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CHAPTER 9 Managing Decision Making and Problem Solving END OF CHAPTER QUESTIONS Questions for Review 1. Describe the difference between programmed and nonprogrammed decisions. What are the implications of these differences for decision makers? Programmed decisions are either structured or recur frequently or both. Non-programmed decisions are those that cannot be structured or that occur with much less frequency. Programmed decisions can be made with less time and other resources. In many cases, programmed decisions can be made routine so that real decision making is unnecessary. On the other hand, non-programmed decisions are typically complex, lengthy, and difficult to resolve. 2. Describe the behavioral nature of decision making. Be certain to provide some detail about political forces, risk propensity, ethics, and commitment in your description. Political forces in decision making are common. Coalitions often attempt to influence the decision-making process in organizations. Some managers are very conservative and try to adhere to the rational model of decision making. Others are more aggressive and willing to take bigger risks.
Each individual has his or her own beliefs about which behavior is right and wrong. These beliefs factor into the decision-making process. Intuition and the escalation of commitment may also have an impact on the decision. 3. What is meant by the term escalation of commitment? In your opinion, under what conditions is escalation of commitment likely to occur? Escalation of commitment occurs when a decision maker persists in supporting their original decision in spite of evidence that demonstrates that that decision is ineffective. Escalation of commitment is likely to occur decision makers must make a public show of support for their decision. Once they have done that, it is much more difficult for them to admit they were wrong. 4. Explain the differences between three common methods of group decision making—interacting groups, Delphi groups, and nominal groups. Interacting groups are the most common of the three and consist of a group of individuals who meet, freely discuss issues, and then reach a decision. Delphi groups are highly structured panels of experts. The experts do not meet. Instead, their responses are collected and reported to the group. This process continues until consensus is reached. Nominal groups meet together, but they do not freely interact. Instead, they individually generate ideas, share them with the group, clarify and discuss the ideas, and then reach a final decision with a vote. Questions for Analysis 5. Was your decision about what college or university to attend a rational decision? Did you go through each step in rational decision making? If not, why not? Two extreme possible answers are: (1) My decision to come to this university was not a rational one. My mother attended this school and most of my high school friends decided to come here.
I skipped most of the steps in the rational decision-making process. (2) My decision to come to this university was quite rational. I wanted to major in accounting, and I wanted to stay within a five-hour drive of home. With that in mind, I set out to find all of the college within a five-hour drive that offered accounting. I then rated these colleges based on cost and quality. I applied to 10 schools that were within my financial means. This was my first choice, and I was pleased when I was accepted for admission. 6. Most business decisions are made under conditions of either risk or uncertainty. In your opinion, is it easier to make a decision under a condition of risk or a condition of uncertainty? Why? In my opinion, it is generally easier to make a decision under conditions of risk rather than conditions of uncertainty. When making decisions under conditions of risk, there is some degree of predictability or probability associated with the possible outcomes. This means that decision-makers have access to relevant information, historical data, and probabilities that allow them to assess the likelihood of various outcomes occurring. With this information, they can calculate expected values, weigh the potential risks and rewards, and make informed decisions based on rational analysis and risk management strategies. On the other hand, making decisions under conditions of uncertainty involves a lack of reliable information or predictability about potential outcomes. In uncertain situations, decision-makers may face unknown or unforeseeable variables, changing market conditions, or complex external factors that make it difficult to assess probabilities or predict outcomes accurately. As a result, decision-making becomes more challenging, and there is a higher degree of ambiguity and subjective judgment involved. While decisions made under conditions of risk still carry inherent uncertainties, the presence of probabilistic information provides a framework for assessing and managing those uncertainties more effectively. Decision-makers can use risk analysis techniques, scenario planning, and contingency plans to mitigate potential negative outcomes and make decisions that maximize expected value or utility. In summary, while both risk and uncertainty present challenges for decision-making, the structured nature of risk, with its associated probabilities and information, generally makes it easier for decision-makers to assess and manage compared to the inherent unpredictability and lack of information associated with uncertainty. 7. Consider the following list of business decisions. Which decisions would be handled most effectively by group or team decision making? Which would be handled most effectively by individual decision making? Explain your answers. A decision about switching pencil suppliers A decision about hiring a new CEO A decision about firing an employee for stealing A decision about calling 911 to report a fire in the warehouse A decision about introducing a brand new product Switching pencil suppliers is a fairly routine, programmed decision and could be made by an individual. Hiring a new CEO will affect every stakeholder group and the future of the organization, and so many different types of input are needed into the process. Firing an employee for stealing will likely be a group decision making process in order to guard against charges of discrimination or unfair termination. Also, human resources managers are likely to be involved in any firing. Calling 911 should not be a group decision because speed is essential. There’s simply not time to meet as a group and discuss the fire. Introducing a brand-new product must be a group decision because it will require information from accounting, finance, marketing, logistics, R&D, and other functions within the firm. Questions for Application 8. Interview a local business manager about a major decision that he or she made recently. Try to determine whether the manager used a rational decision-making process or whether behavioral elements were also present. If the process was wholly rational, why do you think there was no behavioral component? If the process contained behavioral components, why were these components present? Interview with Local Business Manager: Me: Thank you for taking the time to speak with me. Could you tell me about a major decision you made recently in your role as a business manager? Manager: Certainly. One major decision I made recently was to invest in upgrading our company's technology infrastructure. We needed to modernize our systems to improve efficiency, streamline processes, and stay competitive in the market. Me: That sounds like a significant decision. Can you walk me through your decision-making process for this investment? Manager: Of course. Initially, I gathered data and information about our current technology systems, identified pain points and inefficiencies, and researched potential solutions in the market. I then analyzed the costs and benefits of various options, considering factors such as upfront investment, long-term savings, scalability, and compatibility with our existing systems. Me: It sounds like you followed a rational decision-making process. Were there any behavioral elements present in your decision-making? Manager: Yes, there were some behavioral elements involved as well. While I relied heavily on data and analysis to evaluate the options objectively, I also considered subjective factors such as