c. Assign each decision variable a score based on information you gathered through research. Show these as numbers from, say, 0 to 10 , where 0 means that the factor is absolutely unimportant or has the least beneficial outcome in the final decision, and 10 meaning that it is very important or has the most favourable outcome. (It's perfectly acceptable to have factors with the same level of importance.) For example: Your research may suggest that a restaurant with entertainment may require more complicated permits and licenses to operate than a restaurant that serves only breakfast. Under the criteria of Legal issues, the breakfast option scores higher than the nightclub, say 10 to 2 in terms of licensing, because it is less legally complicated. However, when considering Economic Feasibility issues, the nightclub has greater potential to earn revenue than does the breakfast option and thus would have a greater score, say 10 to 1 under profitability. d. Create another column for the weighted scores. Working down the columns of options, multiply the score on each decision variable by the value assigned to its' relative importance. In our example, under legality issues, the nightclub option weighted score is 210=20 for licensing, whereas the breakfast option has a weighted score of 1010=100. Under Economic Feasibility, the nightclub scores 105=50 while the breakfast option scores 15=5 for potential to generate revenue. e. Finally, add up these weighted scores for each of your options. Step 5: Choose Among the Alternatives. The option that scores the highest is the one you will choose for your business plan. Step 6: Implement the alternative. Now that you have decided which type of restaurant, you must create an action plan to help you manage the project of writing the business plan. You might consider a Gantt Chart, or an action register, to help you manage the tasks and timelines in completing the Business Plan project. Step 7: Evaluate and Learn from Feedback. You will know if you made a good decision when you present your business plan to an investor (or your professor) and it is favorably received. After reading this chapter you begin to think about how your new venture should be designed and structured to support your strategy and achieve your mission and goals. You need to think about the following questions for your business plan. You and your teammates want to make the best decision possible about what type of restaurant on which you should write the business plan. You have to keep several important factors in mind when making this decision, for example, your business plan must demonstrate to the investor that the venture is worth their while. You decide to use the six-step decision-making model to help you make a choice that is likely to succeed. Step 1: You recognize the problem and formulate the decision question, as on what type of restaurant you should develop your business plan? Step 2: Identify decision criteria Step 3: Generating Alternatives. Make a list of all of your options and place these in the columns across the top of a table as column headings. (For example, options that may be considered - Family Dine-In, Fast food, Fine Dining, Nightclub, Breakfast, Ethnic food, Fusion, Steakhouse) Step 4: Assessing the alternatives using a Decision Preference Matrix Figure 3.10. *** See examples in Chapter 3 Course content. There is an excel file, and pdf examples of same) a. Make a list of all the factors that are important to the decision i.e., the criteria that fall under the four categories outlined in the text. Place these in rows on the left hand side of the table. Put all the factors that are important to the decision under the appropriate category of criteria as a subheading. b. Next, weight the four categories of criteria, and the sub criteria, by working out their relative importance to the decision. For example, you might believe the category of Economic Feasibility should carry the most weight overall (say 50%), then Practical issues (30\%) and Legal and Ethical criteria 10% each. Within the principle category of Practicality, the sub criteria of Start-up capital sufficiency might be awarded 10%. c. Assign each decision variable a score based on information you gathered through research. Show these as numbers from, say, 0 to 10 , where 0 means that the factor is absolutely unimportant or has the least beneficial outcome in the final decision, and 10 meaning that it is very important or has the most favourable outcome. (It's perfectly acceptable to have factors with the same level of importance.) For example: Your research may suggest that a restaurant with entertainment may require more complicated permits and licenses to operate than a restaurant that serves only breakfast. Under the criteria of Legal issues, the breakfast option scores higher than the nightclub, say 10 to 2 in terms of licensing, because it is less legally complicated. However, when considering Economic Feasibility issues, the nightclub has greater potential to earn revenue than does the breakfast option and thus would have a greater score, say 10 to 1 under profitability. d. Create another column for the weighted scores. Working down