Managerial Decision Making - Term Paper Example

Running Head: Business Decision Making Introduction This report is based on a review that was conducted in the market to analyze the importance of business decision making process to a fashion store. The research culminated a number of sources to arrive at a concrete conclusion on what decision making can render to a company if its effectively taken into consideration. Management in many sectors has a concern that there are decisions in the long run may not impart the desired function they are supposed to attain. On most occasions, this is because of the managers failure to adopt a process that will be able to brush off unnecessary risks. Decision making process is a very significant function to any company that must attain success in the market. It stipulates the areas that the company can easily penetrate in the market without enormous incurrence on costs and any impending risks. Data collection is the approach that wills open doors for such a company to make an adequate decision from the analysis they arrive at as per the data segments (Carroll, 2008). In this paper is stipulated that data analysis is a significant faction which every company ought to adopt. The report revolves around a fashion industry selling fashion clothes, shoes, jeans and other related fashion components whose main target is the youth generation. It possesses a challenge since the youths are dynamics in their desires, this call for constant review of its products to meet the demand of its market segment. A group comprising of 20 youths is sampled from Coventry region who are interviewed on a major market trends about fashion and their take on how fashion impacts the development of new products in the market. Their involvement in the changes is the key factor that is considered (Bazerman& Moore, 2013). 2. Literature review Decisions amount to the most significant components to business in the market regardless of its current position. For a business to start it must involve decision making processes and growing business must always apply different decisions for its growth purposes, otherwise growth and start-up will never be met. An agglomeration of factors must be taken into consideration on the particular field of the company. A company ought to ask such questions like what is my market size. What is the market trend? Who are my consumers? What is the market perception? Among other critical questions which will drive the company to undertake proper steps. Quality, quantity, location, size and other structural characteristics are influenced by the decisions made by management in a company (Teale, 2003). Decision making is a subject that can be trained and adopted at the same time. Management can be trained on how to make decisions in the company and taught how to dispel off those conditions that may hinder their decision making process. Sometimes decision making can be biased; it is mainly because of the environment within which the decisions were made. If the environment dictates unfair judgment then the decisions will be skewed to accommodate the demands of the relevant conditions (Parnell, 2011). If the environment is favorable and characterized by neutrality, the decisions will be professional and clear. It stipulates that for effective decision making to be achieved than numerous factors have to come into the context. For instance, the environment should be serene; data analysis should be clear; professionalism of the decision maker must be addressed, and the support team must always review the accuracy of the decisions and point out mistakes. 3. Methodology The sample used in the research was drawn from databases supplied by advertising agencies on fashion trends in the market, primary data collected and the national statistics bureau data which depicted the consumer trends in the market. Letters were sent to the statistics department and the various marketing agencies to enable the accessibility of the data for analysis purposes. However, the most significant source was the direct contact with the market that gave the most reliable data (see appendix 1). A sample of 20 youths was sent questionnaires that touched on the topics of fashion in the market. The questionnaire was framed as below:- 3.1. Questionnaire 1. What is your gender? Male Female 2. Which age bracket do you fall into? Under 18 18-25 26-35 36 and above 3. How often do you buy clothing? Once a week Once a fortnight Once a month A few times in months 4. What is the average you spend on a garment? Up to $20 Up to $ 50 Up to $ 75 Price is no concern if I fall for it 5. How do you feel about online shopping? No Yes Never tried 6. What is your preference shopping around or one stop location shopping Shop around One stop location 7. Do clothes that fit you easy to find? No Yes 8. Does designer make garments incline you? No Yes 9. Do you stick to one company when shopping? No Yes 10. Where do you like to shop? Online Shopping malls 11. Are you employed? No Yes 12. What is your marital status? Single Married 13. What is your education level? Completed high school Degree 14. Are you swayed by company branding? Yes No 15. What is your opinion on fashion trends? Pretty good Fantastic Waste of resources Answers to questionnaires Answers related to age Age Number of responses Percentage of responses Under 18 2 10 18-25 3 15 26-35 9 45 36 and above 6 30 Total 20 100 Answers related to gender Gender Responses Percentage of response Male 7 35 Female 13 65 Total 20 100 Answers related to frequency of buying clothes Frequency Responses Percentage of responses Once a week 7 35 Once a fortnight 6 30 One’s a month 4 20 A few times 3 15 Total 20 100 Answers on average cost spent on garments Cost Responses Percentage of responses 20 2 10 70 3 15 75 5 25 Price not a concern 10 50 Total 20 100 Answers related to online shopping Online shopping Number of responses Percentage of responses Yes 19 95 No 1 5 Never tried 0 0 Total 20 100 Answers related to preference of shopping Shopping Number of