Chapter 1, Problem 1.25E

Five-step decision-making process, service firm. Sizemore Landscaping is a firm that provides commercial landscaping and grounds maintenance services. Derek Sizemore, the owner, is trying to find new ways to increase revenues. Mr. Sizemore performs the following actions, not in the order listed.

1. a. Mr. Sizemore decides to buy power tilling equipment rather than hire additional landscape workers.
2. b. Mr. Sizemore discusses with his employees the possibility of using power equipment instead of manual processes to increase productivity and thus profits.
3. c. Mr. Sizemore learns details about a large potential job that is about to go out for bids.
4. d. Mr. Sizemore compares the expected cost of buying power equipment to the expected cost of hiring more workers and estimates profits from both alternatives.
5. e. Mr. Sizemore estimates that using power equipment will reduce tilling time by 20%.
6. f. Mr. Sizemore researches the price of power tillers online.

Classify each of the actions (a–f) according to its step in the five-step decision-making process (identify the problem and uncertainties; obtain information; make predictions about the future; make decisions by choosing among alternatives; implement the decision, evaluate performance, and learn).