Critical Thing and Decision Making
Join now to read essay Critical Thing and Decision Making
Critical thinking and decision-making are extremely important when it comes to running a company. Mangers need to make sure that their company is always running smoothly in order to maintain a competitive edge. Decision making is very important to the companys advancement and development. In the simulation of Credenhill Industries we were able to use decision-making tools to try and solve the problems their retail electronic store in the North Dallas was having. In the simulation we applied decision-making tools and techniques to help us identify which were the real problems and find the proper solutions.
Decision making starts with recognizing that there is a problem. In the simulation we were given a list of possible problems. From the list we had to identify which were the real problems and which were just symptoms of the problems. I determined that the three major problems affecting the store and its sales were the product mix, the new multi-brand store that opened a block away and the variable pay package. I considered the product mix a problem because the amount of customers looking for internet-related accessories had increased and Credenhill centrally buys from large consumer electronic manufacturers. The multi-brand store that moved a block away is also a major problem because many of the customers are going there for their electronics. Another problem that the new store has created is that some of the most experienced employees from the store are seeking employment with the competition because they offer a better variable pay package. The other major problem that the Credenhill electronic retail store is facing is the variable pay package for the employees. In an employee satisfaction survey this was the number one reason for dissatisfaction. These issues have caused the sales of the Dallas store to fall continuously for eight weeks.
Two problem solving techniques that I used to help me decide what the real problems were are criteria matrix and importance weighting. Both problem solving techniques are mainly used when it is necessary to choose from several possible items that need to be weighted against other key factors. These techniques help you weight your alternatives based on the importance of each. Since the number one goal for the store right was to get sales up, it was important to evaluate what problems can cause sales to go down and make solving those problems your number one priority. These tools helped me see what problems I should tackle first and which ones could wait.
I felt that the product mix, the new multi-brand store a block away and the variable pay package were the most critical problems from the list because solving these issues will help increase sales. If customers today are buying more internet-related accessories then Credenhill needs to get more of those items in the store. The store should sell more of what is on demand. Therefore, the product mix in the store has to be changed to reflect what customers want. The presence of the new