The Correct Decision for Racter & Grimble for Improving the Sales Activity of the Company - Book Report/Review Example

Introduction: The main intention of this report is to formulate a correct decision for Racter & Grimble, a major manufacturer of food and beverages in the UK. The main duty of Racter & Grimble is to sell their products through super markets, wholesalers, and also to small retailers. In order to increase or enforce their business activities company is planning to invest new fleet of cars for the sales force and there are five options for the company. They are: A mid range saloon car that is quite expensive to buy and has proven to be reliable and efficient. More expensive than option one and has good record on its efficiency and safety and this is considered to be more popular for sales representatives. This category of cars is much cheaper than option one and two and it is considered to be particularly efficient on fuel. However, it does not provide any comfort for drivers and passengers. Option four is slightly cheaper than option three and it provides comfort for drivers and passengers however it is noted that it is more efficient in the case of fuel. Also, another consideration is that spare parts of these cars are much high. Option five is one of the cheapest available cars however it is not at all comfortable for driving. As in the case of option four spare parts for this car is much expensive. In order to make accurate decision from among a variety of options available; it requires necessary understanding regarding the decision aids, their analysis, requisite, decision modeling and also the importance of SMART. Aims and Objectives: The main aim and objectives of this report is to find out the correct decision or options for Racter & Grimble from the variety of options available for improving the sales activity of the company. This report includes different scenarios and alternative for choosing the best options from different options for the company. The report includes different steps taken when undertaking a SMART for resolving the situation. The report also includes different estimations and guess while applying the SMART while choosing the available options. Besides, this report consists of some discussion on how stakeholders are kept informed and which aspects would be used for communication. Last part of this report consists of strength and weakness of SMART and also some recommendations for the company. Best Value Solution for Racter & Grimble from Available Options: While choosing the best option from the different available options; it is necessary that there must be some consideration regarding different factors that influence the chosen option. This is very important while taking any decision. The chosen option is second one and it is considered to be the best available option for the company while it is comparing with other alternatives. Since this car is more expensive it has got very good record on efficiency and safety. Also, it looks very attractive and good and this is one of the popular cars among sales representatives. The whole report revolves around different factors taken into consideration while choosing options from different alternatives. The main and different factors includes decision aids, appropriateness of SMART and different types of other activities that undertaken in this situation for choosing the best option. Reasons for choosing second option car- Racter & Grimble are a major manufacturer of food and drinks in the UK. More than 27,000 business establishments and it is the main widespread trade directory for verdict food and drink business producers, traders, wholesalers, organizations and business. Racter & Grimbles whole collection of superiority ingredients offers a consistent, constant and protected distribution of products that helps to keep consumers together time and currency. Racter & Grimble have a large sales force spread throughout the UK that sells their products to supermarkets, wholesalers, cash and carries and to small retailers. So the business is scheduling to put in in a new fleet of cars for the sales Second option is best for this purpose .this type of car is expensive than 1 but has provided good security as well as safety. And also it is very good looking .They car selecting a car for the sales rep so for this purpose they need more safe and good security to carry the products. So the car 2 is more suitable the SMART analysis helps to analysis about this. That Racter & Grimble finds the best value solution that can be implemented all these attribute are coming under this option .As well as this type of car provide great comfort to use it. Why Decision Aids are Needed/Useful? The decision aids has got an important role in choosing or finding different alternatives for the company in order to make improvement. A poor decision aid will put everything upside down. Three important issues or logics needed to take into consideration in case of Racter & Grimble while taking decision for choosing the alternatives is “Task settings, critical qualities of aid produced, and motivational pressures on those qualities.” (Brown 1999, p. 5). A good decision aids always is very useful in every situation. Decision Aids always helps to