OUTLINE

Chapter 8: Developing your decision-making

Group 2
Name Student ID

Ninh Thị Ngọc Mai 22040648

Nghiêm Phương Duyên 22040481

Nguyễn Thanh Thủy 22040348

WARM-UP
“Weechoice” warm-up game.
1. Why did the Pakistan man call NY with his number? Because he was afraid that ____.
A. NY would fall in love with someone else.
B. NY would turn into fireflies.
C. NY would turn into a CEO.
D. NY would fall in love with another handsome guy.
2. “If you come across questions you feel confused, you will …”
A. Choose all C.
B. Get panicked and cry.
C. Copy your friend’s paper.
D. Opt for an answer with the highest probability of being correct.
3. If you could choose 1 of these three men, who would you choose?
A. Number 1
B. Number 2
C. Number 3
D. Choosing is for children; adults take it all.
4. What should you do to make decisions effectively?
-> This must be a question that anyone among us has wondered about. The above questions
were small decisions and didn't need much effort to make. In our lives, the more important
decisions are to ourselves, the more carefully we need to consider them, so how do we make
the most suitable decisions for particular circumstances? Next, we will explore the decision-
making process and how to make decisions effectively.

I. CONTENT SUMMARY

1. Understanding the decision-making process.

- Definition: Decision-making is the process of identifying and then selecting alternatives
based largely on the decision maker's preferences. Decisions are evaluated by their
probability of success or effectiveness.

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- Decisions are not typically black and white in terms of consequences, and there are no
“right” or “wrong” decisions; rather they simply move you in one direction or another.
For example: If you decide to take a job in a new city, that opens up opportunities to meet
new people and experience a different environment. At the same time, it might mean you
can't easily see your old friends and family as often.

2. Common decision-making styles

- Decision-making styles are the ways people go about making decisions in particular
situations. We often use a combination of styles to make decisions.
Decision-making Description Some particular
styles properties

Planning Consider values, necessary information, More: logical, rational,

(Linear/Rational) and consequences. self-motivated,
independent, active.
Neutral: Cautious ~ risk-
taking, quiet ~ assertive.

Intuitive Preconscious choice based on inner More: intuitive,

harmony. feeling/emotional,
active.

Neutral: dependent ~
independent, influenced
by others ~ self-
motivated, quiet ~
assertive, cautious ~
risk-taking.

Impulsive Taking the first available alternatives. More: risk-taking,

active, assertive,
feeling/emotional,
intuitive.

Neutral: dependent ~
independent, influenced
by others ~ self-
motivated.

Compliant Let others decide, be dependent on others. More: dependent,

influenced by others,
passive, cautious.

Neutral:
feeling/emotional ~
rational, intuitive ~

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 logical, quiet ~
assertive.

Delaying Procrastination, avoidance. More: cautious, passive,

quiet, dependent,
influenced by others.

Neutral: intuitive ~
logical,
feeling/emotional ~
rational.

Fatalistic Leaving everything up to fate. More: passive,

influenced by others,
dependent, quiet.

Neutral: cautious ~ risk-

taking, intuitive ~
logical, feeling ~
rational.

Agonizing Fear of making wrong decisions. More: cautious, passive,

quiet, dependent,
influenced by others.

Neutral: intuitive ~
logical, feeling ~
rational.

Paralytic Extreme “Agonizing”, dominated by fear “agonizing” style at the

and anxiety. extreme level.

Defaulting Choose the alternative with the lowest level More: cautious.
of risk.
Neutral: intuitive ~
logical, feeling ~
rational, dependent ~
independent, influenced
by others ~ self-
motivated, passive ~
active, quiet ~ assertive.

-> Typically, the planning and intuitive styles are the most effective. The others contain a
hint of fear: fear of failure, fear of imperfection, and fear of rejection, which are based on
“internal factors” related to attitudes and self-esteem.
-> Understanding your personal decision-making styles helps you be aware of your decision-
making and then make suitable personal adjustments in how you make decisions.
Personal decision-making styles check: Make a chart that helps audiences understand their
decision-making styles.

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3. Decision-making model
Lead-in: Do you ever question, “Why do people keep buying the lottery even though the
possibility of winning is very low?” The answer relates to “risk-taking” in decision-making
and one of the five steps of the decision-making process.

3.1 What is risk-taking?

- Risk-taking means moving from the safe and familiar to the unknown and scary. Generally,
most people are cautious risk takers, preferring situations where the chances of success are at
least 50-50 before committing.
- However, millions of people play the lottery, although the chance of “winning” is clearly
low. The answer lies in the fact that sometimes, people take risks to make decisions not just
based on the probability of success (the odds), but also on the desirability of the successful
outcome.
- The potential positive outcome – winning a large sum of money – is highly desirable. This
strong desire can outweigh the rational understanding of the low probability of success.
=> When you can consider both the success probability and desirability of an outcome, and
then weigh this against other possible outcomes, you are in the best position to take a
calculated risk that can potentially lead to successful decision-making.

