Managers at Gap Inc., a once- popular retail chain, are reported to have made a series of decisions that hurt the company: They expanded so rapidly that the chain lost touch with customers; they tried to copy the successful approach of rivals rather than charting their own course; they cut quality to reduce costs; they shifted from one fashion approach to another as each failed to appeal to customers, and so on. What techniques would you recommend that Gap managers use to improve the quality of their decisions?

Managers at Gap Inc., a once- popular retail chain, are reported to have made a series of decisions that hurt the company: They expanded so rapidly that the chain lost touch with customers; they tried to copy the successful approach of rivals rather than charting their own course; they cut quality to reduce costs; they shifted from one fashion approach to another as each failed to appeal to customers, and so on. What techniques would you recommend that Gap managers use to improve the quality of their decisions?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter9: Managerial Decision Making

Section: Chapter Questions

Problem 6DQ

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Chris Dykstra, responsible for loss prevention at Electronics took a deep breath before he launched into making his case for the changes that he was proposing to the company's shoplifting policy. He knew that convincing Ross Chenoweth was going to be a hard sell. Ross, the president and CEO was the son of the founder of the local, still-family-owned consumer electronics chain based in Phoenix, Arizona. He'd inherited not only the company, but also, his father's strict moral code. "I think it's time to follow the lead of other stores," Chris began. He pointed out that most Other retailers didn't bother calling the police and pressing charges unless the thief had shoplifted merchandise worth more than $50 to $100. In contrast, Westwind currently had a zero-tolerance policy toward theft that Ross's father had put in place when he started the business. Chris wanted to replace that policy with one that prosecuted only individuals between IS and 65 who had stolen more than $20 worth of goods, and who had a previous history of theft at Westwind. In the case of first-time culprits under IS or over 65, he argued for letting them Off With a strict warning, regardless of the value of their ill-gotten goods. Repeat offenders would be arrested. "Frankly, the local police are getting pretty tired Of having to come to Our stores every time a teenager sticks a CD in his jacket pocket," Chris pointed out. "And besides, we just afford the costs associated with prosecuting everyone." Every time he pressed charges against a shoplifter who'd made Off with a $10 item, Westwind lost money. The company had to engage a lawyer and pay employees Overtime for their court appearances. In addition, Chris was looking at hiring more security guards to keep up with the workload. Westwind was already in a losing battle at the moment with mass retailers who were competing all too successfully on price, so passing on the costs of its zero-tolerance policy to Customers wasn't really an option. " Let's concentrate on catching dishonest employees and those organized-theft rings. They're the ones who are really hurting us," Chris concluded. There was a long pause after Chris finished his carefully prepared speech. Ross thought about his recently deceased father, both an astute businessman and a person for whom honesty was a key guiding principle. If he were sitting here today, he`d no doubt say that theft was theft—that setting a minimum was tantamount to saying that stealing was acceptable, just as long as you steal too much. He looked at Chris. "You know, we've both got teenagers. Is this really a message you want to send out, especially to kids? You know as well as I do that there's nothing they like better than testing limits. It's almost an invitation to see if you can beat the system." But then Ross faltered as he found himself glancing at the latest financial figures on his desk—another in a string of quarterly losses. If West-wind went under, a lot of employees would be looking for another way to make a living. In his heart, he believed in his father's high moral standards, but he had to ask himself: Just how moral could Westwind afford to be? Continue Westwind's zero-tolerance policy toward shoplifting. It's the right thing to do—and it Will pay Off in the end in higher profitability because the chain's reputation for being tough on crime Will reduce overall losses from theft.