understand about the issues in the situation or while choosing different alternatives. This is very important. The main requirement of Decision Aids must be based on the output. That is, output must be relevant with respect to the problem. Here, in this case the problem is choosing the best ever alternatives from different options in order to enhance the sales of Racter & Grimble. The diagram for overview of decision analysis process has been shown below. (Decision behavior, analysis and support, 2008, p.306). The above diagram specifies three issues while doing decision analysis and those three issues are formulate problem, evaluate options and appraise recommendation. Formulate of the problem suggest the need of the decision. Whether it will be beneficial or not? In case of Racter & Grimble is the choice of option two is good or bad? It requires discussion with stakeholders and what is their opinion regarding this. Clarification and articulations must be done for various objectives and values. In case of any uncertainties; it must be identified and relevant data must be gathered. In case of evaluating the options a best judgment must be made. Judgment must be made based on considering different available options and their drawbacks. The chosen option must be compared with other options also. Besides, a sensitivity analysis must also be done with respect to the chosen option. In the last step; it is required to check whether the chosen option is comfortable or any extra recommendation is needed regarding this in order to enhance their functionality more. Apart from these some more analysis are required while choosing the options and to get more benefit from the chosen option. They are mainly based on the PESTEL and 7 S’s. While choosing the option; focus should be give on political, economic, social, technical, environmental and legal factors. Political: In this case, consideration must be given in to any political agenda will effect on the chosen option. Economic: changes will take place in the economy or financial world with respect to choosing the option. Social issues: All the social issues will be considered in this section Technical: Any sort of technological issues with respect to the choice made. Environmental: This sector considers all the environmental impacts that may arise due to this. Legal: If there are any legal issues; they are considered and solutions are found out to avoid those. The 7 S’s include strategy, structure, systems, style, shared values, skills and staff. Strategy: While choosing the options; it is very much necessary to have best objectives and directions. Structure: It requires understanding of the organizational structure. This is very important while choosing the option in order to employ the option correctly. Systems: Understanding of business process and systems are also required while choosing the option. The main reason is that; option must not do any kind of harm to the flow of the business activities. If the option chosen is not an accurate one, it will affect the flow of the business. Style: “is there any issue that relates to the way of working and doing business?” (Issue formulation and problem structuring, 2008, p.277). That is, it checks whether the option will generate any kind of issues or problems. Shared Values: Whether this affects the beliefs of the organization. Skills: Capabilities and knowledge regarding the options. Staff: How much interest the organizations work forces have in the case of options chosen. This is a very important factor that needs to be considered. Why SMART is Appropriate? Smart is appropriate in decision making. Decision making is one of the tough processes and “each alternatives has its good and its bad points.” (Choice behavior in the face of complex alternatives and multi –attribute value analysis, 2008, p.168). The difficult part in decision making is picking the correct options. Smart can enhance analyzing of different factors while picking the options. Different Steps When Undertaking a SMART While Resolving the Situation: By applying SMART into the decision making it is easy to analyze the situation very easily. That is, each of the attributes can be accessed separately and is merge to the whole function. Different steps involved in the decision making involve the following: Identifying the purpose of the decision - First of all purpose must be clearly understood. That is what the problem is and why it need to be solved. Gather information: Different factors persist in the problem must be analyzed. It includes the pros and cons of the different available options. Formulate the principles in order to judge different alternatives: Every alternative option must be judged properly in order to see its standards and criteria. Brainstorm the choices: Generate as many solutions for each of the alternatives. That means, try to find out solutions for each of the problems that arise in the different alternatives. Evaluate each choice and its consequences: Determine the pros and cons of each of the alternatives thoroughly. Decide the best alternative: Once the overall understanding about the alternatives is done, it is very easy to choose the best option form the alternatives. Put the choice into action: Transform the chosen steps