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rational decision making theory
rational decision making theory
rational decision making theory
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Stan Eagle made managerial decisions to move his business and career forward. His approach to making managerial decisions involved uncertainty and risk, conflict, lack of structure affected his decision making and his business as a whole. Following his partnership, Eagle was pushed to make decisions which he was not confident in. For example, he was urged by his friend to begin a clothing line and may have not considered the consequences of expanding to an unknown market. In addition, when Pete wanted to move towards inline roller skates and ice skates, Eagle was troubled as this was an unknown market once again and he had paid the price in his last business venture. The insufficient information lead down a costly path for Eagle the first time, …show more content…
Nonprogrammed decisions are always much more difficult to make than programmed ones. Having previously failed in the clothes industry adds to the complexity of the decision. Stan must decide how similar this expansion is to his previous one in order to make sure he is not drawing incorrect conclusions from it. Furthermore, conflict arises due to the fact that Stan Eagle is not willing to expand his business by selling equipment for a greater variety of sports. He only wants to sell the products he is familiar with and he believes that the company should focus all of their efforts into something they are extremely knowledgeable about. While Williams believes that selling equipment for more kinds of sports would produce more for the …show more content…
The first step is to identify and diagnose the problem. Stan not knowing if he should expand into inline skating and ice skating is the problem in this case. The next step is to generate alternative solutions. Two possible solutions are either to follow Williams’s advice and venture into inline skating and ice skating, or to buy out Williams’s ownership share in the company and run the company on his own. The next step is to evaluate these two possible solutions. Venturing into inline and ice skating equipment is the riskiest of the decisions, but it could also have the most reward. Despite the allure of a high reward, Eagle’s name means nothing when it comes to inline and ice skates. They would lose a driving force of sales if they left skateboards. Looking at the company’s history also makes this decision unappealing. They already had one unsuccessful expansion, and although the industries are different, it should be taken as a serious warning to future expansions. Buying out Williams’s stake would give Stan the freedom to run the company how he wants to run it, and to avoid this risky venture and ones that Williams will suggest in the future. Stan could then focus on what the company is most successful at: skateboards. The downside to this is the cost of buying him out, but considering Stan is
With utilitarianism ethics, they consider the end product. Balanced out, the happiest result happens by all parties compromising. (COB,
When Jim Kilts showed up at Gillette in 2001, the first outsider to run the Boston-based company in more than 70 years, he found a business with great brands losing market share. Its acquisitions of Duracell and Braun were not delivering. Sales and earnings were flat, the company had missed its earnings estimates for 15 straight quarters, the stock had plummeted, and Wall Street had lost patience. Yet two-thirds of the top managers were getting top ratings. People were being rewarded for effort; performance, under Mr. Kilts regime, became the new measure.
It is important in today’s changing economy that business leaders are not afraid to make necessary changes to succeed. When Jack Welch became CEO of General Electric in 1981, it was a lethargic business, satisfied with its output and entangled in bureaucracy. He understood the competition that overseas markets presented and the need for a new global strategic plan. He was able to envision the true potential of his resources and implemented drastic changes such as the Stretch, Work-Out, and Number One, Number Two business concepts (which will be discussed later) to achieve his goals.
As CEO of the Andrews Company, my responsibilities were to operate my company in all fields including Marketing, R&D, financing and Production. As CEO, I followed certain steps to the of best my knowledge in order to ensure the success of each department and company as a whole. In the process of utilizing every skill possible, products were introduced to meet the demand of my Niche Cost Leader Strategy. My requirement for utilizing the Niche Cost Leader Strategy was for my company to focus on the traditional and low-end segments by automating in mass production in order to keep costs down for my company. My company’s agenda was not to compete with the latest technology advancements but to focus more on cost savings that will in terms provide
For much of its century long history, Nucor Corporation and its predecessors displayed turbulent performance. Several attempts at strategic and leadership realignment proved unsuccessful, and in 1965, the company faced insolvency. Since that time, however, the company has rallied around its steel operations to become the largest steel producer in the United States, with $4.3 billion in net annual sales. This case examines Nucor's development from an unprofitable conglomerate to a highly efficient enterprise. Specific focus on the evolution of the activity system underlying the organization lays the groundwork for systematic analysis of why some companies succeed while others fail.