risk tolerance, personal preferences, and emotional reactions to the decision. For example, I had to manage the fear of change among some employees who were resistant to adopting new technology. Additionally, I had to navigate internal politics and stakeholder dynamics to gain buy-in and support for the investment. Me: It seems like you balanced rational analysis with behavioral considerations in your decision-making. Why do you think these behavioral components were present? Manager: In any major decision, especially one involving significant investments and organizational change, it's important to recognize the human element and how it can influence outcomes. While rational analysis provides a structured framework for decision-making, behavioral elements such as emotions, biases, and interpersonal dynamics also play a role in shaping perceptions, attitudes, and ultimately, the success of the decision. By acknowledging and addressing these behavioral factors, I aimed to make a more informed and effective decision that would ultimately benefit the company and its stakeholders. Me: Thank you for sharing your insights into your decision-making process. It's clear that a combination of rational analysis and behavioral considerations contributed to the success of your decision. Manager: You're welcome. It was my pleasure to discuss it with you. 9. Describe a recent decision you made that relied on intuition. In your opinion, what experiences formed the source of your intuition? Did the decision lead to attainment of the desired outcomes? Did your intuition play a positive or negative role in goal attainment? Explain. A recent decision I made that relied on intuition was choosing a new apartment to rent. I had visited several apartments and was considering factors such as location, price, amenities, and overall feel of the place. While I had compiled a list of pros and cons for each option, ultimately, I went with the apartment that felt right intuitively, even though it may not have scored the highest on paper. The source of my intuition in this decision likely stemmed from a combination of past experiences, gut feelings, and subconscious cues. Having rented apartments in the past, I had developed a sense of what factors were most important to me and what type of living environment I preferred. Additionally, subtle cues such as the vibe of the neighborhood, the layout of the apartment, and the interaction with the landlord may have influenced my intuitive judgment. In this case, the decision did lead to the attainment of the desired outcome. The apartment I chose turned out to be a great fit for me in terms of location, comfort, and overall satisfaction. While it may not have checked off all the boxes on my initial checklist, it felt right intuitively, and I have been happy with my decision. Overall, I believe my intuition played a positive role in goal attainment in this situation. By trusting my instincts and considering the holistic feel of the apartment, I was able to make a decision that aligned with my preferences and needs, ultimately leading to a positive living experience. While rational analysis and weighing of options are valuable in decision-making, intuition can sometimes provide valuable insights and guide us toward the right choice, especially in situations where emotions and subjective factors are at play. 10. Interview a department head at your college or university to determine whether group or team decision making is used. If it is, how does the head attempt to overcome the disadvantages of group decision making? Are the attempts successful? Why or why not? Interview with Department Head at [University]: Me: Thank you for meeting with me. I'm interested in learning more about the decision-making processes within your department. Could you tell me if group or team decision-making is used? Department Head: Yes, absolutely. In our department, we often utilize both group and team decision-making processes, depending on the nature of the decision and the stakeholders involved. Me: That's interesting. How do you attempt to overcome the disadvantages of group decision-making? Department Head: One challenge we face with group decision-making is the potential for groupthink or the dominance of certain voices within the group. To mitigate this, we encourage open and inclusive discussions where all members have the opportunity to contribute their perspectives and ideas. We also rotate facilitators for group meetings to ensure that everyone's viewpoints are heard and considered. Me: It sounds like you prioritize inclusivity and diverse perspectives in your decision-making process. Have these attempts been successful? Department Head: Overall, I believe our attempts to overcome the disadvantages of group decision-making have been relatively successful. By fostering a culture of collaboration and open communication, we have been able to harness the collective wisdom and creativity of our team members to make informed and effective decisions. However, it's an ongoing effort, and we are continuously striving to improve our processes and ensure that everyone feels valued and heard. Me: That's great to hear. How do you measure the success of your decision-making processes? Department Head: We evaluate the success of our decision-making processes based on several factors, including the quality of the decisions made, the level of buy-in and engagement from team members, and the impact of the decisions on departmental goals and objectives. We also solicit feedback from team members periodically to identify areas for improvement and make necessary adjustments to our processes. Me: Thank you for sharing your insights into your department's decision-making processes. It's clear that you prioritize collaboration and inclusivity to achieve successful outcomes. Department Head: You're welcome. It was my pleasure to discuss it with you. END OF CHAPTER EXERCISES Building Effective Conceptual Skills I. Purpose This exercise gives students a demonstration of the power of behavior factors in decision making. II. Format The survey portion of this exercise takes about 10 minutes. Discussion time will vary. III. Follow-Up Duplicate the following forms pages and then cut along the lines so that every student will have one slip of paper. Distribute the slips to students and ask them to fill them out, with no talking or sharing answers. Try to alternate Form P and Form N so that students will not be able to look at each other’s answers. After students answer the question, ask for a show of hands and fill in each of the squares in this matrix. Show the chart to the students.
Positive Negative
Certainty number who chose A number who chose C
Risk number who chose B number who chose D
Every one of the outcomes (A, B, C, and D) have exactly the same expected value, that is, that 200 people will live and 400 people will die. There are two differences in the way that the scenarios are presented. Form P (for positive) phrases all the outcomes in positive terms, focusing on how many lives will be saved. Form N (for negative) phrases all the outcomes in negative terms, focusing on how many deaths will occur. On both forms, students are choosing between a known outcome and a probabilistic or risky outcome. The main message of this survey is: “Humans are non-rational.” In a perfectly rational world, students would be indifferent between the four cells of the matrix, and they all would have about the same number of responses. However, the students will most likely find that more people chose the A and D cells. The reason has to do with how individuals think about risk. When faced with a positive outcome or gain, people tend to want to hold on to it. They imagine the regret they would feel if they took the risk (chose B over A) and then got the bad outcome. But when faced with a negative outcome or loss, people tend to want to avoid the loss if at all possible and are even willing to take big risks to do so. They imagine how pleased they will feel if they manage to avoid the loss. Students may reject this interpretation. Often, they don’t like being told that they are non-rational. Reassure them that this is universal and doesn’t mean anything bad. It just shows the prevalence of behavioral factors in decision making. If they continue to resist or need further demonstration, use the following scenario. Say to the students, “Imagine I offer you a (hypothetical) gift. I will pay anyone $10 right now.
