Task-1:
Chosen function: “Planning”.
Planning is the first and most important function of management. It is needed at every level of
management. The importance of planning has increased all the more in view of the increasing size of
organisations and their complexities. Planning has again gained importance because of uncertain
and constantly changing business environment.
The following facts show the interaction of planning with other factors and its importance for a
business organisation:
(1)
(2)
(3)
(4)
(5)
(6)
Planning Provides Direction.
Planning Reduces Risks of Uncertainty.
Planning Reduces Overlapping and Wasteful Activities.
Planning Promotes Innovative Ideas.
Planning Facilitates Decision Making.
Planning Establishes Standards for Controlling.
In the absence of planning all the business activities of the organisation will become
meaningless. In the absence of planning, it may not be impossible but certainly difficult to
guess the uncertain events of future.
Role of Management Planning In Imtiaz Supermarket:
Planning:
Planning is a term includes identifying goals, objectives, methods and
resources needed to carry out the tasks assigned. We’ll talk about all these
strategies used in Imtiaz supermarket to carry out their goals.
Management planning of Imtiaz Supermarket includes its: Mission, Vision,
Values, Goals and plans, Core competencies and sustainable competitive
advantage, SWOT analysis, BCG matrix & Target market.
Mission: “Imtiaz superstore wants customers for life. To earn customer’s loyalty we
must unlock the potential of customers buying power to improve their quality of life”
Vision: “To be recognized and respected as one of the premier supermarkets that is
creating a world where everybody can buy like rich people”
Values:



Provide customers an enriching environment of trust and cooperation.
Create self-servicing environment where customers can have separate departments’
discounts pricing.
Employees flourishing as company flourishing.
Goals and Plans: “The goal of Imtiaz is to satisfy customers, employees and
providing jobs” The long term goal of Imtiaz is to reach international level i.e.; foreign
countries.
Core Competencies and Sustainable Competitive
Advantage: The first priority of Imtiaz supermarket is their customers. For the ease of
their customers they opened four branches at different places to provide all the products to
the customers under one roof. Their geographical location has become their core
competency because the places where Imtiaz is located have no other supermarkets. That’s
why the first priority of customers for shopping is Imtiaz supermarket. Moreover Imtiaz also
focuses on providing jobs to decrease the unemployment in the country. This can also be
count as one of the sustainable competitive advantage because other supermarkets or
organizations don’t hire a huge number of employees, instead they try to hire as few
employees as possible.
SWOT Analysis:
Strengths of Imtiaz:
Higher quality products. Wide range of products. Geographical location.
Opportunities for Imtiaz:
Expand in international market. Increase advertising for private brand e.g. “PONAM”
Diversify its grocery department.
Weaknesses of Imtiaz:
Due to huge number of item sold, Imtiaz has to rely increasingly on middle-man. Fewer
outlets to benefit from bulk-buying.
Threats for Imtiaz:
Increasing supermarket segment competition. Difficult economy. Environmental uncertainty.
Negative word of mouth from customers.
BCG Matrix:









QUESTION MARK
STAR
FASHION PRODUCTS
FOOD & GROCERY PRODUCTS
DOGS
CASH COWS
SOAPS, DETERGENTS, ETC
POONAM PRODUCTS (The private product)
BCG matrix also depends on the brands they are having partnership with.
Target Market:
Imtiaz supermarket targets every class of customers. They are
offering products for everyone. Their vision statement also shows that they want everyone to
get facilitated by Imtiaz supermarket.
Task-2 (part 1):
Rational decision making model definition:
Rational decision making is a multi-step and linear process, designed for problem-solving
start from problem identification through solution, for making logically sound decisions.
The rational decision making model is a good model to make good decisions because it
depends on rational way used for problems solving.
Rational decision making model steps:
If you want to make a good decision which helps you to achieve your goals; you should
depend on the available facts to make a careful analysis to make a decision as we’ll explain
in the following steps:
Step 1: Identify and define the problem:
The first step to make a rational decision is to identify and describe the problem by defining
the current and desired states and defining the alternatives:

Keep in mind during identifying the problem to identify the cause of the problem,
not the symptoms.

Define the gap between the current state and the desired state. And the gap must
be enough to motivate the involved people to implement the decision.

