Fashion Town, a multi store chain of women's clothes has reviewed and analyzed last year's sales data and is developing a new five year plan. Management has formulated four questions or "Decision Problems" that should be answered. The four "Decision Problems" or questions are:
1) Why are store revenues lower than previous years?
2) What needs do Fashion Town customers have that are not being met?
3) How does Fashion Town increase store traffic?
4) How should we introduce a new product?
Answer the following questions:
a) Identify a "Research Problem" for each of the "Decision Problems."
b) Define both "Discovery oriented decision problems" and "Strategy oriented decision problems" and explain the differences.
c) Identify each of the given decision problems as discovery or strategy oriented.
A) Research Problems - When defining the research problem, you should always ask what information is needed and how the information is to be obtained.
1) Management should contact the finance/accounting department and have financial analysts or accounting managers to analyze the revenues from the income statement from the past 3 years to see if there are any noticeable ...
The expert reviews and analyzes last year's sales data.