Questions/Business/ManagementMGT 3303 chapt 5
3. Decision Making at Borders Books Decision Making at Borders Books
The decision-making process includes six stages that ideally proceed in order. However, not all steps of the decision-making process are always followed by decision makers. If steps are missed, the potential for poor decisions increases. In this activity, you will consider the decision-making process of Borders Books and consider whether it followed all of the recommended decision-making steps, prior to declaring bankruptcy and closing all stores in 2011. If it did, determine if they were followed in the correct order.
Most managerial decisions are challenging because they lack structure and entail risk, uncertainty, and conflict. Faced with these challenges, how can you make good decisions? By following the six-stage decision-making process, managers will increase their likelihood of making good choices for their organization.
Bookseller Borders faced a problem: declining sales. The book industry in general had become sluggish, as consumers filled leisure time with other activities and consumers who did choose to buy books were often doing so online. But Borders didnt recognize that not having its own website was a problem, choosing instead to create an alliance with Amazon.com to sell its books online. At the time, CEO Greg Josefowicz defended the decision, saying it would help us to focus on what we do best, which meant building more stores. But the customers didnt come. As the overall book market declined, online sales soared. Borderss new CEO, George Jones, admitted that the firms previous strategy was wrong, saying that an online presence would be a necessary component of our business going forward. In addition, Jones indicated Borders would invest in more superstores, reduce the number of CDs it carries, and strengthen the firms publishing businessall in an effort to boost those flagging sales. Borders was forced to liquidate all stores and they closed their doors in 2011.
Note: From Bateman ninth edition text, p. 90.
References Timeline3. Decision Making at Borders Books
2.value: 5.00 points 3b. Decision Making at Borders Books (2) Step 2 – Match the parts of the Borders decision-making process with the stage that they exemplify.
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