CH-10 Decision Making by Individuals and Groups – Organizational Behavior: Science, The Real World, and You : Book Guide

10. DECISION MAKING BY INDIVIDUALS AND GROUPS REVIEW QUESTIONS: suggested answers Compare the garbage can model with the bounded rationality model. Compare the usefulness of these models in today's organizations. Answer: Decisions in the garbage can model are nonrational and unsystematic. It is typically used in situations of high uncertainty. The bounded rationality model assumes that managers satisfice by selecting the first alternative that is good enough. The pressures of time and competition in today’s global environment require that managers make decisions quickly. Both models reflect decision making in this fast-paced environment. List and describe Jung's four cognitive styles. How does the Z model capitalize on the strengths of the four preferences? Answer: Jung combines the concepts of thinking and feeling, and sensing and intuiting into four cognitive styles: ST, SF, NT, and NF. The Z model recommends using the following preferences, in order: (1) S; (2) N; (3) T; (4) F. What are the individual and organizational influences on creativity? Answer: Cognitive factors of the individual affect creativity. Personality factors also influence one's ability to be creative. Interestingly, being in a good mood provides better creativity than does a bad or even neutral mood. Organizational influences include support and a flexible organization structure. Participative decision making is also related to creativity. What are the individual and organizational foundations of empowerment and teamwork? Answer: The organizational foundations of empowerment and teamwork are a participative, supportive organizational culture and a team-oriented work design. Individual foundations include the capability to become psychologically involved in participative activities, motivation to act autonomously, and the capacity to see the relevance of participation for one's own well-being. Describe the advantages and disadvantages of group decision making. Answer: Group decision making is slow because of the process of getting everyone involved, and is susceptible to groupthink and group polarization. However, group decisions are often better decisions, and the group decision making process has a far greater acceptance level for the final outcome than singular decision making. Describe the symptoms of groupthink, and identify actions that can be taken to prevent it. Answer: The symptoms of groupthink include illusions of invulnerability, group morality, and unanimity; rationalization, stereotyping the enemy, members’ self-censorship, peer pressure to agree, and mind guards who protect the group from negative feedback. Methods of preventing groupthink include appointing a devil's advocate, asking each member to be a critical evaluator, creating several teams that work on the decision simultaneously, having outside experts evaluate the group's progress, evaluating the competition carefully, and encouraging the group to rethink its chosen course of action. What techniques can be used to improve group decisions? Answer: There are several structured techniques for improving decisions, including brainstorming, nominal group technique, Delphi technique, dialectical inquiry, and devil's advocacy. DISCUSSION AND COMMUNICATION QUESTIONS: suggested answers Why is identification of the real problem the first and most important step in the decision-making process? How does attribution theory explain mistakes that can be made as managers and employees work together to explain why the problem occurred? Answer: Identification of the real problem is critical because it ensures that the group will be "treating the problem instead of the symptom." Attribution theory suggests that individuals will tend to look to external causes to explain their own failure. This could bias the problem-solving process. How can organizations effectively manage both risk taking and escalation of commitment in the decision-making behavior of employees? Answer: Students may suggest solutions including policies such as requiring that someone outside the decision making team review a decision to try to guard against excessive risk taking. Organizations may manage the escalation of commitment by having different individuals make initial and later decisions. Organizations can effectively manage risk-taking and escalation of commitment by implementing several strategies: 1. Encourage a Balanced Risk Culture: Promote a culture that values calculated risk-taking while discouraging reckless decisions. Provide training on risk assessment and decision-making frameworks. 2. Implement Clear Decision-Making Processes: Establish structured processes for evaluating decisions, including checkpoints and criteria for assessing risk and potential rewards. 3. Foster Open Communication: Create an environment where employees feel comfortable discussing potential risks and setbacks without fear of reprimand. This helps in early identification and mitigation of issues. 4. Monitor and Review Decisions Regularly: Set up mechanisms for regular review and feedback on ongoing projects to identify and address any escalation of commitment early. 5. Encourage Accountability and Learning: Promote a culture of learning from both successes and failures, where accountability is emphasized and lessons are applied to future decisions. How will you most likely make decisions based on your cognitive style? What might you overlook using your preferred approach? Answer: The key to this question is to identify what one’s predominant style is, and to recognize that it may not be appropriate in all situations. The Z model incorporates the strengths of all four preferences. The personal cognitive style, if I were to use a typical analytical approach, decisions would be based on data, logic, and structured evaluation. This means I'd focus on factual evidence and systematic analysis. In doing so, I might overlook emotional or intuitive aspects of the decision-making process, such as personal values or the impact on team morale. These qualitative factors can be crucial in understanding the full implications of a decision but might not be fully captured through purely analytical methods. Balancing data with an awareness of these human factors could lead to more comprehensive and effective decision-making. How can organizations encourage creative decision making? Answer: Organizations can reward risk taking, provide a supportive environment, and permit failure. Organizations can encourage creative decision-making through several strategies: 1. Foster a Collaborative Environment: Promote teamwork and open dialogue where diverse ideas can be shared and built upon, creating a rich environment for creative solutions. 2. Provide Autonomy and Flexibility: Allow employees the freedom to explore unconventional approaches and take risks without the fear of immediate consequences. 3. Encourage Continuous Learning: Offer opportunities for employees to acquire new skills and knowledge, which can inspire fresh perspectives and innovative thinking. 4. Recognize and Reward Creativity: Acknowledge and celebrate creative efforts and successes, reinforcing the value of innovative thinking within the organization. 