Statement: A family restaurant owner must decide whether to renovate the current location or relocate to a new, larger space. The current location has loyal customers but limited seating and parking. The new location offers more space and parking but requires significant investment and risks losing established customers.
What decision-making approach should the owner use?
Show answer & explanation
Correct answer: C
Explanation
Options 1 and 2: Both of these approaches are one-sided. Simply staying at the current location without due diligence will stunt business growth, and moving to a new location with significant investment without preparation could sink the business.
Option 4: While seeking customer feedback is a good step, it doesn't fully assess the business's financial risks, parking issues, and long-term profitability.
Option 3: This is the most logical and scientific approach. A savvy business owner should thoroughly analyze the financial outlook, future growth projections, and customer traffic patterns of both options before making a move.
Therefore, the correct answer is "Analyze customer demographics, growth projections, and financial outlooks for both options."