Mcom 320: Step 4 & 5 (A&D): Do a Weighted Factor Analysis and Decide on a Solution
🎯 Objectives, Values, and Learning Outcomes
Lesson Objectives
- Apply a recommendation business communication strategy
- Use a decision matrix to quantify qualitative decision criteria
- Craft executive summaries
Analysis and Decision Making
Analysis: Compare the alternatives using your criteria. Score each option and multiply those scores by their corresponding weights. This creates a weighted factor decision matrix that helps you see which alternative performs best overall.
Decision Making: Typically, the option with the highest score is the best choice. Make sure the option supports the most important stakeholders. If two options tie, prioritize the one that scores better on the most critical criterion—or consider a hybrid solution that blends the strengths of both.
Phase 4: Analysis – Making the Case Quantitative
The analysis step helps you objectively compare your options based on stakeholder-focused criteria. Use a weighted factor analysis to:
- Compare options based on how well they meet the criteria.
- Prioritize what matters most by applying weights.
- Reveal which alternative performs best through structured evaluation—not just gut feeling.
Phase 5: Decision – Making the Call in PACADI
Once the analysis is complete and each alternative has been scored and compared, the Decision phase is about choosing the best course of action based on the evidence—and being able to clearly justify that choice.
What to Consider Beyond the Matrix
The decision should logically follow the analysis—but it’s not just about the highest score. Good judgment still matters.
What Makes a Strong Decision
Include a brief recap of your top-scoring option(s), link the rationale to the criteria and weights, and mention any relevant intangibles (e.g., timing, stakeholder reactions).
The final recommendation should be thoughtful, strategic, and grounded in your evaluation—but still flexible enough to make real-world sense for your specific business context.
Applying the PACADI Model: Analysis & Decision — Case Study: Sourdough & Co.
Problem: How should Jacob position Sourdough & Co. to protect its brand and customer base in response to a regional grocery chain launching competing sourdough products?
At this point, Jacob and his team have brainstormed three strategic alternatives: a marketing push that emphasizes brand story and artisan quality, a lower-priced product line that competes directly on cost, and an exclusivity and partnerships strategy focused on strengthening local relationships.
The key decision criteria identified are brand integrity (weighted at 40%), customer retention (30%), and revenue growth potential (30%).
Phase 4: Analysis
To evaluate the options, the team scores each strategy on a scale of 1 to 5 for how well it satisfies each criterion. These scores are then weighted based on the criteria's importance to produce a total score for each option.
The weighted analysis shows that the marketing push scores the highest overall. It strongly reinforces brand identity and supports customer loyalty. The lower-priced product line performs well in terms of revenue growth, but risks brand dilution. Exclusivity and partnerships align well with brand values but may not offer as much potential for growth.
| Alternative | Brand Integrity (40%) | Customer Retention (30%) | Revenue Growth (30%) | Total Score |
|---|---|---|---|---|
| Marketing Push | 5 (2.0) | 4 (1.2) | 3 (0.9) | 4.1 |
| Lower-Priced Line | 2 (0.8) | 3 (0.9) | 5 (1.5) | 3.2 |
| Exclusivity/Partnerships | 4 (1.6) | 5 (1.5) | 3 (0.9) | 4.0 |
Interpretation: The Marketing Push strategy emerges as the top scorer in this analysis. It offers strong support for brand identity while helping retain existing loyal customers. In contrast, the Lower-Priced Line performs well on revenue growth but may dilute the brand. The Exclusivity option is solid across most criteria but could slow down future growth opportunities compared to the other alternatives.
Phase 5: Decision
Final Question: “Which strategy best protects Sourdough & Co.’s brand and customer base in the face of new competition?”
Based on the analysis, the marketing push stands out as the strongest option. It achieved the highest score overall, aligning closely with the bakery’s values, capacity, and long-term goals. Additionally, it allows Sourdough & Co. to maintain its authenticity while offering clear differentiation from competitors.
Narrative Decision Statement: After evaluating the three strategic options against key criteria, we recommend Jacob pursue a targeted marketing push. This strategy offers the best balance of preserving Sourdough & Co.’s premium brand image while proactively reinforcing customer loyalty. Though it may not drive the fastest revenue growth, it best aligns with the bakery’s constraints, values, and long-term identity.
Rationale: This recommendation is supported by the option’s total score of 4.1, which reflects strong performance in the most heavily weighted criteria—brand integrity and customer retention. The marketing push supports the company’s authentic identity, which is core to its value proposition. It avoids the risk of brand dilution that might result from introducing a lower-priced product, and instead supports sustainable growth by continuing to build on the loyalty of existing customers.
Strategic Angle: A marketing push could include storytelling through social media and local press, collaborations with local influencers, and behind-the-scenes content that highlights sourdough craftsmanship. These efforts help reinforce the brand’s story and artisan appeal in a way that feels genuine and strategic.