Solving the Problem and Decision Making: A Case Study Analysis in Business Decision-Making Process

Running head: SOLVING THE PROBLEM AND DECISION MAKING
SOLVING THE PROBLEM AND DECISION MAKING
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SOLVING THE PROBLEM AND DECISION MAKING
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................5
References......................................................................................................................................10

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SOLVING THE PROBLEM AND DECISION MAKING
Question 1
Bounded problems can be defined A field of uncertain situations in the business
organization. The uncertainty is of limited scope. The details of the problem can be solved
progressively and can be reduced to a relative certainty. Usually the bounded problems are
commonly found during hiring of the employees, the various legal agreements, operations of the
business and engineering. It can be said that the problem is highly defined and the ideas of which
are sketched. The bounded problem can be easily broken down and connections can be made.
The bounded problem is comparatively simple and is not fundamental challenge for the
organizational team to solve the particular problem (Baker 2017). On the contrary, According to
Bardach and Patashnik (2015), unbounded problem are those problems are usually of a larger
scale, the structure of the problem is not clearly defined. The certainty of the problem is difficult
and feedback of which is comparatively expensive to gain. The optimization of the problem like
the customers population of the industry and the demographic groups are highly of a complex
nature. Moreover, obtaining feedback is difficult. Acquiring the data is highly complex. It can be
said that the bounded and unbounded problems differ in the size and the degree of uncertainty
that is involved in the problems (Boud and Feletti 2013).
From the case study it can be analyzed that frank faces has been facing unbounded
problem in his business. Frank has a big rate problem; he states that the division charges are
going to be 20% higher in the future years to come. The main problem that has been facing by
Frank is the cost of space, in the short term, the cost of the space occupied by the business of
Frank has been doubled (Deutsch and Baby 2013). The things are gummy, further frank’s
division has been loosing work. He has already lost 20% of the division’s hours in the last years.
From the case study it was understood that the business run by Frank have considerable increase

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SOLVING THE PROBLEM AND DECISION MAKING
in the fixed expenses in his division. In order to reduce the, frank has to distribute on a smaller
base of productive hours (Deutsch and Dancause 2013). According to the case study, Frank has
to reduce the expenditure of the business. Therefore, in order to reduce the expenditure, Frank
took initiatives to reduce the staff’s in his division. The managers begin making greater use of
less expensive and temporary staff in his division. As a consequence of this problem, the
Frank’s division has to recover the expenses of the work performed, which has considerably
increased and is likely to increase again. In the case of Frank, he can neither move back to work
nor can he relocate to cheaper facility or quarters. According to Deutsch (2013), the loss of work
and increased expenses of the space charges has increased the problem of Frank. From the case
study analyzes it can be determined that Frank’s organization had some major issues suc as
outdated processes, the process and work done by the staff in Frank’s division were outdated.
Therefore, it might have increased the expenditure of the organization. It has been identified that
the business faced increased expenses on the fixed cost. That is the division of Frank suffered
from lack of visibility and accountability on the management of the inventory and scheduling.
According to Ford (2015), the activities and the functioning of Frank’s division were inaccurate
and inefficient which might be the reason for increased expenditure of the division. Along with
the increase in the fixed cost, the division faced issues with the increased cost of the space,
which eventually increased the problem of Frank. Frank has no option left to give up the present
space and move to new facility. The facility he is using now is highly expensive, however, frank
has many customers in the new facility therefore he is unable to leave them behind. Moving into
a new facility will take a lot of lead time to obtain new business. According to Funke (2014),the
business owned by frank is jot independent and is a cost center. From the case study it has been
identified that the new customers are somewhat not satisfied with the new facility. Furthermore,