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I am going to joint into an internship program with a Singapore based company which is F and N. I have been part of a team lead by an experienced manager. The team is tasked with making a decision on moving one of its products to china. So the decision making will be very cautious for the company perspective. Analysis and evaluate internal and external factors can be necessarily important in the decision making.
2. Background of the company
Fraser and Neave, (1) Limited (F&N) has Established since 1883, it has been providing the thirst of generations of consumers, now days the company become market leader in the food and beverage areas in Singapore and Malaysia.
In order to fulfill the needs of the health food for consumers in Singapore and across other nations, Singapore based company F&N is targeted at reaching philosophy of Pure Enjoyment, Pure Goodness and healthier that also taste good.
Moreover, F&N has already diversified a wide ranges and existing portfolio of beverage and food products. The main codes of their products are strongly focused on healthy enjoyment. The F&N structure contained that 100PLUS isotonic drink, F&N MAGNOLIA milk, F&N FRUIT TREE juices, F&N NUTRISOY, F&N SEASONS Asian-inspired drinks and teas, F&N ICE MOUNTAIN water and F&N live yoghurt, F&N sparkling drinks. Most of the F&N brands are the best sales in their respective categories.
Acknowledgment of the high standard of quality and safety of F&N products and their distinctive marketing, the company has been rewarded many awards and accolades.
F&N's built networks of all distribution and strategic partnerships give the company with the motive to consistently innovate and expand its portfolio of brands. It may help shape the brand and being a consumer favorite brand.
F&N' earned $5,697 million dollars in 2011 and made net Profit of $584 million dollars. The Total assets of whole company worth $14 billion dollars, and more than 17000 employees in the company.
The project manager wants to transfer the F&N MAGNOLIA milk into the Chinese market to expand the sales. The manager who comes from china has more knowledge and familiar the market of china in the beverage and food industries. He is not only has 10 years working experience with highly educated background in Singapore based company but also has high status and power in the company. The manager has dominated the most decision making power in the company, Many of previous decision making have already proved his abilities and judgments and he would weight every option with limited resources. The personality of the manager tends to be more risk taking. when making group decision the manager preferred the group contribution in the beginning and he would make the final call. He believes that there is a gap to break into the market which they have to make a decision as soon as possible.
3. Definition of relevant decision making concept
There are four relevant decision making concepts. First of all, Individual Decision Making (2) is a decision making without a group's distribution or a decision made without group's opinion. This method is more likely traditional decision making approach; it can make the work more effective and efficient for a manager when the group distribution is not needed or in certain cases.
Secondary, Group Decision Making (3) as the performance of a group which including consensus and consultation. Consensus decision making included posing several suggestions to the group and using the most feasible option to make a decision. Consultation makes all the opinion of the group into a consideration stage during the decision making process. These two methods need the group's participation and call for a manager who respects the opinions and distribution of the group in the decision making process.
Third, perception (3) is under individual decision making.it is a process that people organize and interpret their sensory impressions for give meaning in their environment.
Fourth, A cognitive bias (4) is under individual decision making.which is a flaw in judgment, caused by very basic statistical , social attribution, and statistical errors. It is common to all humans, as well as lots of them to use predictable and obvious patterns in Cognitive biases.
4. Factors influencing decision making
There are several factors which are affecting the decision making. It includes group decision making, individual decision making, cognitive biases, individual differences, perception, and a belief in personal relevance. These factors all impact the decision making process.
First of all, perception (5) can be one of the most important impact on decision making. Perception can be influenced by experience, personal value, personal interest and expectation of the perceiver. Perception may be affected by the situation, attitude, personality, and appearance of the person, location, or object being perceived.
Secondary, cognitive biases (5) influence decision making by causing people rely on expected observations and knowledge from previous experience, when dismissing observations which are perceived as uncertain things, without looking at the whole picture. Sometimes it may cause wrong judgment, false assumptions and faulty reasoning. Cognitive biases involve Belief bias, Omission bias, Confirmation bias and so on.
Third, group decision making allow that all of group members to thinking and suggesting whether moving the product into china or not. In addition, There are two phenomena have the potential to influence the group's ability, which can estimate alternatives objectively and make high quality decisions. which are group thinking and group shift. both of group thinking and shift happening all of the time, contribute potentially superior decisions and provide the greatest number of potential and more creative options. The decision become more consensus and agreeing with every group member.
