GSB014 Decision-Making Process Assignment Sample

• Subject Code : GSB014
• University : Australian Institute of Management My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Decision Making

Business Decision Making and Analysis

Table of Contents

Introduction.

Rational decision-making process.

Application of William’s model

Recommendation.

Conclusion.

Reference List

Introduction to Decision-Making Process

The decision-making model is maximum quality by outcomes in programmed decisions in assessing an organization's problems (William, 2002). The rational decision-making process uses conductive research for alternatives for the best alternative. The immersion on the identification of problems is decisive for gathering information for expertise with the team for forwarding looking actions. Critical thinking addresses the analysis of the potential to overcome the stock handling issue faced by the team (Peltonen, 2019). The ideas by the team through brainstorming will assert the approach with management analysis on an evaluation of the alternative. The shared approach will reduce the bias to overcome the functionality and assessment of the problem by quantitative and qualitative factors. The decision making is classified on two levels for the case strategic decision making and organizational decision making. Strategic decision making will set the organization course and operational decision making are daily functioning.

NQR is a discount store that provides grocery and frozen products. The store is operational since the year 1987 and was acquired by Trade origin Pty ltd (NQR, 2020). The organizations are in retail and e-commerce platform. This report highlights the decision-making process of the organization.

Rational Decision-Making Process

The operational decision-making problem at NQR relates to inventory management in the organizations. Strategic decision making relates to business scaling and the business pivot on the current strategic plan with fall in purchase at the store. Decision making will require generating new ideas and solutions for the problem. The management discussion at the team meeting will provide organizational strength and its current problem. The approach towards rational decision making is inclusive of qualitative and quantitative factors.

The problem identified can be solved through alternatives proposed by discussion through management. These problems are transparent and it's possible to finds a solution to the problem with a definitive solution by technology and organizational structuring by change in perception and approach towards finding a solution to the problem.

The rational decision-making process involves these steps - Problem identification, criteria definition, alternative evaluation, and implication of the solution (Weirich, 2015). The brainstorming session by the team acknowledges and decided to sit for the meeting and discuss the same evaluation of uncertainty and outcomes for the optimization plan objectives of the organization through a common census (Weirich, 2015).

Problem identification

The outlet operational team has discussed the non-stock maintenance is in their factory outlet that is led to overstock issues. The strategic team has voiced their problem that the demand for the product has been stagnant from the past 3 months. The outlet delivery stream can be used for serving the product to end customers as the customer penetration segment is less than 5 % in Australia's overall sales. This can be solved through the delivery partner fleet increase in the area. This is the product pivot decision that requires customer and channel decisions. The organization's strength is its unique product proposition that can be extended for delivery options too. This will require new decision deals and competitive analysis to retain market share and customer-centricity. The operational problem can be assessed through the change in operational handling to automation and the use of ERP monitoring by lean management. The brainstorming sessions by the team define the financial and non-financial requirements by the scenario by developing the solution (Uzonwanne, 2016). The organization audit at this stage showed the company’s management of goods and store handling strength with different unit’s segregation at factory sale. The operational re-organization will require a price tradeoff for functioning ahead with quality enhancement.

Criteria defining

The lean efficiency in the packaging and maintenance as the trolley system will be used to ensure the process will be measured on cost, performance, safety, and training for improvement of the process as the objective is to ensure organization set up and modification to be modular. The cost and performance of the alternative will simultaneously affect the performance of the firm and its structural benefit (Stanovich, 2015). The strategic decision making for the demand and business scaling will be through delivery partner tie-up will be assessed based on location, price, weight carried, time efficiency. The problem is multidimensional hence it will require criteria establishment for assessing the parameter specific to decision making.

Table 1- Operational decision-making criteria

Table 2- Strategic decision-making criteria

Alternative selection

This involves cost investment machine and field handling by the ground staff to secure trolley space for the non-dispatched item. Secondly, a loyalty card discount can be given for stock sales for the month-end. Another alternative is an automated stock tracker is to track the item for individual order requisitioning for stock pilferage prevention. The firm's organizational structure is not flexible and is traditionally uprooted hence a change in structure is required with the technological interface. These 3 are marked as an alternative

1, 2, and 3 respectively. Quantifying and dealing with uncertainty by applying the decision-making process for projected revenue. The discount sale will ensure the end of the month sale of stock which will be critical to address the stock issue for the alternatives. The quantifiable approach for the objective is appropriate to rank the alternative with preference to select the option by its importance towards the definitive solution (Guy, 2015).

