Mgt Full Research Report

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- Conflict

Stan must consider the opposing pressure from his partner, William. First, he experienced psychological conflict when William offers a new idea for their product line. The conflict happens when he has to deliberate on whether the option is attractive or not in the effort of betterment of the company. Second, conflict arises between people. In the company, Stan and William are partners. Whether they like it or not, arguments will happen but eventually, final decision must be made. We can see that Stan was doubtful on William’s idea of bringing in new products lines as he do not know if accepting the idea can avoid losses from investing in industry in which the company lack of expertise. They both have different opinions thus emerging the conflict between them.

- What steps can Eagle take to increase the likelihood of making the best decision in this situation?

There are 6 steps in the process of making decision;

- Identifying and diagnosing the problem

This step recognizes the problem that exists and must be solved. Typically, a manager realizes some difference between the current state and a desired state. For Eagle Company, there are three unit performances that need to be detected;

- Past performance- the company prospered as new young skaters began snapping up the skateboards, attracted in part by the products’ association with a star.

- Current performance- He has invested millions of dollar but still losing the money after he expanded the business into a clothing business. He then sold off that part of the business to a clothing company and cut his losses.

- Future expectation- he could go along with William and take the chance of losing money again, or he could use money he had earned from his business to buy William’s ownership share in the company and then continue running Soaring Eagle on his own.

- Generating Alternative solutions

The second step is to link problem diagnosis to the development of alternative courses of action aimed at solving the problem. Managers generate at least some alternative solutions based on past experiences. Solutions range from ready-made and custom-made.

- Ready-made solution : ideas someone have tried before

e.g=skateboards with variety of designs.

- Custom-made solution: combine ideas into new, creative solution

e.g =skateboard vacuum cleaner and skateboard control

- Evaluating alternative

Determine the value of adequacy of the alternatives that were generated. Manager should consider several types of consequences, including quantifiable measures of success such as lower costs, higher sales, lower employee turnover, and higher profit. In the case of Soaring Eagle, he needs to consider all the costs associated to make the alternative products a success. This includes the cost of raw materials for making such products and testing process on the prototypes.

- Making choice

Once you have considered the possible consequences of your options it is time to make your decision. As you make your decision, important concepts include maximizing, satisfying and optimizing should be considered.

- Maximising - Achieving the best possible outcome, maximising results in greatest benefits at the lowest cost, with the largest expected total return.

- Optimising - Achieve the best possible balance among several goals.

- Satisficing – choosing the first option that is minimally acceptable or adequate

- Implementing the decision

The chosen alternatives must be implemented by following these ways;

- Determine the result after the decision was made.

- Chronological order to achieve success.

- List the resources and activity required to do each step correctly.

- Estimate the time needed for each step.

- Assign responsibility to specific individuals.

- Evaluating the decision

At the final phase, a manager need to find and collect information about the results after making any decision to know how the decision is working, whether the plan works or fails and it will help them to make a better decision in the future.

ISLAMIC PERSPECTIVE

In Islam, Muslims are taught to emulate the Sunnah of the prophet SAW and refer to the Book of Guidance, Al-Quran in every step and decision we take. The problem that Soaring Eagle Skate Company is facing will no more a worry once we look at it in Islamic perspective and try to solve it through Islamic ways.

God has opened a special line of communication for us to Him when it comes to decisions. It is called Istikharah. It is one of the Sunnah of the prophet SAW that we are encouraged to do when we want Allah SWT to guide us towards an action. We have to realize that there may be options in life that we may want but Allah SWT knows that the other option is better for us. So it is better to take council with Allah SWT then just take a random choice and mess up something. Such problem like what Soaring Eagle encountered can be solved once guided by the Most Powerful.

On the authority of Jabir Ibn 'Abdullah he said: “The Prophet SAW would teach us Istikharah for all of our affairs as he would teach us a surah from the Qur’an. He said: ‘If one of you is deliberating over an act, he should pray two non-obligatory raka’at and say: “Allah, I consult You as You are All-Knowing and I appeal to You to give me power as You are Omnipotent, I ask You for Your great favour, for You have power and I do not, and You know all of the hidden matters. O Allah! If you know that this matter is good for me in my religion, my livelihood, and for my life in the Hereafter, then make it (easy) for me. And if you know that this matter is not good for me in my religion, my livelihood and my life in the Hereafter, then keep it away from me and take me away from it and choose what is good for me wherever it is and please me with it.”

Second, referring to Al-Quran, in Surah At-Talaq verse 3, Allah said,