Fourth, These factors included rational decision making, bounded reality, and intuition may actually play the most important part in the individual decision making process. Rational decision (3) making based on thinking through it in a logical order and estimate all possible alternative solutions to make up with the best potential result as assumes complete information and all options known. Bounded reality finds out the satisfactory and sufficient solutions from limited data and alternatives. Intuition (3) based on individual personality and value. Big Five personality dimensions has included conscientiousness, openness, extra-virgin, agreeableness, and Neuroticism which are important traits and separate personality of each person into different categories. Others are mainly related into work behavior including self-efficacy, self-esteem, social monitoring, and proactive personality. Individual personality of each member in the group will be shaping the decision that people make and the process. Individual Value focuses on how to live your life that is personally preferable. which affect personal attitudes, behaviors and perception.
Fifth, Some of individual differences that affect a decision making are socioeconomic status, age, educational background, and cognitive abilities. Beside elder people could be more stubborn regarding their experience to make decisions, which limit their ability to use strategies. If people have a lower educational background ought use less access to education and resources. As a result, they can be possibly make poorer decisions based on past decisions.
Evaluate the factors influence decision making
In the case, a manager has more than 10 years experience and familiar with china market, indicated past decisions become a great deal on the decision for moving the product to china. past experiences will tend to avoid repeating past mistakes to make more accurate decision in the future. The perception of a manager can be based on his own experiences and familiar location.
Also, the manager may believe in his expertise and have ability to making decision that overconfidence bias takes place. in addition, Anchoring bias may happened that the manager comes from China, so it will be his first instinct to decide the decision. This influence may not enable individuals to make efficient decisions. It will be more feasible that weight the evidences or information before making the decision. Otherwise, the decision of moving product to oversee market take an amount of risks involved. it will lead to huge damage for company's money and decrease on share price.
In addition, group decision making allow the team members generate the idea designed to meet for conformity. by been through group think and group shift, discussing a given project which can be possibility of moving the product to china evaluate and assume all the consequences of every single decision. This will lead to increased acceptance of the decision. however, it is often time consuming and final call still is dominated by the manager.
The last not least, most of time the manager may make the decision by his own, as related to his personality is more inclined to be risk taking and , the manager is willing to take chance the decision of moving product to china with less information. also the value he beliefs that the product for moving the china market will be successful. This gives the drive and motivation for him become more confident in doing so. Before he is going to make the decision, he would consider every possible option with limited data. then the final decision will be made.
The last, the final decision making will be manipulated by the person, who possess high socioeconomic status and older age. even the majority of the team members may not agree for moving the product to china. Because the power of the final call will be still hold of the manager. The manager has high status with well educated background and big influence the decision making in the company.
6. Other factors influence the decision making
First of all, Cross cultural issues (6) may be major impact on deciding the decision to moving the product into China. Multinationals develop in other countries; it will lead to a great deal of conflicts. When multiple cultures begin to work together, problems and difficulties may be raised due to ineffective communication and new staff within the new company is not capable or adept enough to deal with effectively.
Moreover, Language differences are another problem often the least difficult barrier to work together. The efficiency of operating the business and group dynamic cannot be reached due to lack of effective communication.
When stuff works with other cultures, it can be possible to be influenced by prejudices, common stereotypes, and misunderstanding about new stuff. The senior staff may carry their misconceptions and stereotypes into working process, conferences, trainings or social gatherings that can make communication more complex. All of cultural barrier should take into account when the company makes the decision.
Nevertheless, there is another factor in the company needs to take into account which is an economic factor (7). by considering the state of the economy in china, The gross national product (GNP), unemployment rates, interest rates, disposable income and consumer price index deal with the management of demand in the economy of China. If the economy of the country in the boom stage, indicated that consumer would spend more money for consumption in this country.
Micro-economic factors consider the way people spend their incomes. As the standard of living has risen, consumers are spending more disposable income on food and drink. It means that a great opportunity to bring their product into China market. All of economy data provided a highly important phase of strategy development for planned, start-up, and growing businesses. Economic factors which have direct impact on the potential decision making for the company.
Although competitive factor is an important part of decision making in moving their product in china. By identifying competitor and finding weaknesses of rival firm can indicate external opportunities, also major competitive strengths can signify key external threats. In order to break through china beverage and food market The more competitor information is collected, the more it is the benefit of a company as it possesses a great basis for strategies.
In my mind, this decision making applies especially for the manager responsible.all of external and internal factors influence the decision making process for the manager to consider wether moving the product to china market.
In addition, As the competition at oversee is involved and status of china economy and general cultural problems for entering new markets. the manager has to analyses and defines the consequence before the product is going to sell at oversee the market. Being an experienced manager who naturally comes from china uses the knowledge of china market and abilities to weight every resource and data without influence by any cognitive biases. Also personality of manager is more tend to risk taking and the value he beliefs could be the motivation and motive drive the decision making. Once all the evaluation has positively shown the results, the manager can use his power in the company to launching the product into the Chinese market.