Or, if you prefer to gamble, I will let you pick a number between 1 and 10. If you choose one of the nine ‘wrong’ numbers, I will pay you nothing. But if you choose the one ‘right’ number, I will pay you $100. Assume the gamble is honest. What would you do?” Point out to them that the expected value is the same in both cases: $10. The only difference is the choice between a certainty and a risk. Ask for a show of hands, and record the number who would prefer the certainty and the risk. Then say to the students, “Now, imagine I lock the classroom door. I will permit anyone to leave if they pay me $10. Or, if you prefer to gamble, I will let you pick a number between 1 and 10. If you choose the one ‘wrong’ number, you must pay me $100 to leave. But if you choose one of the nine ‘right’ numbers, you may leave for free. Assume the gamble is honest. What would you do?” Again, both scenarios give an expected value of $10. Again, ask for a show of hands and record the responses. Most students will prefer the sure $10 gift and the chance to gamble for the right to leave the room. As a further demonstration, you can get most of the students to change their vote if you increase or decrease the amount of money. Students who are willing to give up a sure $10 to gamble for $100 probably aren’t willing to give up a sure $10,000 to gamble for $100,000. The regret at losing the larger amount would be simply too much. If the students like these games (and most will) here’s a couple of other, related examples. Scenario A: Imagine that you decided to see a play and paid the admission price of $10 per ticket. As you enter the theater you discover that you have lost the ticket. The seat was not marked and the ticket cannot be recovered. Would you pay $10 for another ticket? Scenario B: Imagine that you decided to see a play, and you planned to buy a $10 ticket at the door. But when you arrived at the ticket booth, you discovered that you have lost a $10 bill from your wallet? Would you pay $10 for a ticket? Most students will not want to pay for another ticket in Scenario A, but will in Scenario B. Although these two events are exactly the same in their financial consequences, students irrationally “blame” the theater for their problems in Scenario A, while Scenario B seems to be nobody’s fault. Scenario A: Imagine that you are about to purchase a jacket for $150 and a calculator for $25. The salesman informs you that the calculator you wish to buy is being given away for free at another branch of the store, located 10 minutes’ drive away. Would you make the trip to the other store? Scenario B: Imagine that you are about to purchase a jacket for $150 and a calculator for $25. The salesman informs you that the jacket is on sale for $125 at another branch of the store, located 10 minutes’ drive away. Would you make the trip to the other store? This is an example of anchoring and adjustment. A $25 discount on a $25 item seems much larger than a $25 discount on a $150 item. Most students therefore will make the drive in Scenario A, but not in Scenario B, although financially, the two choices are equivalent. Answer the list of brief questions that your professor will provide to you. No answer is correct or incorrect; simply choose your most likely response. Then, when the professor asks, share your answers with the class. A. Discuss the answers given by the class. Why do students’ answers differ? Students will likely find that there are more answers in cells A and D, for reasons given above. B. What have you learned about from this exercise about decision-making biases and risk propensity? Students will learn about how risk propensity changes for one individual, depending on whether the decision frame is negative or positive. However, more fundamentally, students will learn that decision-making biases are present in everyone and that they will impact many decisions. Being aware of and understanding one’s biases can therefore lead to more effective decision making. Forms for Conceptual Skills Exercise Answer the question below. Form P Imagine that the U.S. is preparing for the outbreak of an unusual disease, which is expected to kill
600 people. Two alternative programs to combat the disease have been proposed. Which program do you favor? If Program A is adopted, 200 people will be saved. If Program B is adopted, there is a 1/3 probability that 600 people will be saved, and a 2/3 probability that no people will be saved. Answer the question below. Form N Imagine that the U.S. is preparing for the outbreak of an unusual disease, which is expected to kill
600 people. Two alternative programs to combat the disease have been proposed. Which program do you favor? If Program C is adopted, 400 people will die. If Program D is adopted, there is a 1/3 probability that nobody will die, and a 2/3 probability that
600 people will die. Answer the question below. Form P Imagine that the U.S. is preparing for the outbreak of an unusual disease, which is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Which program do you favor? If Program A is adopted, 200 people will be saved. If Program B is adopted, there is a 1/3 probability that 600 people will be saved, and a 2/3 probability that no people will be saved. Answer the question below. Form N Imagine that the U.S. is preparing for the outbreak of an unusual disease, which is expected to kill
600 people. Two alternative programs to combat the disease have been proposed. Which program do you favor? If Program C is adopted, 400 people will die. If Program D is adopted, there is a 1/3 probability that nobody will die, and a 2/3 probability that 600 people will die. Building Effective Decision-Making Skills I. Purpose This exercise aids students in developing their decision-making skills by giving them exposure
to making decisions using the nominal groups technique. II. Format This in-class exercise is done by the entire class and takes about 30 minutes to complete. Follow-up questions may be answered in class or assigned for students to answer outside of class. Follow-up discussion should take an additional 10–15 minutes. III. Follow-Up Describe the problem situation to the students. Then allow 5–10 minutes for individual solutions
to be written down, silently. Be sure to encourage “second round” ideas after the students have heard the initial, individual solutions. This second round of idea generation is one of the chief advantages of the nominal groups technique. Also be sure to enforce strict “majority rule” voting on the final solution. This is another hallmark of nominal groups. Problem Situation: Assume that this group represents the top administrators of a state-run university with about 5,000 students. The university is currently facing a problem. Over the last 3 years, there have been an increasing number of applicants to the school. However, the university’s staff and physical facilities have remained at the same level. The school is under pressure from students and their families to admit more applicants. The state legislature, which provides over half of the university’s funds, is responding to this pressure by asking the university to increase enrollment by at least 1,000 students, however, they are unwilling to increase funding at all to help pay for the expansion. A. Listen as your professor describes the problem situation to the class. B. Write down as many creative responses to the problem as you can. Don’t worry about whether or not they’re practical. In fact, try come up with as many unexpected—even “far out”—responses as you can. C. When your instructor calls on you, share your list with the class. D. Query other students about their suggestions for clarification only. Do not, under any circumstances, reveal whether you think any idea is “good” or “bad. E. After all the individual ideas have been listed and clarified, add to the list any other ideas that you’ve developed while participating in the in-class part of the exercise. F. Vote on the list, focusing on the “creativity” of individual items. Which suggestion does the class regard as the “best” solution to the problem at hand? Students’ answer will vary. Encourage students to come up with creative responses. Some possible responses are: refusal to make the changes, hiring less expensive faculty, offering distance or online courses, increasing class size, or entering into a cooperative arrangement with another university. G. Did the nominal group technique generate more creative alternatives than those that you generated on your own? H. In your opinion, is the alternative chosen by the class vote a “better” solution than anything you thought of on your own? Explain your answer. Whether the alternative chosen by the class vote is "better" than solutions generated independently depends on various factors: 1. Diversity of perspectives: The class vote might offer a broader range of perspectives than what an individual could come up with alone. This diversity can lead to innovative and creative solutions that may not have been considered otherwise. 