Chapter 12, Problem 1DQ

Explanation of Solution

List of activities involved in decision making to open a new factory in China:

The list of activities or phases that are involved in making decisions for opening a new factory in China is given below:

• Intelligence phase
• Design phase
• Choice phase

Intelligence phase:

Intelligence phase is the beginning of the phase and it is helps in the decisions by examining the fact and defines its risks.

• Identify whether the opening factory in China is corresponding with organizational aim.
• Search the relevant data regarding the business.
• Collect the data and categorize them according to its risk.
• Develop the business risk statement.

Design phase:

Design phase is a next stage of the decision making. This phase helps to design and build a model with reality.

• Choose the model according to the necessary abstraction.
• Authenticate the model by conducting many experiments and investigation.
• Set the condition for evaluation of choice for possible solution which is recognized.
• Create another solution to the risk.

Choice phase:

Choice is a final phase to choose the solution for the problem and it involves testing them.

• It performs various type of test with different China business conditions.
• Choose the best solution from those tests and create conditions for those tests.
• Finally, the solution is implemented which is efficiently sufficient.