What biases could they have in making the decision

Assignment Help Finance Basics
Reference no: EM13843121

Case Study 1

Students will complete a short case study of a business situation which can be found under week 6 content. The case study is in this document. This assignment has two parts:

Required Elements to include in Case Study:

Part 1:

In week four we examined biases that occur in making decisions as individuals and the effect they can have upon the process. In week five, we focused on individuals making decisions within an organization and in week six group decision making within the organization.

In this part of the assignment you are asked to evaluate not only the decision that must be made but who is best suited to make the decision for the organization. In order to do this you must isolate the decision that must be made - the nature or type of the decision. Then, evaluate the individuals (father and daughter) in terms of the material presented in weeks four and five.

• What biases could they have in making the decision?
• What decision making styles do they have?
• What skill levels do they possess in making a decision?
• How does the information from the previous three questions make them the best or worst candidate for making the decision?
• Substantiate your conclusions with the class material and be specific in your analysis.

Part 2:

In part two, you are asked to look at the decision that needs to be made and determine if it should be made by a group or an individual.

• Explain why a group would or would not work best based on potential bias to the issues, expertise level in making the decision, the need for change, and the stakeholder involved in the process.

• Give your reasoning behind your conclusion with substantiation from the class material.

Then, regardless of your conclusion, assume that you conclude that a group is best.

• Select how the group would best be formed.
• Who would you include in the group?
• Who would be leading the group?
• How would the group operate (type of group structure)?
• How would the company's leaders (Father and Daughter) interface with the group and the process?
• What degree of authority does the group have in making the decision?
• Be sure to explain bias in your selection of people for the team.
• Again, all your conclusions must be substantiated with the class material and/or outside resources.
Required Formatting of Paper:
• This report should be double spaced, in narrative format, 12-point font, and 5-6 pages in length excluding the title page and reference page;
• Title page with your name, the course name, the date, and instructor's name;
• Include a reference page;
• Use headings to separate the different sections;
• Write in the third person;"
• Use APA formatting for in-text citations and reference page. You are expected to paraphrase and not use direct quotes. Deductions will be taken when direct quotes are used and found to be unnecessary;
• Submit the paper in the Assignment Folder.

Case Study 2- American Tool and Die

As the sun rose on a crisp fall morning, Kelly Mueller's Learjet touched down onto a small airstrip outside Tupelo, Mississippi, and taxied toward the hangar, where a festive crowd gathered to await the arrival of Toyota's CEO. This morning, the governor of Mississippi, along with local politicians and business leaders from the automobile industry, would celebrate the construction of a new Toyota plant on a 1,700-acre site in Blue Springs. The new plant would produce 150,000 Highlander sport utility vehicles each year. The energy and enthusiasm of the crowd was palpable. The new plant would give hope to a local community that had been hit hard by the recession.

The purpose of Mueller's visit was to assess new business opportunities for the company she ran for her father, Vince Brofft, CEO of American Tool & Die (AT&D). Mueller joined the company in 1998 after working for 15 years as an engineer at two U.S. automakers. Then, after seven successful years as chief operations officer at AT&D, this scrappy dynamo convinced her father she was ready to be president. Energetic and tireless, Mueller took over the helm of AT&D, an auto parts manufacturer that sold braking and ignition systems directly to the top three U.S. automakers. Mueller was a mover and while she did her homework she liked to make decisions quickly and by herself. Having worked in large organizations before she often had to make decisions with others and while she could do this the thought that she would get to do things on her own in the small business was intoxicating. With 195 employees, AT&D was located in Farmington Hills, Michigan, among dozens of other automobile parts suppliers in the Upper Midwest. AT&D, established in 1912 by Mueller's great uncle, had a long history in Farmington Hills. Mueller had often talked with employees who would recount stories about their fathers or grandfathers working in the same Farmington Hills plant-the last of the original manufacturing operations in town.

Mueller was in Mississippi to research moving AT&D's plant close to a foreign automaker. The foreign automakers, particularly Honda and Toyota, had been quickly grabbing market share away from the big three automakers, who had severely cut production as the economy worsened. As inventory started stacking up on dealer lots, U.S. automakers curtailed production in order to cope with the sudden drop in demand. Next, they put the squeeze on parts suppliers to lower prices. That's when AT&D leaders started feeling the crunch and watching their financial picture turn grim.

Mueller faced an unprecedented challenge to survive this economic downturn and save her family's company. She pleaded with her father to think creatively and shake up the status quo at AT&D to avoid bankruptcy. Her plan was to forge into new markets and court foreign automakers. This plan would require closing the plant in Michigan and opening one near the new Toyota facilities in Mississippi. Her father adamantly resisted this plan even though he knew she was right. "Dad," a recent text message explained, "we have opportunities here in Mississippi. There's no future in Michigan. We can't sit around waiting for the big three to come back! It's adapt or die!"

Back at the Farmington Hills plant, Brofft pondered his daughter's "adapt or die" theory and considered an alternative to moving the plant to Mississippi-a move that would cause 195 employees to lose their livelihood in a small, close-knit community. Brofft agonized over choices that could dismantle a company that his family had built. He was sickened by the prospect of laying off employees who were like family. He didn't want to move but the thought of leaving Michigan was paralyzing the decision process. He always made decisions in the past by consulting with his plant manager and good friend Joe Carney. Now he had to let his daughter in on the process and he just wasn't sure he could open his mind to her ideas. As an alternative to moving the plant, Brofft considered ways to stay in Michigan. The only feasible option was to drastically cut payroll costs. To do so, he needed support from the local union.

