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    Decision Making - Case Study

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    You were asked to observe a recent sales meeting between Dawn, (a production manager at your company) and a sales representative from "Widgets R Us". Widgets R Us recently sold your company a major piece of production equipment and now wants to see your company add on options and services for that same piece of equipment.

    The salesperson has come prepared and shows you and Dawn a flashy video showing the advantages of adding the additional items and services. Dawn is impressed by the assertions made in the video, particularly those relating to additional cost savings, but is concerned about the additional price of the options and services. The salesperson approaches the topic of "cost" with great skill explaining that "While the initial investment may seem rather steep, I think you'll find over the life of the equipment that it averages out to about $.75 a day. I think you'll find that's less than the cost of a can of soda a day. Isn't the potential for greater efficiencies and possible cost savings worth the cost of a daily can of soda?"

    Dawn, upon hearing this, admits that this sounds reasonable and agrees to purchase the additional options and service.

    As the observer your objective is to prepare a research paper addressing the decision making in this situation. Your paper should address and discuss the following:

    1.Identify how Dawn "framed" her decision. You may want to outline or flowchart her thought process (a way of identifying her decision frame).
    2.What factors would have led Dawn to come to a different decision (in other words an alternative "frame")
    3.What do you believe are the implications of "framing" on our judgments and on our attempts to influence others?
    4.Are there moral considerations? Why or why not?

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    Solution Preview

    The success of an organization is dependent on the decisions that are made by its senior leadership team. The determination on whether to invest in new products, services, and people can all affect the productivity of an organization and impact its overall success (Powell & Buede, 2006). How leaders go about making decisions is critical and plays a significant part in determining the strategic success of an organization. For instance, in some situations, a decision based on the short term success of an organization may have lasting negative impacts that prevent the organization from realizing its full potential. This paper will discuss how the employee Dawn, viewed the decision that needed to be made for her respective organization.

    Dawn, the sales manager, recently participated in a meeting from Widgets R Us. During this particular meeting the sales manager from Widgets R Us provided Dawn a sales pitch on additional related items and services that are available for Dawn's company to purchase for a product that Dawn's company had recently decided to purchase. Dawn decided that the purchasing of these particular items and services were in the best interest of her company and decided to purchase these items. However, ...

    Solution Summary

    This solution utilizes a situation case study situation to provide the learner an understanding of how an organizations senior leadership conducts decision making.