5. Create a Safe Space for Experimentation: Support a culture where experimentation is encouraged, and failures are viewed as learning opportunities rather than setbacks. What are some organizations that use expert systems? Group decision support systems? How will these two technologies affect managerial decision making? Answer: Campbell Soup Company and DuPont use expert systems while Boeing utilizes a GDSS. Students could also look to the six focus companies to respond to this question or examine organizations with which they have had personal experience. These tools may help simplify the decision process and can affect conflict management within a group. Organizations like IBM and Google use expert systems to support complex decision-making by leveraging artificial intelligence for tasks like diagnostics and strategic planning. Group decision support systems (GDSS), used by companies such as Microsoft and Oracle, facilitate collaborative decision-making by enabling real-time input and feedback from multiple participants. Expert systems enhance decision accuracy and efficiency by applying specialized knowledge, while GDSS improves the quality and speed of group decisions. Both technologies can significantly streamline managerial decision-making, making it more data-driven and collaborative. How do the potential risks associated with participating in QCs differ from those associated with participating in quality teams? If you were a member of a QC, how would management's decisions to reject your recommendations affect your motivation to participate? Answer: QCs are generated from the bottom up; therefore, they operate from fewer formal bases of power in the organization. When reasonable recommendations are rejected, members become less motivated to participate in quality circles. Form a team of four persons. Find two examples of recent decisions made in organizations: one that you consider a good decision, and one that you consider a bad decision. Two members should work on the good decision, and two on the bad decision. Each pair should write a brief description of the decision and then write a summary of what went right, what went wrong, and what could be done to improve the decision process. Compare and contrast your two examples in a presentation to the class. Answer: Encourage students to apply the material from the text to their analysis of the decisions that were made. To tackle this task, here’s a structured approach for forming and dividing the work within the team: Team Formation 1. Person A & Person B: Work on the good decision. 2. Person C & Person D: Work on the bad decision. Good Decision Example Decision: Microsoft’s Acquisition of LinkedIn (2016) • Description: Microsoft acquired LinkedIn for $26.2 billion, aiming to integrate LinkedIn's network with Microsoft's products and expand its enterprise software offerings. • Summary: • What Went Right: The acquisition strengthened Microsoft's position in professional networking and provided valuable data integration, leading to growth in its cloud services and business solutions. • What Went Wrong: Early integration challenges and concerns about data privacy were notable, but these were managed effectively over time. • Improvements: Enhance pre-acquisition due diligence and integration planning to address potential integration challenges earlier. Bad Decision Example Decision: Boeing 737 Max Development Issues • Description: Boeing’s decision to rush the 737 Max to market led to critical software and safety issues, resulting in two fatal crashes and a global grounding of the aircraft. • Summary: • What Went Right: Boeing initially aimed to meet market demands quickly and increase competitiveness. • What Went Wrong: The rushed development led to safety oversights, insufficient pilot training, and inadequate communication with regulators. • Improvements: Implement stricter safety protocols, conduct thorough testing, and ensure transparent communication with all stakeholders. Presentation Comparison 1. Good Decision: • Focus on strategic growth and long-term benefits. • Effective risk management and integration planning. 2. Bad Decision: • Rushed to meet deadlines without sufficient consideration of safety and regulatory concerns. • Resulted in significant financial and reputational damage. Contrast: The good decision reflects thorough planning and strategic alignment, whereas the bad decision illustrates the pitfalls of hasty decision-making and poor risk management. Both examples highlight the importance of balancing speed with thoroughness in decision-making processes. Reflect on your own experience in groups with groupthink. Describe the situation in which you encountered groupthink, the symptoms that were present, and the outcome. What remedies for groupthink would you prescribe? Summarize your answers in a memo to your instructor. Answer: Encourage students to provide good examples from a personal experience rather than just reiterating what the textbook says about groupthink. Memo Subject: Reflection on Groupthink Experience During a group project in college, we encountered groupthink when we rapidly agreed on a project plan without considering alternative approaches. Symptoms included a lack of critical evaluation and dissent, as well as pressure to conform. This led to a suboptimal project outcome that failed to address key issues. To remedy groupthink, I recommend encouraging open discussion, assigning a “devil’s advocate” role, and seeking external feedback to ensure diverse perspectives are considered. Best regards, [Your Name] ETHICAL DILEMMA Aaron’s first option is to tell his employees about the extremely poor financial condition of the company and make necessary the cuts to regain profitability but also risking the possibility that worried employees will leave voluntarily, thus forcing the company into bankruptcy and devastating stockholders. The second option is to protect his employees from worrying by keeping the company’s financial condition quiet as long as possible, keeping them on in the hope that things will turn around financially. Using consequential, rule-based, and character theories, evaluate Aaron’s options. Answer: Consequential – If Aaron tells his employees about the company’s poor financial condition and makes necessary cuts to personnel, additional employees may leave to find other jobs, adding to the possibility that Varnett may not be able to continue publishing newspapers, which would spell the end of the company. If he decides to hold out, hoping things will turn around, he still risks losing the company and will lose the respect of his employees in the process because he didn’t tell them about the company’s situation. Rule-based – Aaron has a fiduciary responsibility to do whatever is necessary to protect the stockholders’ wealth. Character – Varnett has always been a company that promoted a sense of family among its employees, and Aaron’s nature is to continue that effort by trying to protect his employees from losing their jobs. The problem is that either way he decides to go, he will ultimately be unable to protect everyone’s jobs and may end up closing the company in the end. What should Aaron Jr. do? Why? Answer: Aaron should do everything he can to protect the stockholders’ wealth while at the same time continuing to treat his employees like family by (1) being up front with his employees and inform them of the company’s financial situation and ask for their help in finding ways to cut costs, including voluntary layoffs and other options, (2) cutting staff where he can without endangering the company’s ability to produce newspapers. EXPERIENTIAL EXERCISES 10.1 Making a Layoff Decision Instructor's Notes: This exercise challenges students to make a fair, but difficult decision regarding a layoff in an organization. Students will discover their biases as they examine their reasons for selecting the person to be laid off. This is a good exercise to turn into a short paper, in view of the growing amount of information related to reductions in force and their effect on morale in organizations. Typical issues that will emerge are survivor syndrome, guilt, leadership style, sexism, racism, ageism, and communications. 10.2 Dilemma at 29,000 Feet Instructor's Notes: The assignment is for students to make an argument for either staying with the teammate or descending alone. There is no right or wrong answer to this case. The technical aspects of mountain climbing are not important, nor is it good enough for students to state that they would not get in this situation in the first place! The point is for students to consider and make clear their own ethical choices by evaluating all relevant information, evaluating the underlying assumptions of each, and creating a clear and convincing argument for action. SOURCE: D.C. Kayes, “Dilemma at 29,000 Feet: An Exercise in Ethical Decision Making Based on the 1996 Mt. Everest Climbing Disaster,” Journal of Management Education 26 (2002): 307-321. Reprinted by permission of Sage Publications. alternative experiential exerciseS Who Works Saturday Night? Instructor's Notes: This is a role play to be used with groups of five. For groups of four, omit either employee 1 or employee 2. For larger groups, add one or more observers (see observer sheet) or double up on one of the employees. The entire exercise can take more than an hour: 50 minutes or more to read the background material and roles and carry out the role play, 30 minutes or more for discussion. Be sure that the groups have enough physical space so as not to interfere with one another's discussions. Step 1 Make enough copies of each role so that each member of the class has one role description. Step 2 Be sure that everyone in the class has read the