Decision Making Theory and Cultural Differences in Business | Exams Marketing Management

Chap 2

Apply the 8 steps of decision making theory to choose a cinema to watch movie:

- Define the problem - need to choose a cinema to watch a movie

- Gather information - research options for cinemas showing the movie, showtimes, ticket prices,

amenities

- Identify alternatives - list 2-3 cinemas as options

- Evaluate alternatives - compare factors like location, price, reviews

- Make a decision - choose the cinema that best meets needs based on evaluation

- Implement the decision - buy tickets for chosen cinema

- Follow up - enjoy the movie!

- Review and learn - reflect on experience to apply lessons to future decisions

When achieving effectiveness is more important than trying to achieve both effectiveness and

efficiency: Achieving effectiveness is more important than trying to achieve both effectiveness

and efficiency when the task/goal has strict deadlines and quality is a higher priority. Efficiency

can be sacrificed to meet critical deadlines.

Achieving efficiency is more important than trying to achieve both effectiveness and efficiency:

Achieving efficiency is more important than trying to achieve both effectiveness and efficiency

when resources like time, money and workforce are limited. Being efficient allows the

organization to do more with less.

A heuristic is a mental shortcut or rule of thumb approach to problem solving that allows people

to make quick decisions and solve problems with limited time and information.

Consider a situation where a group of friends needs to make a decision together, but they are

influenced by the first idea that is suggested. How might this anchoring bias affect the group's

ability to explore alternative options and make an informed choice. Share three reasons to

support your viewpoint: Anchoring bias may limit the group's ability to consider alternative

options because they become fixated on the initial idea without fully exploring other viable

choices. This could lead to suboptimal decisions. Three reasons: 1) prematurely narrow options

2) overlook better alternatives 3) make choice based on first idea not comprehensive

discussion.

Think about a time when you or someone you know made a decision based on recent events

rather than considering the bigger picture. How might the recency bias influence

decision-making, and can you provide three examples of how this bias could lead to hasty or

short sighted choices: Recency bias could cause hasty choices based on temporary conditions

not longer term factors. Examples: 1) overreacting to short term losses 2) changing strategy

frequently 3) chasing latest trends without strategic plan. Considering bigger picture provides

needed context.

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Chap 2 Apply the 8 steps of decision making theory to choose a cinema to watch movie:

Define the problem - need to choose a cinema to watch a movie
Gather information - research options for cinemas showing the movie, showtimes, ticket prices, amenities
Identify alternatives - list 2-3 cinemas as options
Evaluate alternatives - compare factors like location, price, reviews
Make a decision - choose the cinema that best meets needs based on evaluation
Implement the decision - buy tickets for chosen cinema
Follow up - enjoy the movie!
Review and learn - reflect on experience to apply lessons to future decisions When achieving effectiveness is more important than trying to achieve both effectiveness and efficiency: Achieving effectiveness is more important than trying to achieve both effectiveness and efficiency when the task/goal has strict deadlines and quality is a higher priority. Efficiency can be sacrificed to meet critical deadlines. Achieving efficiency is more important than trying to achieve both effectiveness and efficiency: Achieving efficiency is more important than trying to achieve both effectiveness and efficiency when resources like time, money and workforce are limited. Being efficient allows the organization to do more with less. A heuristic is a mental shortcut or rule of thumb approach to problem solving that allows people to make quick decisions and solve problems with limited time and information. Consider a situation where a group of friends needs to make a decision together, but they are influenced by the first idea that is suggested. How might this anchoring bias affect the group's ability to explore alternative options and make an informed choice. Share three reasons to support your viewpoint: Anchoring bias may limit the group's ability to consider alternative options because they become fixated on the initial idea without fully exploring other viable choices. This could lead to suboptimal decisions. Three reasons: 1) prematurely narrow options

overlook better alternatives 3) make choice based on first idea not comprehensive discussion. Think about a time when you or someone you know made a decision based on recent events rather than considering the bigger picture. How might the recency bias influence decision-making, and can you provide three examples of how this bias could lead to hasty or short sighted choices: Recency bias could cause hasty choices based on temporary conditions not longer term factors. Examples: 1) overreacting to short term losses 2) changing strategy frequently 3) chasing latest trends without strategic plan. Considering bigger picture provides needed context.

