Management Course: Analysis of Managerial Decision Making Process

This report delves into the critical aspects of managerial decision-making within organizations. It outlines the five essential steps involved in the process: establishing objectives, defining the problem, identifying solutions, evaluating various courses of action, and implementing the decision. The report uses a case study of a struggling six-star resort to illustrate these steps, exploring potential solutions such as marketing campaigns, rebranding, celebrity endorsements, and even selling or donating the resort. The analysis emphasizes the importance of gathering and analyzing relevant information to make informed choices that align with the organization's objectives. The report concludes by recommending the donation of the resort to the government, fulfilling social responsibility and leveraging past investments. The report references various academic sources to support its findings and provides a comprehensive understanding of managerial decision-making in a real-world context.

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Management 1
Managerial decision making
Decision making is a crucial part of any organizational work. Managers, be it top
level, mid level, or base level, are faced with decision making at various stages (Gigalová,
2017).
There can be basic decisions like what product is to be made, in what amount and
what value needs to be charged, or the type of marketing and packaging is required that are
optimum, and fit the budget. These decisions can be routine, or programmed, i.e. the ones
that are faced continually, or, they can be non-programmed, like a merger, that are not faced
regularly (Szymaniec-Mlicka, 2017).
The 5 steps concerned with social control the process is explained below (Peters,
1999):
1. Establishing the Objective
Establishing the objective of the firm, is the very first step within the managerial
decision-making. The end objective of any organization is to always maximize profits, unless
it is public firm. The other targets it may have is step-up of sales growth, or firm (Joslin &
Nicholas, 2000).
Here the target is to achieve profit from the resort that has been running in losses. If
there is no way out to provide enough profit. Then, the resort can be sold or donated to the
government to create a national park.

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2. Define the Problem:
The next step in the higher cognitive process is to define. Defining and agreeing on
the fact that there is a problem prevailing around, is success in itself. The problem here is that
the fully independent 6-star resort is going into a loss, due to very low numbers of visitors.
3. Identify solutions
Once the problem has been defined, it’s time to work on to the solutions, the solutions
can be many to one problem, all of them need to be listed once, before they can put up for
evaluation. The whole team should agree on the plausible solution options and they should
have a great communication. The problem escalations should be avoided. During this means,
the relationship between the variables and the issues needs to be established (Ahmed, 2010). .
Understanding this, numerous hypotheses may be can be formed which can be named
as the plausible solution options. As an example, just in case of the matter mentioned higher
than, if it's known that the matter of declining profits of the resort.
The six doable solutions of the matter are:
A) An international marketing campaign to the current target market (rooms are $2000 a
night).
B) Shift to 4* family resort by lowering service standards and rebranding the resort.
C) Invite guest celebrities for a ‘survivor’ reality show to generate publicity.
D) Sack the current leadership group and employ a new management team (with track record)
to develop a new vision (whatever that may turn out to be).
E) Sell the resort for profit.

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F) Donate the resort to the government to create a national park. The resort has been a good
investment for you plus it provided you with prestige and leverage in other business matters.
But it’s just one of your numerous business interests.
The choice between these various courses of action depends on which can bring forth
a larger increase in profits.
4. Evaluating various Courses of Action:
The next step in business deciding is to judge the choice courses of action. This
needs, the gathering, and analysis of the relevant knowledge (Platkus, 2014).
Since all the alternatives given by the consultant are known, evaluating each of them
is critical
a. An international marketing campaign to the current target market (rooms are
$2000 a night).
Launching an international marketing campaign, to gather more crowd, can go both
ways. The resort is already on loss, and an international marketing campaign is another
expense to it without a guarantee of profits.
b. Shift to 4* family resort by lowering service standards and re-branding the
resort.
This will gather a lot of potential customers and will give a fresh start to the resort,
but t will lose its old, loyal customers who come for the great service and the 6-star brand
value.
c. Invite guest celebrities for a ‘survivor’ reality show to generate publicity.
This will generate great publicity and profits for the resort, but the resort would have
to be shut down for other guests for the time the reality show takes place. Also, any bad

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comments from the reality show contestants on national television will affect the publicity
badly.
d. Sack the current leadership group and employ a new management team (with
track record) to develop a new vision (whatever that may turn out to be).
The new leadership will bring the clients that follow its name. The old ones will also
stick, and the bidding process to gain the leadership will also benefit the resort.
e. Sell the resort for profit.
Selling the resort can be a good but last idea, it is like shutting down a running
income, given it has been generating losses.
f. Donate the resort to the government to create a national park
This will fulfill the social responsibility, plus it is giving back from what we took.
Creating a national park, will be in the interest of the government, create fame, and goodwill
in the current scenario.
5. Implementing the Decision:
After the evaluation of various alternates of the problem, the final solution must be
found out. It is usually the one that nails the objectives of the firm and finishes the problem,
without causing huge extra expenditure. But, it should be implemented correctly (Tichá, Hron
& Fiedler, 2010).
The best decision here is to donate the resort to the government and fulfil the social
responsibility the resort owes. Also, it generates enough profits in the past, and has been a
good investment, plus it provided you with prestige and leverage in other business matters.
But all good things need to come to an end.

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Managerial decision-making process
Source: www.economicsdiscussions.net

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References
Ahmed, A. (2010). Five Steps of Entrepreneurial Decision Making. SSRN Electronic Journal.
Gigalová, V. (2017). Intuition and managerial decision-making. Human Affairs, 27(3).
Grandori, A. (2010). A rational heuristic model of economic decision making. Rationality And
Society, 22(4), 477-504.
Joslin, J., & Nicholas, N. (2000). Environmental Decision Making—Taking Steps toward
Improving the Process. Environmental Practice, 2(2), 128-129. doi:
10.1017/s1466046600001320
Peters, J. (1999). The Managerial Decision‐making Process (5th ed.)991E. Frank Harrison. The
Managerial Decision‐making Process (5th ed.). Houghton Mifflin, 1999. Management
Decision, 37(5), 57-58.
Platkus, W. (2014). Visual Solutions for Management System Processes. Environmental Quality
Management, 24(1), 15-23.
Szymaniec-Mlicka, K. (2017). The decision-making process in public healthcare entities –
identification of the decision-making process type. Management, 21(1), 191-204.
TICHÁ, I., HRON, J., & FIEDLER, J. (2010). Managerial decision making – importance
of intuition in the rational process. Agricultural Economics (Zemědělská
Ekonomika), 56(No. 12), 553-557.
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