brief background description. (It may help to read it aloud to the class.) Step 3 (optional) After distributing the roles to the members of each group, divide the class into groups of the same role members - that is, all of the managers together, all employees together, and so forth. This gives individuals a chance to identify with and better understand their roles. Give the groups about 20 minutes to discuss their roles as they wish and clarify that they are not bound by the group's suggested strategies. Meet with the group of managers to answer any questions concerning what they are to do. Assign about one-third of the managers to be highly autocratic. This means that the managers can listen to the employees, but that they should make clear from the outset that the decision is going to come from management. Autocratic managers should say things such as: "I don't really care about your brother's wedding," and so forth. Assign about one-third of the managers to be extremely laissez faire. This means that the managers should constantly remind the workers that the decision is not of interest to them. In other words, the workers should be told, "Do whatever you want," and so forth. Assign the last third of the managers to be democratic. This means that the managers should clearly frame the problem for the workers, listen to their concerns, and actively lead them to a solution that has the widest acceptance and still meets the needs of the organization. Step 4 Redivide the class into work groups, each of which includes a manager and a player for each employee role. (Interesting results, for the purposes of comparison within the class, can come from arranging the groups in specific ways-that is, all male workers with a female manager, all female workers with a male manager, workers from one culture with a manager from another, all members from the same cultural background, and so forth. Or, try assigning the manager's role in some groups to students who are highly authoritarian and to others who are highly participative.) Step 5 Instruct the groups that the manager must make a decision at the end of the 30 minutes of role play. Step 6 At the end of the 30 minutes, call time and ask the managers for their decisions, the methods they used in arriving at their decisions, and the basis for the decision. In addition, ask them to describe the role that they were assigned (democratic, autocratic, laissez faire). Record each group's decision in a visible place, such as a blackboard, overhead, or flip chart. Step 7 Ask the observers, if any, to report on their findings. Are these consistent with the managers' descriptions of how decisions were made? Step 8 Discuss the questions below and those on the observer sheet. Questions for Discussion 1. Given the problem presented, did the manager of your group use an appropriate leadership style? Why or why not? (If you were the manager in your group, how did you feel about the effectiveness of the leadership style you used?) Answer: The manager of our group exhibited a laissez-faire leadership style, allowing decisions to be made with minimal intervention. While this approach can foster autonomy and creativity, it led to groupthink in our case, as critical discussions were not encouraged. If I were the manager, I would have preferred a more participative leadership style, where I would actively facilitate discussions and ensure diverse viewpoints were considered to avoid the pitfalls of groupthink. 2. What do you think the manager should have done differently? Answer: The manager should have adopted a more structured approach, actively encouraging debate and dissent. Implementing regular check-ins and assigning roles like a “devil’s advocate” would have promoted critical thinking and balanced decision-making. Additionally, seeking feedback from external sources could have helped in identifying potential biases and improving the overall decision process. Did the manager listen to and consider each employee's arguments? Answer: The manager did not adequately listen to or consider each employee's arguments. Discussions were often brief and dominated by a few voices, leading to a lack of diverse input and critical evaluation. This contributed to groupthink, where dissenting opinions were not fully explored. 4. How was the decision made? Did the manager elicit input from the employees? Answer: The decision was made quickly, with minimal input elicited from the team members. The manager did not facilitate a thorough discussion or actively seek out contributions from all members. Instead, decisions were largely driven by consensus without robust debate. 5. What are the implications of decision for each member? For the effectiveness of the team on Sunday? For the ultimate success and quality of the project? Answer: • For Each Member: Members felt their perspectives were undervalued, leading to disengagement and dissatisfaction. • For Team Effectiveness on Sunday: The lack of thorough discussion affected the team's cohesion and preparedness, leading to inefficient collaboration and a subpar outcome. • For Project Success and Quality: The rushed and poorly vetted decisions resulted in a lower quality project that failed to address key issues, impacting overall success and deliverability. Recommendations: To improve, the manager should foster an inclusive decision-making process, encourage open dialogue, and ensure that all voices are heard. This approach would enhance team morale, effectiveness, and the quality of the final project. * SOURCE: Janet W. Wohlberg, Scott Weighart, OB in Action, Cases and Exercises, 3rd edition, c1992, Houghton Mifflin. Who works saturday night? The purpose of this role play is to give you an opportunity to explore the effectiveness of different leadership styles - in this case, autocratic, democratic, and laissez faire - in decision-making situations. Autocratic leaders generally impose their decisions without considering the interests of their subordinates. Laissez-faire leaders, on the other hand, relinquish their decision-making powers to the group and its members. Democratic leaders clarify the goals to be met by the decision and work with subordinates to find a decision that best meets those goals. As you do this exercise, consider the leadership style being used by your group's manager and the ways in which you believe that style to be appropriate or not. BACKGROUND Your small company, Turnem, Inc., a manufacturer of valves that have a wide variety of uses, including use in several aspects of the aerospace industry, is on a tight deadline to complete a project. The prototype product is due to be demonstrated to the leaders of your aerospace industry the following Monday. To finish on schedule, it will be necessary for one member of your team to work this Saturday evening from about 5 P.M. to midnight and for the entire team to work at its most productive and cooperative level for the full day on Sunday. The budget allows for one member of the team to be paid to work on Saturday night. The contract for this project, although not your company's only source of revenue, is important. Review and plan your role thoroughly. Do not discuss your role with any of your classmates until you have been told to do so. 1. Briefly describe the manager's dilemma. Answer: The manager’s dilemma was balancing decision-making efficiency with thorough consideration of team input. The manager struggled with ensuring that all perspectives were adequately heard while trying to make timely decisions, which led to groupthink and overlooked critical viewpoints. 2. Were the employees given a fair chance to explain their concerns? Answer: Employees were not given a fair chance to explain their concerns. Discussions were limited and lacked structure, resulting in dominant voices overshadowing quieter members, and crucial issues were not fully addressed. 3. How would you rate the manager's overall listening skills and why? Answer: The manager’s overall listening skills were inadequate. The failure to actively solicit and consider diverse perspectives and the tendency to move forward without thorough discussion indicate a lack of effective listening. Improved listening skills could have prevented groupthink and resulted in better decision-making. 