3.2 Rational decision-making model

(1) Define your goal or objective.

- Goals refer to an ongoing process, and objectives are specific steps to accomplish
goals.
- Setting a realistic timeline for objectives to reach your goal effectively.
(2) Assess alternatives
- Generate your alternatives or options
- Are your alternatives consistent with your important values?
- What is the reasonable amount of time to accomplish your alternatives?
(3) Gather information
Collect necessary information about your alternatives.
(4) Assess the outcomes probability and desirability
- Probability: The success probability based on your skills, and job requirements.
- Desirability: The reason you choose this alternative, your values, personality, and
interests.
- Compare alternatives and make decisions:

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 + Can you eliminate the least desirable alternatives first?
+ When you consider the best possible alternatives, how much do you want it?
+ What are you willing to give up to get what you want?
(5) Take action
Establish a plan of action.
For example: You are nearing graduation, and weighing some options: Focus solely on
translating and interpreting; Become an English teacher; or pursue both. You can start to
assess the success probability and desirability of each option based on your values,
interests, attitudes, skills, and consider your given time, circumstances and information
available.
-> If you have good pedagogical skills and love working with children, and the demand for
English teachers is stable (quite a high probability of success), then you might prioritize
choosing to become a teacher.
-> However, if you are passionate about the dynamism and challenges of translation/
interpreting, and are confident in your language abilities, you might accept a higher risk to
pursue this path. Compared to teaching, the initial stability of this job might be lower, but the
potential for higher earnings later could be attractive. Alternatively, you could start to
generate alternatives and then flexibly switch or combine if you feel it is more suitable in the
future.

3.3 Factors affecting decisions

- Some factors may unfavorably affect the decision-making process.
+ The “worst possible consequence” thinking: “I’ll fail” or “I’ll never find another job if
I quit this one” -> Overestimate the likelihood of the negative outcomes.
+ Fail to generate a broader range of possible outcomes: When decision-makers only
envision the worst, they don't explore the spectrum of possibilities that might make
the decision seem less daunting.
-> Resulting in unnecessary stress about making decisions.
- Suggested solutions:
+ Instead of dwelling on the worst case, try to assess the more probable outcomes based
on available information and past experiences.
+ Consciously try to replace negative self-talk ("I'll fail") with statements like "This
might be challenging, but I can learn and adapt," or "Even if this doesn't work out
perfectly, I'll gain valuable experience."
+ Socialize with friends and family who might offer different viewpoints and help you
see possibilities you haven't considered.

II. REAL STORIES

1. First story
The Decision That Changed Starbucks: Howard Schultz's Leap of Faith
Howard Schultz was not always the face of Starbucks. In fact, when he first joined the
company in 1982,it was a small Seattle-based company selling high-quality coffee beans

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and equipment. Founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker, they
were passionate about coffee but envisioned Starbucks as a purveyor of quality beans, not a
coffeehouse chain. They were content with their niche, believing that their customers were
best served with just the best coffee beans—no frills, no cafes.
Schultz, as the newly appointed Director of Retail Operations and Marketing, saw potential
beyond bean sales. It was during a trip to Italy in 1983 that Schultz found the spark he
needed. He spent days observing the thriving coffee culture in Milan and Verona, where
espresso bars were social hubs, not just places for a quick caffeine fix. Schultz felt a surge
of inspiration. He envisioned a space where people could come together, relax, and enjoy
great coffee—not just buy it. He believed in creating a "third place"—a space between
home and work—where people could connect, unwind, and experience coffee culture in a
new way.
Returning to Seattle, Schultz was determined to transform Starbucks. He presented his
vision for coffeehouses to the founders. But convincing the founders wasn’t going to be
easy. They were already successful with their model, and they couldn’t see how Starbucks
could thrive as a chain of coffeehouses. Therefore, they were resistant to change, preferring
to stick to their tried-and-true model of selling coffee beans. Schultz felt a growing sense of
frustration. He couldn’t shake the belief that there was a huge opportunity to transform
Starbucks into something far beyond what it was. He spent countless hours thinking about
how he could convince the founders to embrace his vision. The decision he faced was
monumental: should he accept the status quo, or take a leap and risk it all to make his
dream a reality?
Schultz wasn’t deterred. He knew he needed to take a risk to make his vision a reality. In
1985, Schultz left Starbucks and founded Il Giornale, a coffeehouse chain inspired by
Italian espresso bars and was an immediate success and quickly expanded into multiple
cities. Using $1.6 million in venture capital, Schultz began experimenting with his own
business model.
In 1987, after months of deliberation, Schultz bought Starbucks for $3.8 million. He poured
his personal savings into the company and took on significant debt. He merged Il Giornale
with Starbucks and began expanding the Starbucks coffeehouse concept. It was a massive
gamble—one that could either make or break him.
The financial risk was immense. Schultz was betting not only on the success of Starbucks
as a coffeehouse but also on the entire concept of the "third place." At that time, there was

