Case Study of Management Decision Making: Kingstown Holding Essay

The procedure of determination devising is highly of import, particularly in the extremely competitory concern environment. In such a state of affairs, the effectivity of the determination devising may be the deciding factor that defines the success of the public presentation of a company. At the same clip, the effectual determination doing procedure is of import non merely as the agencies of the betterment of the competitory place of a company in the market but besides as an effectual tool to keep the stableness within the organisation. It proves beyond a uncertainty that the stable relationships between people working within a company may be merely in the state of affairs when the determination doing procedure does non do any injury to some members of the forces and it does non arouse the opposition to the determination taken from the portion of the forces. In this regard, it is possible to mention to the experience of Kingstown Holdings, the company, which has faced considerable jobs in footings of the determination devising and effectual direction. In this respect, it is of import to put accent on the fact the Kingstown Holdings faces the job of the hapless control over internal concern procedures from the portion of the direction and hapless direction of determination devising procedure that of course affects systematically the place of the company in the industry and its organisational public presentation.

The major job the company is presently confronting is the job of the opposition of the forces to alterations. The company needs to present alterations because its current selling public presentation lurchs. In this regard, the company can concentrate on the usage of transformational direction manner which can assist the company to present alterations and to minimise the opposition of the staff to the alterations. In fact, transformational direction manner implies the engagement of directors in the procedure of alterations through close cooperation with their subsidiaries. Directors help their subsidiaries to present alterations functioning as ushers for their subsidiaries. At this point, the constitution of positive interpersonal relationships is important for the successful execution of alterations in the organisation. The forces will non defy to alterations, if employees have positive interpersonal relationships with directors. In add-on directors can pass on to the forces ends of alterations and their results to do them accepted by the forces.

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In actuality, the effectual determination doing process depends on the theoretical model used. In this respect, the System of Systems Methodologies can be peculiarly helpful because they can lend to the amplification of effectual schemes of determination devising. At this point, it is of import to separate simple and complex systems, which may hold either a few subsystems as is the instance of simple systems, or multiple subsystems as is the instance of complex systems. The complex systems imply more hard determination devising procedure because multiple subsystems should be taken into consideration while taking a determination. In this respect, the determination tree may be used to carry on the determination devising procedure within the complex system.

At the same clip, along with systems, it is necessary to take into consideration participants of systems and, hence, determination devising procedure. In this respect, it is possible to separate three major groups of participants. First, unitary participants are participants, who portion the same set of values and have similar positions and beliefs. Second, pluralists are participants, whose basic involvements are compatible but they do non portion common values and beliefs. Finally, coercive participants are participants, who have a few common involvements, and they have conflicting values and beliefs that make via media virtually impossible.

In such a context, it is possible to use the System of Systems Methodologies to Kingstown Holdings. In this respect, it is possible to utilize the complex system, affecting the determination tree methodological analysis, which should affect pluralist participants because the chief job of the company is the opposition of the forces to alter. However, both directors, who are willing to present the alteration, and employees, who are opposing to the alteration, portion the similar involvements but have different values and beliefs. Both directors and employees are interested in the advancement of Kingstown Retentions but directors attempt to maximise grosss of the organisation and net incomes of stockholders, whereas employees focus on gaining more money and rise of rewards along with better conditions of work.

However, presents, it is barely possible to talk about the ideal attack to the determination devising, which could vouch the effectivity of the determination devising procedure and its successful execution. Nevertheless, among the assortment of schemes and techniques that companies use in the modern-day concern environment it is possible to individual out determination trees, which provide ample chances to increase the effectivity of the determination devising procedure. In fact, determination trees help systematically to pattern a determination, to calculate its possible effects, to take the most effectual scheme of its execution and calculate determination chances to increase its dependability and effectivity of its execution.

At this point, it is deserving adverting the fact that the major job Kingstown Holdings is presently confronting is the job of communicating spreads which affect systematically the organisational public presentation and deteriorate systematically relationships within the company. In fact, the alteration among the top executives of the company affected systematically the relationships between professionals working within the company, whereas new top executives, viz. Elizabeth Kingstown, have proved to be unable to set up positive interpersonal communicating within the company. As a consequence, the company faced a considerable job of the equal development of its selling scheme and care of the effectual communicating to better the organisational public presentation. In this respect, broad communicating spreads have proved to be the major cause of current jobs of the company and, what is more of import, the determination doing procedure of the company has proved to be uneffective to get the better of bing jobs and close communicating spreads. At this point, it is possible to concentrate on the usage of determination trees to better the procedure of determination devising and to lucubrate and to take determinations that can assist the company to shut bing communicating spreads.