into action and execute it. Evaluate the outcomes: This is an important step in the decision making and all sorts of options come across must be analyzed very clearly. It is based on these further actions that must take. Some Discussion of How the SMART Analysis Might be Used in this Situation Decision making can be apparent regarding a wide variety of probable actions that may happen. But, is unsure with regard to which in reality will work. SMART is meant by Self-Monitoring, Analysis, and Reporting Technology. Observing the system will help to be aware of and make statement on numerous indicators of consistency so as to help foreseeing failures. “The acronym SMART has a number of slightly different variations, which can be used to provide a more comprehensive definition for goal setting’s - specific, S-significant, stretching ,B- measurable, meaningful, motivational, A - agreed upon, attainable, achievable, acceptable, action-oriented, R - realistic, relevant, reasonable, rewarding, results-oriented, T - time-based, timely, tangible, trackable.” (Haughey 2010). Leaders of each and every businesses are familiar with the significance of setting attainable and successful objectives for themselves. These objectives are expressed as SMART objectives. Business objectives are mainly underexploited and considered as the most vital instrument those industries have. Once the chief sketch of development plan has been laid down; the next important task is to give concentration to be turned in the direction of building up certain objectives so as to assist the success of the business development or project undertaken. There are mainly four key elements’ that the Racter & Grimble; a major manufacturer of food and beverages in the UK are used to set the objectives i.e., to , the Company is planning to invest in a new fleet of cars for the sales force such as assessment and suggestion of the each five options given, ideas and objectives about every options, making the S.M.A.R.T objective, and answerability of each one .Here the Racter & Grimble can choose Car 2 after analysis them by way of the S.M.A.R.T analysis. So that SMART is a suitable method is to measure all the aspects regarding the each model. Car 2 possessed all the attributes such as efficiency, safety, comfort, good looking etc… “Purposeful selection from among a set of alternatives in light of a given objective. Decision-making is not a separate function of management. In fact, decision-making is intertwined with the other functions, such as Planning, Coordinating, and Controlling. These functions all require that decisions be made.” (Decision making, 2010). Decision Analysis Process: Decision making is a mental procedure followed in the choice of a variety of other options so that it will be the last alternatives of the decision maker to select the best one. The decision analysis procedures consists of three areas, such as dilemma formulation; assessment of various alternative and an evaluation of the proposal. A high-quality decision is a rational one and it is mainly on the basis of the accessible data, reflecting the first choice of the decision analyst. Dilemma Formulation: It is also known as a formulation of the problem. The Decision problems hardly ever turn up entirely; formulated with a comprehensible set of alternatives and aims .At the same time, it is necessary to understand the issues associated with each of them. Here, the company is planning to invest in a new fleet of cars for the sales force. This is the problem associated with the decision making. Two things must be kept in our mind at this time. The first thing is that decision analysis, the information and data congregation must be very apparent. Secondly, Decision Maker must take on value alert thoughts. Assessment of Various Alternatives: In this stage each of the option must be correctly examined to select the best one. Decision behavior, investigation and hold up etc…that enclose an important effect in formative the direction. Evaluation of the Proposal: After the analysis of various alternatives; the evaluation of the proposal or the assessment of the conclusion model occurs. In numerous cases the examination aids the decision maker to create their own attitude and preferences to make the decision. So, it is very important to make out the modeling procedure concerned on behalf of their insights as imaginative, dynamic and cyclical, and each of these phase conveying insight. “Goal setting is a process of determining what your goals are, working towards them and assessing whether your goals are met. Goals can be long term (life goals) or very short term. Many of us have long-term goals or at least intentions, such as having a well paying job. This strategy will consider short-term goals such as what your goals are for the class you are in.” (Smart goal setting: guided practice, 2010). Various methods are used to keep informed the shareholders about the decision. Requisite decision modeling and Sensitivity testing are some of them. Requisite Decision Modeling: It is defined as a model, whose structure and substance are adequate to resolve a particular trouble. The model is created by way of an interactive and advice-giving method between problem holders and decision forecaster. The