Delta’s purchase of the Trainer Refinery and the merger with Virgin Airlines are clear examples of grand strategies. Delta sought these strategies to achieve long-term business objectives. Delta recognized hurdles in achieving profit posed by increased costs associated with jet fuel (and their incredible dependence on fuel as an operating cost) and a lack of access to the international market for trans-Atlantic flights. In order to achieve these objectives Delta employed two different strategies. The first was vertical acquisition. By purchasing a refinery, Delta was acquiring a supplier and the inputs that it needed for operations. More specifically, this is an example of backward vertical integration because Trainer “operates at an
...markets. This was accomplished by focusing on design and engineering. However, without strong sales, marketing and production resources, the company will not be able to secure these alternative markets. Since the product is nearly completed, Ecton should stay with their original plan. This would allow Ecton to take advantage of their position as the first to market when negotiating with a potential buyer. By selling the business now, Ecton could avoid the necessity of giving up additional equity to secure additional funding. This would give the original investors (which include the founders) the greatest return on their investment. Michael Cannon has already developed an exit strategy in his Phase III plan. This plan should be followed through. Since Ecton is close to perfecting their product the time is right to make the best deal possible for an acquisition.
Through out his tenure at Sunbeam,Al Dunlap’s advocated profit by firing many employees and shutting down many factories.If we look at it in the short term ,this approach seems very attractive as it brings in quick short term gains.In the long term ,however, such a decision would not ensure the sustainability of the company. Profitability and responsibility can and should be combined in an ideal world, however it is clear that they are at least partially contradictory. Shareholder pressure should not force a company to make short-term decisions that might be detrimental to the long-term profitability of the company.
Sears has seen many different changes in business and has had to adjust to t...
One weakness is that the CEO does not have his bachelor’s degree. The company also lacks capital to expand into other parts of the United States as well as international. Ascension Worldwide also lacks strategic partnership necessary to move into the international space at this point. The CEO and his associates need advance certifications in organizational development in order to be effective coaches and trainers. This company also needs a good mentor in order to take it to the next level. They should hire a coach and a marketing company so that they can grow to their fullest potential. “Strengths and weaknesses are the "internal" aspects of the traditional SWOT analysis.” (Abraham, S. C., 2012, p.
Evaluating Cooper’s Ice Center’s situation, Claude Cooper is looking to increase his profits. He is doing a few things right. For instance, his hockey program is doing well and is contributing largely to his profits. Along with keeping his hockey program, Cooper should also keep the public skating. While this is not bringing in revenue now, there is a great potential in the program. Over 700 hundred people could attend this event and it would increase revenue in concessions. Their facility is the only ice rink located in the northern city with 450,000 people. This means there is a great market for public skating. Once he figures out how to promote it, he can easily fill his 700 people rink capacity. Cooper also has the right concept for
Organizational change, particularly large-scale change, becomes part of the company’s history; therefore, it is crucial that senior leadership plan the change thoroughly. Planning may include understanding the current state of the organization, the external and internal environment, and identifying the organization’s long-term vision simultaneously. Choosing the right approach is significant in the change process as it may be true with British Airlines’ wildcat strike blunder. This blunder is now added to British Airway history where they lost 40 million pounds because of an oversight. Ideally, changes in the organization will have minimal employee impact and operational disruption; however, this is not the case with British Airways when
Choi Joon Seo, a 31-year-old Korean who worked as regional marketing manager for Nike in Hong Kong, resigned his job so he could pursue his dream of building his own sports marketing company. (Jung et al. 2000)
Starbucks’ CEO had a good understanding of the need for good business strategizing, which explains the high success rate that the company has experienced over the years. His strategies were precise; globalization of the company, focus on the beverage market targeting affluent and social professionals, developing a strong brand, investing in an efficient and customer friendly workforce, striving to break new business grounds ...
This paper will explore how the company is fairing under the leadership of its current CEO, Andrea Jung. There are two opposing views regarding the company's current and future success. One group feels that the firm has a promising future with Jung at the helm while the other group does not. This paper will analyze the pros and cons uncovered by each team member and discuss which view prevailed in the debate and why.