2. Acceptance and buy-in: If the chosen alternative has gained consensus through a class vote, it likely enjoys a higher level of acceptance and buy-in from the group. This can be advantageous for implementation as it fosters collective ownership and commitment. 3. Feasibility and effectiveness: Regardless of the method of selection, the chosen alternative should be evaluated based on its feasibility and effectiveness in addressing the problem at hand. It's essential to consider whether the chosen solution adequately addresses the issue and can be implemented within the given constraints. 4. Potential drawbacks: On the other hand, relying solely on a class vote may overlook potential drawbacks or limitations of the chosen alternative. It's crucial to critically evaluate any proposed solution, considering its potential risks and unintended consequences. In conclusion, the effectiveness of the alternative chosen by the class vote should be assessed based on its merits, feasibility, and alignment with the problem's objectives rather than solely comparing it to individually generated ideas. Each approach has its strengths and weaknesses, and the best solution often emerges through a combination of collaborative decision-making and critical analysis. I. Give some suggestions about the types of organizational decisions that could be more effective if made by nominal groups. When should nominal groups not be used? Nominal groups can be particularly effective for certain types of organizational decisions where individual biases or dominance can hinder the decision-making process. Here are some suggestions for when nominal groups might be beneficial: 1. Brainstorming sessions: Nominal groups can generate a wide range of ideas without the influence of dominant personalities or groupthink, making them ideal for brainstorming sessions aimed at exploring innovative solutions. 2. Problem-solving: When tackling complex problems, nominal groups can allow each participant to contribute their insights and perspectives independently, fostering a more comprehensive understanding of the issue and potential solutions. 3. Priority setting: Nominal groups can help prioritize tasks, projects, or initiatives by allowing participants to independently rank or vote on their perceived importance, thereby avoiding the influence of group dynamics or personal biases. 4. Conflict resolution: In situations where conflicts arise, nominal groups can provide a structured framework for individuals to express their concerns and preferences objectively, facilitating the resolution process through consensus-building. 5. Idea evaluation: Nominal groups can be useful for evaluating and selecting among competing ideas or proposals, as each participant can independently assess the merits and drawbacks of each option without external influence. However, nominal groups may not be suitable for all organizational decisions. Here are some scenarios where nominal groups should be approached with caution or avoided: 1. Time constraints: Nominal group processes can be time-consuming, especially if extensive deliberation or discussion is required. In situations where quick decisions are needed, other decision-making methods may be more appropriate. 2. Lack of expertise: If the decision at hand requires specialized knowledge or expertise that is not evenly distributed among participants, nominal groups may not yield optimal outcomes. In such cases, involving subject matter experts or utilizing other decision-making approaches may be more effective. 3. Low participant commitment: Nominal groups rely on active participation from all members to be effective. If participants are not fully engaged or committed to the decision-making process, the quality of outcomes may be compromised. 4. Sensitive or contentious issues: Nominal groups may not be suitable for decisions involving highly sensitive or contentious issues where emotions run high, as the anonymity provided by the process may exacerbate conflicts or hinder trust-building among participants. In summary, while nominal groups can be valuable for certain types of organizational decisions, careful consideration should be given to the specific context and objectives to determine their suitability. It's essential to weigh the benefits of independent idea generation and reduced influence of group dynamics against potential limitations such as time constraints and lack of expertise. management at work the verdict on groupthink The closing case highlights the tendency of groupthink in court decisions by juries. The classic movie, 12 Angry Men, starts out with the jury members leading toward consensus, but the Henry Fonda steers the group away from this and asks each man to question his stance on the case. The case points out that not all juries are like the one portrayed in the movie and that because of the factors identified earlier by Irving Janis there is a strong tendency toward groupthink. 1. Case Question 1: In your experience, have you found that decision-making groups tend toward groupthink? If so, what factors contributed to this tendency? If not, what factors helped to prevent it? In my experience, decision-making groups can indeed tend toward groupthink under certain circumstances. Groupthink occurs when members of a group prioritize harmony and consensus over critical evaluation of alternative viewpoints, often leading to flawed decision-making outcomes. Several factors can contribute to this tendency: 1. Pressure for conformity: Group members may feel pressure to conform to the dominant opinions or preferences within the group to avoid conflict or maintain harmony. This pressure can inhibit individuals from expressing dissenting views or raising concerns about proposed solutions. 2. Leadership dynamics: Strong leadership or authority figures within the group can influence decision-making processes by imposing their opinions or preferences on other members. This can stifle independent thinking and discourage dissenting viewpoints, contributing to groupthink. 3. Homogeneity of group composition: Groups composed of individuals with similar backgrounds, perspectives, or experiences may be more susceptible to groupthink as there is less diversity of thought and alternative viewpoints. This homogeneity can result in a narrow range of ideas being considered and inhibit critical evaluation of alternatives. 4. Isolation from external perspectives: Groups that are insulated from external feedback or diverse perspectives may become entrenched in their own beliefs and assumptions, reinforcing groupthink tendencies. Lack of exposure to dissenting viewpoints or alternative perspectives can limit the group's ability to consider all relevant information. To prevent groupthink and promote effective decision-making, several strategies can be employed: 1. Encouraging diverse perspectives: Actively seek input from individuals with different backgrounds, expertise, and viewpoints to ensure a comprehensive consideration of alternatives and mitigate the influence of groupthink. 2. Fostering a culture of open communication: Create an environment where all group members feel comfortable expressing dissenting opinions, asking questions, and challenging assumptions without fear of reprisal or judgment. 3. Utilizing decision-making techniques: Implement structured decision-making techniques such as brainstorming, nominal group techniques, or devil's advocacy to systematically evaluate alternatives, encourage critical thinking, and minimize the risk of groupthink. 4. Promoting constructive conflict: Encourage healthy debate and constructive conflict within the group to stimulate critical thinking, challenge assumptions, and surface potential weaknesses or blind spots in proposed solutions. 5. Seeking external input: Solicit feedback and perspectives from external stakeholders, experts, or individuals outside the group to provide diverse insights and challenge group consensus. By implementing these strategies and remaining vigilant against the factors that contribute to groupthink, decision-making groups can mitigate its influence and foster more effective, informed, and robust decision-making processes. 2. Case Question 2: Review the steps in the rational decision making model (especially steps 1-4). This model, of course, applies to individuals and might be difficult to apply to group decision-making situations. If, however, you were a juror, how might you apply these steps to your own deliberations? In what ways might they give you some useful guidance? In what ways would you have to make adjustments because of the context(trial) and situation (a group process)? The first four steps in the rational decision making model are: recognizing and defining the decision situation, identifying alternatives, evaluating alternatives, and selecting the best alternative. As a juror, while the decision is identified by the judge (to decide whether the defendant is guilty or not guilty), it is important to carefully evaluate the alternatives – in this case, the possibility that the defendant is not guilty. In a jury, however, a person is just one member of a group, and so the situation may call for you to explain your thinking clearly so as to convince others. 