Tradeoff is an exchange where you give up one thing in order to get
something else that you also desire. While Decision making is an outcome
of process leading to the course selection among several alternatives. Every
process in decision making produces a final choice. The result can be an
opinion of choice or an action.
Basically making decisions requires some form of
deliberation and evaluation by the decision maker. When there is a single
decision maker, the process may not have to be rigid or replicable or even
justified to anyone other than the decision maker.
In fact Trade-offs are involved
in deciding numerous issues such as located facility. The locations of
corporations have important consequences, from affecting the design of cities
and local employment, to the trends of urbanization and inter-region trade.
Consequently, one of the fundamental issues in economics relates to the
location of production (The Economist, 2016).
Nowadays technology facilitate an optimal decision. Decision support
systems (DSS) are defined as interactive computer-based information systems
intended to help decision makers utilize data and models in order to identify
and solve problems, and make decisions (Gates & Hemingway, 1999). In
contrast with decision analysis and operational research, where the emphasis is
on making and using decision models, DSS focus on providing information
technology for decision makers at various levels in organizations. The emphasis
is on providing relevant information and presenting it in a suitable form so as
to improve the decision making process and tasks. (Gates & Hemingway,
Many management issues are complex, involving numerous interdependent
variables. Finding and evaluating alternatives, especially for sophisticated
models can be transformed into a megaproject calculations, which necessarily
requires the use of computers. In addition, computers, besides solving the
required calculations models, provides collection, storage, retrieval,
restoration and analysis data.
B., & Hemingway, C. (1999). Business @ the speed of thought. New York,
NY: Warner Books.
William J., and Mehran Hojati. Operations Management. Toronto:
McGraw-Hill Ryerson, 2011. Print.
(2016). A trade-off between sovereignty and economics. Retrieved 4 March
Student 2( OM8-MK)
530: Operations Management
In all the business
organizations making decisions related to a wise trade off is the most
difficult and challenging situation for the management. Consideration of
different alternatives and pursuing different objectives requires more
trade-offs (Haak, et al., 2012). With all the objectives, there is a need to
make different rationale, so that coherent judgments can be made. In deciding to
have a single large, centrally located facility different types of trade-off
are involved, which are completely opposite from the trade-offs of several
smaller, and dispersed facilities. A centrally located facility requires a
single management team to operate the workers of the same location, which is
not in the case of several smaller facilities (Patnaik, 2015).
In addition to this,
there is a need to follow one set of government requirement to manage all the
facilities at the location. On the other hand, in the several smaller
facilities, the management can lower the transportation cost and through a
variety of markets and maintain market shares as well (Stevenson, 2009). In
this decision, the management and operation team should be involved along with the
marketing team. It is because the company should consider the low cost but
popular accommodation for different facilities.
In the present
circumstances, technology would help to take optimal decisions as it would
allow the management to identify the best location according to the goals and
objectives of the company. An effective communication to choose the facilities
and analyze its benefits and risk to the firm will help to select a suitable
location. By using different informational tools, the companies can also opt
for low cost locations and manage labor schedule accordingly. Further, through
technology, the market environment and the customer requirements can also be
measured (Haak, et al., 2012). E-bay is a good example, which has made the
decision of centrally located facilities for its location. As the firm operates
trough online business, by using the internet, it handles the global
operations. However, making trade-off decisions related to location facility
involves different considerations like labor availability, cost of labor,
location expenses and transportation and so on. Before finalizing any decision,
firms should assess all the related factors, along with third providers
Haak, D.C., McGinnis,
L.A., Levey, D.J., Tewksbury, J.J. (2012). Why are not all chilies hot? A
trade-off limits pungency. Proc. R. Soc. B Biol. Sci. 279,
(2015). Operations Management. Lulu Press, Inc.
(2009). Operations Management (10th edition).
Tata McGraw-Hill Education.
Student 3( DT8-Arwa)
Board Module 8
techniques are very useful for the business organization in effective decision
making because they provide the reliable information and data that enhance the
decision-making ability of the decision makers and reduce the possibility of
any error (Tooke, et al., 2009). Every decision-making technique has a
different outcome that can differ from the other technique. There are several
decision-making techniques that can be used by the decision makers of the
organization to make errorless decision that can impacts positively on the
organization. There are two most important techniques that are used by the
management of Prince Nora University are given below:
Decision making tree:
This technique is
effective in such situation, when several options are available for decision
making and decision maker is not much aware about the effectiveness of each
available option and their impacts on the decision making (Tooke, et al.,
2009). This technique is most effective because it helps to visualize the
multistage decision problems while dealing with uncertain outcomes. This
technique is effective in deciding between the business strategies or the
decision related to investment opportunities with controlled resources (Tooke,
et al., 2009).