4. What factors do you think the manager failed to consider in making a decision? Answer: The manager failed to consider several key factors: • Diverse Perspectives: The input from all team members was not sufficiently sought or integrated, leading to a narrow view of potential solutions. • Potential Risks: The manager overlooked possible risks and downsides associated with the decisions made. • Thorough Analysis: There was insufficient analysis and debate regarding the proposed ideas, which could have highlighted weaknesses or better alternatives. 5. What factors did the manager appear to use in reaching a decision? Answer: The manager appeared to use the following factors: • Speed and Efficiency: Decisions were made quickly, likely prioritizing efficiency over thoroughness. • Consensus: The manager seemed to rely on achieving a general agreement among team members, rather than seeking in-depth input from all. • Dominant Opinions: Decisions were influenced by the more vocal or dominant members, potentially sidelining quieter, but potentially valuable, viewpoints. 6. How did the employees react to the manager's leadership style, and why? Answer: Employees reacted negatively to the manager's leadership style. The lack of inclusive dialogue and disregard for diverse opinions led to frustration and disengagement. Many felt their concerns were not valued, impacting their motivation and overall team morale. This reaction was a result of feeling excluded from meaningful decision-making processes and having limited influence on the project's direction. Rate your group manager on the following scale: Autocratic 10 Laissez faire 5 9 4 8 3 7 2 6 Democratic 1 Calculate the average rating in your group (not counting the manager's opinion!) by adding all ratings and dividing by the number of workers in the group. Rate your satisfaction with the decision on the following scale: Very dissatisfied 10 Indifferent 5 9 4 8 3 7 2 6 Very satisfied 1 Calculate the average rating of satisfaction in your group by adding all of the ratings and dividing by the number of workers. Generally, groups that perceive their leaders to be autocratic will be more dissatisfied with decisions made about who works Saturday night. Laissez-faire managers can also be frustrating to groups. Keep in mind that this may vary depending on the composition of the group: Some people actually like to be told what to do. In some cultures, managers who involve workers in decision-making processes, such as those represented by this exercise, are considered to be ineffective; in other cultures, managers are expected to seek input from subordinates regularly. The occurrence of and acceptance of laissez-faire styles of management, however, tend to be rare compared to that of more autocratic styles. * How did your group feel about the style of your manager, and why? * In what situation would you consider autocratic leadership to be both appropriate and acceptable, and why? * In what situations would you consider laissez-faire leadership to be both appropriate and acceptable, and why? Who works saturday night? Autocratic Manager You are the autocratic manager in a division of Turnem, Inc. Currently, your team is working to complete development of a prototype valve having a highly specialized use in the aerospace industry and putting the finishing touches on the presentation to be made on Monday to the highest officials of your aerospace program. In order to get the project done on time, you and one member of your four-person team are going to have to work this Saturday night from about 5 P.M. until at least midnight. Everyone on the team will be expected to work all day on Sunday. You know that it's going to be really important to have your team functioning at its highest and most cooperative level on Sunday if the work is going to be completed on time. In addition, the work that must be completed Saturday night takes a high degree of technical expertise. It is your job to decide who will work on Saturday night. Your choices are employees 1 or 2, who have the technical knowledge and ability necessary for the tasks that must be completed on Saturday night, neither of whom want to work because of other commitments; employee 3, who has the necessary technical knowledge and skills but who is completely unwilling to work on Saturday night; and employee 4, who has little of the necessary technical knowledge but who needs the money and very much wants to work on Saturday night. You have the budget and the need for one employee to work with you on Saturday night. Everyone must work on Sunday. As far as you are concerned, you don't really care what the conflicts and concerns of your subordinates may be. That isn't your problem! Your problem is to get the right person to do the job, and you intend to get the person you want, no matter what. You should listen to the concerns of your subordinates, but make clear from the outset that you'll decide, and they'll just have to live with your decision. Keep reinforcing that point whenever possible. Tell your group only that you are their manager; do not tell them that you have been instructed to be autocratic. Who works saturday night? Laissez-Faire Manager You are the laissez-faire manager in a division of Turnem, Inc. Currently, your team is working to complete development of a prototype valve having a highly specialized use in the aerospace industry and putting the finishing touches on the presentation to be made on Monday to the highest officials of your aerospace program. In order to get the project done on time, you and one member of your four-person team are going to have to have to work this Saturday night from about 5 P.M. until at least midnight. Everyone on the team will be expected to work all day on Sunday. You know that it's going to be really important to have your team functioning at its highest and most cooperative level on Sunday if the work is going to be completed on time. In addition, the work that must be completed Saturday night takes a high degree of technical expertise. You don't much care who works on Saturday night, as long as someone does. One thing is for sure; you don't want to be responsible for making the decision. You have decided to let your employees make the decision, and you're going to stay out of it. Their choices are employees 1 or 2, who have the technical knowledge and ability necessary for the tasks that must be completed on Saturday night, neither of whom want to work because of other commitments; employee 3, who has the necessary technical knowledge and skills but who is completely unwilling to work on Saturday night; and employee 4, who has little of the necessary technical knowledge but who needs the money and very much wants to work on Saturday night. You have the budget and the need for only one employee to work with you on Saturday night. Everyone must work on Sunday. As far as you're concerned, you don't really care what the conflicts and concerns of your subordinates may be. That isn't your problem-it's theirs! You should listen to the concerns of your subordinates, but make clear from the beginning that you're not going to interfere. Of course, you will want to let them know from time to time that they're probably not making the right decision. Tell your group only that you are their manager; do not tell them that you have been instructed to be laissez faire. Who works saturday night? Democratic Manager You are the democratic manager in a division of Turnem, Inc. Currently, your team is working to complete development of a prototype valve having a highly specialized use in the aerospace industry and putting the finishing touches on the presentation to be made on Monday to the highest officials of your aerospace program. In order to get the project done on time, you and one member of your four-person team are going to have to work this Saturday night from about 5 P.M. until at least midnight. Everyone on the team will be expected to work all day on Sunday. You know that it's going to be really important to have your team functioning at its highest and most cooperative level on Sunday if the work is going to be completed on time. In addition, the work that must be completed Saturday night takes a high degree of technical expertise. It is your job to decide who will work on Saturday night. Your choices are employees 1 or 2, who have the technical knowledge and ability necessary for the tasks that must be completed on Saturday night, neither of whom want to work because of other commitments; employee 3, who has the necessary technical knowledge and skills but who is completely unwilling to work on Saturday night; and employee 4, who has little of the necessary technical knowledge but who needs the money and very much wants to work on Saturday