Define all available options and don’t think about quick solutions.
Example: if your family is growing and you have a small house which doesn’t meet your
needs. Let’s assume that your decision is buying a bigger house to overcome that issue.
Note that: buying a new house is a solution (not identifying the problem), and by this way
you don’t think about the cause of the problem (space), the gap between the current and
desired state and all alternative options.
The cause of the problem:
Buying a new house isn’t a problem, it’s a symptom. And the cause of the problem is
the (Space).
The gap between the current and desired state:
In our example, you should mention the available space and the needed space.
All alternative options
Think about all alternatives:

If there is unneeded stuff in your house can be removed to free up space.

Having a space to build a new room in the house.

Buying a new house.
Step 2: Identify the decision criteria:
The second step in the rational decision making model is outlining all the criteria ahead of
time because those criteria will be a good guide to make a decision
Example: let’s get back to our problem, space is our issue and we need to identify some
criteria to measure all alternatives and determining if there is solution is better than others,
in this example our criteria are (time and cost)
Time: we should think about:

When will we need that space?

When will solving the problem be critical?

And how long will each option take?
Cost: these criteria are important to know if there is some options cost more than others; so
you should know:

How much will each option cost?

How much money do we have?
Note that: if our problem is buying a new house instead of solving a space issue, we would
establish criteria a little differently; and we would likely focus on things like distances to
activities, crime per capita, quality of schools, and some other factors.
Now we’ve identified the problem and the decision’s criteria, it’s the time to weigh those
criteria:
Step3: weight established criteria:
We need to weigh those criteria because each criterion is unlikely to have the same level of
importance; there are few ways you can use to accomplish this step:
1- Using an absolute comparison:
You can use this method which you commonly find costumers’ ratings; this comparison is
helpful because it allows you to compare items side by side. So if you’re shopping for a
product, you can look through customers’ reports and ratings and compare different types
of the product in a specific category.
Those reports and ratings are accomplished by incorporating a ranking system where the
user enters a value reflecting the importance of the criteria on a scale.
Example: let’s say that there is a scale starting from “1” and going to “10”. “1” indicates that
the criteria has no importance to us and a score of “10” indicates that the item is very
important. So we would go through each criteria and use this method to weigh their
significance to us.
Since we are evaluating the criteria on their own metric and not in relation to another
criteria so we can assign the same value to different criteria.
2- Using relative comparison
A relative comparison is made by comparing each criteria with another. So by using relative
comparison; we can obtain what criteria are most important to us. This can be helpful when
you attempt to weigh criteria that have similar ratings by using an absolute comparison.
So by comparing them against one another we firmly know which one is more important.
Step 4: Generate list of alternatives
Once we have identified a thorough list of criteria and weighed the importance of those
criteria, now we can generate a list of alternatives.
During this step, our goal is generating many alternatives as possible. The more alternatives
that we generate, the greater the likelihood is that we’ll come up with an effective solution
to our problem.
Going back to our problem, we can generate a few alternatives, including buying new house,
building another room, placing possessions in storage, or even placing a few kids up for
adoption.
Keep in mind, in this stage we define all possible options, no matter they are good or bad
solutions because we’ll think about that in the next stage.
Step 5: Evaluate the alternatives:
At this stage, we want to evaluate the alternatives that we’ve identified using the criteria
that we’ve identified in step2. This step may be lengthy depending on the number of criteria
and the number of alternatives.
Let’s go back to our Example: we’ll use a simple rank-order method to rank the alternatives
in the criteria that we’ve identified. We’re also establishing weights to each criteria based
on our findings from step 3. as shown in the following table:
Long term-solution
(0.6)
Time
(0.3)
Cost
(0.1)
Buying a new house
1
4
4
placing possessions in storage
4
1
1
Increase size of home
2
3
2
Reduce family size
3
2
3
PreviousNext
Step 6: Determining the optimal decision
The sixth step in our rational decision making model is determining the optimal decision. In
order to know the optimal decision, we’re going to multiply ranking for each alternative by
that criteria’s respective weight.
Search:
Long
termsolution
(0.6)
Time
(0.3)
Cost
(0.1)
Total
3*0.6 =
1.8
2*0.3 =
0.6
3*0.1 =
0.3
2.7
Buying a new house
1*0.6 =
0.6
4*0.3 =
1.2
4*0.1 =
0.4
0.6+1.2+0.4=2.2
placing possessions in
storage
4*0.6 =
2.4
1*0.3 =
0.3
1*0.1 =
0.1
2.8
Increase size of home
2*0.6 =
1.2
3*0.3 =
0.9
2*0.1 =
0.2
2.5
Reduce family size
PreviousNext
Since each criteria has a different level of importance, we use these levels to assign more
influence to the results in categories that have more importance.
And since we’ve already weighed the established criteria in step 3, we know exactly which
criteria to give more importance to as we determine the optimal decision. As you can see,
buying a new house appears to be the best solution based upon the evaluation.
As we end I want to leave you with a word of caution. Models, by the very nature, are clear,
organized, and logical. Everything in the real world is not. So applying a model to an
environment isn’t perfect but it’s a difficult task.
It is true that statistically, that who uses such a model will make more rational decisions,
whether in his business or in personal lives. But money, time, and other constraints can
affect a manager’s ability to use such a model as it was intended; because maybe you can’t
evaluate every alternative and identify every possible option. But if your goal as a manager
is to make more rational decisions, this is certainly a start.
Task-2 (part 2):
Strengths of Rational Decision Making:
As stated above, rational decision making is based on scientifically obtained information, so this
decision making model can reduce the chance of errors, uncertainties, assumptions, subjectivity and
distortions. This approach can also reduce to risk of failures because the evaluation and selection
process of this approach are based on sane and logic information and knowledge. Rational decision
making can help the decision makers to deal with difficult problems in a complex environment. “It is
a well-defined step-by-step approach that required defining problems, identifying the weighing
and decision criteria, listing out the various alternatives,deliberating the present and future
consequences of each alternative, and rating each alternative on each criterion (Simon, Herbert,
1978)”. Using this model, the issue will be addressed by breaking down into easy steps, and
all aspects of the issue will be considered with possiblesolutions and then make the final decision.
Weaknesses of Rational Decision Making:
Generally, better decision can be made if the decision maker follows the rational decision maker
model. However, sometimes the business environment is very complex that confuse the decision
makers. Sometimes the information is insufficient. This problem can cause the difficulties in
evaluating the issue even defining the problem. This situation usually happens in the uncertain
conditions while making decisions. In this condition, the decision maker does not have any
information which can help to make the decision. As a result, he cannot evaluate the alternatives
and has to use his experience to make a decision.
Following are 2 preferred Decision Making Styles used in above Rational Decision Making Steps:
1- Analytic Decision Making Style:
Pros
Analytic decision makers are consumers of knowledge. As researchers by nature, they want all the
facts and insight they can get in order to make a wise choice. They value increased perspective, but
still prefer to work alone, as their information-gathering process requires solitude. They’re also
inclined to study others’ ideas and solutions but aren’t satisfied with what’s been done in the past.
Instead, they use these sources to improve and advance their industries. Because of their problem
solving skills, companies with leaders who are analytic decision makers are normally extremely
innovative. As a result, they attract ambitious high-performers who are ready to help them change
the world for the better.
Make analytic decisions when:

