Several outcomes are possible. Threat or problem may arise in the environment, making the goal impossible to reach. Some different course of action must be decided upon. Opportunities that would enhance goal attainment may arise. Must decide how to make best use of this opportunity.
Research indicates managers are more sensitive to perceived threats than to perceived opportunities.
Managers often infer a threat from ambiguous information and completely ignore information suggesting opportunities. The rational decision making model requires that all potential solutions to a problem be identified before a decision can be made. Without generating alternatives, or examining all possible courses of action, we can never be sure we are choosing the best alternative. Historical models or actions taken in the past are the most commonly used sources for generating alternatives to current decisions. The key is to generate innovative ideas without reference to the practices of others.