night. You have the budget and the need for only one employee to work with you on Saturday night. Everyone must work on Sunday. Since the beginning of this project, you have been working closely with the members of your team, articulating the goals, guiding the process, serving as a clearinghouse, and involving the employees in decision-making processes that directly affect them. Begin by setting out the goals and purposes of having the best person work on Saturday night. Put this in terms of their best interests and the best interests of the organization. You should listen to the concerns of your subordinates and help them achieve an outcome that is mutually beneficial and acceptable. Tell your group only that you are their manager; do not tell them that you have been instructed to be democratic. Who works saturday night? Employee 1 You are a member of a four-person team at Turnem, Inc. The project on which you are working, development of a prototype valve having a highly specialized use in the aerospace industry, is due to be demonstrated to the highest officials of the aerospace program on Monday. To be ready on time, it is necessary for you and your teammates to work all day this Sunday, and you may possibly have to work on Saturday night from about 5 P.M. until midnight. You are one of the key experts for this project on which you have worked seven days a week for over a month. You consider that you have a special reason for not wanting to work on Saturday night. It's your brother's wedding, you are part of the wedding party, and your whole family will be outraged if you fail to attend. You have to convince your manager that you should not be required to work on Saturday night. Who works saturday night? Employee 2 You are a member of a four-person team at Turnem, Inc. The project on which you are working, development of a prototype valve having a highly specialized use in the aerospace industry, is due to be demonstrated to the highest officials of the aerospace program on Monday. To be ready on time, it is necessary for you and your teammates to work all day this Sunday, and you may possibly have to work Sunday night from about 5 P.M. until midnight. You have been working on the project since its inception, including many nights and weekends. At this point you're feeling pretty burned out. Worse, however, is your family's reaction. Your spouse and children are angry at what they see as your rejection of them in favor of your job. Sunday is your spouse's birthday and a number of friends and relatives have been invited to help celebrate the day at your home. Unfortunately, you don't have any choice about missing that event, but Saturday evening is your youngest child's debut as star in the third-grade play. Your family has made it quite clear that your presence is not an option. You have to convince your manager that you should not be required to work on Saturday night. Who works saturday night? Employee 3 You are a member of a four-person team at Turnem, Inc. The project on which you are working, development of a prototype valve having a highly specialized use in the aerospace industry, is due to be demonstrated to the highest officials of the aerospace program on Monday. To be ready on time, it is necessary for you and your teammates to work all day this Sunday, and you may possibly have to work Saturday night from about 5 P.M. until midnight. You joined the project about two months ago, and while you're no expert, you certainly have the abilities and skills to do the work that must be done on Saturday night. However, you definitely do not want to work. As far as you are concerned, you're entitled to a life outside of the workplace, you're not much of a team player, and you had originally asked not to be put on this job anyway. There was a time in your life when you would have been at the head of the line to volunteer for this job—a time when your sole purpose in life was to get ahead, make more money, and gain power, prestige, and status. About eighteen months ago, your best friend died in a car accident. It was a shock to you to suddenly be faced with the uncertainty and fragility of life. You have decided that you had better live life while you have it, and that doesn't mean spending it at work. You're angry enough that you have to work on Sunday. As far as you're concerned, someone else can work on Saturday night, because you're not going to! Who works saturday night? Employee 4 You are a member of a four-person team at Turnem, Inc. The project on which you are working, development of a prototype valve having a highly specialized use in the aerospace industry, is due to be demonstrated to the highest officials of the aerospace program on Monday. To be ready on time, it is necessary for you and your teammates to work all day this Sunday, and you may possibly have to work Saturday night from about 5 P.M. until midnight. You joined the team about five weeks ago and have some minimal knowledge of the project. You have been holding off taking a moonlighting job because this project, so far, has been keeping you busy seven days a week and evenings. While you're pretty tired, you desperately need the money. Your job is to convince your manager to let you work on Saturday night. EXTRA EXPERIENTIAL EXERCISES The following alternative exercises to supplement the material in the textbook can be obtained from: Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and Cases, 6th Ed. South-Western College Publishing Company, 2001. Improving Organizational Decision Making. p. 171-176. Time: 30 minutes or more. Purpose: To explore a structure for organizational decision making. Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company, 1994. In-Basket Exercise 1: Identifying Problems. p. 329. In-Basket Exercise 2: Generating Alternatives. p. 331. TAKE 2 BIZ FLIX: Failure to Launch PPT Slide 39 Organizations Discussed: None Meet Tripp (Matthew McConaughey), thirty-five years old, has a nice car, loves sailing, and lives in a nice house—his parents’. Tripp’s attachment to his family usually annoys any woman with whom he becomes serious. Mother Sue (Kathy Bates) and father Al (Terry Bradshaw) hire Paula (Sarah Jessica Parker). She specializes in detaching people like Tripp from their families. The term “failure to launch” refers to the failure to move out of the family home at an earlier age. The Bird Problem: Fast Decision Making! This fast-moving sequence begins with the sound of a bird chirping as it perches on a tree limb. Kit (Zooey Deschanel) and Ace (Justin Bartha) have waited patiently for the bird’s arrival. This bird has annoyed Kit for many days. Ace believes that Kit only pumped the shotgun twice. The sequence ends after the bird leaves the house. What to Watch for and Ask Yourself PPT Slide 46 Does “The Bird Problem” present Kit and Ace with a programmed or nonprogrammed decision? What features of their decision problem led to your choice? Answer: Kit and Ace face an ill-defined situation based on the speed with which it happens and their lack of experience with such an event. The situation is largely unstructured although Ace’s radiologist experience can help structure the problem. They collectively face a nonprogrammed decision with important consequences—a dead or live bird. Review the earlier section describing the decision-making steps. Which of these steps appear in “The Bird Problem?” Note the examples of each step that you see. Answer: Each decision-making step appears in the scene. The following lists the steps and gives an example from the film scene. Recognition of decision problem: a possibly dead bird from Kit pumping the shotgun more than twice. Gather and evaluate data; diagnose the situation: Kit and Ace easily see that the bird has severe injuries. Ace now wants to check its vital signs and pulse. List and evaluate alternatives: only one alternative will satisfy Kit and Ace—save the bird by resuscitating it. A second alternative, the bird’s death, is always possible. Select the best course of action: all behavior focuses on saving the bird, the desired alternative. Implement the decision: Ace’s fierce effort at bird resuscitation and Kit’s frantic counting for three seconds shows this decision process’s implementation step. Gather feedback: the bird’s slow breathing and cooing offers some feedback. Its quick bite of Ace’s nose offers stronger feedback. The bird’s erratic flight in the house and then out the door gives Kit and Ace a clear evaluation of a positive decision process. Assess the degree of