responses Percentage of responses One stop shop 11 55 Around shopping 9 45 Total 20 100 Answers related to clothes fitting Ease to find clothes that fit Number of responses Percentage of response Yes 17 85 No 3 15 20 100 Answers related to designer made garments Designer garment inclination Number of responses Percentage of responses Yes 15 75 No 5 25 20 100 Answers to sticking to one company when shopping One company shopping Number of responses Percentage of responses Yes 11 55 No 9 45 Total 20 100 Answers to preference of shopping Where to shop Number of responses Percentage of response Online 16 80 Shopping mall 4 20 Total 20 100 Answers related to employment Employed Number of responses Percentage of response Yes 11 55 No 9 45 Total 20 100 Answers related to marital status Marital status Number of responses Percentage of response Married 5 25 Single 15 75 Total 20 100 Answers related to education level, company branding and opinion on fashion trends Education level Number of responses Percentage of responses Completed high school 9 45 Degree 11 55 Total 20 100 Company branding Number of responses Percentage of responses No 8 40 Yes 12 60 Total 20 100 Opinion Number of responses Percentage of responses Pretty good 5 25 Fantastic 13 65 Waste of resources 2 10 Total 20 100 This can be summarized by a graphical presentation as: 3.2. Interviews Another important tool that was used to collect the primary data was an interview that was conducted randomly in the streets. It was done with an aim to authenticate the prior data collected from the advertising agencies and the statistics bureau. A random interview was done, and explanations for the different answers were collected. Further fashion established fashion designers and marketers were interviewed to clarify the information about the youth market on fashion. The face to face interviews gave the research an upper hand since reasons given by each were totally different, it showed that fashion was an individuals perception towards new trends in the market. 4. Findings The outcome from the research showed that 50% of the youth are keen on fashion, each of them depicted that they constantly monitor the products and any new commodity in the market would be their priority. Of the 50% analyzed the female gender portrayed more significance to fashion and market trends in the market. Also according to the distributors who were interviewed, the largest population of the youth who purchased constantly from the stores was the female youth. According to the marketing agencies, price was not a significant factor in fashion. Otherwise, people considered higher prices and high quality products. 10% of those who filled in the questionnaire depicted that they had a problem when it came to finding clothes fitting them, this led them to practice shop round shopping just to get what they were looking for with the right components. Online shopping among the youths seemed to take a day 98% of the youths said that they preferred online shopping to the traditional shopping. The reasons given were that online shopping is convenient timely and easier to do since it avoided constant movements in the streets. Age of 26-35 exhibited the majority of the constant buyers in the market. They comprised of 60% of one stop shoppers and made a monthly purchase of clothing in stores. Preference of designer garments was high, regardless of the prices attached to them a majority of the youth would go for such clothings whenever they went to the market. 5. Analysis The data above portrays the significant position which is accrued to marketing and advertising in the fashion industry. Unlike other industries, the fashion industry exhibits numerous trends that if not well articulated a company can easily exit the market. One factor that can be observed from the data collected is the fact that consumer tastes and preferences change over time especially among the young generations. Thus, mechanisms to meet these changes should be established in the company. In ensuring sustainability, the company ought to come up with a framework that will enable it to easily identify the specific need of a given group of consumers. The overwhelming support of the online platform also points out the role played by social Medias like Facebook, twitter, Google chat and among other social platforms in the marketing world. Trend in the market The trend in the fashion market as exhibited by the different age categories in the youth group can be depicted as below:- It can be depicted that the use of technology is the most significant aspect that is changing in the market; this is followed by the preference of the user designer goods that many of the youths appreciated more than other goods in the market. However, price consideration is not a dominant force in the market since it rises sharply and drops off in the long run. It points out that consumer no longer regard prices rather consider the quality of the products they buy and how useful they are to them.From the initial data which was postulated on the bar graphs, the female youths exhibited more trends abilities when it came to fashion. They actually encompassed the largest population of fashion buyers in the market. Hence a proper decision has to be skewed to their direction since the company stands in a position to make more sales from the group. 6. Decision making Decisions are the best tools that will keep the company competitive in the market at the same time it is though the made decisions that company will address specific needs of the customers. Problem identification will consummate to the decisions made by management. Thus, for effective decisions to be made a clear analysis of the problems has to be made it includes competition, consumer demand, cost, quality and quantity related problems identified in the company. Important considerations identified in this case study include designs not meeting other customer demands, need for online marketing, need to have all products under one store and need to emphasize more on female products (Bruijn et al, 2010). 