1. The initial problem was how Alissa would manage locations almost an hour apart while maintaining the level of quality and service customers expected. Does this problem require a routine or non-routine decision? Explain your answer. 2. What kind of decision led Alissa to hire Guido? 3. But by the end of the second year, problems loomed. Patrons loved Guido, but there were delivery problems, delinquency in paying bills, and Guido’s lax attitude. Alissa has a non-confrontational management style and realizes that Guido could open a competing restaurant. If you were a consultant, what would you advise Alissa to do?

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.