United Technology Case Study

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As Untied Tech undergoes this new step in the companies future, certain changes will be implemented. The decision for Honeywell not buying out United Tech was seen ahead of time, with board of directors suspecting the bold drop out. Yet this decision has impacted the company rather negatively, with UTC stock being low and failing divisions within their company the main and biggest question is can UTC produce shareholder value. Noting that now they are standing alone and having to produce enough revenue in a competitive market, the issues that CEO Hayes should mostly focus on is the growth of the company and how it will be producing new revenue and value for future investors. Considering their new niche and how they will market themselves are…show more content…
The next category is a non-programmed decision. This means that the decision was unstructured and does not happen as often as a programmed decision would occur. In this case Honeywell lack of buying UTC is considered a non-programmed. Even though their was a lot of talk before hand that the deal would have not gone through no one I the company was actually planning for the decision. Noting that now they are trying to see how to stand-alone and create shareholder value, which was not an issue that came up often. Therefore they now have to treat this decision uniquely and their expected programmed decisions they have faced before. Now that CEO Hayes knows the effects of Honeywell’s decision and the new situations that have come out of them. He will need to be able to make a rational decision, and with every rational decision a certain process model will be done. Even though presumptions can not be made for the classical decision process, people can still look and approach decision with rationality, When a company or manager follows the rational decision making process they can be assured that they are understanding much about the situation as possible. In order to do so he must focus on the first step, which is recognizing the…show more content…
Even though it is called a rational decision model, most people don’t pick rationally. Some experts have stated that companies in the US use rational decision making techniques 20 percent of the time. Which is low considering the decisions they go through are not easy. What can fade them picking such options is their behavioral aspect, the way they are raised or how emotionally connected they are to the company makes it hard for them to implement said decisions. In CEO Hayes position having a bounded rationality affects the process. His values and how long he has been with UTC made it hard for him to actually go through the decision. This company has grown with him therefore deciding to split it up affects him more personally then an outside person. The next issue would also be satisficing, which in a case like this can easily be done. Satisficing means having a tendency to search for alternatives that meets just the minimum standard for completing. To get the problem solved it can be easy to just pick the fastest decision. Hayes could pick the fastest outcome just to get the blame away from him; this could not benefit the company to the best. Yet it is not certain that he will go through those aspects in his behavior when picking an option. Still it is important to consider those

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