Case summary: Company T started work in 2003 and specialized in making cars, batteries, and solar panels. The company came up with models costing less than $35,000 which affected the finances and the company suffered losses. The credit rating of the company also went down. The company’s owner and CEO EM stated that manufacturing of model 3 caused many problems as the model had a high defect rate. Company T cannot maintain the production line for the high arising demand. Company T’s production line suffered due to too much automation, as EM decided for many features to be automated. The idea of automation made production even slower. The idea of EM to add robots became more expensive for companies that employees as high professionals were required to program robots. The models failed in markets due to many problems and even were a lot expensive to the company. However, EM disagreed with the critics and said that they will be earning profit in the coming times. EM agreed that using robots was his mistake and he started working as a nano-manager. The direct oversight of EM helped him manage the production line of Model 3. He temporarily stopped the production line of Model 3 and committed to increasing the production. The company added a production shift, hired workers. Critics said that this is definitely not a good idea and will add more pressure on the finances of the company. Considering all the expenses the company made in expenses, the question is whether the EM will run out of cash or not.
To evaluate:The approach of CEO EM of Company T in solving the problem.
Want to see the full answer?
Check out a sample textbook solutionChapter 16 Solutions
Gen Combo Looseleaf Management; Connect Access Card
- Devise a solution for the problem under each of the four criteria of decisions under uncertainty.arrow_forwardWhat exactly is sensitivity analysis, and how does it help a decision maker?arrow_forwardIn this case study, we explore the meticulous planning and execution of a charity fundraising gala to support a local nonprofit organization. The gala aimed to raise funds for underprivileged children's education and healthcare. The organizing team faced the task of coordinating a luxurious evening event, complete with entertainment, fine dining, and silent auctions, all while staying within a limited budget. They also had to secure sponsorships, promote the event effectively, and ensure that all proceeds went directly to the cause. The study examines how the team managed to achieve their goals by leveraging volunteer support, creative cost-saving measures, and building partnerships with local businesses. Question: How did the organizing team balance the desire for an upscale gala with the need to maximize funds for the charity, and what strategies can be adapted for similar fundraising events with limited resources?arrow_forward
- 1. What is benchmarking? And how should it be implemented? 2. Define three common decision-making biases and give an example of each.arrow_forwarddescribe the problem-solving process. Be sure to include the eight-step creative problem-solving process. How does the eight-step process relate to your own method of solving problems?arrow_forwardQ1) Ahmed's interest was cricket. When he finished university, he wanted to work in a management job. He wanted to do his research project on some aspect of general management and social sciences, preferably for a sports goods manufacturer but had no research idea. He asked five friends, all taking business education degrees, to help him brainstorm the problem. You are requested to use the following problem-solving techniques to generate and refine the research idea in this business scenario. i) The technique of Brainstormingii) The Delphi techniquearrow_forward
- A model for decision making process, discuss briefly each of the elements of the process as shown in the figure.arrow_forwardYour Task For each scenario, discuss the following: - What is the issue (there may be more than 1)? - Who are the parties affected? - List and explain 2 alternatives for handling each situation o Discuss 2 pros and 2 cons for each alternative What is your conclusion? Discuss the best way to handle each situation - use reasoning to justify your decision Situation You manage a catalog phone center|where each of your 20 workers answers phones all day in one of four cubicles. You have just received another complaint from one of the women in the department. She is disturbed because one of the workers in her cubicle has put pictures of women in bathing suits up all over his workspace. She finds this offensive. She had asked him to remove the pictures, but he refused. This is the second time a complaint of this nature has taken place. Last time you switched him to another cubicle.arrow_forwardExplain the concept of contribution and limiting factors and how it can be effectively used in decision making.arrow_forward
- For each of the following report situations, write a clear problem statement and list what factors could or should be explored. A manufacturer of breakfast cereals wants to attract a new demographic of consumers. The manufacture of a toothpaste wants a bigger share of the toothpaste market. A company wants to give its stockholders a summary of its operations for the past calendar year. A building contractor engaged to remodel an office for the Company X submits a report summarizing its weekly progress The supervisor do Department X must prepare a report about the need for a new staff member Baker, Inc is experiencing higher than normal employee turnover. An executive must rank three subordinates on the basis of their suitability for promotion to a particular job. A restaurant manager must compare two possible suppliers of fresh seafood. An investment consultant must advise a client on whether to invest in the development of a lake resort. A consultant needs to help a wine shop…arrow_forwardUnder the SAFe criteria, what key issues does the suitability address?arrow_forwardThis case study focuses on the planning and execution of a non-profit organization's annual fundraising gala. The event aimed to raise funds for a children's education initiative. The organizers faced a multitude of tasks, including selecting a suitable venue, securing sponsors, coordinating with caterers, and creating an engaging program that would resonate with donors. Additionally, they had to ensure that the event adhered to the organization's values and mission. The study analyzes the strategies implemented by the team, emphasizing the importance of building strong partnerships with local businesses, leveraging social media for outreach, and delivering a heartfelt message to attendees to inspire donations. Question: How did the organizers strike a balance between keeping event costs low and maximizing fundraising efforts?arrow_forward