Decision Making: A Critical Business Challenge
Added on 2019-09-24
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DECISION MAKING[Document subtitle]
Decision making1Decision making is one of the most important and fundamental tasks of the management team.These decisions play a vital role in the survival of a company and a matter of life and death as faras survival of the company is concerned. The decision making is objective in nature andcompanies have to evaluate the situation as per the circumstances rather than subjectivelymaking a decision. In this decision making process Mueller have to take the decision to save herdad company AT&D as the foreign automakers, particularly Honda and Toyota, had beenquickly grabbing market share away from the big three automakers and making the scenariomore competitive by keeping their prices low.AT&D has been enjoying a successful company from 1912 and established by Mueller’s greatuncle, but after the arrival of big companies particularly Honda and Toyota, they start facingproblems regarding the low price of their product due to competition prevailing in the market.AT&G is an auto parts manufacturer company that sold braking and ignition systems directly tothe top three U.S. automakers to the arrival of Honda and Toyota AT&G losing their marketshare as new competitor arrived in the manufacturing marking and taking the previous UScompanies market share. AT&G and other American companies cut on production due to loss ofmarket share. Mueller has to take a decision, how to compete with here recently arrivedorganizations in the market and have to do her homework and understands the next step of bigplayers in the market.As indicated by the process the problem that is facing AT & D is that of demand for its productsdrastically reducing due to the market take over by the foreign companies. As the daughter putsit the situation for the company is either adapt or die. The company has tried to explore otheroptions to shifting, but they have been met by resistance. The decision statement for the
Decision making2company, therefore, is that they will be closing down the plant and moving their operations closeto a foreign car maker company.Now when the foreign companies are becoming the big player in the market, sales of AT&G areadversely affected as previously AT&G used to have a direct supply line to the top threeautomakers in the US. The decision becomes more difficult because of father's sentimentattached with the working place as AT&D is a family business that was established by Muellergreat uncle. It a symbol of family’s legacy for her father and not just a profit-making business.Sentimental values and attachment with employees making it more difficult for her father to takethis decision making harder. Union support is most important factor in tackle the organizationproblems thus, to cut on the cost of wages Mueller's need local union support. Movingcompanies to new locations will means, making 195 employees unemployed this is the otherfactor that is affecting the decision-making the process of the father and daughter.Mueller has to take into consideration all the stakeholder and employees while taking out anydecision and analysed the whole situation after gathering of information. Here, the problem withAT&G is to maintain the financial stability of the company and remain financially afloat ForAT&D to remain financially afloat it had the following options; Mueller has a plan of shiftingtheir company to new market and would require closing the plant in Michigan and open one nearthe new Toyota facilities in Mississippi. AT&G has the other option to reduce worker wages by10 percent for a year. At the end of December in a two-week unpaid leave or decreasing theworkforce by 30 percent. Mueller traveled and discussed these options to other foreign countries and evaluate the allavailable options by speaking to the union and the workers.
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