Assignment-3
Submitted to: From:
Imran Haider Naqvi Sir Muhammad Shakeel
Roll No. Semester; Program:
Master in Business Economics 1st MBEC11403
RAIWIND ROAD, LAHORE
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Principles of Management Assignment 3
EXECUTIVE SUMMARY........................................................................................3 .........................................................................................................................3 IN THIS ASSIGNMENT WE DISCUSSED FIVE SITUATION OF DIFFERENT TOPICS ALL THESE SITUATION IS VERY INTERESTING IN FIRST SITUATION WE DISCUSSED A BUSINESS OF STAPLES PINS AND IN SECOND SITUATION WE DISCUSSED A BUREAUCRAT ATTITUDE AND OUR QUOTA SYSTEM AND IN THIRD WE DISCUSSED THE CHIEF EXECUTIVE OF THE MOST REPUTABLE MANAGER WOOLEN YARN MILL IN PAKISTAN AND IN FOURTH WE FIND OUT A SOLUTION OF ELECTRICITY BILLS AND IN FIVE WE DISCUSSED A KNITWEAR OPERATION OF TWO COMPANIES. IN SECOND QUESTION WE DISCUSSED SOME IMPORTANT TERM WHICH USE IN BUSINESS AND DECISION MAKING WHICH A MANAGER TAKES TIME BY TIME................................4 QUESTION NO. 1................................................................................................5 SITUATION 1......................................................................................................5 SITUATION 2......................................................................................................5 SITUATION 3......................................................................................................6 SITUATION 4......................................................................................................7 IT
IS NOT AN ETHICAL PRACTICE TO PAY SOMETHING FOR THIS PURPOSE SO YOU DO NOT PAY A PENNY AND JUST FACE THE CONSEQUENCES.
INSURANCE ISSUES MAKE PAYING THEIR EMPLOYEE UNDER THE TABLE GIVE THE IMPRESSION EASIER AND CHEAPER. DECISION CAN BE PENNY-WISE AND POUND-FOOLISH IF YOU GET CAUGHT. MISSING OUT ON LEGAL AND TAX ADVANTAGES THAT YOU CANT USE IF
NOT
PAY A PENNY MEANS THAT NOT PAY AMOUNT ANY BUSINESS MATTER.
BUT THIS EVEN IF YOU DONT GET CAUGHT, YOULL BE YOURE PAYING ILLEGALLY. WHEN YOU OFFER SOME
FOR
SOME, THE LEGAL, TAX, AND
RESIDENCE TO HIS PROPOSAL HE INFORMS YOU THAT IT WOULD BE EXTREMELY EASY FOR HIM TO HAVE YOUR POWER DISCOUNTED NO ONE PRETEXT OR ANOTHER AND YOU COULD THEN GO AHEAD AND SPEND YOUR TIME FIGHTING IT OUT AT HIGHER LEVELS. OPERATIVE TO SHUT YOUR FACTORY DOWN.............................................................................................7
YOU
MAKE SOME INQUIRES AND LEARN THAT THE MONEY WOULD NOT BE ONLY FOR THE LOW LEVEL
SITUATION 5......................................................................................................7 QUESTION NO. 2................................................................................................8 PARETO ANALYSIS.............................................................................................8 PAIRED COMPARISON ANALYSIS.........................................................................8 GRID ANALYSIS..................................................................................................8 FORCE FIELD ANALYSIS......................................................................................8 SIX THINKING HATS............................................................................................8 STAR BURSTING ................................................................................................8 STEP LEADER TECHNIQUES.................................................................................8 DECISION TREE..................................................................................................8 VROOM YETTON JAGO DECISION MATRIX.............................................................8 LADDER OF INFERENCE ......................................................................................8 BLIND SPOT ANALYSIS.......................................................................................8
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Principles of Management Assignment 3
PARETO ANALYSIS.............................................................................................8 PAIRED COMPARISON ANALYSIS.........................................................................8 GRID ANALYSIS..................................................................................................9 FORCE FIELD ANALYSIS......................................................................................9 SIX THINKING HATS............................................................................................9 STAR BURSTING ..............................................................................................10 STEP LADDER TECHNIQUE.................................................................................10 DECISION TREE................................................................................................10 LADDER OF INFERENCE ....................................................................................10 BLIND SPOTS ANALYSIS....................................................................................11 STEP ONE: ......................................................................................................11 STEP TWO: ......................................................................................................12 STEP THREE: ...................................................................................................12 REFERENCE:.....................................................................................................13
Executive Summary
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Principles of Management Assignment 3
In this assignment we discussed five situation of different topics all these situation is very interesting in first situation we discussed a business of staples pins and in second situation we discussed a bureaucrat attitude and our quota system and in third we discussed the Chief Executive of the most reputable manager woolen yarn mill in Pakistan and in fourth we find out a solution of electricity bills and in five we discussed a knitwear operation of two companies. In second question we discussed some important term which use in business and decision making which a manager takes time by time.
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Question No. 1 SITUATION 1
Not listen to the whole sealer, keep on supplying the printed number of staples and also start printing Made in Pakistan on the boxes for both industrial and office staples. As we know that China and Japan very strong in this matter and this time both countries have a good reputation in international market. It is not easy for us but they struggles and focuses own products. So we learn a lesion for these countries and ignored advised of wholesaler and keep on supplying the printed number of staples and also start printing made in Pakistan on the boxes for both industrial and office staples and used some effective and efficient method and reduce their expense in this way you access to direct costumer as possible in this regard you minimize your wholesaler expenses for this purpose you also visit the market at daily basis for the knowing of market situation. We live in Pakistan and prior to Pakistani products and send this message to all the Pakistani it is very important for us. I know that this is very tough for our business but it is necessary for our country if we continuous of this practice in future we see that after some time a good result in our favor.
SITUATION 2
Forgot the whole idea and fight for your rights as and when its necessary and be prepared to buy expensive quota when you need it. Overlook the whole idea and fight for your rights and when its necessary and be ready to buy expensive quota when you need it. The government of Pakistan manages the quota allotment procedure 2
Principles of Management Assignment 3
among local firms and has the right to allow you to carry forward i.e. use from your next years allotment upto60% of quota a well as move another 6% from one quota category to another for example from ladies blouses to means t-shirts.the whole idea of motivation is a trap. Forget motivation just does it. Exercise, loose, weight, test for your blood sugar or whatever. Delays imposed by late processing of quota papers may also tarnish your firms reputation and lead to denial of future orders. You have two ways of getting extra quota on your historical performance depending both on volumes and value of knitwear your firm exported and buying quota on the open market which may add up to 20% to the cost of a knitted shirt and do not stop a good practice it is necessary for your ethics.
SITUATION 3
Supply at the prices you have committed orally knowing you could have made another 30-40 million rupees in profits. Supply at the prices you have committed orally knowing you could have made another 30-40 million rupees in profit i.e., you normally book yarn orders averaging around 200000 kgs and goes over to Australia to buy the wool yourself. Habitually transactions within Pakistan are usually on word of oral basis where you quote a convinced prices and the buyer gives oral agreement. In Pakistan mostly people first selected up the goods and pays within a few days. having booked such an order at a price that gives you a rational profit based on a wool purchase price of Rs 55kgs you fly over to Australia and purchase the wool at roughly Rs 55kgs.when you return in Pakistan s office then he surprised and asks to go and see your elder brother who is the chairman of the company. His brother tells that several sheep died in Australia and wool prices have rise 75kgs.he asks you to now reconsider all your oral commitments since you would gain at least 30-40% more profit if you revise the prices it habit is success of your future. 2
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SITUATION 4
Not Pay a penny and just face the consequences. It is not an ethical practice to pay something for this purpose so you do not pay a penny and just face the consequences. Not pay a penny means that not pay amount any business matter. For some, the legal, tax, and insurance issues make paying their employee under the table give the impression easier and cheaper. But this decision can be penny-wise and pound-foolish if you get caught. Even if you dont get caught, youll be missing out on legal and tax advantages that you cant use if youre paying illegally. When you offer some residence to his proposal he informs you that it would be extremely easy for him to have your power discounted no one pretext or another and you could then go ahead and spend your time fighting it out at higher levels. You make some inquires and learn that the money would not be only for the low level operative to shut your factory down.
