Managerial Decision Making - Term Paper Example

Running Head: Managerial Decision Making Managerial Decision Making Problem Definition In USA World Bank, the problem is to identify the factors affecting the launch of new product while considering the need to launch this new product, is there any need or not, the research should provide information on the following questions. Who are our target audience and why? What are the features of our product that audience would get attracted toward? What are the main links that are important for our product to be successful? What are the strengths and weaknesses of our bank on for which customer would be attracted towards us? How and from where should we start implementing our plans for launching the product? The USA World bank is willing to launch a new product in the market called “instant reward” but they are quite unsure about the circumstances they are through, this means that they are doubtful for the launch of the product though they have collected data but that even through unreliable means, one more problem that can be seen is that they are unable to decide yet about their target audience, they are trying to go for mass marketing sort of thing in which they would cater almost every individual of the society, the data collection is quite vague as well as they have made the research form available at the website while knowing that may be the person logging in is just a net surfer or may be some irrelevant person who has logged in to take some basic information has visited the website, who might not have any know-how of such financial products. The studies that have been conducted by the bank are full of fuss, you can see that the bank is already putting a lot of money for conducting focus groups and collecting the business owners suggestions, it is all quite unusual and a big amount of risk is also involved here, the strategy that the company is applying is not suitable one, there must be so many other alternatives for a much better data collection and analysis though it would require some more time and some human resources which would also have some investment but relatively less. The challenge is that the competitors are now quite aware of the fact that the there is a new product going to be launched so they all know it and they must have also started making plans to ruin the scheme, though it is no longer remained to be an attack over competitors and most importantly the company itself can be under attack as the data collection is not very appropriate, the other challenges that might appear can be from the middlemen which in this case are people to whom the customer would bring the card and use such as the shop owners and other business owners, what they simply can do is that they can change their policies which would for sure ruin the entire scheme and also they can refuse to help the bank in their launching of such product. Another type of challenge is that the bank is unable to find the right target audience, it considers the entire population to be eligible to have this card, what should they have had done was that they should had ask their current customers to use their new product, on successful launching they would have been able to launch it nation wide, and most importantly they should try to convince each and every single departmental store or business owner as they are also unsure about which particular class uses which particular store, however if the bank is sure about the other services they are providing with the card they should also think about them again as there is a possibility that what ever service they are providing might not be in the need of the population such as there is no need for people who have very high incomes to get loan. There are couple of more problems that can be seen like the data gathering form that is to be used for creating a group to attend a group focus interview is having many mistakes in it, there is no proper answering method for the form fillers like they can be unsure about so many things in the form and they would have to think so much about giving an answer, this problem should also be solved. Opportunities are always there whenever one thinks of some intrapreneurial activity in any organization, in the same way there are numerous opportunities the bank can take by launching this new product, first opportunity is that such innovative idea has never been implemented in the market of launching such product, therefore this is itself an opportunity for the bank, the target audience which is according to the bank is the entire USA population would start recognizing the bank and would also come for services even other than the card purchasing, and therefore the market share and profits are also likely to be increased, except it this step would perhaps be a very innovative one in the banking history as now the people would start getting instant rewards on spending money without any fuss, the bank would of course start being recognized by every small or large organization and this would increase the bank’s credibility, if the product would be successful than it can also help the bank to improve its position and image in the market, and also this product’s success would help the bank achieve its long term objectives. Lets discuss the problem being faced in the opportunity, lets consider the first opportunity that such innovative idea has never been implemented in reality so it is itself an opportunity to launch such product, the first problem that can be seen is that the condition is so vague, every one is unsure about the future product performance, there is also a possibility that the product would be a failure because it is against the rules of launching a new product or any product or service when you don’t have a particular target audience and same is the case here where the bank has no particular target audience but the entire population, the bank should consider it important as if they would not have any particular audience how could they be able to convey the proper message behind launching the product to every one, this is not only creating confusion in the bank but it is likely to create more confusion in the mind of the people of society, other problem which is in relation to the previous one is that when there wouldn’t be any specific target audience how could the bank rely fully on the collected data and that is exactly what just happened in this case where the bank has no correct data and even worsening the situation the bank has no proper means of collecting data as they have the entire population as their target audience whose sample would even be so big that bank would be unable to bear the costs which now surely has resulted in poor data collection and a lot of uncertainty. The alternative solutions are there but the bank would find it difficult to implement as they are quite difficult to pursue but all the techniques would for sure help the bank in reaching the same long-term goal, the bank should first make a target audience who has the three essentials and those are money, authority and need, measuring the target audience over these three essentials would help them examine the audience and it would be than very much easier for the bank to manage the operations, secondly the bank should launch the product to a certain extent and this time by doing comprehensive research and findings, it would help them to implement the plan in an easy and safe way, the bank should expand the product selling slowly and gradually and in this case the risk is also less while the chances of being successful are also high, the bank would even be catering the entire population in this case but gradually so that the risks are minimized and profitability chances are maximized, also this would not allow the bank to create any gaps in segments of the society and the message would be easily communicated and the goals would also not be disturbed. The end-state goal for USA World Bank is to have an increased Market share and also an increased Profitability, which one cannot say that bank would achieve after analyzing the operations they are conducting, the ideal end-state should be like increased market share with minimized risk and maximized profitability, if the bank would work on this track than there is a possibility that it would be able to reach a big portion of the goal but if keep on working like they are doing right now than they may risk and loose their position. The end-state goal is based on the short-term goals that the organization sets and than achieving these short-term goals it achieves the end-state goal firmly, the coordination of short-term goals with end-state in perhaps very important and necessary as well and it requires a lot of team work with even great understanding between the work teams which in the case of USA World bank is not present as there is a lot of misunderstanding between different workers of the organization, although they all are willing to support this new product but later on while looking at the statistical data and other findings they started having doubts about each others work, so this is not the way a product can be a success even though it is quite obvious that the plan is quite vague, best of luck to them who are trying to implement it. References Malhotra N.K., “Marketing Research”, (n.p): Pearson, 2004. Elliott D., B. Herbane, E. Swartz, “Business Continuity Management”. London: Routledge, 2002. Bartol, K.M., D. Martin, “Management”, New York: McGraw Hill, 1998. Randall J., “Managing Change, Changing Managers”, New York: Routledge, 2004. Hisrich R., M. Peters, D. Shepher, “Entrepreneurship”, (n.p.): McGraw-Hill, 2005. Read More