Assignment 1: Discussion—Business Analytics And Informed Bus

Assignment 1: Discussion—Business Analytics and Informed Business Decisions Many times organizations will make decisions based upon what other organizations are doing at the time or based upon the latest business trend. Think about the dot-com bubble as businesses soared and perhaps were also part of the major bust. Many organizations felt that they needed to join the crowd and have an online presence, only to realize within a couple of years that the decisions were made in haste, which resulted in many companies filing for bankruptcy. This era also had some companies that did not follow the trend only to realize within a couple of years that they were losing out on a new market, such as the online trading industry. This is why doing some research in the beginning can really help organizations make decisions based upon what is truly good for the organization. Using the Argosy University online library resources and the Internet, research ways of making informed decisions. Respond to the following: Why do you think managers, or business decision makers, get caught up in following the crowd versus making decisions that are truly going to add value to the business? For example, some businesses may make decisions that drive only short-term gains at the cost of future growth. Can such a blind leap be a good thing for the business? Is it worth the risk? How can managers ensure that they are not following a trend but instead doing what is truly best for the organization? Have you seen your organization make trend mistakes? What were the mistakes? How could these mistakes have been avoided or improved upon? How do you think business can learn from the mistakes of others or business decision mistakes such as the dot-com era? Write your initial response in 300–500 words. Apply APA standards to citation of sources. By Saturday, November 14, 2015 , post your response to the appropriate Discussion Area . Through Wednesday, November 18, 2015 , review and comment on at least two peers’ responses. Consider the following in your response: Provide a statement of clarification or a point of view with rationale. Challenge a point of discussion or draw a relationship between one or more points of the discussion. Grading Criteria and Rubric Assignment 1 Grading Criteria Max Points Initial Discussion Response 16 Discussion Participation 16 Writing Craftsmanship and Ethical Scholarship 8 Total: 40
Paper For Above instruction

Making strategic and informed business decisions is fundamental to organizational success and sustainability. Managers often grapple with the temptation to follow prevailing trends or industry fads, sometimes at the expense of long-term stability and growth. The allure of quick gains can overshadow the critical importance of data-driven decision-making, which, when properly applied, minimizes risks associated with misguided ventures such as the dot-com bubble era.


The phenomenon of organizations falling prey to industry trends often stems from a combination of psychological, cultural, and competitive pressures. Managers may experience `herd behavior`—a tendency to mimic competitors or industry leaders—to gain a perceived advantage, especially when facing uncertain market conditions (Chen et al., 2019). Additionally, organizational culture that values rapid growth and immediate results encourages impulsive moves without sufficient analytical backing. Consequently, managers may prioritize short-term gains, driven by metrics such as stock prices or quarterly earnings, over strategic long-term value creation (Brealey et al., 2021).


The dot-com bubble exemplifies a period where decisions driven by hype and speculative investments led to catastrophic failures for many companies. Firms that rushed into online markets without thorough research suffered significant financial losses when the market collapsed in 2000-2001. Conversely, some companies, like Amazon, which took calculated risks grounded in business analytics, thrived by focusing on sustainable growth rather than swift, superficial gains (Kumar & Singh, 2018). This contrast underscores the importance of disciplined decision-making processes based on data and market research.


To avoid following harmful trends, managers need to establish robust decision-making frameworks that emphasize evidence-based analysis. This can include comprehensive market research, scenario planning, and risk assessments that evaluate both immediate and future implications of strategic choices (Laudon & Laudon, 2020). Utilizing business analytics tools enables managers to distinguish between genuine opportunities and transient fads. For example, predictive analytics can identify long-term customer needs and behaviors, supporting decisions that align with sustainable growth.


Organizations can learn from past mistakes by institutionalizing lessons learned into their strategic planning processes. During the dot-com era, many firms prioritized hype over fundamentals; today's organizations can mitigate similar risks by fostering a culture of critical thinking and encouraging the use of data before making significant investments (Liu et al., 2019). Additionally, engaging in scenario analysis and stress testing can prepare managers for unforeseen market shifts, reducing impulsivity.


In my experience, some organizations tend to chase industry trends, such as rapidly adopting new technologies like blockchain or artificial intelligence without fully understanding their strategic fit or readiness, leading to resource wastage or implementation failures. Such mistakes could have been avoided through comprehensive feasibility studies, pilot programs, and leveraging expert advice. A disciplined approach grounded in business analytics helps ensure that decisions are aligned with long-term strategic objectives rather than fleeting trends.


Ultimately, leveraging insights from business analytics and historical lessons enables organizations to make informed decisions that foster resilience and sustainable growth. By cultivating a culture that values evidence-based strategies over hype, businesses can navigate volatile markets more effectively and avoid the pitfalls exemplified during the dot-com bubble era.

References

• Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2021). Principles of corporate finance (13th ed.). McGraw-Hill Education.
• Chen, J., Lee, K., & Sun, L. (2019). Herd behavior and decision-making in organizations. Journal of Business Research, 98, 35-45.
• Kumar, V., & Singh, S. (2018). Business analytics and the rise of e-commerce: Lessons from Amazon’s growth. International Journal of Business Analytics, 5(4), 22-34.
• Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th ed.). Pearson.
• Liu, H., Wang, Y., & Li, B. (2019). Data-driven decision-making and organizational learning: Lessons from the dot-com bubble. Journal of Business Strategy, 40(3), 18-27.