Table 3 -Assessment of alternatives

Table 4- Weighted assessment of alternatives for operational decision making

Alternative 2 is ranked higher in the operational decision making as customer interaction ad loyalty card sales will help in NRQ deep discount sale which will avoid stock pilferage. The staff training for trolley and automation is given less perforce and standard operation change is not appreciated for the said period as this is identified by the operational and ground-level team with cost as the key criteria. The cost is the main criteria and performance is second.

The delivery partner will act as a hub for the delivery model for demand and act as an aggregator for the distribution of order. The service providers are FedEx, Star Track, Kloopr, and Yello. They are ranked alternative 1 to 4. The factor of time is essential as the delivery is focused on product reach to customers will ensure distinction due to the presence of online stores present in the suburb. The weight carried and location will ensure the delivery is used for bulk order. The goal is to implement the model in the next 6 months. The decision rationale is improved with facts as star track has started a tie program for B2C Company as this will promote hassle-free discounting with faster delivery and using the model with price and time factor. FedEx has package insurance and is one of the largest delivery partners across the world with ensuring safety and location delivery with its fleet of the delivery channel that will be useful in package delivery. The store warehouse and unlading space have to be monitored for delivery options to ensure the feasibility of operations. The rational decision in the above scenario is to other information regarding the decision situation and ensuring maximum payoff with estimated revenue for NQR performance with total sales from the online delivery channel. The solution for the delivery fleet by FedEx is on better safety and its long term model is economical for the single delivery area. The first delivery round will ensure product placement and staff orientation towards the product is developed with an operational team. The task decided for the strategic channel on the division of property discount range for delivery with the selection of FedEx as alternative management census is highest.

Table 5 - Strategic decision alternatives

Table 6- Weighted strategic decision alternatives

The alternative is decided on staff participation in the daily functioning of a business environment by improving the organizational structure of the business in the long run by a modification to ensure the overstock issue is resolved which is developed due to the non-utilization of supply chain . The efficiency in the company is the alternative option with possible constraints with adaptation. The highest value determined to the criteria and acknowledging the utility for cost-benefit for long term revenue is involved in decision-maker preference for maximizing the value (Luhmann, 2018). The quantifiable approach in alternative measurement creates ranking as per the weight assigned to each category corresponding to the performance. These distinguishing evaluations and alternatives play a key role in decision announcement with the timeline for operations and readjustments. The problem observation with delivery vs non-delivery margin that may not get materialize with sudden change and would require additional cost is specific to the change management and operational efficiency. NQR must gather the understanding of timeline in importune with single factor as an essential factor in alternatives for efficiency by the strategic initiatives in organizational scale with outreach to customers far off by delivery at round the clocks service that creates a new stream.

Implementation

Implementation of the solution requires the operational and control team to continue to draw a timeline with the completion of tasks within the stipulated time. The decision making is decided by arranging and weighing the problem for support for the evaluation process in the final decision. The implementation is on the additional arguments after roles and responsibilities have been determined. The monitoring system with weekly feedback on the phase implementation of the plan will measure the planned process. The product outreach will be increased with diversification and demand will be inflated through stock order by ERP system and online sales will incur the sales of the product. This will incur the revenue and margin through delivery for the company for growth with optimization. The moral charge and behavior are practiced in the organization to address the ethical issue if any while working for organizational objectives and report misconduct on supplier delivery partner issues and mistakes to the manager (Weirich, 2015). The cross-functional group at the organization will fast-track the strategic initiatives as structural outlay play a key role in the collaboration of budget classification resource management. Reorganizing the warehouse order stock will reduce the storage space and additional cost on no sale by the central function of unit cost on assembly directly connected through the ERP control system. The team for delivery partner management will be general accountability to ensure transparency as an independent unit and clear process for a streamlined process.

