Yabegaye Ford November 24th, 2024 BADM 426 Professor Grenway Homework 12 I. Key Terms: This week provide a sentence with each key term that demonstrates you understand the definition. This should help you with using the terms in your papers. Organizational decision-making: “The process of identifying and solving problems.” (Pg. 478) Rational approach: “Decision-making process based on systematic analysis of a problem followed by choice and implementation in a logical sequence.” (Pg. 481) Satisficing: “The acceptance of a satisfactory rather than a maximum level of performance, enabling an organization to achieve several goals simultaneously.” (Pg. 492) Contingency theory: “One thing depends on other things; for organizations to be effective, there must be a “goodness of fit” between their structure, and the conditions in their external environment.” Adaptation: “A culture characterized by a strategic focus on the external environment through flexibility and change to meet customer needs.” II. Discussion Questions: Respond to the following discussion questions: 2,5,7,9. 2. A professional economist once told his class, “An individual decision-maker should process all relevant information and select the economically rational alternative.” Do you agree? Why or why not? I agree with this statement. While processing all relevant information and selecting the economically rational alternative is best, it is only sometimes possible due to limitations like time, resources, or mental restrictions (bounded rationality). Decisions often involve emotional, ethical, or social factors that may outweigh purely economic considerations. For example, choosing an environmentally sustainable product over a cheaper option reflects values beyond economic rationality. Therefore, decision-making often requires balancing rational analysis with personal or organizational priorities. 5. What are the three major phases in Mintzberg’s incremental decision model? Why might an organization recycle through one or more phases of the model? The three major phases in Mintzberg’s incremental decision model are: 1. Identification Phase – Recognizing and diagnosing a problem or opportunity. 2. Development Phase – Searching for and designing possible solutions. 3. Selection Phase – Choosing a specific solution through evaluation and analysis. Organizations may repeat through these phases when new information appears, solutions prove weak, or outer conditions change. For example, in dynamic industries like technology, organizations might revisit the development or identification phase to adapt to rapid changes or unexpected challenges. 7. How would you make a decision to select a building site for a new waste-treatment plant in the Philippines? Where would you start with this complex decision, and what steps would you take? Explain which decision model in the chapter best describes your approach. To decide on a building site for a waste-treatment plant, I would use the rational approach for its structured and logical framework. The steps include: 1. Problem Identification – Clearly define the requirements for the site (environmental safety, accessibility, compliance with regulations). 2. Gathering Information – Collect data on potential locations, including environmental impact assessments, community feedback, and costs. 3. Evaluating Alternatives – Compare options based on measures like cost, environmental impact, immediacy to waste sources, and local support. 4. Making the Decision – Choose the most suitable site based on the evaluation. 5. Implementation and Monitoring – Begin construction and continuously assess impacts to ensure the site meets expectations. The rational approach is appropriate here because it emphasizes fact-based decision-making and a clear evaluation of alternatives. 9. Can you think of a decision you have made in your personal, school, or work life that reflects a stronger desire to avoid a loss than to make a gain? How about a time when you stayed with an idea or project for too long, perhaps even escalating your commitment, to avoid a failure? Discuss. A personal example of avoiding loss is choosing to stick with a major in college despite challenges, driven by the fear of wasted time and resources if I switched. Although I considered other fields, I prioritized completing my degree to avoid starting over. An example of escalating commitment was continuing with a school project that faced significant obstacles. I hesitated to leave it due to the time already invested, even though shifting to a new idea might have been more productive. These decisions highlight prospect theory, where the fear of loss can outweigh the potential for gain, influencing decision-making under uncertainty. III. Silk Road Reader: Write a short memo to the Managing Director of a Chinese company that is considering setting up operations in India. Offer two specific recommendations, based on chap 7. Be sure to include in-text citations where needed. Memo To: Managing Director From: Yabegaye Ford Date: 11/24/2024 Subject: Recommendations for Setting Up Operations in India Dear Managing Director, Based on the insights from Chapter 7 of The Silk Road Rediscovered, I would like to present two key recommendations to guide your company's successful entry into the Indian market. 1. Invest in Building Trust and Relationships As noted in the text, Indian businesses place a high value on trust and long-term relationships. "Unlike the transactional nature of business dealings in some countries, India requires a relational approach where trust must be built before significant business can occur" (Chapter 7, p. 134). To achieve this, the company should focus on engaging in consistent communication with local partners and demonstrating a genuine commitment to understanding their priorities and challenges. This effort will help establish credibility and encourage mutually beneficial partnerships. 2. Adapt to Regional Variations and Regulatory Differences India is not a homogenous market, and businesses must tailor their strategies to regional and state-specific differences. The book highlights that "Each Indian state functions almost like an independent country in terms of regulations, language, and consumer preferences" (Chapter 7, p. 137). It is essential to work with local experts who are well-versed in navigating state-level policies and consumer behaviors. Additionally, leveraging local talent will provide your company with the necessary insights to adapt to these variations effectively. These recommendations will provide a strong foundation for entering and thriving in the Indian market. Should you require further assistance or detailed plans, please do not hesitate to reach out. Best regards, Yabegaye Ford IV. Career Development: -Read the short article on finding a mentor: Indicate two steps you can take immediately to start building your mentor network. Identify Your Needs Begin by clarifying what you need from a mentor. This includes understanding the specific skills, expertise, or guidance you are seeking. For example, are you looking for help with navigating career transitions, enhancing your leadership skills, or specific advice in the field of global sustainability? “Once you narrow down what you need from a mentor, searching for one becomes a bit easier” (Your Guide to Finding a Mentor, Pg.. 2) Leverage Your Existing Network Look within your current connections—such as professors, former supervisors, or colleagues—to identify individuals who may align with your mentorship goals. Building on these existing relationships is often the most accessible first step (Your Guide to Finding a Mentor, Pg. 2). -Carry out your Informational Interview this week!! Indicate the name of the alum and the date/ time of the interview. Note your will be asked to submit a transcript of the interview under Week 14. -Skim the PDF on "getting rich"! Identify two ideas that you would like to read more about when you have the time! The Importance of Starting Early with Financial Planning The text emphasizes, “Starting early gives you the advantage of compound growth, where returns on investments begin to generate returns themselves over time” (If You Can, Pg. 3). I’d like to explore strategies for effectively implementing early-stage financial habits. The Role of Index Funds in Building Wealth The book highlights index funds as “low-cost, diversified investment options that consistently outperform many actively managed funds” (If You Can, Pg. 7). Further reading could delve into how index funds can align with sustainability-focused investment goals. V. Analytic Writing -Include a revised draft of the Prep Matrix and outline for you WA #3. These should be complete by this stage!