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 little guarantee that Americans would embrace the idea of paying premium prices for
coffee and spending time in a cafe rather than just grabbing a cup on the go. But Schultz
was unwavering. He had a deep belief in his idea and the potential of the Starbucks brand.
Schultz stepped down as CEO of Starbucks in 2000. He transitioned to the role of Chief
Global Strategist and continued to serve as the Chairman of the Board. In 2008, amid a
declining economy and internal challenges, Starbucks was struggling badly. Schultz then
returned as CEO, and one of his first actions was to close all U.S. stores for a day to retrain
baristas on the art of making espresso. This move was symbolic of his dedication to quality
and authenticity. Schultz also focused on streamlining operations, closing underperforming
stores, and reinvigorating the brand’s core values. His efforts paid off, leading to a
significant turnaround and renewed growth for Starbucks, whose stock has returned 16x
since then.
Starbucks resonated with consumers, growing from a local company into a national and
then international chain. By the mid-1990s, Starbucks was expanding globally and the
company’s footprint has stretched from coast to coast, and soon to Europe, Asia, and
beyond until now.

The 5-step decision-making model framework will be used to unpack Howard Schultz’s
story.
Part 1: Application of the 5-Step Decision-Making Model
1. Define the Goal:
- Clear vision to transform Starbucks from bean retailer to coffeehouse empire
- Specific objective to create a "third place" between home and work
=> A clear, visionary goal provides direction and purpose. Schultz’s unwavering focus on
this objective guided his subsequent decisions.
2. Assess Alternatives: When the founders rejected his coffeehouse idea, Schultz
evaluated alternatives:
- Stay and convince the founders to embrace his vision (safer)
- Leave and test his vision independently (highly risky)
Schultz chose the latter, leaving Starbucks in 1985 and founding his own coffeehouse, Il
Giornale, with $1.6 million in venture capital.
=> Effective decision-makers explore alternatives that align with their core values and long-
term vision, even if it means stepping away from security.
3. Gather Information:
- Schultz studied Milan’s espresso bars, observing their role as social hubs. This
firsthand research informed his strategy for Starbucks.
- After successfully testing his own coffeehouse, he decided to buy Starbucks
for $3.8 million.

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=> Grounding decisions in real-world observations and data reduces the uncertainty and
convinces Schultz's decisions.
4. Assess Outcomes:
- Risks: Schultz’s risks included leaving a stable position at Starbucks, investing his
own savings, and taking on debt to purchase Starbucks. The idea of a premium-priced
coffeehouse experience was new and untested, with no guarantee it would succeed in
the American market.
- Rewards: Revolutionizing coffee culture, building a global brand, and creating a
coffeehouse experience that would become an integral part of American and global
culture. This could offer substantial financial rewards, aligning with his
entrepreneurial vision.
=> Schultz had a thoughtful consideration of the success probability of his vision before
making a calculated risk. He prioritized the desirability of his vision (the potential to create a
meaningful experience for customers and build a powerful brand) over the low initial
probability of success in the untested U.S. market.
5. Take action: Schultz bought Starbucks, merged it with Il Giornale, and aggressively
expanded. Even during the 2008 crisis, he took bold actions like retraining baristas to
uphold quality.
=> Schultz's decisive action, coupled with adaptability, turns his vision into reality, leading to
the success of Starbucks not just in America but on a global scale.

Part 2: Meaning from Schultz’s story

1. Risk Management: It’s crucial to take calculated risks informed by gathered
information and executed with decisive action and unwavering persistence when
pursuing something meaningful. In my own career, understanding when to take bold
steps and when to assess risks thoroughly will be essential for growth.

2. Vision and Persistence: Schultz’s unwavering belief in his vision is a reminder that,
in professional life, sticking to one's principles and being persistent, even in the face
of initial failures or rejections, can lead to success.
3. Leverage Information: Gathering insights from diverse experiences can provide the
foundation for innovation. Staying observant and adapting external insights into
actionable strategies will be valuable in any career.
=> Can ask the audience to think of what is Schultz's decision-making style refer the story?

2. Second story
Today, I will tell you a story about a girl who had always dreamed of becoming a vocalist.
However, her father, who was a doctor at a major hospital in Hanoi, and her mother, who
was a manager at a state-owned bank, never supported her dream. To them, music was just
a hobby, not a career. When university applications came around, they forced her to enroll
at ULIS to study English, believing it was a safer choice.