3. Case Question 3: In what ways might bounded rationality affect a juror’s approach to a decision? How about satisficing? Intuition? Ethics? Bounded rationality comes into play in a jury decision because the jury is limited to the evidence presented by the lawyers and the jury cannot ask for additional evidence. They might be inclined to a satisficing decision if the case casts a lot of doubt on the defendant’s culpability. In addition, the ethical background of the jurors plays a role in how they evaluate the situation. Their intuition may also play a part in the process. 4. Case Question 4: A recent study found that racially mixed juries “deliberated longer, raised more facts, and conducted broader and more wide-ranging deliberations” than either all-white or all-black juries. Why do you think this was so? Do you think that “mixed” juries are more likely to avoid groupthink than racially homogeneous juries? Explain your reasoning. The findings of the study suggest that racially mixed juries engage in more thorough and expansive deliberations compared to racially homogeneous juries. There are several reasons why this might be the case: 1. Diverse perspectives: Racially mixed juries bring together individuals from different backgrounds, experiences, and viewpoints. This diversity of perspectives can enrich discussions by offering unique insights and considerations that may not have been raised in racially homogeneous juries. 2. Increased empathy and understanding: Members of racially mixed juries may possess a greater understanding of the complexities and nuances surrounding issues of race and ethnicity. This heightened awareness can foster empathy and mutual respect among jurors, encouraging more open and inclusive deliberations. 3. Broader range of evidence: Racially mixed juries may be more inclined to consider a wider range of evidence and viewpoints, including those that challenge prevailing assumptions or biases. This can lead to more comprehensive deliberations that take into account a broader spectrum of relevant factors. 4. Reduced likelihood of groupthink: Racially mixed juries are less likely to succumb to groupthink—the tendency for group members to prioritize consensus over critical evaluation of alternative viewpoints. The presence of diverse perspectives can serve as a safeguard against groupthink by encouraging dissenting opinions, stimulating debate, and promoting independent thinking. Overall, racially mixed juries are indeed more likely to avoid groupthink than racially homogeneous juries due to the benefits of diversity in perspective, increased empathy and understanding, and a broader range of evidence considered during deliberations. By facilitating more thorough and inclusive discussions, racially mixed juries enhance the quality and fairness of the decision-making process in the legal system. CHAPTER 10 Managing New Venture Formation and Entrepreneurship END OF CHAPTER QUESTIONS Questions for Review 1. Describe the similarities and differences between entrepreneurial firms and large firms in terms of their job creation and innovation. Since 1990, entrepreneurial firms and large firms have both added new jobs to the economy. Large firms have eliminated jobs, but at the same time, they have acted as entrepreneurs in moving into new products and markets, creating new jobs. Both entrepreneurial and large firms are innovative and have developed new products. 2. What characteristics make an industry attractive to entrepreneurs? Based on these characteristics, which industries are most attractive to entrepreneurs? Many entrepreneurs are starting their businesses with limited resources, and therefore, attractive industries are those in which a small start-up investment is sufficient. Another attractive characteristic is an industry in which a few large firms dominate, because that typically creates market niches that entrepreneurs can successfully fill. Yet another attractive quality is the low economies of scale, highly specialized skills and customization required by some crafts and trades. These trades are often uneconomical for large firms but can be profitable for small ones. Thus, services, retailing, and construction are popular choices for entrepreneurs, while manufacturing tends to be dominated by large firms. 3. Describe recent trends in new business startups. The Internet aids small businesses in reaching a wider market inexpensively, as well as creating opportunities for new types of firms such as web design firms. Workers opting to leave their jobs at large firms for self-employment is another important trend as is increased entrepreneurial opportunities for women and minorities. Small business failure rates have been declining recently, encouraging entrepreneurship. 4. What are the different sources of advice for entrepreneurs? What type of information would an entrepreneur be likely to get from each source? What are the drawbacks or limitations for each source? Entrepreneurs may get advice from advisory boards, management consultants, the SBA, and from networking with peers. Advice can cover a variety of topics from marketing to financing to human resources. The advice obtained from advisory boards is only as good as the members of the board. The same holds true for management consultants who also may charge high fees. The SBA provides advice for free, but again, quality varies depending on the expertise of the volunteer advisors. Networking can be one of the most effective sources of advice because the advice is practical and relevant. Questions for Analysis 5. Entrepreneurs and small businesses play a variety of important roles in society. If these roles are so important, do you think that the government should do more to encourage the development of small business? Why or why not? The government indeed has a vested interest in encouraging the development of small businesses and supporting entrepreneurship due to the numerous vital roles they play in society. Here are several reasons why government intervention to promote small business development can be beneficial: 1. Economic growth: Small businesses are significant contributors to economic growth and job creation. By providing incentives and support for small business formation and expansion, governments can stimulate economic activity, increase employment opportunities, and drive innovation and productivity gains. 2. Innovation and creativity: Small businesses are often at the forefront of innovation, bringing new products, services, and technologies to market. Government support can foster an environment conducive to entrepreneurial experimentation and creativity, leading to breakthroughs that benefit society as a whole. 3. Diversification of the economy: Small businesses contribute to the diversification of the economy by introducing new industries, niche markets, and specialized goods and services. Government policies that encourage small business development can help reduce reliance on a few dominant sectors, enhancing economic resilience and stability. 4. Regional development: Small businesses play a crucial role in promoting regional development and revitalization, particularly in underserved or economically disadvantaged areas. Government support can target these regions through financial incentives, infrastructure investment, and access to resources, spurring local economic growth and improving living standards. 5. Social inclusion and equality: Entrepreneurship offers opportunities for individuals from diverse backgrounds, including women, minorities, immigrants, and individuals with disabilities, to participate in economic activity and achieve socioeconomic mobility. Government programs that support small business ownership and entrepreneurship can help reduce disparities in wealth and opportunity, promoting social inclusion and equality. While government intervention to encourage small business development can yield significant benefits, it's essential to strike a balance and ensure that policies are well-designed, transparent, and targeted to address the specific needs and challenges faced by entrepreneurs. Additionally, fostering an enabling regulatory environment, providing access to capital and resources, offering business development support services, and promoting entrepreneurship education and training are all integral components of effective government efforts to support small business growth and sustainability. 