On analysing the function of determination trees in the determination devising procedure, it should be pointed out that determination trees are widely applied in operations research. Basically determination trees are traditionally defined as a determination support tool that uses theoretical account of determinations and their possible effects, including opportunity event results, resource costs, and public-service corporation ( Yuan and Shaw, 1995, p.129 ). Obviously, determination trees fulfill really of import maps because mold of the determination and calculating its possible results are the most of import constituents of the procedure of determination devising.

As a regulation, it is impossible to take a truly effectual determination if its practical execution is non modeled and its results are non taken into consideration. A typical determination tree is a closely related theoretical account signifier which is used as a ocular and analytical determination support tool. On the footing of the theoretical account developed in the procedure of determination devising, policymakers really define the possible ways of the development and prognosis possible results of the determination. In order to understand the practical execution of determination trees it is possible to pattern a determination. For case, it is possible to presuppose that a company has a pick between the development of a new merchandise and consolidation. To take an effectual determination, the company can utilize a determination tree, patterning determination and analysing discrepancies that the company has at the minute ( Figures 1-2 ).

Another job the company is presently confronting is the job of taking the effectual scheme, which can assist non merely to better the determination devising procedure but besides to undertake other jobs of the company including the job of bing communicating spreads. At this point, it is deserving adverting the fact that the pick of the scheme should affect the effectual determination procedure because the company has to take a determination refering its farther development. At this point, determination trees may besides be really helpful.

However, along with the practical facet of the determination devising procedure, determination trees may besides play an of import strategic function. To set it more exactly, the mold of the determination devising and analysis of possible options that an organisation has while taking a determination, provides ample chances to calculate effects of each option. In such a manner, policymakers, responsible for determination devising, can hold ample chances to measure each of the options they have before taking the most appropriate and effectual determination. The pick is fundamentally made on the footing of possible effects and costs of the determination.

In such a state of affairs, it is obvious that the procedure of determination doing of course provides a batch of information which clarifies the procedure of the practical execution of the determination. What is meant here, utilizing determination trees, it is possible to develop an effectual scheme to implement the determination and maximise possible benefits a company can have in instance of the successful execution of the determination. Returning to the illustration of the determination doing refering the pick between the debut of the new merchandise and consolidation, it is possible to gauge that the scheme of the execution of the determination should be developed on the footing of the diagram and possible effects of determinations. For case, if the analysis of the effects of the debut of new merchandises proves that this determination is more likely to convey positive consequences than the company should concentrate on the debut of new merchandises.

Naturally, this means that the company should concentrate on the debut of inventions, motivate employees to develop new merchandises, etc. In such a manner, the company should concentrate its strategic development on the execution of inventions. At the same clip, to maximise net incomes, the company should choose whether to develop the new merchandise exhaustively or quickly. Probably, the latter may be more effectual and warrant the company leading in the industry that makes the scheme of the debut of inventions the dominant way of the development of the company because it is the most effectual 1. In the similar manner, the company may analyse each of the options modeled within a determination tree and, depending on the option selected, the company should take the most effectual scheme that meet either option. Obviously, the scheme will change systematically depending on the determination taken.

At the same clip, determination trees have non merely strategic but besides practical value. To set it more exactly, utilizing determination trees it is possible to cipher determination chances. On analysing the illustration of the company that have to take between the development of the new merchandise and consolidation and utilizing the information from Figure 2, it is possible to cipher determination chances ( Figure 3 ) . In this regard, it should be pointed out that, in order to cipher determination chances, it is necessary to multiply the value of results by their chance. The sum for that node of the tree is the sum of these values. Using such computations it is possible to calculate that the value for new merchandise will be as follows:

0,4 ( chance of good result ) * 1,000,000 ( value ) = 400,000

0,4 ( chance of moderate result ) * 25,000 ( value ) = 20,000

0,2 ( chance of hapless result ) * 1,000 ( value ) = 400

The calculating of determination chances is really of import because it makes the prognosiss more dependable and facilitates the procedure of determination devising.