Chapter 3 Reflect on a real-life situation where a geocentric approach to marketing was employed by a global company. How did this strategy demonstrate an understanding of diverse consumer preferences across different regions? Can you provide three examples to illustrate the effectiveness of this approach: An example of a geocentric approach to marketing is Coca-Cola's global marketing strategy. The company tailors its advertising to reflect diverse cultural preferences while maintaining a consistent brand image. For instance, in Japan, they emphasize sharing Coke during moments of celebration (e.g., cherry blossom season), in India, they promote familial bonds, and in the U.S., they focus on individual self-expression through the "Share a Coke" campaign. This demonstrates a nuanced understanding of diverse consumer preferences across regions. Consider a scenario where a company's ethnocentric approach to product development led to challenges in entering a new international market. How might this mindset hinder the company's ability to adapt its products to local preferences? Share three reasons to support your perspective: Consider Apple's ethnocentric approach with the initial launch of the iPhone. The company faced challenges in China due to its ethnocentric design, which didn't initially align with local preferences. The lack of dual SIM card support, a crucial feature in the Chinese market, hindered Apple's ability to adapt to local demands. Ethnocentric product development can overlook essential features, pricing structures, or cultural nuances, creating barriers to market entry. Think about a real-life scenario where cultural differences in power distance were evident. How did these differences influence the dynamics of authority and decision-making within the context you observed? Can you provide three specific examples to illustrate the impact of power distance on relationships and interactions: In a multinational corporation with cultural differences in power distance, employees in a high-power-distance culture (e.g., China) may be less likely to express dissent or challenge authority openly. This can lead to a lack of innovative ideas being shared, delayed decision-making processes, and hindered collaboration. For example, in meetings, subordinates may hesitate to propose alternative strategies or disagree with superiors, impacting the overall efficiency and adaptability of the team. The differences between licensing and franchising:Licensing involves granting permission to another party to use intellectual property (e.g., trademarks, patents) for a fee. Franchising, on the other hand, is a broader business relationship where the franchisor provides not just the right to use its intellectual property but also ongoing support and guidance. Franchising often includes a more comprehensive business model, with the franchisor exerting more control over operations compared to licensing. Chap 6 Reflect on a situation where you observed the impact of task demands on individual stress levels. How did the nature of tasks, deadlines, and complexity contribute to stress, burnout, and

single industry. For instance, GE Capital provided financial stability, and the healthcare division diversified revenue streams. This diversified approach helped GE weather economic downturns and changes in specific industries. Excessive diversification can lead to risks, as seen in the challenges faced by conglomerates like Tyco International. Broad diversification may dilute a company's competitive advantage by spreading resources too thin. For Tyco, diverse business lines (security, healthcare, electronics) led to a lack of focus, hindering operational efficiency. Additionally, managing unrelated businesses poses difficulties in expertise and effective decision-making.