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 For a semester, the girl tried to enjoy her life as a ULISer, but deep down inside, she
always felt like she did not belong in this school. Determined to follow her passion, she
took on multiple part-time jobs to fund her applications to music schools across Vietnam.
In the end, she was accepted into Ho Chi Minh Conservatory of Music. Despite her
parents’ objections, she packed her bags and left, determined to chase her dream on her
own.
Life in the city was exciting yet harsh. With sky-high living costs in District 1 and no
support system, the financial strain quickly became unbearable. Despite working part-time
and performing at cafés, she struggled to make ends meet. After just one semester, reality
forced her to make a painful decision - she couldn’t afford to stay.
Returning to Hanoi, she had no other choice but to re-enroll at ULIS. Now, she struggles to
make up credits, racing toward graduation with little time for herself.

Evaluation
Part 1: Assessing her Decision-making Style
Based on the girl's story, we can assess her decision-making style using the categories you
provided. Here's a breakdown of how her choices reflect elements of these styles:
1. Primary Decision-Making Style: Intuitive
- Her decision to pursue a music career, despite her parents’ disapproval and financial
instability, was driven strongly by internal passion and personal fulfillment rather than
external logic or analysis. She followed her “gut feeling” and the emotional need to be
true to herself, even when it conflicted with practical concerns.
2. Secondary Style: Impulsive
- After feeling out of place at ULIS, she quickly chose to apply and relocate to Ho Chi
Minh City without fully planning or securing the resources needed for long-term
sustainability. She took bold action, but it was poorly timed and lacked adequate
preparation, especially financially.
Part 2: Applying the 5-step Decision-making Model
1. Define Your Goal or Objective
- Her goal of becoming a professional vocalist is clear and driven by passion. However,
she lacked a realistic timeline and did not consider financial limitations or parental
opposition from the start.
2. Assess Alternatives
Alternatives:

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 - Stay at ULIS and pursue music part-time.
- Negotiate with parents for a compromise (e.g., take music classes while studying
English).
- Apply for scholarships or more affordable local music programs in Hanoi.
- Move to HCMC for full-time music study without financial security.
Values Consistency:
- Her choice (moving to HCMC) aligned with her personal values: freedom, creativity,
and self-expression. However, it conflicted with practical values like stability,
financial responsibility, and educational continuity.
Time:
- She acted quickly without allowing enough time to properly plan or save money.
3. Gather Information
- She did research enough to apply to several schools and prepare for auditions.
However, she did not seem to fully gather or assess critical information such as:
+ Total cost of living in HCMC
+ Length and cost of the music program
+ Support options (scholarships, loans, housing, etc.)
4. Assess the Outcomes: Probability & Desirability
- Probability - Low: She lacked financial support, had limited savings, and no clear
plan for sustaining herself long-term in HCMC.
- Desirability - Very high: Becoming a vocalist was her dream, and this path directly
aligned with her identity and passion.
- Trade-offs: She was willing to sacrifice comfort, parental approval, and even her
current studies. But she did not fully weigh the cost of potentially failing and
returning without a degree or job.
5. Take Action
- She applied to schools, saved money, and moved to pursue her dream. However, the
action was taken without a sustainable plan. She had no safety net and no clear
long-term planning.
Overall Evaluation
The girl’s decision-making was driven by emotion and values, which made it courageous and
authentic, but not entirely rational or sustainable. While her dream was worth pursuing,
she skipped some critical steps in the rational decision-making model, especially in
assessing alternatives, gathering information, and evaluating realistic outcomes.

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Advice:
With the prior knowledge about budgeting and researching education and training options, if
I were in her position, I would:
- Research scholarships, financial aid, or grants before moving.
- Look for hybrid opportunities (e.g., studying English while pursuing music training
on the side).
- Negotiate with my parents, proving my passion with achievements or a structured
plan.
- Consider local music programs in Hanoi first before committing to a costly move.
Lesson Takeaway:
1. Plan wisely. Without financial preparation and a solid backup plan, obstacles can
become overwhelming. Passion should be paired with practical steps to sustain it.
2. Balancing Dreams and Reality. While it’s important to fight for your passion,
finding a middle ground (e.g., studying English while still engaging in music) can
provide both stability and fulfillment.
3. Failure is not the end. Even though her journey does not end with her being able to
study in her dream school, her achievement of being accepted into Ho Chi Minh
Conservatory of Music has proven her potential. Ultimately, her parents have become
more accepting and more willing to support her on her music career path.

III. REFERENCE

Career Fitness Program, The: Exercising Your Options, 11th edition | eTextBook
Subscription | Pearson+. (n.d.).
https://www.pearson.com/en-us/pearsonplus/p/9780137562992
https://ssc.utah.edu/_resources/documents/tools_for_success_page_documents/definin
g_your_values_clean_ssc_logo_uppercase.pdf

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