Decision Making Analysis For SEC390 Course

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Decision-making is a fundamental aspect of leadership that involves a systematic process to analyze problems, explore alternatives, and select the most effective solution. In a business context, especially within a restaurant environment like an Applebee’s, effective decision-making can be the difference between sustained success and decline. The scenario discussed involves an Applebee’s restaurant experiencing declining sales due to increased local competition and economic downturn, which necessitates a strategic decision to rekindle customer patronage and improve employee morale. The process involves defining the problem, gathering pertinent information, developing viable alternatives, analyzing these options, and then selecting the most promising course of action to achieve business recovery.

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In the analyzed case, the primary challenge facing the Applebee’s restaurant was a sharp decline in sales volume, compounded by new competitors opening nearby and an overall weakened economy. This situation not only threatened the financial sustainability of the restaurant but also adversely affected employee morale, especially among tipped staff, and increased turnover rates. As a general manager, making strategic decisions required adherence to a structured decision-making process to ensure the most effective resolution. This process began with problem definition, where the core issue was identified as the significant drop in sales and employee dissatisfaction rooted in economic and competitive pressures.

The second step involved gathering relevant data to fully understand the scope and causes of the problem. Economic analysis revealed pre-existing slow sales trends, exacerbated by the recent emergence of new restaurants capturing loyal customers. Additionally, internal issues such as low employee morale and high turnover became evident, highlighting the need for approaches that could not only increase sales but also improve team motivation and customer service quality. External data, such as past marketing efforts and their outcomes, informed the potential effectiveness of different strategies, emphasizing the necessity of targeted and resource-efficient measures.

Following research, the management team developed alternative strategies aimed at revitalizing sales and restoring community engagement. The first alternative was to invest in local radio advertising campaigns to inform the community of new menu items, special offers, and upcoming events. Historically, similar campaigns had resulted in modest but tangible sales increases, making this option directly scalable with limited budget concerns. The second alternative focused on employing a local sales marketer to foster community relationships through on-ground activities and local sponsorships, such as supporting local sports teams and charities. This personal approach aimed at creating a positive image and loyal customer base, potentially leading to sustained sales growth and stronger community ties.

In-depth analysis of these alternatives indicated both had merits and potential challenges. Radio advertising could reach a broad audience efficiently and increase visibility, though it involved costs and lacked guaranteed results. On the other hand, employing a sales marketer was more personalized and community-oriented, likely resulting in stronger customer relationships and brand loyalty, yet constrained by limited resources and potential personnel uncertainties. Ultimately, after careful consideration, the decision favored hiring a local sales marketer. This decision was predicated on the anticipation that community engagement would produce long-term benefits, such as increased loyalty, higher employee morale, and a more resilient customer base. The selected strategy involved assigning a current staff member to dedicate a minimum of ten hours weekly to community outreach and event organization.

The implementation of the chosen alternative did indeed lead to positive outcomes. Over the subsequent months, sales gradually increased as the community relationships strengthened, and customers returned, attracted by the personalized service and community support efforts. Furthermore, this approach bolstered employee morale, as staff observed the tangible benefits of community engagement efforts, resulting in reduced turnover and improved service quality. This case exemplifies how decision-making, rooted in a logical process and thorough analysis of alternatives, can effectively address complex problems in a business setting.

It’s also noteworthy that cognitive dissonance played a role in the decision process. Initially, there was discomfort in deviating from tested and proven advertising methods, such as radio ads, which seemed safer and more immediate. The decision to pursue community engagement through a local sales marketer represented a more creative, long-term approach, which posed potential risks of failure. However, understanding the importance of innovative solutions in declining market conditions enabled the manager to override this discomfort and embrace a more strategic, community-focused approach. This highlights the importance of overcoming psychological barriers in decision-making, especially during challenging times, by aligning choices with overarching organizational goals of sustainability and growth.

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