In the term of
decision-making in the regard of the business, it can be stated that
cost-benefit technique is an effective technique because it helps the decision
makers to select the final decision after weighing the ramification of each
financial and possible alternative (Harel & Sitko, 2003). Hence, this
technique is generally used to apply an economic perspective to the decision
making. Cost benefit analysis is an effective method to make effective business
decisions but it is used to hold the financial aspect in each decision.
However, the situation in business is just beyond on financial aspects.
Further, the cost-benefit analysis includes the analysis between the costs of
any strategy implementation on the basis of the possible outcomes that could
not be judged in an easy manner (Harel & Sitko, 2003). This is because that
the business decision depends over the external situations. The cost benefit
analysis strategy is used by an organization to evaluate the potential for some
types of operations and project. The cost benefit analysis can be used to make
decisions and select the best opportunity from number of options. It is a key
to determine the feasibility of a project (Shankar, Sireesha, Rao & Vani,
2010). On the other hand, it can be stated that the use of decision three will
help to improve the decision making process at that time, when the information
or input has changed. In the context of the business, the schedule of the
strategy implementation is most important. In this context, decision tree will
help to predict the value of each alternative decision along with the path of
outcome. Hence, it helps decision makers to make right decisions every time. It
can be utilized to handle datasets and to remove each possible error. It can be
useful for generating practical solution to complicated problems.
Harel, E.C. & Sitko,
T.D. (2003). Digital Dashboards: Driving Higher Education Decisions. Research
Bulletin, 3 (19), 1-12.
Ragsdale, C. (2010).
Spreadsheet Modeling & Decision Analysis (6th ed.). USA: Cengage Learning.
Shankar, N.R., Sireesha,
R.V., Rao, S. & Vani, N. (2010). Fuzzy Critical Path Method Based on
Metric. Int. Journal of Math. Analysis, 4 (20), 995-1006.
Tooke, T.R., Coops,
N.C., Goodwin, N.R. & Voogt, J.A. (2009). Extracting urban vegetation
characteristics using spectral mixture analysis and decision tree
classifications. Remote Sensing of Environment, 113 (2), 398â€“407.
Student 4( DT8-Hana)
Board Module 8
Basically most of the leadership and the
decision-making concepts have had an impact on my decision making skills, as
they complement one another and make one evaluate the situation at hand from
different angles. In particular the decision-making approaches, the
problem analysis and solving processes, group dynamics in decision – making and
the effect of the leadership emotional intelligence on
decision-making (Bazerman & Moore, 2013).
As a leader I would like to have a tool that enable me
to consolidate and summarize information to organize my thoughts and guide me
to the most appropriate solution to solve complex problems. Mind maps break
down large problems into smaller manageable tasks. That can be carried
out simply by the leaders themselves or delegated to team members that are able
to manage the problem. At work, Iâ€™m faced up with so many different
situations in which mind maps will come very handy, the problem or the issue of
consideration will be placed in the middle of a circle and any ideas or facts
will be extracted from the main problem. In this way the decision that will be
taken will be based on an informed, efficient and effective manner (Goldsmith,
2008 and Safi & Burrell, 2007). As an example of a work issue that I
can use mind maps to improve my decision making skills is that we were recently
required to start constructing an e-learning webpages for our courses, mind
maps will help me organize my thoughts on what to include in this webpage what
are the goals that I want to reach from this addition, what other needed
resources that can be included, what is the best way of enhancing students
utilization of and interaction with this tool.
Another concepts are the problem analysis and problem
solving processes. Proper definition of a problem will help in
formulating an appropriate strategy to solve it. Problem solving is an
attribute that differentiate an employee from a manager or a leader, i.e.
problems are often the basis of many managerial decisions (Butterfield,
2013). Once the problem is identified the leader should take advantage of
any opportunity that leads to solution and results in positive organizational
change. Currently in the colleges where I work, the students are
performing their assessment examinations. A problem that I need to find
solution for, is how I can help my students improve their performance. To do so
I need first to figure out why some performances were lower than average
compared to others, and work from there to find a solution for this problem.
Understanding group dynamics in decision â€“ making is
also another concept that has impacted me as a leader at my work. Forming
work group or teams, can greatly enhance membersâ€™ ability to contribute to the
organization, especially when the group dynamics is positive and productive.