certainty, uncertainty, and risk that Kit and Ace face in this decision problem. What factors set the degree of certainty or uncertainty? Answer: Both of them face a high degree of uncertainty because of their lack of experience with “Bird Problems.” Kit’s behavior emphasizes her uncertainty by frantically counting off three seconds. Ace is not sure about using his CPR skills on the bird. To assess the degree of certainty, uncertainty, and risk that Kit and Ace face, consider the following: 1. Degree of Certainty • High Certainty: If Kit and Ace have clear, reliable data and well-established procedures for their decision-making, they might experience a high degree of certainty. For instance, if they are making a decision based on historical data with predictable outcomes, certainty would be high. 2. Degree of Uncertainty • High Uncertainty: Uncertainty arises when Kit and Ace face situations with limited information, unclear outcomes, or rapidly changing conditions. Factors contributing to uncertainty include: • Market Dynamics: If the market conditions are volatile or unpredictable, it increases uncertainty. • Lack of Data: Insufficient or incomplete information can lead to uncertainty about the decision's impact. • External Factors: Factors such as economic fluctuations, regulatory changes, or competitive actions that are beyond their control contribute to uncertainty. 3. Degree of Risk • Moderate to High Risk: Risk involves potential negative outcomes that can be quantified or estimated. Factors influencing risk include: • Financial Implications: If the decision involves significant financial investment or potential loss, the risk is higher. • Operational Impact: Decisions that could affect core operations or lead to operational failures increase risk. • Stakeholder Impact: Decisions affecting stakeholders, such as customers or employees, can introduce risk if outcomes are adverse. Factors Setting Certainty, Uncertainty, and Risk • Availability of Information: The completeness and accuracy of available information directly impact certainty and uncertainty. • Predictability of Outcomes: The more predictable the outcomes based on past experiences and data, the higher the certainty. • External Variables: Economic conditions, market trends, and regulatory environments can add layers of uncertainty and risk. • Decision Complexity: Complex decisions with multiple variables and potential consequences generally involve higher uncertainty and risk. WORKPLACE VIDEO: Plant Fantasies Video Case Synopsis Teresa Carleo considered a career in cooking after a boss once passed her up for a promotion. But when her husband urged against it, the New York resident instead launched a landscaping business and began searching for opportunities to beautify the Big Apple. Today, Carleo’s business, Plant Fantasies, is the gardener for such well-known city properties as the Trump Organization and John Jay College. While the opportunity to serve New York’s rich and famous may sound exciting, pleasing the Donald Trumps of the world is a challenging task. Fortunately, Carleo is no mere apprentice when it comes to high-class service. “The decision to start the business was exciting, but the determination to stay with the business was excruciating,” Carleo says of her demanding job. Carleo’s patience has been a virtue, however, as wealthy New York City property owners pay top dollar for healthy shrubs and fragrant flowers. Installation fees at Plant Fantasies begin at $1,200, and high-end exterior landscapes can cost customers up to $600,000. Carleo’s attention to detail is evident in all of her installations—most notably her rooftop gardens. Gardens come carefully constructed with a drainage layer, waterproof protective membrane, biodegradable coconut mat, soil, and lush foliage. Each installation requires close collaboration between architects, floral designers, landscape workers, and even code inspectors. Once a garden is built, landscape teams keep a watchful eye to make sure weeds are pulled and shrubs are manicured. In landscaping, success often boils down to big decisions over little details. While some decisions involve plant colors and types, others involve complex negotiation with people, such as when Plant Fantasies builds designs created by outside landscape architects. “It’s easier when we are the landscape designers because we are picking the plant material; we have a sense of what we want to do, and we have faith in our design and choices,” says Carleo. “But when you’re working with landscape architects, they could come up with something that we don’t even really agree with.” Despite Carleo’s confidence in her own decision making, the Plant Fantasies owner understands the benefits of empowering others. “More and more, as I’m trying to grow the company, I’m trying to get my team to be more independent of me. I don’t want to know every single thing.” Discussion Questions and Solutions Did Plant Fantasies owner Teresa Carleo use the rational decision-making process to launch Plant Fantasies? Explain. Answer: According to Carleo, the decision to quit her old job and start Plant Fantasies was characterized by whim and emotion. Her process was not consistent with the rational decision making model. She was emotionally upset at her former employer, and she had little experience with horticulture or operating a business. Nevertheless, she made a choice: “I just made the decision, I just went for it,” Carleo states. In the rational model of decision making, the decision maker strives for conditions of certainty, gathers complete information, and evaluates all alternatives to ensure good results. In real management settings, however, decision making can never be purely rational due to time constraints, limited knowledge of possible alternatives, bias, and human error. In addition, people and groups encounter decision-related problem areas like groupthink, escalating commitment, and uncertainty. In most decision making situations, people follow the bounded rationality model and end up satisficing—making a satisfactory rather than optimal decision. Satisficing causes managers to select the first acceptable alternative that meets minimal decision criteria, even though better alternatives may exist. List an example of a programmed decision at Plant Fantasies. Identify a nonprogrammed decision at Plant Fantasies. Answer: A programmed decision involves a simple routine matter for which a manager has an established decision rule. One programmed decision at Plant Fantasies is the daily process of maintaining healthy plants for clients. For instance, a maintenance manager examines plants at client location, determines if the landscape has a healthy or unhealthy garden condition, and sends a purchase order to Teresa Carleo for new replacement plants. This routine activity is a core function of the Plant Fantasies service. Another example of a programmed decision is discussed when Carleo says she selects tulips for a client that has a long history of ordering and reordering the same plants and colors. A nonprogrammed decision is a new, complex decision that requires a creative solution. This type of decision occurs in situations that are unique, unstructured, unpredictable, or highly consequential. A nonprogrammed decision at Plant Fantasies takes place whenever Teresa Carleo has to collaborate with an outside landscape architect to install a garden, as there are many complicated and unknown factors that arise when working with an outside firm or designer. How might managers at Plant Fantasies conduct the final feedback and follow up stages of the decision-making process when installing a new garden for a client? Answer: Answers will vary, but there are many ways managers can gather feedback and monitor the outcomes of gardening decisions. Maintenance teams can observe and track progress during installations. In addition, Teresa Carleo can conduct customer satisfaction surveys over a period of months to ensure that clients remain satisfied with landscaping solutions. Feedback is an important part of the decision making process because feedback provides managers with useful information that can precipitate a new decision cycle. If an evaluation reveals that a decision failed to meet its objectives, this information will stimulate a new problem analysis and evaluation of alternatives. Managers at Plant Fantasies can conduct the final feedback and follow-up stages of the decision-making process for installing a new garden through the following steps: 1. Collect Client Feedback: • Survey and Interview: After the installation, send a detailed survey or schedule an interview with the client to gather their feedback on various aspects of the garden, including design, installation process, and overall satisfaction. • Site Visit: Conduct a site visit to observe the garden's condition and verify if it meets the agreed-upon specifications. 