course of creating the requisite decision modeling exercises participants’ logic of apprehension on the subject of present model results to additional growth of the model. “At all stages of development, the model represents the social reality of the shared understanding of the problem by the problem owners. The goal of creating a requisite model is to help construct a new reality, to create a future. The role of decision analysis is to provide a framework for the development of a coherent model and to provide structure to thinking.” (Philips 2002). A requisite decision modeling is expected to be satisfactory if trouble holders contributing to its growth stand for a diversity of sights. If any of the adversarial procedure is utilized to benefit, the expert must be able to offer a neutral viewpoint and setting. The function of decision examination is to offer a structure for the growth of a logical form and to offer arrangement to thoughts. At the same time, as requisite decision modeling may be appropriate in other parts of science too. Sensitivity analyses facilitate the emergence of new intuitions about the problem. “Sensitivity analysis plays a crucial role in developing requisite models.” (Philips 1984, p.36). Sensitivity Testing is the holding up of a decision examination and also it will helps psychoanalyst, specialist and decision maker in many ways. Such as assessment of outcome models, examination of the relationship among knowledge and the outcome models, communication and consent construction, improvement of understanding etc… Sensitivity testing can support a management for making decision and the group arrived at a common considerate of every position. Conclusion (strengths and weaknesses of SMART): Decision-making is the mental procedure of finding the best one from among various choices. Each and every decision making procedure produces an ultimate selection. “The process of decision-making is one of deciding courses of action and of solving business problem. It is particularly important in a free enterprise economy, since the decentralization of decision-making, characteristic of such a system, requires that important decisions be made at lower levels.” (Fanny 2009). SMART analysis is one way of making decision from various alternatives by using various attributes. SMART analysis having there own strength and weakness like any other. Here Racter & Grimble are a major manufacturer of food and drinks in the UK. Also, the company is planning to invest in a new fleet of cars for the sales force and is currently considering five options from these five options the Car 2 (option 2) possess all the attributes such as efficiency, comfort, good looking etc… Strengths of SMART: Goal setting is made on the basis of using way of the Specific, Attainable, Realistic, Measurable, and Timely way. So that it will help to set the good goal. SMART analysis is a useful tool to set specific objective and also it has a larger possibility of being achieved than an all-purpose objective. Identifying the objective, is necessary to convince that all these objectives are very much significant to SMART analysis to obtain this to assist the build up of approach, capability, ability, and monetary capability to arrive at the objective. Weaknesses of SMART. SMART analysis is one of the useful tools used to set specific objective so that it is not much effective to set the general goal. SMART analysis develops a time edge to set the goal that is not always true. Reference Lists Brown, R., 1999. Interpretive frame work. [Online] How Misused Decision Aids Mislead Policy Makers. p.5. [Provided by customer]. Choice behavior in the face of complex alternatives and multi –attribute value analysis, 2008. [Online] Decision Analysis and Multiple Objectives, p. 168. [Provide by customer]. Decision behavior, analysis and support, 2008. [Online] Strategic Division Analysis, p.306. [Provided by customer]. Decision making, 2010. [Online] Answers.com. Available at: http://www.answers.com/topic/decision-making [Accessed 21 April 2010]. Fanny., 2009. The management process of decision –making. [Online] Principles of Management. Available at: http://roomofmoney.co.cc/the-management-process-of-decision-making.html [Accessed 21 April 2010]. Haughey, D., 2010. Smart goals. [Online] Project Smart. Available at: http://www.projectsmart.co.uk/smart-goals.html [Accessed 21 April 2010]. Issue formulation and problem structuring, 2008. [Online] Issue Formulation and Problem Structuring, p.277. [Provided by customer]. Philips, L., 1984. A theory of requisite decision models. [Online] Acta Psychologica (56), p.36. [Provided by customer]. Philips, L., 2002. A theory of requisite decision models. [Online] Science Direct. Available at: http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V5T-45R93HM-12&_user=10&_coverDate=08%2F31%2F1984&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1301706739&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=966805064320f3852411612c5073be25 [Accessed 21 April 2010]. Smart goal setting: guided practice, 2010. [Online] Campus Life. Available at: http://student.norquest.ca/onlinelearning/ninequick/strategies/goals.htm [Accessed 21 April 2010]. 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