Introduction
It is the process during which the person must choose between two or more alternatives.
For managers, the decision-making process is undoubtedly one of the biggest responsibilities.
A decision can vary in trascendence and connotation.
The administrator must:
Determine the need for a decision.
Identify the decision criteria.
Assign weight to criteria.
decision-making-strategy-nike-intel-1The administrator must:
- Develop all the alternatives Evaluate the alternatives Select the best alternative Implement the decision Consider available resources and activities necessary to implement each step Consider the time each stage will take Implementation of the decision Assign responsibilities to specific people for each stage.
Decision evaluation
"Evaluating the decision" is part of the final stage of this process. All the information that tells us how a decision works is collected, that is, it is a feedback process that could be positive or negative.
Personal qualities for decision making
- ExperienceGood judgmentCreativityQuantitative skillsDecision characteristicsFuture effectsReversibilityImpactQualityPeriodicity
Nike and Michael Jordan
In 1984 the income of the Nike company was down and for a time Reebok its competitor, became the market leader for a short time
Nike managers realized they hadn't kept up with the competition ……..
Jordan comes in here
Nike teamed up with Jordan, who by that time was already recognized as a good basketball player.
Collegiate Champion with the University of North Carolina
Member of the Olympic team that won the basketball gold medal
Intel case
History
Andrew Grove.
Chief Director of Intel Corporation.
The Largest Manufacturer of Chips for
Computer. In 1993 he introduced the Pentium Chip that
it becomes a year in the brain of more than 4
Millions of Computers.
At the end of 1994 an error was discovered in the Pentium Chip, which when dividing problems with very large quantities the solution was incorrect.
It is published in a trade magazine that Intel claims to have discovered the problem 4 months earlier and fixed it.
A noisy group of consumers and advocates in the computer industry wanted Intel to replace all the faulty chips.
Intel executives treated this matter as they treated great challenges, as an engineering problem. They analyzed it and divided it into smaller parts and came to a conclusion.
A noisy group of consumers and advocates from the computer industry wanted Intel to replace all the faulty chips.
Intel executives treated this matter as they treated great challenges, as an engineering problem. They analyzed it and divided it into smaller parts and came to a conclusion.
Chip replacement would not be guaranteed to all customers.
Only faulty chips would be replaced. As long as the owner could demonstrate that it required more precision handling.
Users Found Intel's Answer Wrong.
IBM Main Purchaser of the Chip, shows that its researchers concluded that the bug in the Pentium is more serious than Intel recognizes.
IBM suspends its shipments of computers containing the Pentium chip.
This generates anger in consumers who seek the replacement of the Chip at any time
This causes a drop in the share price of 6.5%
Decision making
Intel maintains its position considering the IBM Decision unfair.
On December 21, 1994, Intel reconsidered its position and considered changing all the Pentium chips without asking. The cost fluctuates between 300 to 400 Million Dollars.
More important, however, was the damage to the company's reputation and the cost of rebuilding the public's trust in its products.
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