PROGRAM: BBA-H
PREPARED BY:
Eman Qadeer 42460
Amna Hadait 42368
Ume Laila 42029
Abdulraab Abbasi 42025
INSTRUCTOR: Ms. Arooma Mahjabeen
TITLE: Computational Analysis for Decision
Making
CASE STUDY 1: PRICIPAL’S DECISION
Scenario:
A school principal observes a continuous decline in students’ performance in the IT subject.
To improve academic results, the principal must decide between two options:
1) Hiring a new IT teacher
2) Training the current IT teacher
This decision must be made quickly because students’ performance is already declining.
There is no time for long data analysis. Therefore, the Intuition Model is chosen because it
relies on experience, judgement, and immediate understanding of the situation.
1) PROBLEM IDENTIFICATION:
The main problem is that students are performing poorly in IT. Their concepts are
weak, class engagement is low, and exam scores are declining. The principal must
take fast action to improve classroom outcomes.
2) CONSIDERING PRIOR EXPERIENCE:
The principal remembers that whenever teachers received professional training in
the past, overall class performance improved quickly. He also recalls that hiring
new teachers was time-consuming and did not always guarantee quality
improvement.
3) EVALUATING THE OPTIONS QUICKLY:
Hiring a New Teacher:
• Advantage: Fresh skills, new teaching methods.
• Disadvantage: Hiring is expensive and slow. New teacher may not adjust.
Training Current Teacher:
• Advantage: Fast improvement, low cost. Teacher already knows students.
• Disadvantage: Training might not work for everyone.
4) INTUITIVE JUDGEMENT:
Using intuition, the principal chooses training because it has worked before, is low-
risk, and will show faster improvement. This judgement is based on experience
rather than long analysis.
5) DECISION TREE:
Principal’s Decision
Hire New Teacher Train Current Teacher
Highly Skilled Not Skilled Training Works Training Fails
Good Results No Improvement Good Results No Improvement
6) OUTCOME EVALUATION:
Training gives a higher chance of immediate improvement with lower cost. Hiring
gives unpredictable results. Therefore, training is the better decision.
CASE STUDY 2: CAFE BUSINESS DECISION
Scenario:
A café owner wants to expand the business. Two options are available:
1) Open a new café branch
2) Start online delivery + digital marketing.
Due to limited time, incomplete market data, and financial constraints, the café owner
cannot perform a perfect analysis. Thus, the Bounded Rationality Model (Satisficing) is
the best approach.
7-Step Decision-Making Process
Step 1: Identify the Problem
Sales are slow and the café needs a growth strategy to stay competitive.
Step 2: Identify Alternatives
• Open a new branch (high investment)
• Start online delivery + digital marketing (low cost)
Step 3: Gather Limited Information
The owner reviews basic customer feedback, delivery demand, online engagement, and
cost comparison. Full data is not available due to time limits.
Step 4: Set Decision Criteria (Satisficing)
• Must be low-cost
• Must give fast results
• Must increase visibility
• Should be manageable with existing staff.
Step 5: Evaluate Alternatives
➢ New Branch:
• Very expensive, takes months to build, high financial risk.
➢ Online Delivery + Digital Marketing:
• Affordable, fast to launch, measurable results, aligns with current customer behavior.
Step 6: Choose the Satisficing Option
Online delivery + digital marketing is chosen because it satisfies all criteria while staying
within time and budget limits.
Step 7: Implement and Evaluate
• Launch ads
• Improve social media presence
• Partner with food delivery apps
• Track weekly sales, customer feedback, and engagement metrics.
If growth continues for 2–3 months, then opening a new branch can be considered later.
CONCLUSION:
Both case studies show that different decision situations require different models. Case
Study 1 needed fast and intuitive thinking, while Case Study 2 needed a practical satisficing
approach.
Reflection on Decision-Making Theories in Everyday Life
In my daily life, I have to make many different decisions, and I often use the ideas of
decision-making without even realizing it. Whenever I have enough time to think clearly,
I try to compare my options and choose the one that makes the most sense. For example,
when I plan my study routine or decide which task I should complete first, I think about
what will benefit me the most. But there are also situations where I don't have a lot of time
or information. In those moments, I just pick an option that seems good enough instead of
searching for the perfect choice. This usually happens when I'm getting ready quickly or
deciding what to eat. It saves time and still helps me move forward. Sometimes, I rely on
my instinct or past experience, especially in personal situations, like helping a friend or
dealing with something unexpected. These choices feel natural and are based on what I've
learned from previous experiences. Overall, learning about decision-making has made me
more aware of how I think. It helps me choose better, stay organized, and feel more
confident in handling everyday situations.
Why is Bounded Rationality Is More Practical in Real-World Decision-
Making?
Bounded rationality is often more practical in real-life situations because people rarely
have the time, information, or mental capacity to make perfectly logical decisions. Instead
of searching for the ideal option, individuals usually settle for a choice that is reasonable
and workable within their limits.
Limited Information:
In daily life, decisions are made with incomplete details. For example, when a shop
owner chooses which product to stock, they rely on customer feedback and basic
trends rather than full market research. This makes the decision realistic and timely.
Time Pressure:
Many decisions require quick responses. A manager dealing with a sudden staff
shortage must select a quick solution, such as rearranging shifts, without analyzing
every possible alternative. The goal becomes solving the problem efficiently, not
perfectly.
Mental Limits:
People cannot compare endless options. When choosing a new laptop, most
individuals only compare a few known brands. This reduces effort and still leads to
a satisfying choice.
Influence of Emotions and Experience:
Real decisions are shaped by habits, feelings, and previous experiences. For
instance, a student might choose to study at a certain time simply because it has
worked well before, not because they analyzed every option scientifically.
Cost of Overthinking:
Trying to find the perfect solution often wastes time and resources. Businesses,
students, and households all benefit from making "good enough" decisions that
allow them to move forward efficiently. Overall, bounded rationality reflects how
people truly think and act. It accepts that humans make decisions under limits and
focuses on practical solutions rather than perfection, which is why it fits real-world
situations so effectively.
