Decision_Making

The Decision-making Process Good business research is based on sound reasoning. Competent researchers and astute managers alike practice thinking habits that reflect sound reasoning—finding correct premises, testing the connections between their facts and assumptions, making claims based on adequate evidence (Cooper,R. & Schindler,P.2006). It is as a result of good business research that good decisions are made. One of the challenges that people who live in California face is the distance between their home and the job. Many people cannot afford to live close to work, and so they are forced to commute. My job is located 200 miles from where I live, as a result, I spend at least 15% of my salary on transportation and a significant amount of time driving. The distance has impacted my ability to have a social life, among other things because I have to spend so much time travelling. I therefore need to find a less expensive means of getting to and from work. In order to make my decision I will be utilizing the probability concept. The probability concept represents a quantitative approach to making business decisions (ehow.com). It includes an objective, statistical model, observations or constraints, analysis and conclusion. Objective My objective is to find a more cost effective means of transportation to and from work. There are several alternatives to choose from including moving closer to work, taking the train and car pooling. Each of these alternatives has its cost and benefits, and so I am seeking to identify the one that delivers the best value. Observation and Constraints Moving closer to the job would cost me more in terms of rent or mortgage. According to Harvard Joint Center for housing Studies “one in four renters spend half of their income on housing.” I would also have to give up the comforts of my home, and I would have to sell my house at a much lower price that it is worth (Fox40). Therefore, there is not enough incentive to move. Taking the train would allow me to get some relief from driving. It would also help to reduce the smug in our environment. However, there are some logistical challenges. It is also very expensive. The train does not go directly into the city where I work, and so I would have to drive 26 miles to the train station, leave my car, take the train to another location, get off and take two different buses to get to work. There are very few people who live in my area and work as far as I do and so car pooling is not a viable option in the short run. I suspect that if I advertised on Face book I might identify people from my area, but I am also nervous about driving with strangers. Some of the constraints of driving to work include the high cost of gas. According to the Bay Citizens, bay area gas prices are the highest in the nation. It costs an average of $40 per day to fill my gas tank. In addition there is toll and a high maintenance cost on the car. The long distance driving also impacts the value of the car i.e. the higher the mileage the lower the value of the car. Analysis and conclusion While driving my car to work is not an ideal solution, it is the best solution when compared to the alternatives. Moving closer to work would affect me economically and socially, while taking the train would pose too much problems logistically. It is important to note however that these choices are fluid and can change over time for e g. if the housing market picks up then it might be feasible to sell my house and buy another house closer or if the government decides to run buses from my city to the city where I work then I could park my car and make use of public transportation. Reference Donald R. Cooper, Pamela S. Schindler.2006.Business Research Methods .Retrieve from Ecampus.phoenix.edu Role of Probability in Business Decision Making. Retrieved from Ehow.com Duckworth, A. April 27, 2011. Affordable Rental Becoming Scarce. Retrieved from CBS.com