Decision-making process in business

High school
Essay
Miscellaneous
Pages 2 (502 words)
Download 0
The turnaround at Sunbeam could not maintain momentum. The three purchases of Coleman from Ronald Perelman, Signature Brands (Mr Coffee), and First Alert (smoke and gas alarms) made by Sunbeam initially pushed share prices up. However the same purchases caused the downfall…

Introduction

Sales of electric blankets were unusually high at this time. Sales of grills were also unusually high during the fourth quarter. These financial bungling unfolded the actual state of affairs in Sunbeam.
Al Dunlap's four step plan impacting financial, personnel, core business and strategy of Sunbeam had elements of controversy. The changes they brought about were fundamental and drastic. They failed to foresee the long term impact of their actions. They did not cater to the rule that balance is the key to most successes.
As for public relations, Al Dunlap's arrogance that his Mean Business policies were accountable for Sunbeam's turnaround caused investors and the public to question Sunbeam's integrity. Dunlap aired his views that his "Dream team" sees opportunities where others see impossibilities.
Al Dunlap's management team performance was flawed from the beginning. They failed to: (1) consider that cost cutting on a mass scale is counter productive, (2) realize that cutting down such a huge amount of jobs is actually downsizing business, and (3) categorize core business as profit making exercise rather than link each product with Sunbeam and sell off those that did not fall within the five categories of core business.
The lessons that could be learnt from the outcome are that one must exercise more caution and care in turning around companies. ...
Download paper
Not exactly what you need?

Related papers

Perception and Decision Making
Perception is defined on the Wikipedia as follows: "In psychology and the cognitive sciences, perception is the process of acquiring, interpreting, selecting, and organizing sensory information." (Wikipedia, 2006b). It goes further explaining how perceptions are formed, how they change, and how there can be no perception at all. Let's see:…
The ideal decision making process is unrealistic
Decision-making is the process of choosing among alternative courses of action in order to attain goals and objectives. Decisions made in an organization are subject to 'group thinking', which might lead to failure in implementation of policies and strategies, like what happened in the Bay of Pigs invasion by the US army (Janis, I. 1972, quoted in Salaman, G. 2002, p. 9- 38). The failures can be…
Business - Decision Making
For example, the depreciation in the value of a car as time passes and the distance it is driven is done by simple regression. But this type of situation rarely exists since there are many complex factors or variables that exist in the real world. If we want to calculate the future earning of a person taking only his years in school is simple regression, but it is not accurate since other factors…
Business Decision Making
Statistically speaking, there are two types of hypothesis namely, the null and the alternative hypotheses. During a statistical test, the null hypothesis is tested against the alternative hypothesis. It should be noted that "null" means nothing and that null hypothesis means that nothing is present (Hyperstat Online 2008). Statistical tests are conducted in order to test the viability of the null…
Decision making in business
Such studies indicated that successful organisations exhibited all of…
Decision-making process in business
Sales of electric blankets were unusually high at this time. Sales of grills were also unusually high during the fourth quarter. These financial bungling unfolded the actual state of affairs in Sunbeam.…
Decision making process in business
In well known case Donogue VS Stevenson * the Court decided that the manufacturer is liable for the act done because everybody owes a duty of reasonable care to their neighbour.In this case Mrs. Donogue made a valid claim that her continuous illness is due to the consumption of drink in which the decomposed snail was found and it was due to the negligence of manufacturer Mr. Stevenson.…