mgt 350-decisions in paradise part 2
mgt 350-decisions in paradise part 2
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Date Created: 11/16/15
Decisions in Paradise1 Decisions in Paradise - Part 3 Student ___________ University of Phoenix MGT 350 Critical Thinking: Strategies in Decision Making Instructor __________ Date __________ MGT350 Decisions in Paradise 2 Abstract The business scenario “Decision in Paradise parts 1 to 3” is a helpful assignment that allows students to practice with the decisionmaking process, from identifying problems to implement the final decision. Particularly, in part 3, students at University of Phoenix, as Nik, have to determine factors affecting decision implementation; further, they have to discuss the actions and the resources required in order to expand Nik’s company business in Kava. Finally, students have to discuss the ethical implications correlated with the decision of expanding the business in Kava and how the company can improve its relationship with the Stakeholders. MGT350 Decisions in Paradise 3 Decisions in Paradise – Part 3 Nik is a McDonald’s employee who was hired a few weeks ago. His first assignment was to complete a business study on an island located in the South Pacific called Kava. His first step was directed to highlight the mission statement of the organization to ensure that the energy will all be aimed at the same direction. The second step was directed to identify key problems and evaluate all factors related to the problems. Stakeholders’ analysis was also completed in order to have a clear understanding of stakeholders’ needs and expectations. Finally, recommendations and plans of action should be determined by applying critical thinking during the decision making. Nik utilized financial tools (i.e. cost benefit analysis) to determine in advance what will happen if the business takes the expected direction. However, he did not confuse the financial tools with the decision as it was the outcome of his decisionmaking process (Langdon, 2001). In this final part of “Decisions in Paradise”, Nik will provide his rationale and plan for implementation. More specifically, he will determine the factors that affect the decision for implementation; further, he will evaluate the resources and actions required for his decision implementation. Finally, he will evaluate the ethical implications from the stakeholders’ perspectives of his proposed solution. Factors Affecting Decision Implementation MGT350 Decisions in Paradise 4 Nik’s final decision was pro expanding the business in Kava. He evaluated several factors affecting his decision for implementation; the factors include: the people, the economy, disasters threats, and helping organizations. Kava’s population included over 50% of people under 15 years of age as well as various ethnicities such as South Pacific tribes, African, French, Spanish, and Americans. Religion was 50% indigenous, and the remainder was divided between Islamic, Buddhist, and Christian. Spoken languages were English, Spanish, French, and numerous indigenous languages. The economy was based on petroleum, coffee, sugar, tourism, natural gas, and inexpensive quality labor. Disasters threats included tsunami, hurricanes, floods, fires, earthquakes, and terrorism. He also had to take in consideration helping organizations such as governmental services, faithbased group, and community based organizations. Action Required and Resourced Needed for Decision Implementation Those who implement the decision (as Nik) have to understand the choice and why it was made. They also must commit to its successful implementation. Nik should plan the implementation carefully; more specifically, his plan must include the following steps: “determine how things will look when the decision is fully operational; chronologically order, perhaps with a flow diagram, the steps necessary to achieve a fully operational decision; list the resources and activities required to implement each step; estimate the time needed for each step; assign responsibility for each step to specific individuals” (Bateman & Snell, 2007, p. 85). Nik should also consider that things may not go as smooth as he planned during the implementation process; therefore, it would be wise if he takes the time to identify potential problems and opportunities in order to be prepared in case problems or opportunities occur. MGT350 Decisions in Paradise 5 Nik’s plan for implementation requires financial and human resources. Indeed, the costs associated with opening a new McDonald’s restaurant are as follows: $45,000 initial fee paid to McDonald's; equipment and preopening costs range from $905,200 to $1,746,000. However, the size of the restaurant, inventory, style of décor, and other preopening expenses may affect new restaurant costs. Owners of the new restaurants in Kava have to pay 40% cash at least 40% of the total costs and they may decide to finance the rest. Although McDonald’s does not have finance programs; the company has established exceptional relationships that allow new owners to enjoy the lowest rates in the industry. The new restaurants in Kava will require a franchise term of 20 years; further, there will be the following ongoing fees: a monthly base rent or rent based on a percentage of monthly sales and a monthly fee based on the restaurant's gross sales. The current service fee is 4% of monthly sales (McDonald’s Inc., 2009). Owners who would like to open new restaurants in Kava have to possess significant business experience; more specifically, individuals who have demonstrated successful ownership or management of multiple business units. Further they must possess the ability to develop, execute a business plan, and grow at fast pace with McDonald’s. They must be able to read and understand financial statements and have a good credit history. Owners must commit to manage personally the restaurant on a daytoday basis and to complete a training program in order to be proficient in all aspects of operating a McDonald’s restaurant. Finally, they must possess excellent customer service (Daszkowski, 2009). Ethical Implications from Stakeholders Perspectives MGT350 Decisions in Paradise 6 The success of new McDonald’s restaurants is correlated to the relationships with the stakeholders. Dr. Gokaydin (personal communication, March 28, 2009) stated that stakeholders are individuals who are directly or indirectly are affected by a decision’s outcome. The new restaurants can make their relationships with the stakeholders stronger by fulfilling their obligations toward them. Legal issues, social responsibilities, and ethics are three obligations that any organizations, including the new restaurants in Kava, have to comply with. Indeed, every company has a legal responsibility to obey local, federal, state, and international laws. Further, every company has an ethical responsibility, which means meeting social expectations that are not translated in laws. Finally, every company has a corporate social responsibility which is “the obligation toward society assumed by business. The socially responsible business maximizes its positive effects on society and minimize its negative effects” (Bateman & Snell, 2007, p. 181). Several ethical dilemmas arise in the proposed project. The dilemmas are: the dangerous meatpacking plants where workers are employed, the injuryprone deadend jobs preparing chicken carcasses for Chicken McNuggets, the methane gas emitted by the millions of cows for hamburger in feedlots, using toys to induce small children into their restaurants (EC Newsdesk, 2002). Therefore, once the proposed projected is implemented, it is important to evaluate its effectiveness. Dr. Gokaydin (personal communication, April 4, 2009) stated that surveys provide valuable information regarding decisions implementations. Continuous feedback from internal and external stakeholders helps to not only understands how the environment is responding to the decision implementations but also to help understand where management is and where management wants to be. Conclusion MGT350 Decisions in Paradise 7 “Decision in Paradise part 1 to 3” is a helpful assignment that allows students to practice with the decisionmaking process; particularly, during part 1 as Nik, the student at University of Phoenix practiced on identifying problems and evaluating all factors related to the problems. Part 2 allowed the student to practice students to practice with the decisionmaking techniques acquired in MGT350. More specifically, a cost benefit analysis helped Nik determine if the planned action will turn out well. However, cost benefit analysis should not be confused with the decision itself; the cost benefit analysis did not decide for Nik. Ultimately the decision was his. In this final part Nik will implements decision. Nik’s company decided to expand its business in Kava. The project is full of challenges due to Kava which is a developing country and its unfavorable climatic conditions. Decision implementation requires a plan of action as well human and financial resources in order to be successful. Finally, the decision taken raises several ethical problems that Nik’s company must take into account; it is vital for the new businesses established in Kava to conduct continuous surveys to ensure that company and stakeholders needs and expectations are met. MGT350 Decisions in Paradise 8 References Bateman, T.S. and Snell S. (2007). Management: leading and collaborating in the competitive world (7th ed.). New York, NY: McGrawHill/Irwin Daszkowski, D. (2009). Requirements to open a McDonald’s franchise. Retrieved April 11, 2009 from http://franchises.about.com/od/mostpopularfranchises/a/mcdonaldscosts.htm Ethical Corporation Newsdesk (2002). McDonald’s and corporate social responsibility? Retrieved April 11, 2009 from http://www.ethicalcorp.com/content.asp? ContentID=85 st Langdon, K. (2001). Smart things to know about decision making (1 ed.). Oxford: Capstone Publishing. McDonald’s Inc. (2009). Purchasing your franchise. Retrieved April 11, 2009 from http://www.aboutmcdonalds.com/mcd/franchising/us_franchising/purchasing_your_franc hise.html MGT350
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