What’s Brewin’

Ernie Makin is part owner and president of Liberty Brewing Company, which is a microbrewery producing specialty ales. He first started by brewing and bottling beer at home, mostly ale. With the financial backing of some friends and using his own assets, he went into business. The venture became a success. During the last several years, sales expanded more rapidly than he ever imagined. At several recent meetings, one of the specific agenda items that he and his financial backers had discussed was reducing costs by investing in automated bottling. A financial analysis shows that they were sure to save at least $10,000 per year over the next five years on a $30,000 investment in the new bottling equipment. Other available bottling equipment investments of the same amount would save $8,000 over the same time period. Another agenda item concerned expanding sales to other retail outlets outside their current regional market. Even though they decided to go ahead, the alternatives and the future events that could affect this objective were difficult to project. Perhaps more pressing was the fact that several batches of ale didn’t meet quality specifications. Ernie was most immediately concerned with finding the cause of this problem.


When Ernie attempts to find out why several batches of ale didn’t meet quality requirements, what step in the decision-making process is he performing?

A. Recognition of decision requirements
B. Diagnosis and analysis of causes
C. Development of alternatives
D. Selection of desired alternative
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B. Diagnosis and analysis of causes

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