SCENARIO 12-7 Microchip technology is at the heart of everything electronic.The stakes for manufacturers are high and market fluctuation makes for an uncertain future.Jim Forrest is CEO of BigChip Inc., a medium-sized company that manufactures specialty microchips used in a variety of computers to facilitate efficient graphics processing.Jim recognizes the need to diversify his manufacturing operations and is considering starting up a new division, which would design, develop and produce security chips.These would be used in situations ranging from data transmission to securing financial transactions.
Other companies are also considering involvement since the security market is potentially a large one.Jim knows that the rapid advancements in the field of computer hardware and software necessitates an innovative approach to development of any new technology.Jim realizes that responding to market conditions and world economic influence will have to be carefully dealt with.
Jim knows that expansion into new technology will have to be carefully managed.Managers, in many instances, are content with reasonable rather than best-possible solutions.A weakness of rational decision making in Jim's situation is the assumption that
A)there are no time or cost constraints.
B)decisions will never be made that produce the highest perceived value.
C)decision criteria vary over time.
D)all possible consequences of each alternative are unknown.
E)criteria weights remain constant at all times.

Question

Quizplus · Accepted Answer

Rational decision making assumes that there are no time or cost constraints, which is often not the case in real-world scenarios like Jim's, where rapid advancements and market fluctuations are present.

SCENARIO 12-7 Microchip Technology Is at the Heart of Everything