rational decision making steps


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6. NEED OF ONGOING MANAGEMENT CYCLE( Case Study ) Sidney Greenburg was appointed the position of the director of marketing for a small electronics component manufacturer. The company had its revenues growing at the rate of 20% each year and in 1982, they were at 30 million level The president felt that the growth of the company required serious planning efforts to determining strategies product emphasis and new product development. Mr. Greenburg realising the need to develop the marketing plan developed a suggested format to obtain inputs from his regional sales managers. The format to obtain divided into two parts (a) territory brief for established status of sales activities and (b) territory plan asked for identification of key goals, strategy & resources required to accomplish stated goals. Sales forecast by products was requested for 3 plan Yrs. Tom Rosenfield was the marketing manager for Europe He was previously in the engineering department & was assigned to Europe because of his technical& Foreign language capabilities. He replied to Mr.Greenburg as follows: “While I will complete the forms on the country brief& country plan promptly I have some conceptual problems with them time& time again we have been requested for projected figures I remember putting together a presentation for the Executive Vice-President (VP) & Treasurer last year. Great we educated those guys but what are the results of such formality? The projections have not yielded specific results, resources are used at a minimal level & we are not generating needed sales. So it is my contention that while goals projections& forecasts provide immeasurable guidance for a company with stable sales & developed product lines, for us a fledglings (young) industry, they distract from the job at hand. My plan has always been to hit the market- as hard I am able & I believe this should hold true for all other regional managers. We have large amounts of resources held up in ineffective’ marketing planning efforts such as these need to redirect these efforts to self rather than compile data. We need more people beating the pavement (action) rater than sitting on their desks developing plans& strategies (contemplation) Sell, sell, sell. Get the backing as big as possible. Planning is wasteful. Let us concentrate on aggressive sales & optimize sales volume at any cost. A. What has Mr.Greenburg not done to accomplish his planning tasks? B. Is Mr.Rosenfield right in making his comments in response to Mr. Greenburg’s request? C. Is Mr. Rosenfleld performing his management function. D. What would you do if you were Mr.Rosenfleld’s boss?

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6. Case Study:- A Failure to Communicate Could you come to my office for a minute, Bob?’ Asked Terry ( the plant manager ). Sure, be right there,” said Bob Gemson. Bob was the plant’s quality control director. He had been with the company for four years. After completing his degree in mechanical engineering, he worked as a production supervisor and then as maintenance manger prior to promotion to his present job. Bob thought he knew what the call was about. “But letter of resignation catches me by surprise,’ began Terry. “1 know that Wilson products will be getting a good man, but we sure need you here, too”. “J thought about it a lot, ‘said Bob, “but there just doesn’t seem to be a future for me here. “ “Why do you say that’?” asked Terry. “Well,” replied Bob, “the next position above mine is yours. With you only thirty- nine,. I don’t think it’s likely that you’ll be leaving soon. “The fact is that I am leaving soon,’ said Terry. “That’s why it’s even more of a shock to know that you are resigning. I think I’ll be moving to the corporate offices in .Tune of next year. Besides, the company has several plants that are larger than this one. We need good people in those plants from time to time, both in quality control and in general management.” “Well, I heard about an opening in the Cincinnati plant last year,” said Bob, “but by the time I checked, the job had already been filled. We never know about job opportunities in the other plants until we read about them in the company paper ‘All this is beside the point now. What would it take to get you to change your mind?” asked Terry. “I don’t think I can change my mind now,” replied Bob. “I’ve already signed a contract with Wilson.’ Questions (a) Evaluate the communication system at this company. (b) What actions might have prevented Bob’s resignation?

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