2. Review Project Performance: • Evaluate Installation: Assess the quality of the installation against project plans and client expectations. Check for any issues related to the garden’s design, materials, and functionality. • Team Debrief: Hold a debriefing session with the project team to review the project's successes and challenges, discussing what worked well and what could be improved. 3. Address Issues and Implement Changes: • Issue Resolution: Promptly address any problems or concerns raised by the client. This may involve making adjustments, repairs, or enhancements to the garden. • Feedback Integration: Use the client’s feedback to make improvements to processes and services, ensuring that any recurring issues are addressed. 4. Documentation and Learning: • Document Outcomes: Record the feedback and lessons learned from the project. Documenting these details helps in refining future project practices. • Share Insights: Share the insights with the team to promote continuous improvement and apply best practices to subsequent projects. 5. Ongoing Follow-Up: • Regular Check-Ins: Schedule follow-up visits or calls at intervals (e.g., 3 months or 6 months) to ensure the garden remains in good condition and the client remains satisfied. • Customer Support: Provide ongoing support and advice to the client, helping them with any maintenance or additional needs. By implementing these steps, managers at Plant Fantasies can ensure a thorough review of the project, address any issues effectively, and enhance client satisfaction and operational efficiency. CASE SOLUTION: Groupon: Decisions! Decisions! Decisions! Linkage of Case to Chapter Material Groupon, an Internet coupon company, was founded in Chicago in November 2008 by Andrew Mason. Groupon’s business innovation is merging collective buying with couponshence the company’s name: group plus coupon. The strategic goal of Groupon is to “fundamentally change the way that people buy from local businesses in the same way that e-commerce has changed the way that people buy products.” The case describes four major decisions that Mason and the Groupon organization made in the pursuit of this strategic goal. Mason’s first key decision was the selection of an innovative business model that combined product/service discounts with group buying in an online platform. The second major decision involved managing growth into new markets. The third major decision was Mason’s rejection of a $6 billion buyout offer from Google. The fourth key decision involved raising capital through an Initial Public Offering (IPO) of stock to help fund the company’s operations and continuing expansion The case is relevant to numerous decision-making concepts from Chapter 10. The decision-making process as well as the nature of programmed decision making and nonprogrammed decision making can be applied to understanding Andrew Mason’s choices. Additionally, the three decision-making modelsrational, bounded rationality, and garbage canprovide further perspective on Mason’s choices. Finally, the roles that intuition and creativity play in decision making are useful in understanding Mason’s choices. Suggested Answers for Discussion Questions What are the key decisions that Andrew Mason has made during Groupon’s brief history? How have these decisions influenced Groupon’s evolution as an Internet-based business? Answer: The case describes four major decisions that Andrew Mason has made during Groupon’s brief history. Mason’s first key decision was the selection of an innovative business model that combined product/service discounts with group buying in an online platform. The second major decision involved managing growth into new markets. The third major decision was Mason’s rejection of a $6 billion buyout offer from Google. The fourth key decision involved raising capital through an Initial Public Offering (IPO) of stock to help fund the company’s operations and continuing expansion. The Groupon business model is based on “[c]onsumers sign[ing] up to receive offers from local firms by e-mail each day, ranging from restaurant meals to pole-dancing lessons, at discounts of up to 90 percent. But Groupon made virtual coupon-clipping exciting by, first, having offers expire after just a few hours and, second, cancelling them if they do not attract a minimum number of buyers (the ‘group’ in Groupon).” Given that a minimum number of people need to buy into a coupon deal before it is activated or ‘tips,’ buyers eagerly spread information among family and friends, which in turn increases the number of buyers. Mason’s decision to pursue this business model has established Groupon as a dominant Internet business for promoting and selling group discount coupons. The success of the business model has spawned hundreds of competitors, some of which very closely imitate Groupon. Mason’s second major decision, with the significant involvement of other organization members, concerned Groupon expansion into new markets. In the two years after its founding in November 2008, Groupon expanded to 150 markets in the United States and 100 markets in Europe, with approximately 35 million registered users. Then by early June 2011 Groupon reported having 83 million subscribers in 43 countries, including an entry to China in March 2011. This phenomenal expansion into new markets further increased Groupon’s dominance of the American and international markets for group discount coupons. The third major decision was Mason’s rejection of Google’s buyout offer of $6 billion. Groupon’s growth and success attracted much attention among the Internet business communityand it was viewed as having extraordinary profit potential, thereby piquing the interest of investors who were seeking to “make a killing.” However, Mason’s rejection of the buyout offer was characterized by one observer as “frustrating, maddening and inexplicable to most people.” Mason’s fourth major decision involved a sale of stock to the public. In early June 2011, Groupon filed paperwork with the United States’ Securities and Exchange Commission (SEC) for an Initial Public Offering (IPO) of stock, with the objective of raising $750 million. One reporter observed that “Groupon has every incentive to IPO fast, to cash in while its expansion is in overdrive. But investors should take their time assessing whether the company’s explosive growth really will translate to surging profits.” Additionally, The Economist maintained that Groupon was vulnerable despite its rapid growth and huge market share, and that, in order to meet and beat its competition, Groupon would be forced to lower the share of revenue it keeps from its deals. How would you describe the decisions identified in your response to question 1 in terms of programmed and nonprogrammed decision making? Answer: Programmed decision making involves following established decision rules for dealing with simple, routine problems. Nonprogrammed decision making involves finding creative solutions to new and complex problems. Nonprogrammed decision making is definitely shown in Mason’s decision to establish an innovative business model that combined product/service discounts with group buying in an online platform. Managing growth into new markets most likely started out as a nonprogrammed decision-making process that evolved into a programmed decision-making process as the company gained greater experience in scouting out and opening promising new markets. As this experience accumulated, the decision-making process probably became more standardized and routine, and appropriate decision guidelines and rules were implemented. Mason’s decision to reject the buyout offer from Google was a nonprogrammed decision; such an offer would be an unusual occurrence and formulating a response to this new, complex problem would merit a thorough and thoughtful analysis. Likewise, the IPO decision is a nonprogrammed decision because it concerns a new, complex, infrequently occurring problem situation. How would you describe these decisions in terms of the rational, bounded rationality, and garbage can models of decision making? Answer: Rational decision making involves a logical step-by-step approach that relies on a thorough analysis of alternatives and their consequences, with the objective of selecting the best possible alternative. With bounded rationality, decision makers do not seek an optimal decision. Rather, they use heuristics (or shortcuts) to select a satisficing alternative (i.e., the first alternative that provides a “good enough” solution). In the garbage can model of decision making, problems, solutions, participants, and choice opportunities do not occur in any predictable or systematic fashion. Instead, decision making is random and unsystematic. Mason’s decision regarding the selection of an innovative business model that combined product/service discounts with group buying in an online platform probably used either the rational model or the bounded rationality model. Given that he developed and executed an innovative concept that became highly successful suggests that he probably considered several entrepreneurial possibilities and then chose to pursue the most promising one. This would mean that he relied on bounded rationality. It’s possible as wellthough perhaps less probablethat Mason did as exhaustive search for all possible ways of selling group-based discount coupons. Had he taken this exhaustive approach, the decision making model in use would the rational model rather than the bounded rationality model. The decision to expand to additional geographic locations likely utilized the bounded rationality model in the early geographic expansion. Most likely, the process then moved toward using the rational decision-making model as experience and expertise was developed within the organization with regard to locale selection. One might reasonably argue that Mason’s decision to reject the $6 billion buyout offer from Google occurred in the “garbage can.” The figure offered by Google was nearly twice as much the Internet giant had previously offered for an acquisition. Although Mason’s decision was characterized as frustrating, maddening and inexplicable to most people, venture capitalists thought that Google’s interest in acquiring a potential money machine like Groupon was easily explained and understood. Moreover, perhaps Mason recognized the potentially greater market value of Groupon and was being shrewd with his decision. Given that this process did not seem to follow any predictable or systematic fashion, the apparent “messiness” of this decision could be described in the context of the garbage can model. The IPO decision most likely was the result of rational decision making, given the detailed planning and filing requirements that exist for seeking financing from the investment community. How, if at all, has creativity and intuition played a role in the decisions to found and rapidly expand Groupon? Answer: Intuition is a fast, positive force in decision making that is utilized at a level below consciousness and involves learned patterns of information. In many cases managers make judgments based on “hunches” rather than using a systematic, step-by-step approach to decision making. Creativity is a process influenced by individual and organizational factors that result in the production of novel and useful ideas or products or both. The decision to develop the Groupon business model may have been the initial product of intuitiona hunch that group-based discount coupons would be a marketable and popular concept. However, once that initial hunch occurred, Andrew Mason most likely relied upon creativity to develop the business model itself as an innovative Internet business platform. The expansion into different geographic locales was most likely a more systematic decision process, perhaps laced with a bit of intuition regarding which locales would be most promising. Mason’s decision to reject Google’s $6 billion buyout offer defied logicat least from the perspective of some observersbut may have been a hunch-generated decision considering the perceived profit potential of Groupon. Suppose that you think the market for group-based online coupons has great potential, and that you desire to enter the competitive fray. What factors would you consider in making a decision on whether or not to become a Groupon competitor? Answer: Groupon securely dominates the online coupon market in Chicago, New York and San Francisco, “where its offers are unique and lure consumers into new neighborhoods and experiences,that’s less true in second- and third-tier citieswhere Groupon relies on merchants to come to it.” Competitors likely would have a better chance of success in markets outside of Chicago, New York and San Francisco. Potential competitors would be in a more favorable position if they could devise ways to increase the likelihood that group discount transactions are profitable for the participating merchantsespecially the smaller ones. This would help address the problem that Groupon encountered of many small businesses ceasing participation after the first deal because it was unprofitable. Potential competitors would need to consider possible sources of funding for their proposed business. Venture capitalists might be a viable source of funding given the perceived profitability potential of Groupon. The ability to pursue venture capital would be affected, however, by the strength of the competitor’s proposed business model and Internet platform. Students should be encouraged to think of other factors that could come into play in the decision-making mix. This is where the students’ own intuition and creativity could be utilized. If you’re considering entering the market for group-based online coupons as a competitor to Groupon, here are key factors to evaluate: 1. Market Analysis: • Demand Assessment: Analyze consumer demand for group-based coupons and identify target demographics. Determine if there is a growing interest or need in specific regions or sectors. • Competitive Landscape: Evaluate existing competitors, including Groupon and other players in the market. Assess their strengths, weaknesses, and market share to identify potential gaps and opportunities. 2. Business Model and Differentiation: • Unique Value Proposition: Define what will set your service apart from existing competitors. Consider features such as better deals, user experience, or exclusive partnerships. • Revenue Model: Develop a sustainable revenue model. Decide whether you will earn through commissions, subscription fees, or a different approach. 3. Technology and Infrastructure: • Platform Development: Plan the development of a user-friendly platform for both customers and merchants. Consider the technological requirements for handling large volumes of transactions and ensuring data security. • Integration: Assess how well your platform can integrate with existing merchant systems and payment gateways. 4. Regulatory and Legal Considerations: • Compliance: Ensure that your business complies with relevant regulations, including consumer protection laws, data privacy regulations, and advertising standards. • Contracts: Prepare clear and fair contracts for merchants and customers to avoid legal issues. 5. Marketing and Customer Acquisition: • Marketing Strategy: Develop a comprehensive marketing strategy to attract both merchants and consumers. Utilize digital marketing, partnerships, and promotions to build brand awareness. • Customer Retention: Plan strategies for retaining customers, such as loyalty programs or personalized offers. 6. Financial Feasibility: • Cost Analysis: Conduct a thorough cost analysis, including initial investment, ongoing operational expenses, and marketing costs. Ensure you have a clear understanding of your financial requirements and potential profitability. • Funding: Assess your funding options, whether through investment, loans, or other sources, to support the launch and growth of your business. 7. Partnerships and Alliances: • Merchant Partnerships: Build relationships with a diverse range of merchants to offer appealing deals and expand your market reach. • Strategic Alliances: Explore potential alliances with other businesses or platforms to enhance your market presence and operational capabilities. By carefully evaluating these factors, you can make a well-informed decision about entering the competitive market for group-based online coupons and position your business for success. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Solution Manual for Organizational Behavior: Science, The Real World, and You Debra L. Nelson, James Campbell Quick 9781111825867