Obviously, determination trees have a batch of benefits and advantages compared to other tools used in the procedure of determination devising. In this regard, it is necessary to underscore that determination trees are really simple to understand and construe. In fact, it is rather simple to construct the theoretical account and prognosis possible results, while the information about the resources the company possesses and the selling research provide indispensable informations that could be used for the computation utilizing determination trees. The simpleness of apprehension and reading of the theoretical account is really of import because it facilitates systematically the execution of the determination selected.

It proves beyond a uncertainty that a determination can be applied efficaciously when it is apprehensible for the forces and when it is positively accepted by the forces. The usage of determination trees may easy convert the forces every bit good as policymakers in the necessity to take one of the possible determinations and the simpleness of determination trees makes them really converting since advantages and drawbacks of either option are obvious.

Furthermore, it should be said that determination trees have value even with small difficult information. In fact, in such a state of affairs it is possible to affect experts and specializers, who can depict the state of affairs in inside informations, measure its chances, options and costs, and give their professional penchants for results of the option selected. In add-on, it is possible to utilize determination trees for optimising an investing portfolio. To set it more exactly, determination trees can show the effectivity of investings and ease the procedure of taking determination refering investings and, what is more, it can lend to the more nonsubjective choice of the most effectual determination refering investings.

Finally, it should be said that determination trees use a white box theoretical account ( Yuan and Shaw, 1995, p.131 ) . What is meant here is the fact that if a given consequence is provided by a theoretical account, the account for the consequences is easy replicated by simple math.

However, in malice of the legion strengths and advantages of determination trees compared to other tools used in the procedure of determination devising procedure, this tool has certain drawbacks and failings. In this regard, it is necessary to underscore that one of the major drawbacks is the high chance of the subjectiveness of the determinations and options developed in the procedure of the building of a theoretical account. In fact, frequently it is hard to take into consideration all possible results and bing options in the procedure of determination devising. As a consequence, some options may be merely omitted, while potentially they may be stronger compared to those included in the theoretical account. However, this drawback may be minimized through the engagement of experts in the development of a determination tree.

At this point, the company should concentrate on run intoing demands of employees. In this respect, the usage of effectual methods can assist to run into this end. In this regard, the development of Maslow ‘s Needs theory can be viewed as an option to traditional methods of the Scientific Management. First of wholly, it should be said that Abraham Maslow is recognized by many specializers as an outstanding psychologists whose findings help better understand human nature, behaviour of people and their motivations. In actuality, Abraham Maslow was chiefly focused on human psychological science and all his theoretical attempts were directed at the uncovering the kernel of human nature and apprehension of their behaviour. On analysing human behaviour, Abraham Maslow has developed a theory which is based on human demands as the major factors that define human behaviour. In other words, Abraham Maslow stands on the land that human actions, behaviour, involvements are determined by human demands.

In this regard, he did non made a great find since other scientists besides indicated to a important function of demands in the life of worlds. However, the major achievement of Abraham Maslow is the development of the hierarchy of human demands. In fact, unlike his predecessors, Maslow systematized and structured human demands. Basically, his hierarchy of human demands include six major elements: 1 ) physical, 2 ) safety, 3 ) belongingness and love, 4 ) regard, and 5 ) self-actualization. All these elements of the hierarchy are highly of import to each person and they define the life and behaviour of people. In fact, this hierarchy is purely construction since the significance of demands additions steadily from physical up to self-actualization. Maslow developed the thought that physical demands and demands of safety are basic demands that lie at the underside of the pyramid of the demands ‘ hierarchy. At the same clip, the physical demands are vitally of import since they create the foundation for the physical being of human existences for they need to eat, imbibe, kip, etc. to last. The safety demands are besides of import because they are closely interrelated with the endurance of an person in a hostile environment.