Brofft called a meeting with the plant manager and union leaders to explain AT&D's dire financial situation. He urged them to make concessions in the employee compensation agreement and explained that these plans would save the company from certain bankruptcy. Assuming he could win their support, Brofft proposed three strategies to the local union reps to keep the company financially afloat: (1) reduce worker wages by 10 percent for one year; (2) mandate a two-week, unpaid furlough at the end of December; and (3) downsize the number of employees by 30 percent. Exasperated, the local union leaders could barely restrain their anger. They were adamantly opposed to all three ideas. Yet probing beyond the fray, Brofft sensed the fear that lurked under the union reps' gruff exterior. He sensed their vulnerability, but could not break through the reactionary bark that protected it. If union leaders would not cooperate, the plant would have to move and everyone in Farmington Hills would suffer.

In the meantime, Mueller held several successful presentations with local Toyota executives while in Mississippi. "I've made progress, Dad," she said in a voice mail. "I can tell it's going to be a long and drawn-out process, but they are very impressed with our product and historical strength. They've agreed to another meeting next month."

Reference no: EM13843121

Previous Q& A

  Which type of forecast is focused

Which type of forecast is focused on how many products will be sold to consumers over a specified time period?

  What is the nature of the source?

What is the nature of the source?

  Achieving full organic certification status

Te Kainga is currently working towards achieving full organic certification status not only for its milk (completed), but also for its beef and lamb meat products. As outlined in the case, this certification requires a high level of documentation. Ho..

  Research on leader-member exchange-cognitive strategy

Studies on how managers perceive poor performance by a subordinate find that: Which of the following is a cognitive strategy for self management? Which was not found in the research on leader-member exchange? Which of the following is a recommended g..

  Strategic sourcing in the textile and apparel industry

Article Discussion read the three academic articles as assignment for each. An Investigation of the Relationship Between Chinese Exporters and U.S. Importers From China's Perspective, Strategic sourcing in the textile and apparel industry

  Analyze persuasive requests and sales messages

Analyze persuasive requests and sales messages. What traits do persuasive requests and sales messages share in common and how do they differ?

  History of telecommunications-overview of cyber security

A summary of the US regulatory framework that has grown up along with the telecommunications industry. An overview of cyber security. The history of telecommunications

  Discuss how freedom of expression and intellectual property

The Internet is an ideal communication mechanism because of its openness and anonymity but people must make ethical decisions about how to use this power. Discuss how freedom of expression and intellectual property rights might ethically conflict.

  What is the bullwhip measure for the retailer-manufacturer

Supplier. The retailer’s demand over an 8-week period was 100 units each of the first 2 weeks, 200 units each of the second 2 weeks, 300 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. What is the bullwhip measure for the r..

  Prepare a schedule of cash surplus

Prepare a Schedule of Collections and Payments for the six month period beginning in March, using the template provided and the data above. Prepare a Schedule of Cash Surplus or Shortages by month for the six month period beginning in March, using ..


Write a Review


Similar Q& A

  Calculate yield to maturity for each bond

Assume you manage a bond portfolio with a yield to maturity of 1.8% and duration of 5.1. Perform the below in the “Bond” tab provided in the attached excel file. a. Calculate yield to maturity for each bond. b. Calculate duration for each bond.

  Correlation coefficient between the two funds

The universe of available securities includes only two risky stock funds, X and Y, as well as T-bills. The data for the investment universe are shown in the table below. The correlation coefficient between the two funds is -0.3.

  An investment policy that will pay you and your heirs

curlys life insurance co. is trying to sell you an investment policy that will pay you and your heirs 25000 per

  Johnson tire distributors has an unlevered cost of capital

johnson tire distributors has an unlevered cost of capital of 12 percent a tax rate of 34 percent and expected earnings

  Compute required rate of return

Kish's beta coefficient can be discovered as a weighted average of its stocks betas. The risk free rate is 6 percent, and you believe the following probability distribution future market returns is realistic:

  Find the option price using a replicating portfolio

If we are given a stock (price 1)that we are allowed to trade halfway with probability .5 in which the halfway maturities are 2 and .5, and then the full maturities are 4,1,1,.25 with probability of .5 for each again.

  Explain what it means for a firm to have a current ratio

explain what it means for a firm to have a current ratio equal to 0.50. would the firm be better off if the current

  What is primary goal of financial management

Multiple choice questions on basic financial management and What is the primary goal of financial management?

  Explain why the return-on-assets ratio is so much more

all state trucking co. has the following ratios compared to it industry for

  The purpose of this term paper is to provide each student

industry analysis term paper1. purposethe purpose of this term paper is to provide each student with the opportunity to

  Computation of value of the bond and the total interest

Computation of value of the bond and What is the total interest expense recorded on these bonds over the fifteen years if the market rate of interest

  What is the expected return on the mutual fund

What is the expected return on the mutual fund?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd