Dave Armstrong Decision Essay
PrOACT Analysis of Dave Armstrong’s Decision
1. Problem: The decision problem Dave Armstrong faces in this case is “Which of these three jobs should I take?” Under this decision problem, Armstrong should also consider which job is his best long-term choice and which job will meet his wife’s needs best.
Objectives: When choosing a job, Armstrong seeks to take advantage of upside potential, invest a low monetary amount, network often, make a dependable salary, be excited by his work, satisfy his family, have ownership and keep the job for a long duration.
Alternatives: The three alternatives are the potentially lucrative but financially burdensome Job A, the entrepreneurial but impermanent Job B, and the secure but stagnant Job C.
Consequences: …show more content…
Consequently, Armstrong has the most to lose if he fails after taking Job A. Jobs A and B are also the more exciting options, but Armstrong would possibly upset his wife by not choosing the more stable option, Job C. Job B would provide strong networking prospects and some ownership, but Armstrong could not keep the job for more than two years.
Uncertainty, Risk Tolerance and Linked Decisions: Armstrong faces uncertainty regarding whether Job A will be successful because it is a risky, entrepreneurial venture. There is also uncertainty in the oil industry, which impacts the chances of success for Job B. Jobs A and B require greater risk tolerance, whereas Job C is a low-risk option. Furthermore, Armstrong should consider how his decision is linked to his future career opportunities and his marriage.
2. The elements that are most relevant for Armstrong’s decision problem are Objectives, Alternatives, Consequences, Tradeoffs, and Risk Tolerance because Armstrong will base his decision on how he feels about the consequences and tradeoffs he encounters as he evaluates how well or poorly the alternatives meet his objectives. Armstrong’s perception of the consequences and tradeoffs of each alternative depend on how risk tolerant he
1. Problem: The decision problem Dave Armstrong faces in this case is “Which of these three jobs should I take?” Under this decision problem, Armstrong should also consider which job is his best long-term choice and which job will meet his wife’s needs best.
Objectives: When choosing a job, Armstrong seeks to take advantage of upside potential, invest a low monetary amount, network often, make a dependable salary, be excited by his work, satisfy his family, have ownership and keep the job for a long duration.
Alternatives: The three alternatives are the potentially lucrative but financially burdensome Job A, the entrepreneurial but impermanent Job B, and the secure but stagnant Job C.
Consequences: …show more content…
Consequently, Armstrong has the most to lose if he fails after taking Job A. Jobs A and B are also the more exciting options, but Armstrong would possibly upset his wife by not choosing the more stable option, Job C. Job B would provide strong networking prospects and some ownership, but Armstrong could not keep the job for more than two years.
Uncertainty, Risk Tolerance and Linked Decisions: Armstrong faces uncertainty regarding whether Job A will be successful because it is a risky, entrepreneurial venture. There is also uncertainty in the oil industry, which impacts the chances of success for Job B. Jobs A and B require greater risk tolerance, whereas Job C is a low-risk option. Furthermore, Armstrong should consider how his decision is linked to his future career opportunities and his marriage.
2. The elements that are most relevant for Armstrong’s decision problem are Objectives, Alternatives, Consequences, Tradeoffs, and Risk Tolerance because Armstrong will base his decision on how he feels about the consequences and tradeoffs he encounters as he evaluates how well or poorly the alternatives meet his objectives. Armstrong’s perception of the consequences and tradeoffs of each alternative depend on how risk tolerant he