...Marilyn Gardner Managerial Economics Saint Leo University August 17, 2014 Analyzing Managerial Decisions Compensation plans are plans that are put into place to offer incentives to employees to keep them motivated while maintaining a low turnover rate (Brickley). However, many organizations go about this differently, and offer many different kinds of compensation plans. Organizations use their goals to determine the best way to motivate their employees and keep them employed. Organizations use trial and error in identifying the ways to do this. Parkleigh’s organizational theory leads one to believe that sales are the most important, therefore they will offer incentives that promote sales (Brickley). Ways to do this would include great customer service, with staff that are observant, nice, and outgoing. If the staff do what they are supposed to do, then the sales will reflect the relationship between the staff and the customers. Another way to show an increase in incentives throughout the levels of the coorporation is by delegating tasks based on the amount of time being employed with the company (Brickley). For example, new employees may be required to do more cleaning and “grunt work.” However, this work is still important, because making the company visually appealing (clean and tidy) will attract more customers and customer of higher prestige (Brickley). Employers could also offer discounts to employees. Just because an employee may work for a certain company,...
Words: 486 - Pages: 2
...Marketing Channel Management – Important Issues Marketing Management Revision Article Series Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. Marketing Intermediaries and Their Functions Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). Stern and El-Ansary define: “Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.” The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. Some of the functions that channel members perform are: Information Promotion Negotiation Ordering Financing Risk taking Physical possession Payment Title Channel Levels A zero level channel is direct marketing between producer and consumer. In one level channel a retailer is between producer and consumer. Two level channels have wholesaler and retailer. Still longer channels also exist in some industries. Channel design decisions involve analyzing customers’...
Words: 377 - Pages: 2
...· Analyze the effect of channel management decisions on the marketing of your selected product or service. LaToya · Select appropriate distribution channels for your product or service and address costs in terms of placement, shipping, and middlemen. LaToya Channel Management Decision: The channel management decision has a huge effect on the marketing of our new home pick up service. What is channel management? According to the web channel management is “The process by which a producer or supplier directs marketing activity by involving and motivating parties comprising its channel of distribution.” (www.businessdictionary.com) The channel of distribution is when goods or services flow from the vendor to the customer. Therefore, channel management decisions are needed to insure this process does not get interrupted. For example, the United Parcel Service (UPS) is a competitor that offers their customers the same home pick up service, so it is imperative that we manage our channels of distribution effectively. The main advantage of effective channel management decisions is it ensures that we keep an edge on the competitors and gain more customers in all markets. Appropriate Distribution Channels In the Parcel market there are various distribution channels we can utilize. There are four types of distribution channels: producer-customer, producer-retailer-customer, producer-wholesaler-retailer-customer, and producer-agent-wholesaler-retailer-customer. ...
Words: 304 - Pages: 2
...somewhat forces me to use this viewpoint. My psychology background forces me to use this viewpoint because it has given me a deeper understanding into how different every person is. So I know that each person is going to respond to things differently, and that must be taken into consideration when managing people. When I am faced with a situation and I have to make a decision, I almost always take into consideration the individual and the environment. A common one is with my toddler and why she might be acting a certain way when we are somewhere. Maybe we are in a new place and she is scared and starts crying, how do I handle the situation? I have to take into account the individual (my toddler) and the environment (the mall). To get handle on the circumstances, or the situation, I would talk to my toddler and reassure her that she is safe and that we are in a new place, and try to make it seem a little fun. What girl doesn’t like to spend money! In my work experience, I think that you have to be careful when using the contingency viewpoint. Since you have to consider the individual and the environment, and your decision is contingent upon these two things, I think that you...
Words: 524 - Pages: 3
...Chapter 03 Managerial Decision Making True / False Questions 1. (p. 88) Managers often ignore problems. TRUE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 2. (p. 89) Managers typically face ill-structured problems, leaving the decision maker uncertain about how to proceed. TRUE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 3. (p. 89) Bill Simmons is the manager of a small restaurant and must decide how much money he owes his suppliers. This is an example of a non-programmed decision. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Easy Learning Objective: 1 4. (p. 89, Table 3.1) Programmed decisions are useful when there is no predetermined structure on which to rely. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 1 5. (p. 90) Risk is not a fact of life in management decisions. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 6. (p. 90) According to research, managers prefer uncertainty to certainty because it makes the job more challenging and interesting. FALSE AACSB: Group/individual dynamics Blooms taxonomy:...
Words: 6343 - Pages: 26
...Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds to either framed or unframed prints instead of considering the same overhead for both products. By doing so managers will be able to price the prints competitively while still maintaining a profitable margin. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. Wall Décor should change its costing system for selling its high volume...