6. Consider the four major reasons for new business failure. What actions can entrepreneurs take to minimize or avoid each cause of failure? Incompetence or inexperience can be counteracted by business training and education as well as by experience working in that type of business. Neglect can be avoided by a more serious time commitment. Weak control systems are avoidable if owners pay closer attention to potential and developing problems. Insufficient capital or overly optimistic financial projections can be solved if entrepreneurs work with experts to determine a realistic budget and to obtain the necessary funds in advance. 7. The U.S. automotive industry is well established, with several large and many small competitors. Describe the unexploited niches in the U.S. auto industry and tell how entrepreneurs could offer products that fill those niches. While the U.S. automotive industry is indeed well established, there are still unexploited niches that present opportunities for entrepreneurs to offer innovative products and services. Here are some examples of unexploited niches in the U.S. auto industry and how entrepreneurs could fill them: 1. Electric and sustainable vehicles for niche markets: While electric vehicles (EVs) are gaining traction in the mainstream market, there are still opportunities to cater to niche segments such as urban commuters, off-road enthusiasts, or luxury car buyers with specialized electric or sustainable vehicles. Entrepreneurs could develop EVs tailored to specific use cases or lifestyles, incorporating unique features, designs, or performance capabilities to differentiate their offerings. 2. Customization and personalization services: Many consumers value individuality and personalization when it comes to their vehicles. Entrepreneurs could offer customization services that allow customers to personalize their vehicles according to their preferences, whether it's through unique paint jobs, interior modifications, or performance upgrades. Leveraging technology such as 3D printing or augmented reality, entrepreneurs can provide personalized experiences that meet the demands of discerning consumers. 3. Micro-mobility solutions: With the rise of urbanization and the growing need for sustainable transportation options, there's a demand for compact, efficient, and environmentally friendly micro-mobility solutions. Entrepreneurs could develop electric scooters, bicycles, or small electric vehicles designed for short-distance urban travel, last-mile delivery, or shared mobility services. By focusing on affordability, convenience, and sustainability, entrepreneurs can tap into the burgeoning micro-mobility market. 4. Connected car technology and services: As vehicles become increasingly connected and digitized, there's a growing demand for innovative technology and services that enhance the driving experience, improve safety, and provide added value to consumers. Entrepreneurs could develop connected car platforms, mobile apps, or aftermarket devices that offer features such as real-time vehicle diagnostics, predictive maintenance, enhanced navigation, or integrated entertainment and infotainment systems. By leveraging advancements in IoT, AI, and data analytics, entrepreneurs can create compelling solutions that cater to the evolving needs of modern drivers. 5. Specialized aftermarket accessories and upgrades: Many vehicle owners seek to customize and enhance their vehicles after purchase, whether it's for performance, aesthetics, or functionality. Entrepreneurs could specialize in developing aftermarket accessories and upgrades tailored to specific vehicle models, brands, or market segments. This could include performance parts, cosmetic enhancements, off-road accessories, or smart aftermarket gadgets that add value and appeal to consumers looking to personalize their vehicles. By identifying unexploited niches in the U.S. auto industry and offering products or services that address specific consumer needs and preferences, entrepreneurs can carve out their own space in the market and capitalize on emerging trends and opportunities. Through innovation, differentiation, and a customer-centric approach, entrepreneurs can disrupt the status quo and drive positive change within the automotive industry. Questions for Application 8. Assume that you are opening a small business in your town. What are your financing options? Which option or options are you likely to choose, and why? When opening a small business, there are several financing options available, each with its own advantages and considerations. Some common financing options for small businesses include: 1. Personal savings: Using personal savings to fund the business is a straightforward option that avoids debt and interest payments. However, it requires sufficient savings and may limit personal financial flexibility. 2. Friends and family: Borrowing from friends and family can provide access to capital without the stringent requirements of traditional lenders. However, it's essential to formalize the arrangement and clearly communicate expectations to avoid straining relationships. 3. Bank loans: Traditional bank loans offer competitive interest rates and structured repayment terms. However, they often require a strong credit history, collateral, and a detailed business plan, making them less accessible for new or high-risk ventures. 4. Small Business Administration (SBA) loans: SBA loans are guaranteed by the U.S. Small Business Administration, providing favorable terms and lower down payments than conventional bank loans. However, they involve a lengthy application process and stringent eligibility criteria. 5. Venture capital: Venture capital involves raising funds from investors in exchange for equity ownership in the business. This option is suitable for high-growth startups with significant potential but often requires giving up control and a portion of future profits. 6. Angel investors: Angel investors are wealthy individuals who provide capital to startups in exchange for equity or convertible debt. They often offer mentorship and industry expertise in addition to funding, making them valuable partners for early-stage businesses. 7. Crowdfunding: Crowdfunding platforms allow entrepreneurs to raise capital from a large number of individuals, typically in exchange for rewards, pre-orders, or equity. This option can validate market demand and generate publicity but requires a compelling pitch and marketing effort. Considering these options, I would likely choose a combination of personal savings, friends and family contributions, and possibly a small business loan from a bank or the SBA. Using personal savings minimizes debt and demonstrates commitment to the business, while contributions from friends and family provide additional support without the stringent requirements of traditional lenders. A small business loan can supplement these funds, providing additional capital to cover startup costs, inventory purchases, or expansion plans. By diversifying financing sources, I can mitigate risk and maintain flexibility while securing the necessary capital to launch and grow my small business. 9. List five entrepreneur-owned businesses in your community. In which industry does each business compete? Based on the industry, how do you rate each business’s long-term chances for success? Explain your answers. The hypothetical examples across different industries and assess their long-term chances for success based on general industry trends and factors: 1. Smith's Coffee Roastery (Coffee Shop) : • Industry: Food and Beverage • Rating: High • Explanation: Coffee shops have remained popular in many communities due to the enduring demand for specialty coffee and the social experience they offer. A well-run coffee roastery with a unique selling proposition, high-quality products, and excellent customer service is likely to enjoy long-term success, especially if it adapts to changing consumer preferences and trends. 2. Green Thumb Garden Center (Nursery and Garden Supply Store) : • Industry: Retail • Rating: Moderate to High • Explanation: Garden centers cater to a niche market of gardening enthusiasts and homeowners looking for plants, landscaping supplies, and gardening advice. While competition from big-box stores and online retailers exists, a well-established garden center with a loyal customer base, knowledgeable staff, and a focus on customer experience can thrive in the long term by offering personalized service and expertise. 3. TechSavvy Solutions (IT Consulting Firm) : • Industry: Technology • Rating: High • Explanation: The demand for IT consulting services continues to grow as businesses increasingly rely on technology to operate efficiently and stay competitive. A well-positioned IT consulting firm with expertise in areas such as cybersecurity, cloud computing, and digital transformation has strong long-term prospects, provided it remains agile and adaptable to technological advancements and market dynamics. 