Reference no: EM132260992

PROBLEM-SOLVING/DECISION-MAKING METHODOLOGY:

(i.e. reflecting the various steps/skills in the problem-solving methodology to be cultivated in this course)

An effective problem-solving/decision-making methodology in business incorporates the following five aspects:
- problem statement/issues identification;
- situation analysis;
- identification and evaluation of alternatives;
- recommendation and rationale;
- plan of action

1. PROBLEM STATEMENT / ISSUES IDENTIFICATION

State the PROBLEM in one or two sentences. DO NOT summarize the facts of the case. The problem definition should be decision-oriented. This section identifies and circumscribes the major decision area(s) and/or issue(s) in the case. The actual problem definition reveals much about the problem-solver's overall perspective and approach to the case. Although this step can only be carried out after the situation analysis has been completed, it is positioned at the beginning of a case report to provide some degree of focus to the reader. Each of the following should also be incorporated into a comprehensive problem statement: i) the major objective that the organization should be striving to achieve in resolving the problem in the case; and (ii) a listing of the major overriding factors (i.e. two or three) that must be taken into account in resolving the problem in the situation.

2. SITUATION ANALYSIS (N.B. A related document on the overall methodology will be posted in Moodle early in the term. It will include information distinguishing between an ‘exhaustive' vs.a ‘highlighted' SWOT, i.e. the tool to be used in ALL course assignments where a SWOT is required. S.W.O.T. is an acronym for Strengths + Weaknesses + Opportunities + Threats)

This step in our methodology concerns itself with identifying and analyzing all of the information and factors which might be relevant to the problem and decision at hand. DO NOT restate the facts of the case! Make sure that the information included in this section is relevant for analysis (rather than being merely descriptive). Remember that the relevance of each fact/factor identified here is much more significant in a good situation analysis than is the piece of information itself. Comprehensiveness, depth, and thoroughness are important for excellence in a situation analysis. This is the most important component of the overall case methodology as it constitutes the foundation upon which the decision-making process is built. From an academic/pedagogical perspective, it also helps develop the requisite base analytical skills for excellent decision-making. The comprehensiveness/depth of this effort set up the ability to choose the most significant factors that have a bearing on the eventual resolution of the problem.

Two levels of analysis are required. The first, Market Analysis, attempts to understand the structure of the market for all firms. Also included herein should be a determination of the relative importance of any OPPORTUNITIES or THREATS confronting the firm in the particular situation. OPPORTUNITIES are actual phenomena in the organization's current external environment that are favorable for the firm/organization. Conversely, THREATS are actual phenomena in the organization's current external environment that are unfavorable for the firm.‘Strategy-ramification-oriented' statements would predominate in any extensive write-up of this section in a report. The factors (i.e. topics) likely to be scrutinized here include: the macro-environment (with all of its components); market size and growth outlook; consumer segments, and needs; consumer behaviors; distribution channel trends; the strengths and weaknesses of major competitors; and other potentially relevant factors at the macro level.

The second level of analysis, the Firm Analysis, focuses more specifically on the organization in question and critically assesses its current strategy as well as its human and financial resources. In this way, the firm's relative STRENGTHS and WEAKNESSES are identified.STRENGTHS are capabilities and/or aspects of its performance where the organization has performed well recently and that can be leveraged in future. WEAKNESSES are capabilities and/or aspects of performance where the organization has not performed well recently, and that cannot be leveraged for future success ( i.e. unless corrected/changed in some way). ‘Critically analytical/evaluative' statements would predominate in any extensive write-up of this section. The aspects to be scrutinized here include: the organization's current marketing objectives and overall position in the marketplace; its segmentation, targeting, and positioning efforts; the various components of its marketing strategy (including the marketing controllable variables); the quantity and quality of its human and financial resources; financial performance; and, generally, the effectiveness and efficiency of its present marketing efforts and its preparedness for the future.

3. IDENTIFICATION & EVALUATION of ALTERNATIVE STRATEGIES

In this step of our case methodology, the major alternative possibilities vis-à-vis resolving the stated problem/issue should be identified (i.e. first) and then evaluated. As much as possible, each alternative should have a strong strategic orientation. The alternatives should be feasible, different, and consistent with the analysis. Make sure to address any alternatives specifically identified in the case as well as any others you deem worthy of consideration.

Each alternative should be evaluated on an individualized basis. This is done (ideally) by listing in point form the pros (i.e. advantages/positives) and cons (i.e. disadvantages/negatives) of the alternative. This listing should be exhaustive and critically evaluative, and should pertain to the particular facts/situation and likely potential effects/outcomes for this specific case. The pros should be treated together and then the cons. Mixing pros and cons together (as well as mixing the alternatives together) detracts from the overall potential effectiveness of the report. The evaluations should also include the highlights/conclusions of any financial projections/calculations relating to any particular alternative - the details of which should be appended to any written report.

4. RECOMMENDATION & RATIONALE

Choose the alternative that is best suited to the resolution of the stated problem. The use of some sort of comparative decision grid is an excellent tool to help derive the best alternative in a particular situation. Obtain ‘buy-in' from the reader by effectively justifying the recommended alternative. In developing the argumentation in support of the selection, focus on how the recommended alternative best meets the series of decision criteria used. Make sure that the ‘buy-in' support/argumentation is not merely a shopping list of the ‘pros' previously identified for the selected alternative. Ideally (and most effectively), the support demonstrates the superiority of the recommended strategy on a series of criteria that are KEY for the course of action to be adopted in the particular situation. To enhance the reader's confidence in the recommendation, the recommended alternative and its support should be right at the beginning of the section. Do not "back into" your recommendation (i.e. do not begin the section by demonstrating how the rejected alternatives do not meet the criteria).

5. PLAN OF ACTION / IMPLEMENTATION

(N.B. More information on this step will be made available in theafore mentioned document on the overall methodology to be made available on Moodle within a couple of weeks.)

Provide a step-by-step action plan of what has to be done and by whom (1) over the first six months, and (2) over the subsequent eighteen months to implement the recommendation. This section should be presented in pointform (i.e. just like the evaluation of the alternatives). Particular attention must be directed to the detailed tactics associated with the strategy recommendations. In laying out the plan, students should assume the role of having been assigned the task of preparing all aspects of a detailed plan of action. The incorporation of a time-line into this step is an effective tool forany write-up or presentation of the case.

Attachment:- PROBLEM-SOLVING METHODOLOGY.rar