Words: 1348 - Pages: 6
...Hussain Qureshi Istanbul, Turkey Chapter 2 Collaboration and Teamwork Project Identifying Management Decisions and Systems With a team of three or four other students, find a description of a manager in a corporation in Business Week, Forbes, Fortune, Wall Street Journal, or another business publication or do your research on the Web. Gather information about; * What the manager does and the role he or she plays in the company: This job contributes to Starbucks success by leading a team of store partners to create and maintain the Starbucks Experience for our customers and partners. The store manager is required to regularly and customarily exercise discretion in managing the overall operation of the store. In particular, a majority of time is spent supervising and directing the workforce, making staffing decisions (i.e., hiring, training, evaluating, disciplining, discharging, staffing and scheduling), ensuring customer satisfaction and product quality, managing the store’s financial performance, and managing safety and security within the store. The incumbent is responsible for modeling and acting in accordance with Starbucks guiding principles. * Identify the organizational level and business function where this manager works: * Make a list of the kinds of decisions this manager has to make and the kind of information that manager would need for those decisions: Leadership * Setting goals for the work group, developing organizational capability...
Words: 730 - Pages: 3
...CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3 Two examples of pricing decisions with a short-run focus: 1. Pricing for a one-time-only special order with no long-term implications. 2. Adjusting product mix and volume in a competitive market. 12-4 Activity-based costing helps managers in pricing decisions in two ways. 1. It gives managers more accurate product-cost information for making pricing decisions. 2. It helps managers to manage costs during value engineering by identifying the cost impact of eliminating, reducing, or changing various activities. 12-5 Two alternative starting points for long-run pricing decisions are 1. Market-based pricing, an important form of which is target pricing. The market-based approach asks, “Given what our customers want and how our competitors will react to what we do, what price should we charge?” 2. Cost-based pricing which asks, “What does it cost us to make this product and, hence, what price should we charge that will recoup our costs and achieve a target return on investment?” 12-6 A target cost per unit is the...
Words: 8010 - Pages: 33
...How Management Accounting Information Supports Decision Making QUESTIONS 1-1 Management accounting is a discipline that designs planning and performance measurement systems, using financial and nonfinancial information, to help an organization develop and implement its strategy. The information must be relevant and helpful, and customized to serve multiple purposes, such as making decisions, allocating resources, and monitoring, evaluating, and rewarding performance. Information for the -plan‖ and -do‖ steps of the PDCA cycle includes prospective data on costs, profits, efficiency, and quality associated with alternative ways to produce or provide goods or services. Information for the -check‖ and -act‖ steps includes assessments of how well the organization is achieving its objectives. Common information requirements include measures of cost, quality, profitability, and timeliness. 1-2 A company's operators, managers, and executives need information for their operational control and improvement activities, as well as on the performance of their individual processes, products, services, and customers. This information is important to direct managers' attention to areas where improvement is needed, to provide feedback on activities, and to monitor and evaluate the performance of operators, departments, divisions, and business units and their managers. This information should be created and produced based on the internal need for operational and strategic information...
Words: 298 - Pages: 2
...Unit 1 Tommie Brown AIU Online Abstract In this Individual Project I will be making a management decision regarding the legal form of business. There are several issues the investor is facing to begin a business such as little financial skills and no management skills and I will identify a few others. The two examples of the new technology ideas will be mentioned as requested by the spouse. A brief interpretation of the scenario issues will also be given. I will discuss the three business structures Sole Proprietorship, Partnership, and Corporation. The advantages and disadvantages of each business structure and I will provide examples so that these differences will be identified. In this manuscript all structures will be defined and researched and based on the scenario issues I will explain why I choose the Sole Proprietorship as the business structure that would be the most successful. In the final part of this project I will provide citations and aligned resources to support my decision. Individual Project Unit 1 In the scenario there is an inventor who has an idea for a new kind of home appliance that meets consumer needs. It is my interpretation that in this scenario inventor is facing a number of issues just like any other small inventor would be trying to start a business. These issues include having little financial skills and no management skills. The net worth wasn’t very high and that only meant that the inventor may not have...
Words: 764 - Pages: 4
...MANAGEMENT’S DECISION MAKING – VINAMILK CASE STUDY TRUONG THUY CHUNG BACHELOR OF BUSINESS (ACCOUNTING) HONS HELP UNIVERSITY COLLEGE October 2011 i THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT’S DECISION MAKING – VINAMILK CASE STUDY By TRUONG THUY CHUNG Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (accounting) Hons OCTOBER 2011 ii DECLARATION I hereby declare that the graduation project is based on my original work except for quotations and citations which have been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at HELP University College or other institutions. The word count is 10,036 words. _____________________ TRUONG THUY CHUNG Date: 17 October 2011 iii ACKNOWLEDGEMENT First and foremost, my sincere gratitude is dedicated to my supervisor – Ms Nguyen Van Anh. Thanks for your strong support, guidance, intuitive comments and also motivation through the process of completing this thesis. In addition, I would like to send my gratitude to the International School and HELP for giving me an opportunity to conduct my study in my favorite area. Thanks to all my family and friends for your supports, helps and motivation and made it possible for me to complete this study iv THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT’S DECISION MAKING...