SITUATION 5
Charge $7/kg. and distribute both the incremental tax savings and export rebate as khairat. Charge at least $7.00kg and possibly higher to reduce the Omani tax burden and collect the highest possible export rebate from the Government of Pakistan. Oman charges a 20% tax on profits which you had initially not planned for since you were sharing the ownership of the Omani based company with an Omani national. Allowing you a tax holiday. Apparently the higher the transfer price you charge for your fabric the lower youre declared profits in Oman. The govt. of Pakistan pays a 5% rebate in foreign exchange on exports and thus the higher price for fabric leaving Pakistan gives you an added advantage. You export similar fabric to some foreign customer at $6.50/kg but company 2
Principles of Management Assignment 3
management is pressing you to charge at least at 7%.00/kg for fabric exports to Oman I think its best way for this situation.
Question No. 2
Explore and define the following terms. The description of each term must be within 90-100 words?
Pareto Analysis Paired Comparison Analysis Grid Analysis Force Field Analysis Six Thinking Hats Star Bursting Step Leader Techniques Decision Tree Vroom Yetton Jago Decision Matrix Ladder Of Inference Blind Spot Analysis
The following terms define as under:
PARETO ANALYSIS
Pareto analysis is a statistical technique in decision making that is used for selection of a limited number of tasks that produce significant overall effect. It uses the Pareto principle the idea that by doing twenty percent of work, eighty percent of the advantage of doing the entire job can be generated. Or in terms of quality improvement, a large majority of problems eighty percent are produced by a few key causes twenty percent. Pareto analysis is a formal technique useful where many possible courses of action are competing for attention.
PAIRED COMPARISON ANALYSIS
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Paired Comparison Analysis helps you to work out the significance of a number of options comparative to each other. It is predominantly useful where you do not have objective data to base this on. This makes it easy to choose the most important problem to solve, or select the solution that will give you the greatest advantage. Paired Comparison Analysis helps you to set priority where there are contradictory demands on your resources.
GRID ANALYSIS
Grid Analysis is a useful technique to use for making a decision. It's chiefly powerful where you have a number of good alternatives to choose from, and many different factors to take into account. This makes it a great technique to use in almost any important decision where there is not a clear and obvious preferred option. Being able to use Grid Analysis means that you can take decisions confidently and rationally, at a time when other people might be harassed to make a decision.
FORCE FIELD ANALYSIS
Force Field Analysis is a useful technique for looking at all the forces for and against a decision. In effect, it is a specialized method of weigh pro and cons. By carrying out the analysis you can plan to strengthen the forces supporting a decision, and reduce the collision of opposition to it.
SIX THINKING HATS
The de Bono Hats system (also known as "Six Hats" or "Six Thinking Hats") is a thinking tool for group discussion and individual thinking. Combined with the idea of parallel thinking which is associated with it, it provides a means for groups to think together more effectively, and a means to plan thinking processes in a detailed and cohesive way. The method is attributed to Dr. Edward de Bono and is the subject of his book. 2
Principles of Management Assignment 3
STAR BURSTING
Star bursting is a form of brainstorming that focuses on generating questions rather than answers. It can be used iteratively, with further layers of questioning about the answers to the initial set of questions. For example, a colleague suggests a new design of ice skating boot. One question you ask might be Who is the customer? Answer: "Skaters". It is a good and very effective.
