John Wutivongthanakorn
AMM103.0061
Midterm
Part I
An emotional attachment is when a person has a strong feeling towards a person
or asset(s). An example of this in a business field is when managers have a good
relationship with their customer and doesn’t want to let go, even if they loose money
from them. Another example is when the manager doesn’t want to let go of a certain
aspect of the business that may bring down the company revenue.
The optimizing approach to decision making, is to analyze the alternative. The
steps are recognizing the need for a decision, establish the decision criteria, gathering
information and data, identify possible alternatives, evaluate each with respect to all
criteria and pick the best alternative. An example of this is when the manager looks at the
choices s/he can choose from and analyze each one that meets the criteria. The final
decision is to choose the best alternative for the situation.
The principle of bounded rationality is our decisions that are not fully thought
through and we can only be rational within limited time and cognitive capability. An
example of this happen is in a fast past environment, where a person need to decide on
what to say on the second without thinking it thoroughly first.
Group decision-making, is when a team of people work together to solve
problems. Having a small group of people can create better solution to problems, even
though it takes longer, while avoiding lots of mistakes. An example of this is when a
company is trying to come up with ideas to promote their product to consumer. They
would have a team of marketers to work together to choose the best idea with the fewest
flaws and the best to market their product.
Part II
When a manager is trying to establish a creative environment s/he must follow the
five-step approach to foster the creative environment. The first five-steps is Instill trust,
where eliminating the fear of failure of an idea. Second is developing an effective internal
and external communication. Upward and lateral communication encourages innovation.
Next step is to seek a mix of talent within the organization. A blend of different
personality types and interactions encourages creative problem solving, then rewarding
useful ideas and solutions. The final step is to allow some flexibility in the existing
organizational structure, so that new ideas and creative solutions will not be eliminated
by tradition. There are a few techniques that can encourage creativity.
Brainstorming is one of the techniques, where a group of people presents their
ideas to the solution of the problem. An example of brainstorming is putting a group of
employees to come up with ideas to improve their company, by talking among
themselves. Another type of technique, which is very similar to this, is Brain writing.
Brain writing is approach by a problem, same as brainstorming. But instead of throwing
ideas out and discuss it between themselves, the group writes it down on to a piece of
paper. Than the papers are exchanged with others, build on the ideas, and pass it the next
person until every member gets it.
Another type of technique is the Gordon technique, where only the group leader
knows the exact nature of the problem. While the group is given a key word, they must
come up with ideas that are within that word. An example of the Gordon technique is
when the group leader says the word computer and the group starts saying anything that
relates to computers. So any ideas and areas of topics are endless.
Another type of technique is the Nominal Group technique, which is a highly
structured technique designed to keep personal interactions at a minimum. The steps are,
first, each person will work alone and make a list of probable solutions to the group task.
Next, each one will give off an idea from their list and it is written down on a master list.
After that each one will vote for which one they like on the master list. Than, there will
be a discussion for each item for clarification and valuation. Finally, there will be a final
vote after getting a much better understanding of the each item listed.
The final technique is Synectics, which is for creative problem solving that uses
metaphorical thinking to “make the familiar strange and the strange familiar.” An
example of this would be to place yourself in the role of the object and make direct
comparisons by looking at the problem in terms of symbols. Than imagine the perfect
solution to that.
Part III
International trades are countries exchanging good and services. Absolute
advantage is the ability to produce more of a good than another producer. For example,
China have fertile land and warm and sunny climate and inexpensive labor to make rice.
Whereas Canada that has less fertile soil, a colder climate and somewhat of a more
expensive labor can not produce rice. So China would have the absolute advantage over
Canada. But is not the only way to produce things, there are other opinions.
As for Comparative Advantage where there is no need of having an absolute
advantage. It is the process of the producers producing the goods they are most efficient
at producing and purchase from others the goods they are less efficient at producing. For
example Japan are best at producing high tech products rather than clothes.
Now knowing the difference between the two, companies can use this to find out
how it works between countries with exporting and importing. Exporting are good and
services that are sold abroad, for example Japan selling their high tech produce to other
countries that are willing to buy it. But companies identify the export markets by
checking the background of the country’s reports, economic data; consumers tastes and
analyze the demographic figures. Another important factor is that businesses also need to
find out what restrictions they may face. Every country is requiring having a certain type
of documents that foreign companies meet specific requirements on packaging, labeling
and product safety.
Whereas Importing are goods and services purchased abroad. So the country can
use the raw material to make a new produce within the country or food to resell it to
consumers. For example companies import phones from Japan because consumer wants
to buy them. They also import raw materials, because it is less expensive to produce it in
another country rather than their own. So they would buy the parts they need and resell it.
Part V
Ethical Dilemmas are situation where it is very difficult to choose from what to
do, with following either your feelings towards something or following what is right for
the situation. There are a few techniques to solve ethical dilemmas within the business
world. One of which asking yourself; have you defined the problem accurately? An
example is when the manager looks into the situation and think of all the passable
outcomes and effects it will have in the aftermath.
Another technique is how would you define the problem if you stood on the other
side of the fence. This is a common idea of putting yourself on the other person shoes. An
example of this would be managers putting themselves in their employee’s situation, if
what the manager is about to do to that employer.
Another question is whom could your decision or action injure? Can you discuss
the problem with the affected parties before you make you decision? An example of this
is when a manager is deeply thinking of the employee’s emotions. If he would let go of
the employer than the manager may have put the employer in a financial crises.
Another technique is asking how confidant that your position will be as valid over
a long period of time as it seems now. An example of this is old managers have an old
way of thinking things through and may have a bad influence with situations. Employees
may start to have an aversion to the manager.
Final technique is how you could disclose without qualm your decision or action
to your boss, your CEO, the board of directors, your family, and society as a whole. An
example is when the manager is giving his or her best analyzes of the choice s/he made to
the higher chairman.
Part VII
Intellectual property law is when we invent something new; we would have three
types of protection for it. One of which is the Patents, where the document of the federal
government issues to inventors and companies that gives them the exclusive right to their
inventions for 17 years. After 17 years have pass than other companies could start selling
that invention.
Another protection is a trademark where a word, name, symbol, or slogan is the
business uses to identify its own goods. Once a company owns a trademark no other
company can use it. They have the option to renew them every ten years. This is a great
way to be notice among other companies logo.
Last but not least are the copyrights, where it protects the provider to a creative
work. It is usually on literary words, music, dances, movies, computer programs, etc.
This means that the person who made what they made is the own one that could sell it or
let other use it. Without permission from the copyrighter to copy their work is illegal.