Chris Dykstra, responsible for loss prevention at Electronics took a deep breath before he launched into making his case for the changes that he was proposing to the company's shoplifting policy. He knew that convincing Ross Chenoweth was going to be a hard sell. Ross, the president and CEO was the son of the founder of the local, still-family-owned consumer electronics chain based in Phoenix, Arizona. He'd inherited not only the company, but also, his father's strict moral code. "I think it's time to follow the lead of other stores," Chris began. He pointed out that most Other retailers didn't bother calling the police and pressing charges unless the thief had shoplifted merchandise worth more than $50 to $100. In contrast, Westwind currently had a zero-tolerance policy toward theft that Ross's father had put in place when he started the business. Chris wanted to replace that policy with one that prosecuted only individuals between IS and 65 who had stolen more than $20 worth of goods, and who had a previous history of theft at Westwind. In the case of first-time culprits under IS or over 65, he argued for letting them Off With a strict warning, regardless of the value of their ill-gotten goods. Repeat offenders would be arrested. "Frankly, the local police are getting pretty tired Of having to come to Our stores every time a teenager sticks a CD in his jacket pocket," Chris pointed out. "And besides, we just afford the costs associated with prosecuting everyone." Every time he pressed charges against a shoplifter who'd made Off with a $10 item, Westwind lost money. The company had to engage a lawyer and pay employees Overtime for their court appearances. In addition, Chris was looking at hiring more security guards to keep up with the workload. Westwind was already in a losing battle at the moment with mass retailers who were competing all too successfully on price, so passing on the costs of its zero-tolerance policy to Customers wasn't really an option. " Let's concentrate on catching dishonest employees and those organized-theft rings. They're the ones who are really hurting us," Chris concluded. There was a long pause after Chris finished his carefully prepared speech. Ross thought about his recently deceased father, both an astute businessman and a person for whom honesty was a key guiding principle. If he were sitting here today, he`d no doubt say that theft was theft—that setting a minimum was tantamount to saying that stealing was acceptable, just as long as you steal too much. He looked at Chris. "You know, we've both got teenagers. Is this really a message you want to send out, especially to kids? You know as well as I do that there's nothing they like better than testing limits. It's almost an invitation to see if you can beat the system." But then Ross faltered as he found himself glancing at the latest financial figures on his desk—another in a string of quarterly losses. If West-wind went under, a lot of employees would be looking for another way to make a living. In his heart, he believed in his father's high moral standards, but he had to ask himself: Just how moral could Westwind afford to be? Adopt Chris Dykstra`s proposed changes, but with a higher limit than the proposed $20 amount (say, $50 or $100), but which is still less than the cost of prosecution. In addition, make sure that the policy isn't publicized. That way, you'll reduce costs even more and still benefit from your reputation for prosecuting all shoplifters.
Chris Dykstra, responsible for loss prevention at Electronics took a deep breath before he launched into making his case for the changes that he was proposing to the company's shoplifting policy. He knew that convincing Ross Chenoweth was going to be a hard sell. Ross, the president and CEO was the son of the founder of the local, still-family-owned consumer electronics chain based in Phoenix, Arizona. He'd inherited not only the company, but also, his father's strict moral code. "I think it's time to follow the lead of other stores," Chris began. He pointed out that most Other retailers didn't bother calling the police and pressing charges unless the thief had shoplifted merchandise worth more than $50 to $100. In contrast, Westwind currently had a zero-tolerance policy toward theft that Ross's father had put in place when he started the business. Chris wanted to replace that policy with one that prosecuted only individuals between IS and 65 who had stolen more than $20 worth of goods, and who had a previous history of theft at Westwind. In the case of first-time culprits under IS or over 65, he argued for letting them Off With a strict warning, regardless of the value of their ill-gotten goods. Repeat offenders would be arrested. "Frankly, the local police are getting pretty tired Of having to come to Our stores every time a teenager sticks a CD in his jacket pocket," Chris pointed out. "And besides, we just afford the costs associated with prosecuting everyone." Every time he pressed charges against a shoplifter who'd made Off with a $10 item, Westwind lost money. The company had to engage a lawyer and pay employees Overtime for their court appearances. In addition, Chris was looking at hiring more security guards to keep up with the workload. Westwind was already in a losing battle at the moment with mass retailers who were competing all too successfully on price, so passing on the costs of its zero-tolerance policy to Customers wasn't really an option. "Let's concentrate on catching dishonest employees and those organized-theft rings. They're the ones who are really hurting us," Chris concluded. There was a long pause after Chris finished his carefully prepared speech. Ross thought about his recently deceased father, both an astute businessman and a person for whom honesty was a key guiding principle. If he were sitting here today, he`d no doubt say that theft was theft—that setting a minimum was tantamount to saying that stealing was acceptable, just as long as you steal too much. He looked at Chris. "You know, we've both got teenagers. Is this really a message you want to send out, especially to kids? You know as well as I do that there's nothing they like better than testing limits. It's almost an invitation to see if you can beat the system." But then Ross faltered as he found himself glancing at the latest financial figures on his desk—another in a string of quarterly losses. If West-wind went under, a lot of employees would be looking for another way to make a living. In his heart, he believed in his father's high moral standards, but he had to ask himself: Just how moral could Westwind afford to be? Adopt Chris Dykstra's proposed changes and show more leniency to first-time offenders. It is a more cost effective approach to the problem than the current policy, plus it stays close to your father's Original intent.