STEP LADDER TECHNIQUE
The stepladder technique is a decision-making approach intended to facilitate group effectiveness by structuring the entry of members into a group. Step 1 of the technique involves the creation of a two-person subgroup that begins preliminary discussion of the group task. After a fixed time interval, another group member joins the core group and presents his or her ideas concerning the task. The three-person group then discusses the task in a preliminary manner. The process continues in steps until all members have systematically joined the core group. When this occurs, the group arrives at a final solution.
DECISION TREE
A decision tree is a decision support tool that uses a tree like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. It is one way to display an algorithm. Decision trees are commonly used in operations research, specifically in decision analysis, to help identify a strategy most likely to reach a goal. Another use of decision trees is as a descriptive means for calculating conditional probabilities.
LADDER OF INFERENCE
The Ladder of Inference is one of the most effective tools in understanding and explaining why we so often get into conflict and fail to get resolution. 2
Principles of Management Assignment 3
The Ladder of Inference was originally articulated by Chris Argyrols and popularized in Peter Singes book The Fifth Discipline. If we learn, understand and make conscious out thinking process using the ladder of inference, we will see people and the world in a whole different light and believe it or not, stress will go down. Here is my simple rendition of the ladder of inference: My apologies but for you to read what is in the slide you are going to have to right click on it and open the link in a new window. Then you should get a clear full size view. Anyway, what the ladder of inference says it that in the first instance, our brains are absorbing tons of data every moment. and based on the data we see, we then take action and come to conclusions. What we dont realize is that there is a lot more going on between seeing something and taking action. Its just that our brains are so fast that we dont realize it.
BLIND SPOTS ANALYSIS
Blind spots analysis (also blind spots analysis) is a method aimed at uncovering obsolete assumptions in a decision makers mental scheme of the environment. Michael Porter picked up on the theme and created the term "blind spots" to refer to conventional wisdom which no longer holds true, but which still guides business strategy. The concept was further popularized by Barbara Tuchman, in her 1984 book, The March of Folly, to describe political decisions and strategies which were clearly wrong in their assumptions. The following method for uncovering blind spots was fully developed by Ben Gilad in his book, Business Blindspots. The Gilad method consists of three steps:
Step One:
Conducting a Porters Industry Structure aka 5 force analysis on a given industry or segment (market), augmented with identification of possible 2
Principles of Management Assignment 3
change drivers, which are defined as trends with the potential to have profound (structural) effect on the balance of power among the five forces.
Step Two:
Collecting competitive intelligence on the target companys top executives assumptions regarding the same industry structure as in Step One. Sources may include annual reports' letters to shareholders, autobiographies, interviews in the press, public appearances and speeches, industry meetings, congressional testimonies, conference calls with security analysts (transcripts are publicly available), and all other statements regarding vision and beliefs. An alternative technique is known among competitive intelligence professionals as strategys reverse engineering which looks for the underlying assumptions which can rationalize existing strategy.
Step Three:
Compare the results of Step Two with the analysis in Step One. Any contradiction with the analysis in Step One is a potential blinds pot. Assumptions underlying Blind Spots Analysis Underlying Blind Spots Analysis is an assumption about the inherent biases of decision making at the top of organizations (business or otherwise) exceeding those of their subordinates or outsiders. While top executives in business and government organizations are smart, capable people, they are also vulnerable to several decision biases that come with their powerful positions, from cognitive dissonance, motivated cognitions, to overconfidence and ego-involvement. The impaired ability of leaders to see reality for what it is, and the more objective (less ego-involved) analysis of analysts and mid level planners means that Step 3 of the Blind Spots Analysis can be a powerful tool for pointing to potential blinders.
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Reference:
http://en.wikipedia.org/wiki/Decision_tree http://www.mindtools.com/pages/article/newCT_91.htm http://en.wikipedia.org/wiki/Six_Thinking_Hats http://en.wikipedia.org/wiki/Pareto_analysis http://www.mindtools.com/pages/article/newTED_03.htm http://www.mindtools.com/pages/article/newTED_06.htm
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