Words: 11081 - Pages: 45
...Managerial Decision Making and Organizational Change Two very important aspects of good leadership include managerial decision-making and managing organizational change. The two are closely related, enough so that for one to be affective the other has to be just as successfully managed. A good leader possesses the quality of good managerial decision-making, learning from experience, creating change, diversity and creative decision-making (Hellriegel, 2011). A successful leader is also one who is organized in the process of change (Hellriegel, 2011). Today’s leaders have different challenges than managers of businesses from over a decade ago. New technology has helped coordinate structure more efficiently and improved cost performance (http://www.kmbook.com /change/). As recently as the 1980’s new stresses such as balancing with shareholders, narrowing down operating efficiency, working with world markets and an entirely new form of competition, have all increased the demand for leaders good decision making and creating organized change. The success of any business heavily relies on these two factors. One of the key factors in a successful manager managerial decision-making that relies on: learning from experience, creating change, diversity and creative decision-making (Hellriegel, 2011). Learning from experience is a vital piece of decision-making as it helps figure out what a business should and should not do again. Three pieces to this process include assessing...
Words: 1436 - Pages: 6
...Cost, Budgets and Strategic Decision Making in Management Accounting Answer (a) Budgets can be characterized as a quantitative explanation, for a certain time period, which may incorporate arranged incomes, cash flow, costs, resources, and liabilities. Budgeting alludes to the procedure of outlining, actualizing, and working budgets. Budgeting, as a control device, gives an activity plan to guarantee that the association's real exercises are slightest digressed from the planned exercises. Budgets are utilized to give an outline of the organization and procedures performed in it. They are helpful in asset allocation where assets are distributed in such a route, to the point that the techniques, which are relied upon to give the most astounding returns, receive top priority (Libby and Murray, 2010). Budgets are additionally forecast instruments and bring about a significant improvement readied to adjust to changes in business atmosphere. They ought to be produced in such a route, to the point that they consider the key necessities of each of the functions. Budget detailing comprises of an arrangement of exercises: a budget department is created in which a budget controller is appointed, strategies are developed for budget readiness, budget recommendations are created at the department level, the budget is developed for the whole company, financial backing period and key budget elements are decided, the budget is evaluated and approved, growth is observed, and the budget...
Words: 1076 - Pages: 5
...to information has enabled people to create systems and information networks within organisations that enhance intellectual capital and efficiency, productivity, and storage and communication of information. Xero™, for example, is a software company which offers financial, accounting, and inventory management packages which automate and generate financial reports as well as various other functions. The creation of these types of systems has had a profound impact on the decision making process within the contemporary dynamic workplace. As stated in Stata, R, 1989, “The new information system is helping managers on both sides to understand their business better and to make better decisions” This wave of new information technology brings new responsibilities and skill requirements for employees as well as presenting novel challenges and opportunities for organisations. With automation of many traditional roles, employees may find themselves either redundant or in need of retraining to deal with the influx of new technology. Modern managers are put in situations in which they must make ethically difficult and challenging decisions. In this instance this essay will look at the decision making process used to evaluate whether new information technology should be invested in, and in this circumstance whether the employee whose job will be made...
Words: 2918 - Pages: 12
...Evaluating Performance Through Motivation and Conflict Management Decisions Motivation defined as the process which accounts for an individuals intensity, (how hard a person tries) direction, (leading to a specific point) and persistence (how long a person can maintain effort) toward obtaining a specific goal (Robbins & Judge). Managers daily deal with human behavior and understanding different types of human behavior is an added plus. Organized behavior defined as the study of human behavior within an organization. Earlier theories of motivation are based upon the hierarchy of needs. This theory comes from Abraham Maslow who suggests that within every human there is a hierarchy of five needs; physiological, safety, social, esteem and self-actualization. A closer theory to Maslows is the ERG theory; this theory is a remake of Maslows. The ERG theory was created by Clayton Alderfer, which argued Maslows theory due to Alderfer belief of humans being motivated by three core needs. The core needs fall under the category of existence, relatedness, and growth. Douglas McGregor, an economist and management professor, explained two distant views of human beings: one basically negative labeled Theory X (inherited dislikes) and one positive Theory Y (inherited likes). This theory is along the lines of managers who base the nature of humans on certain group types. The final theory from earlier theories of motivation comes from Frederick Hertzberg. Mr. Hertzberg’s...
Words: 319 - Pages: 2