the columns of options, multiply the score on each decision variable by the value assigned to its' relative importance. In our example, under legality issues, the nightclub option weighted score is 210=20 for licensing, whereas the breakfast option has a weighted score of 1010=100. Under Economic Feasibility, the nightclub scores 105=50 while the breakfast option scores 15=5 for potential to generate revenue. e. Finally, add up these weighted scores for each of your options. Step 5: Choose Among the Alternatives. The option that scores the highest is the one you will choose for your business plan. Step 6: Implement the alternative. Now that you have decided which type of restaurant, you must create an action plan to help you manage the project of writing the business plan. You might consider a Gantt Chart, or an action register, to help you manage the tasks and timelines in completing the Business Plan project. Step 7: Evaluate and Learn from Feedback. You will know if you made a good decision when you present your business plan to an investor (or your professor) and it is favorably received. After reading this chapter you begin to think about how your new venture should be designed and structured to support your strategy and achieve your mission and goals. You need to think about the following questions for your business plan. You and your teammates want to make the best decision possible about what type of restaurant on which you should write the business plan. You have to keep several important factors in mind when making this decision, for example, your business plan must demonstrate to the investor that the venture is worth their while. You decide to use the six-step decision-making model to help you make a choice that is likely to succeed. Step 1: You recognize the problem and formulate the decision question, as on what type of restaurant you should develop your business plan? Step 2: Identify decision criteria Step 3: Generating Alternatives. Make a list of all of your options and place these in the columns across the top of a table as column headings. (For example, options that may be considered - Family Dine-In, Fast food, Fine Dining, Nightclub, Breakfast, Ethnic food, Fusion, Steakhouse) Step 4: Assessing the alternatives using a Decision Preference Matrix Figure 3.10. *** See examples in Chapter 3 Course content. There is an excel file, and pdf examples of same) a. Make a list of all the factors that are important to the decision i.e., the criteria that fall under the four categories outlined in the text. Place these in rows on the left hand side of the table. Put all the factors that are important to the decision under the appropriate category of criteria as a subheading. b. Next, weight the four categories of criteria, and the sub criteria, by working out their relative importance to the decision. For example, you might believe the category of Economic Feasibility should carry the most weight overall (say 50%), then Practical issues (30\%) and Legal and Ethical criteria 10% each. Within the principle category of Practicality, the sub criteria of Start-up capital sufficiency might be awarded 10%. After reading this chapter you begin to think about how your new venture should be designed and structured to support your strategy and achieve your mission and goals. You need to think about the following questions for your business plan. You and your teammates want to make the best decision possible about what type of restaurant on which you should write the business plan. You have to keep several important factors in mind when making this decision, for example, your business plan must demonstrate to the investor that the venture is worth their while. You decide to use the six-step decision-making model to help you make a choice that is likely to succeed. Step 1: You recognize the problem and formulate the decision question, as on what type of restaurant you should develop your business plan? Step 2: Identify decision criteria Step 3: Generating Alternatives. Make a list of all of your options and place these in the columns across the top of a table as column headings. (For example, options that may be considered - Family Dine-In, Fast food, Fine Dining, Nightclub, Breakfast, Ethnic food, Fusion, Steakhouse) Step 4: Assessing the alternatives using a Decision Preference Matrix Figure 3.10. *** See examples in Chapter 3 Course content. There is an excel file, and pdf examples of same) a. Make a list of all the factors that are important to the decision i.e., the criteria that fall under the four categories outlined in the text. Place these in rows on the left hand side of the table. Put all the factors that are important to the decision under the appropriate category of criteria as a subheading. b. Next, weight the four categories of criteria, and the sub criteria, by working out their relative importance to the decision. For example, you might believe the category of Economic Feasibility should carry the most weight overall (say 50%), then Practical issues (30\%) and Legal and Ethical criteria 10% each. Within the principle category of Practicality, the sub criteria of Start-up capital sufficiency might be awarded 10%