Sharing information among the team has the benefit of improving the collective
performance of the organization, as the group members contributing with their
random, varied and complementary skills(Buchanan, 2012 and Sims & Sauser,
2013). Before the end of this current year, the colleges are preparing to
renew their NCAAA accreditation, which is a national accreditation committee
assigned by the Ministry of Education to give accreditation to institutes that
show quality performance standards in higher education. We are working in
teams at the department level and as a group at institution level, to fulfill
the NCAAA requirements of the accreditation renewal.
The final concept that I would like to add is the
effect of the leadership emotional intelligence on decision-making.
The leadersâ€™ personality can impact their emotions and moods, which challenging
but needs to be played smartly by leaders. Emotional intelligence has been
suggested as a predictor of employee self-awareness, management of emotions,
and the ability to detect the emotional states of others. A leaders can manage
and predict behavior, when they are able to understand emotions and moods and
their implications to employee selection, decision-making, creativity,
motivation, leadership, conflict, and negotiation(Brown, Scott & Michael,
2006). Last week I was confronted with a situation that required me to
control my mood and emotions, in order to be able make fair and politically
correct decision. The problem was about dealing with different employee
attitudes and behavior in the department, and to be fair and logic with my
decision, I had to rely on the collegesâ€™ policies and standard protocols in
In conclusion, both leadership and decision-making are
critical functions within the organization. To be effective; leaders must
understand how to make important decisions in favor of their organizations and
maintain its competitive edge. Making right decisions based on the skills and
knowledge gained from the above mentioned techniques and concepts, will
hopefully produce the right results. Accomplishing the right results means that
the organization has accomplished its mission, whether through reacting to
external pressures or solving internal problems and thus becoming more
competitive in the global marketplace.
M. H., & Moore, D. A. (2013). Judgment in Managerial Decision
Making (8th Ed.). Hoboken, NJ: John Wiley and Sons. I
J. (2012). Think different? Conference Board Review, 49(4), 52-58.
J. (2013). Problem solving and decision making (2nd ed.).
Independence, KY: Cengage Publishers.
F. W., Scott, E. B., & Michael, D. R. (2006). Does emotional intelligence
as measured by the EQI, influence transformation leadership and desirable
outcomes. Leadership and Organization Development Journal, 27(5), 330-352.
D. S. (2008). Reader forum: Creating master decision makers. Leadership
In Action, 28(5), 22-23.
G. P, Grunewald, D., & Neelufer, A. K. (2014). Leadership styles of senior
and middle level managers: A study of selected firms in Muscat, Sultanate of
Oman. International Journal of Business and Management, 9 (11),
A., & Burrell, D. N. (2007). Developing Advanced Decision-Making Skills in
International Leaders and Managers. Vikalpa: The Journal For Decision
Makers, 32(3), 1-8.
R., & Sauser, W. (2013). Toward a better understanding of the relationships
among received wisdom, groupthink, and organizational ethical culture. Journal
of Management Policy and Practice, 14(4), 75-90.
Student 5( BE8-Ghuza)
Discussion Board Module 8
An intangible asset is an asset
that is not physical in nature. Corporate intellectual property (items such as
patents, trademarks, copyrights,
business methodologies), goodwill and brand recognition are all common
intangible assets in today’s marketplace.
An intangible asset can be classified as either indefinite or definite
depending on the specifics of that asset.
A company brand name is considered to be an indefinite asset, as it stays with
the company as long as the company continues operations. However, if a company
enters a legal agreement to operate under another company’s patent, with no
plans of extending the agreement, it would have a limited life and would be
classified as a definite asset (VIDRAȘCU, 2015).
While intangible assets don’t have
the obvious physical value of a factory or equipment, they can prove very
valuable for a firm and can be critical to its long-term success or failure.
For example, a company such as Coca-Cola wouldn’t be nearly as successful were
it not for the high value obtained through its brand-name recognition. Although
brand recognition is not a physical asset you can see or touch, its positive
effects on bottom-line profits can prove extremely valuable to firms such as
Coca-Cola, whose brand strength drives global sales year after year.
One of the intangible assets that
a company has is its reputation. To give
an example, King Saud University (KSU)
reputation is a perception of high esteem or respect for the
universities’ activities, strategies, etc.
of its choices and outcomes are one
driver of reputation, but reputation also has a life of its own. Once the
university establishes strong visibility
in the media and among investors and analysts, improvements in quality
tend to lead to stronger gains in reputation.
Reputation is also related to non-financial performance criteria,
such as the ability of the university to deal well with its stakeholders such
as students and employees. When KSU
is viewed as being fair to employees and
its community, its reputation is enhanced (TOUBAL, 2009).
As noted above, a good reputation
can improve a company’s efficiency and effectiveness by stimulating employee productivity.