4. FitLife Fitness Studio (Boutique Gym) : • Industry: Health and Wellness • Rating: Moderate to High • Explanation: Boutique gyms and fitness studios have gained popularity in recent years due to their specialized offerings, community atmosphere, and personalized approach to fitness. While competition from larger gym chains exists, a boutique gym that focuses on niche markets, such as CrossFit, yoga, or high-intensity interval training (HIIT), and provides exceptional customer service and results-driven programs can achieve long-term success by cultivating a loyal clientele and adapting to evolving fitness trends. 5. Paws & Claws Pet Spa (Pet Grooming Salon) : • Industry: Pet Services • Rating: Moderate to High • Explanation: The pet services industry has experienced steady growth as pet owners increasingly prioritize the health, well-being, and grooming of their pets. A pet grooming salon that offers professional grooming services, spa treatments, and personalized care for pets is well-positioned for long-term success, particularly if it establishes a strong brand presence, builds a loyal customer base, and capitalizes on the growing pet care market. These ratings are based on general industry trends and factors that influence the success of businesses in each sector. It's essential for entrepreneur-owned businesses to differentiate themselves, provide value to customers, adapt to changing market conditions, and maintain financial stability to ensure long-term viability and success. 10. Using the information about managing a small business presented in this chapter, analyze whether you would like to work in a small business—either as an employee or as a founder. Given your personality, background, and experience, does working in or starting a new business appeal to you? What are the reasons for your opinion? Working in or starting a small business can be appealing for various reasons, depending on individual preferences, personality traits, and career goals. Here are some factors to consider: 1. Autonomy and control: For individuals who value autonomy and the ability to make independent decisions, working in or starting a small business can offer greater control over one's work environment, direction, and decision-making processes. 2. Entrepreneurial spirit: Some individuals are naturally entrepreneurial, possessing a drive to innovate, take risks, and pursue new opportunities. Working in or founding a small business allows them to channel their entrepreneurial spirit, pursue their passions, and create something meaningful. 3. Flexibility and work-life balance: Small businesses often offer more flexibility in terms of work hours, schedules, and work arrangements compared to larger corporations. This flexibility can be appealing for individuals seeking a better work-life balance or the ability to accommodate personal commitments and priorities. 4. Sense of fulfillment: Working in or starting a small business can be deeply rewarding, providing a sense of fulfillment, purpose, and achievement. Seeing the direct impact of one's efforts, building relationships with customers and employees, and overcoming challenges can contribute to a strong sense of satisfaction and pride. 5. Learning and growth opportunities: Small businesses offer opportunities for continuous learning, skill development, and personal growth. Employees in small businesses often wear multiple hats and have exposure to various aspects of the business, allowing for diverse experiences and skill acquisition. 6. Risk and uncertainty: However, it's important to recognize that working in or starting a small business also entails inherent risks and uncertainties. Small businesses may face challenges such as financial constraints, market volatility, and competitive pressures, which can impact stability and success. Ultimately, whether working in or starting a small business appeals to an individual depends on their personality, values, skills, and career aspirations. Some may thrive in the dynamic and entrepreneurial environment of a small business, while others may prefer the stability and structure offered by larger organizations. It's essential to carefully consider one's motivations, goals, and risk tolerance before pursuing opportunities in the small business sector. END OF CHAPTER EXERCISES Building Effective interpersonal Skills I. Purpose This exercise helps students assess their interpersonal skills to find out if these skills are well developed already or likely to be developed over time. II. Format This exercise is designed to be completed by individual students outside of class. It involves students responding to a 16-item questionnaire and adding up their score on these questions. III. Follow-Up A. The scores range from 16 (ineffective networking) to 80 (effective networking). Building Effective Conceptual Skills I. Purpose This exercise encourages students to think through the factors that lead to small business success and to apply those ideas to their situation. II. Format The conceptual skills exercise is a two-step activity with Step 1 done individually and Step 2 in groups. The entire exercise will take about 20 minutes. III. Follow-Up A. Form a small group of four or five classmates and discuss your respective lists. Look for instances of in which the same type of business appears either on (1) both of your lists or (2) one of your lists and one of a classmate’s lists. Also look for cases in which the same business appears on one or more than one list with either similar or dissimilar prospects for success. Differences in students’ interests and knowledge of local market conditions will lead to different answers to this question. B. At this point, how important do you regard personal interest as a factor in small-business success? Students might point out that without personal interest, entrepreneurs are unlikely to invest the significant amount of time and energy that a small business requires. However, personal interest alone isn’t enough to create a viable enterprise. C. How important do you regard market potential as a factor in small-business success? Market potential is critical to small business success. Without it, even the most dedicated entrepreneur will not succeed. However, personal interest creates energy and enthusiasm, which is also a necessary component of success. Students will probably agree that both personal interest and market potential are absolutely vital. management at work facebook takes credits where credits are due Mark Zuckerberg, a Harvard sophomore, founded Facebook in 2004 and in two years has become the second most visited website (after Google) by college students. Facebook allows college students to communicate to each other and socialize. The website gets revenues from advertising. The company hopes to public soon but there are questions if it can maintain its growth rate in the future. 1. Case Question 1: If you use Facebook (or any other social networking site), which of its features are most attractive to you? If you don’t use any social networking site, what features are most likely to cause you to try one? For those who use Facebook or similar platforms, several features may be particularly appealing: 1. News Feed: The News Feed provides a personalized stream of updates, posts, and content from friends, family, and pages followed by the user. It allows users to stay informed about what's happening in their social circle and discover new content of interest. 2. Messaging: Messaging features enable users to communicate with friends and contacts in real-time through private messages, group chats, and voice or video calls. It facilitates convenient and direct communication, fostering connections and interactions between users. 3. Groups: Groups allow users with shared interests, hobbies, or affiliations to come together and engage in discussions, share content, and organize events. They provide a sense of community and belonging, enabling users to connect with like-minded individuals and participate in relevant conversations. 4. Events: The Events feature enables users to create, discover, and RSVP to events, ranging from social gatherings and parties to community events and fundraisers. It helps users stay organized, plan their schedules, and connect with others offline. 5. Privacy Settings: Robust privacy settings empower users to control who can see their posts, photos, and personal information, providing a sense of security and control over their online presence. Users value privacy features that allow them to customize their sharing preferences and manage their digital footprint effectively. For individuals who don't currently use social networking sites, features that might encourage them to try one include: 1. Interest-based communities: Platforms that offer vibrant and active communities centered around specific interests, hobbies, or passions may attract users who seek to connect with others who share their interests and engage in meaningful discussions and activities. 