decision making tool(Multi Criteria Analysis)
ASSESSMENT 2a: Making Business Decisions
Decision Making Exercise 1
Introduction
This essay will introduce the process of applying the Multi Criteria Analysis (Parker, H. 2013) in coffee purchase decision making and evaluate the helpfulness of MCA in this situation.
Personal or business decision
After four weeks, the content of lectures are becoming increasingly difficult. To concentrate on study, I need a cup of latte to keep a clear mind. The thing is, should I buy coffee at cafes or purchase an espresso machine? Buying coffee in Cafe is time-saving and expensive, while making coffee at home is a time-consuming and economic way.
Application of decision-making tool
In order to reach a wise decision, the Multi Criteria Analysis is selected. Four criteria (time, money, taste and purchase convenience) have been taken into consideration. As a postgraduate student, time is the top concern. The total time spent on cooking a coffee is 30 mins, including preparing and cleaning, while it takes less than 5 mins to buy a latte. Money is another important criterion in this scenario. A coffee machine costs $129.00, a 1kg bag of coffee bean costs $13.00(Coles Supermarkets 2013). Accordingly, the cost of a cup of coffee = (129+13×8)/ (365×2) =$0.32. The price of coffee on campus is $2.70(Fisher Coffee Cart 2013). Taste and purchase convenience are less important to me. Obviously, the coffee from cafe tastes better than home-made one. Concerning the convenience, coffee can be purchased almost everywhere on campus, while home-made coffee can only be enjoyed at home unless a thermal mug is bought . According to all the information above and the performance score, the following results (figure1.0) shows clearly that purchasing coffee on campus is a wiser choice.
options
Performance criteria
Time(0.4)
Money(0.3)
Taste(0.2)
Purchase convenience(0.1)
Index
(ranking)
Purchase coffee on campus
0.4×80=32
0.3×30=9
0.2×80=16
0.1×60=6
63
Purchase an espresso
Decision Making Exercise 1
Introduction
This essay will introduce the process of applying the Multi Criteria Analysis (Parker, H. 2013) in coffee purchase decision making and evaluate the helpfulness of MCA in this situation.
Personal or business decision
After four weeks, the content of lectures are becoming increasingly difficult. To concentrate on study, I need a cup of latte to keep a clear mind. The thing is, should I buy coffee at cafes or purchase an espresso machine? Buying coffee in Cafe is time-saving and expensive, while making coffee at home is a time-consuming and economic way.
Application of decision-making tool
In order to reach a wise decision, the Multi Criteria Analysis is selected. Four criteria (time, money, taste and purchase convenience) have been taken into consideration. As a postgraduate student, time is the top concern. The total time spent on cooking a coffee is 30 mins, including preparing and cleaning, while it takes less than 5 mins to buy a latte. Money is another important criterion in this scenario. A coffee machine costs $129.00, a 1kg bag of coffee bean costs $13.00(Coles Supermarkets 2013). Accordingly, the cost of a cup of coffee = (129+13×8)/ (365×2) =$0.32. The price of coffee on campus is $2.70(Fisher Coffee Cart 2013). Taste and purchase convenience are less important to me. Obviously, the coffee from cafe tastes better than home-made one. Concerning the convenience, coffee can be purchased almost everywhere on campus, while home-made coffee can only be enjoyed at home unless a thermal mug is bought . According to all the information above and the performance score, the following results (figure1.0) shows clearly that purchasing coffee on campus is a wiser choice.
options
Performance criteria
Time(0.4)
Money(0.3)
Taste(0.2)
Purchase convenience(0.1)
Index
(ranking)
Purchase coffee on campus
0.4×80=32
0.3×30=9
0.2×80=16
0.1×60=6
63
Purchase an espresso