Consider a scenario where a company pursued a horizontal integration strategy through mergers or acquisitions. How did this expansion into related industries or markets enhance the company's competitive position? Can you provide three examples to demonstrate the benefits of horizontal integration in diversifying the company's product offerings or customer base? In a scenario of horizontal integration, a company can enhance its competitive position by diversifying product offerings and customer bases. For instance, Disney's acquisitions of Pixar, Marvel, and Lucasfilm expanded its entertainment portfolio, reaching diverse audiences with animated films, superhero franchises, and iconic series like Star Wars.
Imagine a company that successfully diversified its business into new industries. How did this diversification strategy mitigate risks and create new revenue streams for the company? Share three specific examples to illustrate the impact of diversification on the company's resilience and long-term growth.Successful business diversification mitigates risks and creates new revenue streams. General Electric (GE) is an example; its expansion into finance and healthcare reduced industry dependence. GE Capital provided financial stability, and the healthcare division diversified revenue, contributing to resilience during economic shifts.
Reflect on the potential risks of excessive diversification leading to a lack of focus and expertise in core business areas. How might unfocused diversification strategies dilute a company's competitive advantage and hinder operational efficiency? Provide three reasons to support your observations on the challenges of broad diversification strategies: Excessive diversification poses risks such as a lack of focus and expertise. Tyco International's challenges exemplify this. Diversifying into unrelated areas like security, healthcare, and electronics diluted focus, hindering operational efficiency. The difficulties of managing disparate businesses include resource allocation issues, decision-making complexities, and challenges in maintaining competitive advantage. Chap 10 Imagine you are starting a new business in a highly competitive industry. How would you go about identifying and analysing your potential competitors, What factors would you consider in assessing their strengths and weaknesses: To identify and analyze potential competitors in a highly competitive industry, I would conduct thorough market research. Factors to consider include: ● Direct Competitors: Identify businesses offering similar products or services.

● Indirect Competitors: Recognize businesses that may not offer the same products but serve the same customer needs. ● Market Share: Understand the market dominance of each competitor. ● Strengths and Weaknesses: Analyze competitor strengths (unique offerings, strong brand) and weaknesses (poor customer service, outdated technology). ● Customer Reviews: Assess customer feedback to gauge satisfaction and identify areas for improvement. In your opinion, what are the key factors to consider when determining the feasibility of a venture from a financial perspective: Key factors for assessing the feasibility of a venture from a financial perspective include: ● Startup Costs: Evaluate initial expenses for infrastructure, equipment, and marketing. ● Operating Expenses: Consider ongoing costs like rent, utilities, and employee salaries. ● Revenue Streams: Identify potential income sources and their scalability. ● Profitability: Analyze the timeline for achieving profitability. ● Cash Flow: Ensure there's sufficient cash flow to cover expenses. Can you think of any real-life examples where a lack of financing hindered the feasibility of a business idea. How could those challenges have been overcome: One real-life example of a lack of financing hindering a business is the case of many small businesses during economic downturns, such as the 2008 financial crisis. Limited access to credit and capital constrained their ability to operate and expand. Overcoming these challenges might involve seeking alternative financing options, negotiating with suppliers, or exploring government assistance programs. How important is bussiness plan, Should you start your business if you haven’t developed a plan: A business plan is crucial for guiding your venture. It outlines your goals, target market, competition analysis, financial projections, and operational plans. Starting a business without a plan is risky, as it provides a roadmap for success. While flexibility is essential, having a well-thought-out plan increases the likelihood of making informed decisions and securing financing. Remember your assignment 4, you are planning to open a second coffee shop next year to reach more potential customers in another area. This expansion requires you to change the way you manage the business. What is a strategic decision you may apply to help the daily operation: A strategic decision for managing the daily operation of a second coffee shop could involve implementing an efficient point-of-sale (POS) system. This technology can streamline transactions, track inventory, and provide valuable sales data. Integrating a POS system can enhance operational efficiency, customer service, and overall management of the expanded business.

● Supervision: A smaller span allows for more hands-on supervision, enabling the manager to address individual needs and performance. ● Decision-Making: Smaller spans of control facilitate quicker decision-making as there are fewer layers of approval and coordination. Can you think of a situation where a larger span of control might be advantageous for a manager. How could a larger span of control potentially impact a manager's ability to oversee and support their subordinates, maintain effective communication, and make timely decisions: Situation where a larger span of control might be advantageous: ● Routine Task Environments: In situations where tasks are routine and standardized, a larger span of control may be efficient as less supervision is needed. ● Experienced and Self-Motivated Team: If the team is highly skilled, experienced, and self-motivated, a larger span of control allows the manager to oversee a broader scope without micromanaging. ● Cost Considerations: In resource-constrained environments, a larger span of control can be cost-effective as it reduces the need for additional managerial layers. However, this must be balanced with the need for effective oversight and support.

Decision Making Theory and Cultural Differences in Business, Exams of Marketing Management

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