W2_Zakiya_Decision making on daily use

For the workers which come from outside Jakarta, as me, boarding house has an important role on our lives. It’s a place for us to live and taking rest after long day of work. So it’s important that we can choose the correct place. And in this blog, I want to share a story on how I choose my boarding house.

There are many ways and tools to support decision making process for choosing between several options, for example:

  • Pareto Analysis
  • Decision Tree
  • Risk Analysis
  • Benefit-Cost Ratio Method
  • Breakeven and Sensitivity Analysis
  • Profitability Evaluation (PW, FW, AW, IRR,ERR, MARR)
  • Pros and Cons
  • SWOT

In this blog, I will use SWOT analysis since it’s a simple method, easy to used but has more items to consider than Pros and Cons method. In threat and opportunity you can define a simple risk analysis which can be caused by the strength and weakness the place had. Even though cost is also a consideration in this decision making, but I don’t use tools that emphasis on cost calculation because to choose a place to live, to me is more on the feelings of convenience on the place.

First of all, to have an illustration on the 3 boarding house that I will choose, I make simple table to summarize their performance. There are several factors that will be use for comparing the boarding house condition, such as:

  • Distance from office
  • Price
  • Transport cost
  • Room facility
  • Environment conditions
  • Owner

The comparative result is as shown on Table 1.

Table 1 – Boarding House Comparative Data

Then, to decide which one is better than the others, I used SWOT analysis as can be seen on Table 2. But of course, the SWOT analysis just to support my decision, the most important thing is I must see the place and feel the convenience on that place

Table 2 – SWOT Analysis

From the SWOT analysis above, we can see that each place has its own strength and weakness that can trigger each opportunities and threats. As can be seen on Table 2, Place A has the most opportunities and Place C has the less opportunities. While Place A give the most less threats and Place B & C has more threats. By this reasons, I will choose Place A for my boarding house. It has less threats and more opportunity for me to lived in.

On price consideration, even though Place C has the cheapest price and has the same total monthly cost with Place A, I still choose Place A since I can easily access to the office, no need to considering the transport availability and reducing the risk of traffic jam.

In summary, I choose boarding house “A” for my place to live.


  1. http://www.mindtools.com. Last access on 27 March 2011
  2. Sullivan G. William, Wick M. Elin, Koelling Patrik C., Engineering Economy, Pearson International.





About zakiya

A unique person on this whole wide world that loves writing but has been forgotten it for a while..since sharing is caring, therefore i wanna share as much as i could..as long as i live ☺
This entry was posted in Group Member, Nurul Zakiya, Week #2, Weekly Submission. Bookmark the permalink.

1 Response to W2_Zakiya_Decision making on daily use

  1. DrPDG says:

    OK Bu Z, not a bad job, even if it was late…. 😦

    I realize you have the experience from the previous course, but for at least the next couple of weeks, I want to get everyone in the habit of using the template shown on page 7 of your Engineering Economy 15th Edition or page 27 if you are using the 14th Edition.

    So while I am willing to accept this, for your W3 posting (which I STRONGLY recommend you submit on either Sunday or Monday!!) I will be looking for you to follow the template used by Pak Adi or Bu Lilly.

    Once everyone can consistently follow that template, then I will provide you with other alternatives.

    BTW, I am also waiting for your ToC for your paper, which should not take anymore than 20 – 30 minutes to prepare. And my suggested topic would be how to increase profit margins in a highly competitive market.

    Keep up the good work and just keep in mind- one hour per day, each day, every day and this course should not be difficult.

    Dr. PDG, Jakarta

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