In actuality, physical and safety demands are crude, basic demands. The undermentioned three classs of demands occupy systematically more of import topographic point in the hierarchy and are more meaningful for homo on the societal degree. For case, the belongingness and love demands connote the demand of an person in the engagement or belongingness to some societal group, such as household, group of friends, co-workers, etc. On the footing of the relationship with other people persons shape their regard, which comprises persons ‘ self-pride, assurance, accomplishments, regard of others, etc. In such a manner, the regard shapes the significance of an person for the society and his self-perception. As a consequence, self-actualization of an single accomplishes the hierarchy of demands created by Maslow. The demand in self-actualization implies chiefly moral demands of an person, the demand to recognize person ‘s possible, creativeness, etc.

From the managerial point of position, these findings of Abraham Maslow can assist develop effectual direction manner on the footing of the formation of positive relationship between persons. Obviously, on the footing of the demands of an person it is possible to happen more effectual attack to pull offing this person. What is meant here is the fact that it is possible to run into the demands of an person and, in such a manner, excite his/her work, increase the effectivity and productiveness of work since it proves beyond a uncertainty that the satisfaction of person ‘s demands is a strong motivation factor bettering his/her professional public presentation.

In actuality, Kingstown Holdings should concentrate on the betterment of its determination devising procedure and taking control over its organisational public presentation and internal concern procedures. In this respect, the company should pay a peculiar attending to the development of effectual supply concatenation direction, client relationship direction and entire quality direction, which can assist the company to better its organisational public presentation systematically and ease the communicating non merely within the organisation but besides between the company and clients. Today, the development of the modern direction is characterized by the outgrowth of new tendencies and new attacks to direction. In this regard, the outgrowth of the Supply Chain Management and the Customer Relationship Management is peculiarly important in the modern-day concern environment.

In actuality, the Supply Chain Management and the Customer Relationship Management play an of import portion in the development of modern organisations and companies because they influence systematically the organisational public presentation and impact the concern development. At the same clip, the Supply Chain Management and the Customer Relationship Management are rather different from traditional attacks to direction which focal point on four cardinal maps of the direction and utilize traditional methods of direction. However, in the modern-day concern environment, the usage of traditional attacks to direction is non ever effectual. In such a context, it is deserving adverting the fact that the Supply Chain Management and the Customer Relationship Management can lend to the betterment of the organisational public presentation on the status of their effectual execution and proper planning of the organisational development.

On analysing the function of the Supply Chain Management and the Customer Relationship Management and their relationship with traditional attacks to direction, it is deserving adverting the fact that the Supply Chain Management and the Customer Relationship Management are comparatively new. However, they have gained the enormous popularity among modern organisations because they can better systematically their relationships with clients and better the organisational public presentation at big. In such a context, it is of import to brood upon both the Supply Chain Management and the Customer Relationship Management in inside informations.

In actuality, the Supply Chain Management is defined by specializers ( Mohrman, 1998 ) as the procedure used by companies to guarantee that their supply concatenation is efficient and cost-efficient. In such a context, the efficiency and cost-effectiveness are important constructs to measure the Supply Chain Management. At the same clip, it is deserving adverting the fact that the Supply Chain Management can hold different phases in its development and execution. Basically, specializers ( Parrino, Kidwell, Jiambalvo 2006 ) separate several phases of the supply concatenation direction.

The first phase of the Supply Chain Management is the amplification of the program. Basically, planning is an built-in component of all attacks to direction. In this respect, the Supply Chain Management is similar to other attacks to direction. At the same clip, it is deserving adverting the fact that the planning in footings of the Supply Chain Management focuses on be aftering the development of the merchandise and its supply. In this respect, the development and supply are closely intertwined with each other. In this respect, it is deserving adverting the fact that the Supply Chain Management implies the efficient supply as one of the major ends of the effectual direction.

The following phase in the Supply Chain Management is the development of the merchandise and creative activity of the web to provide the merchandise to clients. As the affair of fact, the development of the merchandise and creative activity of the web need significant fiscal resources from the portion of organisations. In the modern-day concern environment, organisations need to anticipate demands and wants of clients to make demands to develop the merchandise that meets clients ‘ demands.