Managers at Gap Inc., formerly one of the top retail chains, are reported to have made a series of decisions that hurt the company: They expanded so rapidly that the chain lost touch with customers; they tried to copy the successful approach of rivals rather than charting their own course; they cut quality to reduce costs; they shifted from one fashion approach to another as each one failed to appeal to customers, and so on. What techniques would you recommend Gap managers use to improve the quality of their decisions?
Q1- “Too many managers today have forgotten that work should be inspiring and fun and are too out of touch with what makes people productive”. How would you respond to this assertion? Q2- What are the steps of effective decision making? Is there a difference between wrong decisions and bad decisions? Why do good managers sometimes make wrong decisions? Bad decisions? How can managers improve their decision making skills?
Decision-related conflict frequently revolves around an ethical conundrum of some kind. The best way to handle ethical dilemmas, according to Carter McNamara, is to prevent them from occurring in the first place. That is why actions like creating codes of ethics and conduct are so crucial. Employees become more ethically aware as a result of their development, which also lowers the likelihood that unethical behaviour will ever take place. What might have gone wrong if an organization did this and used a good DM strategy but still experienced issues with lingering conflict?What are the leaders of the company lacking? How could something that they are "not getting right" (or not getting at all!) be successfully challenged and corrected?
In not more than 150 words, respond to the reflective question. All management decisions consider quantitative information (factors which can be measured in numerical terms such as cost implication and change in profitability) and qualitative information (those that are difficult to measure in numerical terms such as satisfaction, business relationships, and morale). If you are given a task to weight factors for decision making, how much of 100% will you allocate to quantitative information and to qualitative information? Give a sample decision and the factors/criteria which should be considered.
"I expect all the managers in my department to act completely rationally in every decision they make", declared Eleanor Johnson, Vice President for marketing for the Olympic Toy Company. "Every one of us, no matter what his or her position, is hired to be a professional rationalist, and I expect all of us not only to know what they are doing and why but to be right in their decisions. I know that someone has said that a good manager needs only to be right in more than half of his or her decisions. But that is not good enough for me. I would agree that you may be excused for occasionally making a mistake, especially if it is a matter beyond your control, but I can never excuse you for not acting rationally." "I agree with your idea, Eleanor", said Jill Goldberg, her advertising manager, "and I always try to be rational and logical in my decisions. But would you mind helping me be sure of this by explaining just what 'acting rationally' is?" Questions: 1. Explain how the Vice…
I expect all the managers in my department to act completely rationally in every decision they make , declared Eleanor Johnson, Vice President for marketing for the Olympic Toy Company. Every one of us, no matter what his or her position, is hired to be a professional rationalist, and I expect all of us not only to know what they are doing and why but to be right in their decisions. I know that someone has said that a good manager needs only to be right in more than half of his or her decisions. But that is not good enough for me. I would agree that you may be excused for occasionally making a mistake, especially if it is a matter beyond your control, but I can never excuse you for not acting rationally.I agree with your idea, Eleanor", said Jill Goldberg, her advertising manager, and I always try to be rational and logical in my decisions. But would you mind helping me be sure of this by explaining just what acting rationally is? Questions: 1. Explain how the Vice President…
Is it possible to make sound managerial decisions without business research? What advantages does research offer to the decision maker over seat-of-the-pants decision making?
Experts advised that most disasters in organizations are the result of a series of small problems or mistakes. Most bad decisions are errors in judgment that originate in the human mind’s limited capacity and in the natural biases that managers display during decision making. As a consultant specialising in strategic planning and development, explain how might you apply this understanding in helping your clients to avoid making major mistakes.
a) Why is decision making often described as the essence of a manager’s job? b) Is there a difference between wrong decisions & bad decision?Why do good managers sometimes make wrong decision? Bad decision? c)How can managers improve their decision-making skills