to be easier to drive in bad weather. I researched various brands of car to review their reliability and ratings. "For many years, the reliability stars in our [Consumer Reports] records have mostly been Japanese-nameplate models, especially those from Honda, Nissan, Subaru, and Toyota" (New vs. used, 2012, Consumer Reports). Then, I scanned the classifieds, looking for desirable models within my price range. When I located such cars, I obtained a 'CARFAX' on them, to see what the vehicle's history was and if it corresponded with what the owner or the dealer told me about the car.

After these logical steps, however, the next phases of my search were more subjective. I drove the car to get a 'feel' for it. I talked to the sellers, to see if I intuitively trusted them. And then, finally, I made my purchase. My decision was emotional at the very end, based upon the appearance and the way the car drove, but the earlier phases of my search were sufficiently logical so I did not make a bad choice.