After the development of the merchandise, the following phase arrives that is the phase of doing the merchandise. In fact, this phase is non the phase of mere fabrication as is instance of other attacks to direction. The Supply Chain Management implies that the phase of doing the merchandise includes fabrication, proving, packaging, and scheduling for bringing. In fact, at this phase the merchandise should come prepared to gross revenues en masse

The following phase is presenting. This phase is important for the Supply Chain Management and the old three phases prepare the merchandise to the effectual bringing to the clients. At this phase, the organisation should hold a well-developed web, substructure and transit along with the production installations to present the manufactured, tested and packaged merchandise to retail merchants and to sell the merchandise to clients.

Finally, the last phase of the Supply Chain Management is the phase of return. This phase implies that clients can return the delivered merchandise. In fact, this phase is ne’er included in traditional attacks to direction. In this respect, it is of import to put accent on the fact that traditional attacks to direction position the sale of a merchandise or service to clients as the ultimate end and the concluding phase in the merchandise development and merchandise lifecycle. However, the Supply Chain Management implies that the clients should hold the possibility to return the merchandise that is seemingly a really of import chance companies should non deny because any merchandise may hold defects and may be returned by clients.

Companies should take it into consideration because the return rate will specify the effectivity of their public presentation. Obviously, the more merchandises are returned the lower is the effectivity of the public presentation. Furthermore, the high rate of returns of the merchandise indicates to the being of serious jobs either in the fabrication or bringing of the merchandise. Therefore, companies taking into consideration the return of merchandises will be able to get by with their jobs and outpace their rivals but to make this they need to use the Supply Chain Management alternatively of traditional attacks to direction.

In this respect, the Customer Relationship Management is besides of the uttermost of import because it is rather different from traditional attacks to direction. In fact, the Customer Relationship Management is a customer-centered attack, which views the client as the primary concern of a company. What is meant here is the fact that the Customer Relationship Management is focused on the client, his or her demands and wants. At this point, it is of import to put accent on the fact that the Customer Relationship Management ‘s primary ends are to specify demands and wants of clients and to run into demands and wants of clients.

Basically, both major ends of the Customer Relationship Management are closely intertwined with each other but, at the same clip, they both are directed to clients, their demands and wants. In this regard, the Customer Relationship Management is rather different from traditional attacks to direction because traditional attacks to direction imply that the company views clients as capable to its concern activities ( Khor, 2001 ). The chief end of the company in traditional managerial footings is to maximise its grosss, to better its selling public presentation, to take a better place in the market ( Peters, 2002 ). In such a manner, traditional attacks to direction make non see clients as their primary concerns. Alternatively, they attempt to utilize clients to run into their selling ends. In blunt contrast, the Customer Relationship Management focuses on the clients, their demands and wants above all.

At this point, it is of import to brood upon the two major ends of the Customer Relationship Management. First, the Customer Relationship Management efforts to specify clearly demands and wants of clients ( Robbins and Finley, 1995 ) . In the modern-day concern environment, clients ‘ demands and wants are really of import because they define the client behaviour. Therefore, companies need to understand their mark clients ‘ demands and wants. In such a manner, they will cognize what kind of merchandises they should offer their clients and what specific characteristics their merchandises should run into to fulfill client demands and wants. When companies have identified demands and wants of their clients, they can get down developing the merchandise that meets demands and wants of clients.

At this phase they can utilize the Supply Chain Management to develop the merchandise and to establish the production of the merchandise along with its bringing to clients. The difference between the Customer Relationship Management and the Supply Chain Management will lie in the fact that the Customer Relationship Management is grounded on the cognition of clients ‘ demands and wants, whereas the Supply Chain Management can be used to complement the Customer Relationship Management because the Supply Chain Management will assist the Customer Relationship Management to run into the demands and wants of clients technically.

Finally, it is deserving adverting the fact that run intoing demands and wants of clients in footings of the Customer Relationship Management contributes to the growing of the client satisfaction, whereas the client satisfaction leads to the high client trueness. Customers become loyal to a company, when they feel being satisfied with the quality of merchandises and services delivered by the company. The client satisfaction evokes positive emotions in clients and they want to hold this feeling over and over once more that makes them loyal clients.