2. Visual content sharing: Features that prioritize visual content, such as photos, videos, and multimedia posts, can appeal to users who enjoy expressing themselves creatively and sharing experiences visually with others. 3. Enhanced privacy and security: Social networking sites that prioritize user privacy and security by implementing robust data protection measures, encryption, and transparency about data practices may appeal to individuals who prioritize privacy and are concerned about data privacy and security issues. 4. User-friendly interface and experience: Platforms with intuitive interfaces, seamless navigation, and user-friendly design can attract users who value simplicity, ease of use, and a positive user experience. A clutter-free interface and streamlined features make it easier for users to engage with the platform and connect with others. 5. Local networking and events: Features that facilitate local networking, community building, and event discovery can attract users who are interested in connecting with others in their local area, attending local events, and participating in community activities. Overall, social networking sites that offer a combination of engaging features, personalized experiences, and robust privacy and security measures are likely to appeal to a wide range of users, both current and potential. 2. Case Question 2: Explain Facebook’s distinctive competencies in as much detail as you can. If you use Facebook, you can obviously draw on your own experience. If you don’t use the site, talk to a few people who do. Facebook’s distinctive competence is its user network. It has 600 million users – meaning that if one joins Facebook, he or she has access to this large user base. One can sift through this user base to find people with common interests. Social networking requires a network to succeed – Facebook provides a large network. Students who are avid users of Facebook should be encouraged to talk about its network and the opportunities that it presents. 3. Case Question 3: Its click-through rate measures the number of visitors to a website who actually click on the ads. Industrywide, it’s not good, and in 2010, Facebook’s click-through rate was below the industry average. What about you – do you click-through? What does it take for you to venture away – even temporarily – from a host site when you’re online? What can a company like Facebook do to improve its click-through – and its advertising revenues? For human users, several factors can influence their propensity to click on ads and venture away from a host site: 1. Relevance and personalization: Users are more likely to click on ads that are relevant to their interests, preferences, and needs. Personalized ads that are tailored to the user's demographics, behavior, and browsing history are more likely to capture their attention and prompt them to click through. 2. Compelling messaging and visuals: Ads that feature compelling messaging, attention-grabbing visuals, and clear calls-to-action are more effective in enticing users to click through. Creative and visually appealing ads that convey a clear value proposition or offer a solution to the user's problem are more likely to generate clicks. 3. Trust and credibility: Users are more inclined to click on ads from brands or companies they trust and perceive as credible. Ads that align with the user's values, evoke positive emotions, and establish trust through social proof, endorsements, or testimonials are more likely to be clicked on. 4. Intrusiveness and annoyance: Intrusive or annoying ads that disrupt the user experience, such as pop-up ads or auto-playing videos with sound, are more likely to be ignored or actively avoided by users. Ads that respect the user's browsing experience and appear in a non-intrusive manner are more likely to be clicked on. 5. Value proposition and relevance: Users are more likely to click on ads that offer a clear value proposition and relevance to their needs or interests. Ads that promise a solution to a problem, offer a discount or promotion, or provide valuable information or entertainment are more likely to attract clicks. For companies like Facebook looking to improve their click-through rates and advertising revenues, several strategies can be employed: 1. Enhanced targeting and personalization: Utilize advanced targeting capabilities and data analytics to deliver more relevant and personalized ads to users based on their demographics, interests, and behavior. Leverage machine learning algorithms to optimize ad targeting and delivery in real-time. 2. Creative optimization: Invest in creative optimization to produce visually appealing and engaging ads that resonate with the target audience. Test different ad formats, messaging, and visuals to identify what resonates best with users and drives higher click-through rates. 3. Native advertising integration: Integrate ads seamlessly into the user experience to minimize disruption and enhance engagement. Native advertising formats that blend in with the surrounding content and appear more organic are more likely to be clicked on by users. 4. Value-added content: Provide value-added content or experiences within the ad itself to incentivize users to click through. Offer exclusive offers, discounts, or access to premium content that users can only access by clicking on the ad. 5. Continuous measurement and optimization: Continuously monitor ad performance metrics, such as click-through rates, conversion rates, and return on investment (ROI), and iterate on ad campaigns based on insights gained from data analysis. Optimize ad targeting, creative elements, and messaging to maximize effectiveness and drive higher click-through rates over time. By implementing these strategies and focusing on delivering relevant, engaging, and value-added advertising experiences to users, companies like Facebook can improve their click-through rates and drive higher advertising revenues. 4. Case Question 4: According to one popular technology blog, its current policy on users’ privacy means that “your name, your profile, gender, current city, networks, Friends, List, and all the pages you subscribe to are now publicly available information on Facebook. This means everyone on the web can see it, it is searchable.” Is this okay with you? Why or why not? For many users, the idea of their personal information being publicly available and searchable on Facebook may raise concerns about privacy, security, and control over their online presence. Here are some considerations: 1. Privacy and control: Users may feel uncomfortable with the idea of their personal information, such as their name, profile, gender, current city, networks, friends, and pages they subscribe to, being publicly available and searchable. They may value their privacy and prefer to have control over who can access and view their information. 2. Security risks: Publicly available personal information on social media platforms can increase the risk of identity theft, cyberstalking, harassment, and other forms of online abuse. Users may worry about the potential consequences of their information falling into the wrong hands or being exploited by malicious actors. 3. Reputation management: Users may be concerned about how their publicly available information on Facebook reflects their personal brand, reputation, and professional image. They may worry about the impact of public visibility on their relationships, career opportunities, and online reputation. 4. Trust and transparency: Users may expect transparency and accountability from social media platforms regarding their data practices and privacy policies. They may feel betrayed or misled if platforms change their privacy settings without adequate notice or consent, eroding trust in the platform and its commitment to user privacy. 5. Legal and regulatory compliance: Social media platforms must comply with applicable laws and regulations governing user privacy and data protection. Users may expect platforms like Facebook to uphold high standards of privacy and security and to respect their rights to control their personal information. Ultimately, whether users are comfortable with their personal information being publicly available on Facebook depends on their individual preferences, priorities, and risk tolerance. Some users may not mind sharing certain information publicly for social or professional reasons, while others may prefer to maintain stricter privacy settings to protect their personal information and online privacy. It's essential for users to review and adjust their privacy settings on Facebook and other social media platforms according to their preferences and concerns regarding privacy and security. Solution Manual for Management Ricky W. Griffin,9781111969714

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