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Soaring Eagle

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Submitted By aliaa1000
Words 732
Pages 3
Soaring Eagle Skate Company
Mona Alfarra
EM501 course
01/20/2016

Abstract
Stan Eagle was a well-known skater and board skating was his carrier for several years. After the interest in the sport waned, Eagle launched with his friend their own business (designing, building and selling skateboards). Eagle and his partner, William, Had a very successful business selling skateboards, but time changes and they have to gain and sustain advantages over their competitors out there in the market. Eagle and his friend considered new ideas for expansion and so they invested in a clothing line, selling shirts and shorts carried Eagle’s name on them. Eagle invested millions of dollars in this channel, but this business channel didn’t make much in returns and they lost lots of money. They sold off this part of the business to a clothing company and cut losses.
As time passed, William came up with a new idea and pressed Eagle to try it. Eagle was troubled and was not sure what decision he should make.¹

Introduction
Eagle’s previous experience with the clothing line was bad enough that he is troubled and has not decided yet which decision to make. His previous experience let him think deeper before taking any new decisions. Here, Eagle is facing a nonprogrammed decision again! This will hold him back for a while to think more about his Partner’s new idea.
With regard to uncertainty and risk, neither Eagle nor William have any experience in selling equipment for two new types of skating. People liked Eagle for his talent as a skateboarder and knew him as one of the most knowledgeable people in the world about skateboarding, and that is why people trusted him and snapped up the skateboarders. The new idea of William (his partner and cofounder), is kind of a tricky one. Yes, the two new products are sports products, but Stan is uncertain if people are going to like them as much as they did for the skateboarders.
William has a good point with regards to the business overall. He pointed out that there is little hope that both of them (Stan and William) could continue to earn much of a return on what they had invested. Stan has a good point as well, he is doubtful that this new idea is going to work since he had a bad experience before when he invested in the clothing line and lost lots of money. So here occurs a conflict.
Literature research
How to solve this conflict and make the right decision? Stan has to follow six steps or phases and then decide the right decision. ²
Step1: Identifying and diagnosing the problem:
The company has little hope that they can continue to earn much of a return on what they invested
Step2: Generating alternative solutions:
Stan’s alternative is: he is sure there are ways to seek growth within the skateboard sport.
William’s alternative is: selling two new types of skate equipment (ice skating and inline roller skating).
Step3: Evaluating alternatives:
I think, Stan should invest in the new ways, he is thinking about, in the same sport they have experience with and this is a stronger alternative than the other one.
Step 4: Making the choice
The decision, I think they should choose at first, Stan’s alternative which is seeking the growth by investing in new ways in the sport they are familiar with.
Step5: Implement the decision:
Here, they need to take a long breath and gather all their might and start the implementation of the decision in the real world.
Step6: Evaluate the decision:
After implementing the decision in the real world, how are the sales revenues and people’s feedback?

Conclusion
If the feedback is positive, they might keep investing in this side for a while, and saving money for William’s idea (it is also a good idea). They might first, seek for feedback from their best customers, and seek for good advice from experts in the market. William’s new idea might sound uncertain and risky, but it might work and make excellent returns. Stan needs to have very good interpersonal communication skills and negotiate with his old partner so that he does not lose him.
References
¹ Bateman/Snell management, leading& collaborating in a competitive world, 11th edition, page 106.
² Bateman/Snell management, leading& collaborating in a competitive world, 11th edition, page 83.

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