Examine current events and choose a risky decision that must be made. This decision may be derived from current political, economic, legal, or civic events. Include the following details in your paper:
- An overview description of the decision to be made
- The primary decision
- The primary objective
- The uncertain event
Explain and support your response with examples. Follow APA guidelines.
Examine current events and chose a risky decision that must be made.
Provide an overview description of the decision to be made. There should be alternatives. In risky decision making there are also probabilities.
Explain the primary decision, primary objective, and uncertain events. Elements of rational decision making not present.
In accordance with BrainMass standards this is not a hand in ready paper but only background help.
The overview description of the decision to be made is that my company has been given an order of 1.2 million Euros for the sale of CNC lathes to a French buyer. Our company can make and ship the required lathes earliest within six months. The order gives our company ten months time. The risk is that the U.S. dollar has been increasing in value against the euro for eight weeks continuously. This is a risk derived from the current economic situation. The U.S. economy has entered the expansion phase of the business cycle but the European economy is weak and may slip into recession. The risk is that if we accept the order and the dollar continues its climb against the euro our company will far fewer dollars and will lead to a loss for the company.
The primary decision is whether to accept the order for Euro 1.2 million worth of CNC lathes or to reject the order?
The primary objective is to accept the Euro 1.2 million but not to make a loss because of foreign exchange rate fluctuation.
This posting gives you a step-by-step explanation of a risky business decision. The response also contains the sources used.