Strategizing on how to accomplish long-term goals

Finding the root of a problem

Gathering ideas for creative solutions
Cons
While analytic decision makers are great at making informed decisions, their need to understand
everything can prolong the decision making process. When a leader is working against the clock, this
decision-making style isn’t as constructive as the directive decision style. Yet, like directive decision
makers, analytic decision makers are less concerned about how their decisions affect the people
implementing these choices. They need behavioral decision-making to formulate a plan that doesn’t
cause added work burnout or work stress. Additionally, they lack the perspective of conceptual
thinkers who prefer a mastermind group type of team culture. This helps team members build off of
one another and improve each other’s ideas.
Don’t make analytical decisions when:

Requiring additional input from team members

Knowing the matter at hand is extremely time-sensitive

Needing to lead in a humanistic, “people first” manner
Example of How to Properly Use the Analytic Decision Style
A leader is aware their product is a purple cow—meaning it is innovative for its time, but
competitors will eventually catch on and create cheaper carbon copies. In order to keep their
company profitable, they analyze where the market is heading and research how to reinvest their
money into the company to establish an R&D department. Instead of focusing on short-term
business goals, they spend most of their week learning how to pivot and develop other great
products years before their best-seller loses steam.
2- Behavioral Decision Making Style:
Pros
Behavioral decision makers make decisions based on the impact they have on those around them.
Out of all the decision making styles, this one is the least self-serving. Leaders who are behavioral
decision makers are well-liked by their employees because team members feel like they make
choices that keep their best interest in mind. In addition to this, those who are naturally drawn to
this decision making style show a high level of emotional intelligence, which includes selfawareness, self-management, social awareness, and relationship management. These are all
necessary skills people must have to hold a leadership position.
Make behavioral decisions when:

Handling choices that affect team member’s feelings, emotions, and well-being

Influencing, inspiring, and motivating others

Demonstrating servant leadership
Cons
The downside to behavioral decision making is that it heavily relies on the way other people feel
about the decision being made. Leaders with this style have a hard time reaching a conclusion
because they want to please every team member, investor, and client. The truth is, it is impossible to
ensure all of those impacted by the decision will agree with it. Additionally, it isn’t feasible to run a
business by committee. Companies need a leader who provides direction, rather than a leader who
constantly asks for them. Implementing the directive decision making style alongside the behavioral
one will reposition leaders as instructive, yet empathetic sources of guidance. The analytical decision
making style can also be used to help business owners and executives explain why they made
decisions others might not agree with.
Don’t make behavioral decisions when:

Solving a problem that requires a practical and logical mindset

Serving others’ interests causes harm to the business

Feeling too emotionally attached to a particular choice
Example of How to Properly Use the Behavioral Decision Style
When closing a business deal, the CEO of a company notices their new client’s founder looks visibly
nervous as the two talk numbers. The business leader instantly realizes this energetic shift and asks
the founder what’s troubling them. The founder communicates they feel the deal is too financially
risky. Using the behavioral decision style, the CEO begins quelling the founder’s fears by pointing out
how the deal will serve the client. Yet, the founder still seems emotionally unready to sign off on the
deal. To not lose the relationship, the CEO offers a risk-free 30-day trial to gain more trust and build
a greater relationship with the founder.
Importance of decision making for leaders and
leadership
When organizations don’t have leaders capable of making executive decisions, everyone
suffers. This includes the business owner, their team members, and the company’s
customers. Indecision causes a lack of innovation in companies, a tall stack of incomplete
projects, prolonged hiring, employee work burnout, work stress, work anxiety, and
profitability problems. Because the repercussions of indecision are detrimental to
companies, it is crucial leaders learn, practice, and master the four decision making styles.
Those in leadership roles are responsible for making decisions that guide employees toward
accomplishing the business’s vision. When a CEO or executive is indecisive, they limit their
ability to motivate, inspire, influence, and confidently lead their team. As Narendra Modi,
the prime minister of India says, “If you call yourself a leader, then you have to be decisive.
If you’re decisive, then you have the chance to be a leader. These are two sides to the same
coin.”
In this article, learn how to establish a foundational decision making process that prevents
indecision from becoming a roadblock. Additionally, find out more about the four decision
making styles and tips for how to practice each one below.
What are Decision Making Styles?
Decision making styles determine the way in which a person goes about solving a problem in
a formulaic, strategic manner. Similar to a personality type, most people lean more toward
one decision making style than the others. In regards to decision making in management,
there are four styles: directive, analytical, conceptual, and behavioral.
While a person in charge of making executive decisions might favor the style that feels most
natural to them, it is important to be flexible and consider which decision making style
produces optimal outcomes. Being a leader is a job that requires multiple decision making
styles (and leadership styles). The problems and situations leaders face are complex, which
is why learning how to handle issues, conflict, and decisions in a variety of ways is
advantageous.
Benefits of Using the 4 Decision Making Styles
In business, the greatest benefit of defeating indecision using the four decision making
styles is playing an offensive, rather than a defensive game. When doing so, leaders position
their team in a way that allows them to make headway on achieving the company’s top
objectives. Strong decision-makers are great communicators who line up the play, put it into
action, and strategize on the next moves the team makes. They put their plans into motion,
but not before everyone on the team understands their role and how to properly execute it.
As a result, the team is able to move forward and accomplish the organization’s clearly
defined goals. For this reason, those who practice and develop decision making
skills demonstrate people management at its finest.
Other advantages of practicing the four decision making styles include:

Knowing how to assess risk and make informed decisions

Managing emotion-based choices that can have detrimental consequences

Creating a productive work environment that increases revenue

Developing a team culture where employees feel excited about the work they’re
doing instead of burned out from fighting fires caused by indecision

Making headway on the company’s mission and positively affecting others’ lives.