6.1. Decision making process The company main objective is to continue selling in the market at the maximum possible sales returns in a given period. In ensuring the sales returns range within the set targets the company has to observe a number of factors that it must include during its productions. The decision making process can be depicted in the diagram below:- The most significant thing is for management to consider all the problems it is currently facing and decipher the best techniques which will aid it to attain efficacy. 6.2. Importance of decision making to the company Without decision making management of the fashion company will not be able to undertake their roles of management. Managerial functions such as planning, coordinating, organizing, staffing and directing will be held redundant if decision making is not attained by the company. Decision making is a yardstick through which managerial performance is measured. It stipulates the function held by the manager on a given occasion. Thus, it is to say that management will never be complete without decision making. However, it is not only managers who are required to undertake decision making process, the staff is supposed to be admitted into the decision making panel so as to attain decision making pervasiveness. Planning and policy formulation relies on decision making. Decisions have to be made before a given policy is made. For instance if the fashion industry wants to employ more workers or produce another brand of the product in the market, management has to review its options and make a decision. It will later transcend to a policy if the decision has been attained. On most occasions, there are those processes that the company engages in that may not be helpful or produce minimum advantages as compared to another set of activities. In selecting between these alternatives, there must be a decision making process (Oxelheim&Wihlborg, 2008). Success is always skewed towards the best decisions. Departments ought to come up with concrete decisions that will aid the fashion store move to greater heights. The store relies on the immense approaches that the management undertakes under convenient conditions in the market. It depicts the necessity of decision-making in the 21st century that is culminated by constant review of the previous decisions due to the trendy nature of the markets. 7. Recommendations From the analysis done on the data, the following recommendations were made to help the store establish in the market and achieve maximum profits. First the store ought to invest in the online platform to take advantage of the huge populations of the youth users. Besides acting as a target to the consumers online marketing, will be an important approach of cutting down costs in all its branches, in the country. An online marketing strategy means that the company will not need have branches across the country. Designer products have proved over time and again that they are the most preferred in the market as compared to other products. Thus, if the company invests in such products it stands a position to reap huge profits. Gender related products also encompass the category of products that the company should consider; it is because of the huge difference exhibited by the female as compared to the females in purchasing trends. Investing more on female related products will postulate that the company will benefit immensely as compared to the male population. Although it does not mean that the male should not be considered. 8. Conclusion The study is an example of the market trends that characterize the continued need for decision making endeavors by management. Management has to constantly review their policies to accommodate new changes in the market otherwise it may lead to product failure and eventually collapse of the business (Anderson, 2011). Business decision making is a major aspect that has been recognized by many large companies as a tool that governs operations in the operations. Business decision making thus is an integral component to the management. From the study it is apparent that consumers determine the performance of a company. If consumers boycott the consumption of certain products in the market, there are high chances that the company will crumple in the long run. However, decision making does not only direct its significance to the consumers, employees and management itself benefit from the decisions made on every occasion or on every problem. Reference list Anderson, D. R. 2011. An Introduction To Management Science: Quantitative Approaches To Decision Making. Mason, Oh, Cengage South-Western. Bazerman, M. H., & Moore, D. A. 2013. Judgment In Managerial Decision Making. New York, Wiley. Bruijn, J. A. D., Heuvelhof, E. F. T., & Veld, R. J. I. . 2010. Process Management Why Project Management Fails In Complex Decision Making Processes. Berlin, Springer Verlag. Carroll, N. V. 2008. Financial Management For Pharmacists: A Decision-Making Approach. Baltimore, Lippincott Williams & Wilkins. Oxelheim, L., &Wihlborg, C. 2008. Corporate Decision-Making With Macroeconomic Uncertainty: Performance And Risk Management. Oxford, Oxford University Press. Parnell, G. S. 2011. Decision Making In Systems Engineering And Management. Oxford, Wiley. Teale, M. 2003. Management Decision Making: Towards An Integrated Approach. Harlow, Essex, Pearson. Appendix 1 Questionnaire statistics and answers Male number Female number Gender Overall number 7 13 Age Under 18 0 2 18-25 2 3 26-35 3 5 36 and above 2 2 Often buying clothes Once a week 0 6 Once a fortnight 1 4 Once a month 5 3 A few times in months 1 0 Average spending on garments $20 1 1 $50 2 3 $75 3 3 Price no concern 1 6 Online shopping No 0 0 Yes 6 12 Never tried 1 1 Shopping preference Around shop 3 2 One stop shop 4 11 Clothes size that do not fit No 2 1 Yes 5 12 Designer made Garments No 3 4 Yes 4 9 One company shopping No 2 3 Yes 5 10 Best desired place to shop online 6 10 Shopping malls 1 3 Read More