Spin Master

614 Words3 Pages
1. Harary, Rabie and Varadi faced many key decisions in the start-up of their company. Their company, Spin Master, made these decisions in a risk environment. This is an environment that consists of a lack of information, but is one that offers the likelihoods of different outcomes resulting from possible courses of action. Since Spin Master is a start up, its business environment lacks information and certainty. However, the partners can use the short history of their company as well as the industry to calculate probabilities.
As a result of this decision environment it can be concluded that the decisions made in the start up of Spin Master were non-programmed decision types. A programmed decision uses a solution from a past experience to resolve a routine problem. A non-programmed decision uses a unique solution that is created for a new or unusual
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2. As a result of Spin Master’s success, there are several decision errors and traps that might be a problem for them in the future. Initially, representation bias may be an error that will be encountered by the company going forward. Representation bias is when people asses the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. Spin Master may make future decisions about creating new products, simply based on what worked for the company in the past, or because they work for all the other toy companies.
Anchoring & adjustment might be another obstacle for Spin Master in the future. This decision error occurs when decisions are biased because there are based on clinging on to a previously existing decision point or value. Spin Master may gage many of their judgements or decisions in the future based on the success or sales of their past products. This can be a problem if the figures considered are unrealistic or

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