1. Recognition of decision requirement: identify problem or opportunity
2. Diagnosis and analysis: analyze underlying causal factors
3. Develop alternatives: develop possible alternative solutions that will respond to the needs of the situation and correct the underlying causes
4. Selection of desired alternative: best alternative is one in which the solution best fits the firm's overall goals and values and achieves the desired results using the fewest resources
5. Implementation of chosen alternative: the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out
6. Evaluation and feedback: gather information to determine how well the decision was implemented and whether it achieved its goals