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Decision Making

Details: You recently observed a meeting between Ron, (a production manager at your company) and a sales representative from "Big Machines Inc". Big Machines Inc last year sold your company a major piece of production equipment. They are now trying to sell your company additional options and services for that same piece of equipment.

The salesperson has come prepared. In addition to glossy brochures she shows you and Ron a PowerPoint presentation complete with video outlining the advantages of adding the additional items and services. Ron is impressed by the facts presented and the video showing the options in action. In particular Ron is drawn to the facts regarding additional cost savings. Ron expresses serious concern 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 the cost of these options averages out to about $1.00 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?"

Ron, after hearing all this information 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:

Identify how Ron "framed" his decision. To identify his frame you will need to outline or flowchart his thought process (a way of identifying his decision frame).

What factors would have led Ron to come to a different decision (in other words an alternative "frame")

What do you believe are the implications of "framing" on our decisions and in particular on our attempts to influence others?

Reference

Working psychology. (2003). Retrieved July 15, 2003, from Working Psychology Web site: http://www.workingpsychology.com/index.html

Objective: Examine the anatomy of a decision.
Frame a decision.
Recognize situations that present potential ethical and legal issues and develop solutions for those issues.

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Solution Summary

The response addresses the queries posted in 634 words with references. The following paper talks about the decision making in a particular situation. It identifies as to how the decision was made and its implications on the business. Different people think in different ways and have different thought processes. In this situation, the thought process of Ron, who is the production manager of the organization, has been analyzed. A business scenario has been provided and we have to analyze the decision making process under it.

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Decision Making

In the given case, Ron, who is a production manager at the company met with sales representative from "Big Machines Inc" to chalk out a deal. Ron's company had earlier purchased major piece production equipment from the "Big Machines Inc". This company was now offering additional options and services for that same piece of equipment. The salesperson managed to impress Ron by showing him glossy brochures, PowerPoint presentation with video which were highlighting the benefits in going for this purchase. Ron was concerned about the price of these additional options but at the same drawn to the fact that these options were saving his costs. The sales representative gave a lot of arguments which justified the purchase. After much thought, Ron decided to go ahead with the purchases (Harris, 2008).

//An outline of the thought process of Ron has been described below. His decision frame has been properly explained with the help of a series of steps starting from the identification of the decision to be made to the final decision. //

Outline of Ron's Thought Process

Identifying decision to be made : To purchase additional options

Gathering Information : Sales Representative's power point slides, brochures

Developing Alternatives : Purchase or not purchase ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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