 Application of William’s Model

This decision-making approach applied for the company assumes that the manager identifies the problem and the alternatives will help in achieving the objectives. The sequence of problems will help in the achievement of the problem as the alternatives will lead to the solution of the problem. The building components affect the decision making for limitations of the decision making alternative for successful rational decision approach is used

Building components are required when presenting an alternative, the decision-maker evaluates a result for each possible decision until the firm takes into consideration all possible combinations, constraints, and limitations for the decision (Harvard Business Review, 2010). The collective approach of decision making and independent equations are applied to the problem. The alternative is decided with uncertainty and the possible impact of the organization ahead.

Limitations associated with bounded rationality are optimally associated as the bounded rationality by the team with pre-bias on the alternative with familiarity with design order. The lean management as an approach with operational use by employees are familiar with practice in unit management in a warehouse previously. The decision taken for an organization in strategic decision making will have consequences in the long term as the operational changes and modifications will take a large amount of time. The consumer shift from the product may lead to a drop in demand with uncertainty in decision making.

The value trade-off is a challenge as the automated process and staff efficiency can be relative with the replacement of one of the choices. This may impact the implementation of the plan. Identifying alternatives that are obvious, ones with which they are familiar, are not too far from the status quo can create subjectivity. The alternatives are to be used as the delivery partner will be the carrier and the major partner in the product transfer to end-user NQR. The solution may not apply complete rationality but the model for decision making is used in line with William's (2002) principle with possible consequences on business efficiency on ranking of alternatives as designed. All possible alternatives are taken into account for short term and long term consequences this is used for arriving at a suitable option applicable for the scenario. The change applicable for achieving objectives within the stipulated period are based on rational approach. Rational decision making is pre-dominant in decision making with available facts with the case of NQR. The details are facts and information which are available in precise information for adequate material in terms of the value of the information and its availability with decision-makers.

Recommendation on Decision-Making Process

• Engagement in brainstorming and curating ideas with goal setting with a common group to identifying problems.
• Avoiding bias in decision making with judgment on facts and figure to provide a clear reason for decision making at strategic decision making to hold the organization together
• Ensuring consistency in the organization and information sharing across the operational level for clarity of duties as a lack of information creates ambiguity. The decision-making process is managed by effective group dynamics to avoid conflicts in implantation for objectives, and the process in involving those stakeholders for achieving the goal (Gigerenzer, 2015).

Conclusion on Decision-Making Process

The rational decision making will help to strive for an optimal solution through alternatives available for NQR by executing the operational and strategic solution for the overall outcome. The scion making at the organization is constrained by bounded rationality. The organizational structure is determinant of the structure and plays an important role in the performance. Rational decision making assumes a fundamental approach with the information for the solution with given facts and figures. The ranking preference is clear on the possible future implications and various possibilities in case the deacon making goes wrong.

Reference List for Decision-Making Process

Gigerenzer, G. (2015). Simply rational: Decision making in the real world. DC, USA: Oxford University Press

Guy, V.T., Karny, M., &Wolpert, H.D. (2015). Decision making: Uncertainty, Imperfection, deliberation, and scalability. Berlin, Germany: Springer publication

Harvard business review. (2010). The decision-driven organization. Retrieved from https://hbr.org/2010/06/the-decision-driven-organization 

Luhmann, N., Barrett, R. (2018). Organization and decision. UK: Cambridge University Press.

NQR. (2020). about us. Retrieved from https://nqr.com.au/pages/about-us

Peltonen, T. (2019). Towards wise management: Wisdom and stupidity in strategic decision making. Palgrave Macmillan

Stanovich, E.K., West, F.R. (2015). The rationality quotient: towards a test of rational thinking. USA: Massachusetts Institute of technology

Uzonwanne, F.C. (2016). The rational model of decision making. Nigeria: Springer publication

Weirich, P. (2015). Model of decision making. UK: Cambridge University Press

William (2002). Making better decisions: Understanding and improving critical thinking and problem-solving. London, UK: Sage publications

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