Therefore, taking into history all above mentioned, it is of import to put accent on the fact that the Supply Chain Management and the Customer Relationship Management are really popular in the modern-day concern environment. At the same clip, their popularity is determined, to a important extent, by their high effectivity. At this point, it is deserving adverting the fact that the effectivity of the Supply Chain Management and the Customer Relationship Management is achieved through focal point on the effectual company-customer relationships, which can be traced in both attacks to direction the Supply Chain Management and the Customer Relationship Management. In fact, both these attacks imply the orientation of companies on clients, their demands and wants. The organisation of the production and supply procedure along with the client satisfaction are primary concerns of the Supply Chain Management and the Customer Relationship Management that make them really efficient in the modern-day concern environment and ease the concern development for modern organisations and companies.

Part 2

Obviously, Kingstown Holdings faces considerable jobs in footings of the development of effectual communicating within the organisation and the betterment of the determination devising procedure. At this point, it is deserving adverting the fact that the development of the entire quality direction may be one of the major schemes that contribute to a consistent betterment of the organisational public presentation through the betterment of the quality of relationships between professionals working within the company. As the affair of fact, the company has faced considerable jobs caused by communicating spreads but these jobs can be tackled if the company introduces the entire quality direction at all degrees. What is meant here is the fact that the development of effectual communicating within the organisation should be grounded on the entire quality direction. The entire quality direction implies the development of relationships of the high quality between employees, every bit good as between employees and directors.

The betterment of the quality of relationships needs the preparation of employees and directors to heighten their communicating accomplishments and to better their interpersonal relationships. In such a manner, the company can excite the development of positive relationships within the company and better the communicating within the organisation. In such a state of affairs, the function of top executives of the company can barely be underestimated. Top put it more exactly, the company ‘s top executives have to develop effectual attacks to the communicating with their employees.

At this point, the usage of the transformational leading can be really effectual because the transformational leading contributes to the close cooperation between leaders and their subsidiaries. In such a state of affairs, leaders should assist their subsidiaries and to steer them throughout the alteration being introduced in the company. In this respect, the development of the effectual communicating is highly of import because the communicating defines the extent to which leaders can pass on efficaciously with their subsidiaries. If they can pass on efficaciously, they can assist their subsidiaries to develop positive theoretical accounts of behaviour desirable for the leaders. In such a state of affairs, the top executives of Kingstown Holdings should function as theoretical accounts of behaviour for their subsidiaries.

At this point, it is of import to put accent on the fact that organisations where people continually expand their capacity to make the consequences they genuinely desire, where new and expansive forms of thought are nurtured, where corporate aspiration is set free, and where people are continually larning to see the whole together ( Khor, 2001 ). In this respect, the company should concentrate on the acquisition of its employees because the procedure of larning contributes to the consistent betterment of the organisational public presentation.

Peter Senge argues:

“ when you ask people about what it is like being portion of a great squad, what is most dramatic is the meaningfulness of the experience. Peoples talk about being portion of something larger than themselves, of being connected, of being productive. It become rather clear that, for many, their experiences as portion of genuinely great squads stand out as remarkable periods of life lived to the fullest. Some spend the remainder of their lives looking for ways to recapture that spirit ” ( Senge, 1999, p. 132 ).

Senge ‘s theory of Systems Thinking helps to develop effectual attacks to the debut of alterations in modern organisations. In this regard, it is of import to put accent on the fact that the theory of Systems Thinking contributes to the debut of alterations on the land of the systematic attack to alterations. The company should concentrate on the analysis of its internal concern operations, external concern environment and human resources to measure its current resources and capablenesss. On the land of this analysis, the company should lucubrate the systematic attack to the development and debut of alterations. Each phase of the alteration should be carefully planned and prepared. In a long-term position, the company can utilize the detailed system to present other alterations. As a consequence, the company can utilize the bing system and extinguish jobs, such as the forces opposition to alterations.

Therefore, taking into history all above mentioned, it is possible to reason that the usage of determination trees in the procedure of determination devising can be really effectual. At any rate, the advantageous of determination trees are obvious and they may be easy implemented in different environment that makes this tool widely spread in the procedure of determination devising. In actuality, Kingstown Holdings faces considerable jobs in footings of the broad communicating spreads that prevent the company from the effectual organisational public presentation and internal jobs in interpersonal relationships within the company. Another minor job is the amplification of the effectual scheme, which can assist the company to undertake bing troubles. In such a state of affairs, the company has to alter its determination devising procedure and better it systematically utilizing the determination devising trees.

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