It also creates a reservoir of goodwill toward the company that derives
from partners, suppliers, dealers, creditors, and regulators whose support
often manifests itself in the form of lower input prices, including a lower
cost of capital, and translates into higher margins. The company’s lower input costs are supported
by its ability to charge better prices for its offerings, a factor that
enhances the company’s margins, encourages
financial analysts to give favorable ratings to the company and fuels demand
for its shares (TOUBAL, 2009).
Besides its reputation , KSU
offers a number of assets to its
stakeholders including such as those related
to marketing (non-competition agreements), knowledge-based such as conferences,
assets such as broadcast rights & employment contracts, technology-based
intangible assets including patented
technology, computer software (Sacui
& Szatmary, 2015).
VIDRAȘCU, P. (2015). Innovation among intangible assets (ia). Scientific Papers
Series : Management,15(1), 537-544.
TOUBAL, F. (2009). Intangible assets
Sacui, V. , & Szatmary, M. C. (2015). Intangible assets in business
combinations. Revista De
Management Comparat International, 16(3), 385.
Student 6( BE8-Shadha)
(MGT630) â€“ (Business Ethics and
Implementing a Social,
Environmental, and Economic Impact Measurement System
One of the intangible
assets that a company has is its reputation. Corporate reputation is a
perception of high esteem or respect for a firm’s activities, strategies,
etc. The quality of a firm’s choices and outcomes are one driver of
reputation, but reputation also has a life of its own. Once a firm establishes
strong visibility in the media and among investors and analysts, improvements
in quality tend to lead to stronger gains in reputation. Reputation is
also related to non-financial performance criteria, such as the ability of a
firm to deal well with its stakeholders. When a firm is viewed as being
fair to employees and the larger global community, its reputation is enhanced.
Reputation is one way
that firms that are attentive to no shareholder constituencies may improve
their total market value. Attending to all stakeholder demands may be important
to maximizing the total market value of the firm. Corporate reputation is
the mechanism linking stakeholder management with market value
maximization. A lot of good organizational research indicates that
improved corporate reputation leads to improved financial performance (e.g.
Fombrun and Shanley 1990; Landon and Smith 1997). Roberts and
Dowling (2002) demonstrate that reputation actually enhances long-term
financial performance, which assuages critics who argue that reputation offers
only temporary financial gains. They argue that reputation is important
to market value creation because it is so difficult to replicate. If it
were easy to create a good reputation, any firm would do it and it would
immediately lose its value. Thus, reputation is a source of persistent
The link between
corporate reputation and market value shouldn’t be forgotten when discussing
directors’ or managers’ dealings with non-shareholder constituencies.
Secondary stakeholders are, in this sense, important to the total market value
of the firm. In extremely competitive industries, the firm that comes out
on top may be the firm that is best able to handle its stakeholders and consequently
enhance its reputation.
Saudi Telecom Company
Company(STC) ranked number one telecom company in the Arab world and the second
strongest organization on â€œForbes Middle East 500 top companyâ€ list for 2014
using financial performance as of December 2012 as a reference
point (Team, 2016). Four measures were taken into account: sales, profits,
assets and the market value. The Group made 1.2% increase in revenues and 36%
increase in net income a result that reflects the solid financial position of
the Group and its capability of growing its revenues locally and the success of
acquisition deals made by the Group (Team, 2016). STC has played a
positive and crucial role in establishment and development of an advanced local
telecom industry in addition to its timely response and its active integration
with the changes in this industry and harnessing them in promoting its exposure
in both the local and international arenas with full focus on the service of
customers and investigation and meeting their needs with the highest quality
standards. It is worth mentioning that Forbes Middle East magazine has a
license from Forbes International for the Middle East and assesses emerging
trends and forecasts potential opportunities in the regional market (Team,
Fombrun, C., &
Shanley, M.. (1990). What’s in a Name? Reputation Building and Corporate
Strategy. The Academy of Management Journal, 33(2),
Roberts, P., &
Dowling, G. (2002). Corporate reputation and sustained superior financial
performance. Strat. Mgmt. J., 23(12), 1077-1093..doi.org/10.1002/smj.274″>http://dx.doi.org/10.1002/smj.274
Team, F. (2016). Top
500 Companies In the Arab World 2014 | Forbes Middle East. Forbes
Middle East. Retrieved 6 March 2016, from.forbesmiddleeast.com/en/lists/read/2014/top-500-companies-in-the-arab-world-2014/listid/177″>http://www.forbesmiddleeast.com/en/lists/read/2014/top-500-companies-in-the-arab-world-2014/listid/177