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Judgemental error and a company's decision making strategies

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I am doing a presentation on what went wrong with this companys decision here is the scenario.

With childhood obesity a high concern 3 years ago, high competition, a large dept, and carb-consciousness, senior management at Interstate Bakeries made critical decision errors in order to reverse the annual losses they were reporting. This caused the well known Twinkies and Wonder Bread brands to be lost to the public, as the company was forced to file bankruptcy protection.
They changed their recipe to try to make their products have a longer Shelf life which caused the Wonder Bread to be gummy and collapse. They also cut down on Deliveries which kept store shelfs bare and untidy.

I need to identify the decision concepts (theories, principles, heuristic, traps, etc) and explain why they occured and give recommendations of what could have been done differently.

So far I identified in part this falls into the "Investment Trap" but what else am I failing to identify?

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What went wrong with the company's decision in making a sound business and ethical judgmental error is the 'false assumption' that compromised the quality of the product, in this case a consumable item, which can clearly lead to further damage to the profit sharing as well as more importantly the credibility of the industry.

The company's management totally disregarded the credibility and image aspect of the outcome, since eventually consumers will get negatively affected by such ad-hoc and unethical practices of wrongfully making the business run. This gets further complicated with the clear indication that the method of keeping the product available in the market made a shabby impression on the consumers. Furthermore, we have to look at the ...

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Judgemental error and a company's decision making strategies to keep reputation

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See Also This Related BrainMass Solution

Business Research for Optimal Decision Making

Think about a recent business decision you have made that was either a success or a failure. Your supervisor asked you to email him/her a self-evaluation of this decision as part of your yearly evaluation. You are to be as objective and open minded as possible. Analyze your decision using Bazerman's six steps as a guide: define the problem, identify the criteria, weigh the criteria, generate alternatives, rate each alternative on each criterion, compute the optimal decision. Make sure your email addresses the following issues:

Were there any discrepancies between the calculated "optimal" decision and your actual (or favored) decision? If so, what might account for the discrepancies?

What problems, if any, did you encounter when completing the steps? (For example, were you able to compute an optimal decision? If not, why not?)

Are there any weaknesses in the "fully rational" model of decision-making? If so, what are they?

Source:

Bazerman, M. H. (2006). Judgment in Managerial Decision Making (6th ed.). New York: Wiley.

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