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Introducing a different car model to the market, losing market to the competitors and the further migration of customers from Forde products to other products were three concerns for Ford. Why was this? It can be argued that such a decision would lead to addressing important…
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Ask week 4 First scenario: Shareef Introducing a different car model to the market, losing market to the competitors and the further migration of customers from Forde products to other products were three concerns for Ford. Why was this? It can be argued that such a decision would lead to addressing important issues related to improvement of the products (Floyd and Woolridge 1999). Moreover, it would be considered to be of importance to the organization in the long run, since customer needs would be met, thus creating customer loyalty.
Going by the error of formulation in the process of defining the question rather than defining the answer that the company had made, what was the top management expected to do? How would they win back their customers? It is obvious that, after indentifying the question to address, the management could have been able to work out on issues to address the question, rather than defining what the answer entailed (Hackman and Wageman 1995). For example, addressing the question of what could have been done to meet customer needs would have instigated on answers that would address the concern.
Besides communication and knowledge management as a key factor in building awareness, “The Company presented a façade of smugness with their name and overconfidence in their products” (Janis 1973). Critically discuss this statement. An organization should not limit its borders in assessing information to build knowledge management. In fact outsourcing would be ideal for any organization that wants to build up its knowledge management.
Any organization must create a model of learning by establishing relationships with the industry monitors to avoid making similar mistakes that have been done by Ford. What issues should be put into consideration? Evaluation of past and current business environment can be argued to help an organization build up a model of learning (Floyd and Woolridge 1999). This is arguably true because if this is something to go by, the organization is able to evaluate the situation of their competitors and measure its current abilities according to the current climate of the industry.
The lack of knowledge development at both personal and organizational level was evident at that particular time, but the idea of rubbing off the discussion was more critical to handle (Janis 1973). Why were similar companies going through the same issue?
Second scenario: Estra
According to Bazerman and Moore (2008), effective decision making could be hampered by two situations that are squarely associated with decision makers. What are these situations? What effect did they bring to Ford‘s company? If decision makers fail to utilize data on hand, they may find it difficult to solve issues that hinders decision making.
The problem identified by Ford’s decision makers was ‘focusing failure’ (Chugh and Bazerman 2007). Discuss.
In regard to errors in problem formulation and the utilization of other forms of information that are necessary in a company, advice to others manufacturers is that their decision makers could see the bigger picture and think outside the box (Bazerman and Moore 2008). What failed the Ford Motor company?
It is believed that hard data that are useful in validating assumptions before making a decision. However, according to Vaughan (1990), emotional and institution have a part to play in the decision making. How does this account to the process of decision making?
Decision executives must stay put under every situation in order to remain relevant in the market (Bazerman and Moore 2008). What are their threats and opportunities?
Bazerman, M. & Chugh, D., 2006.  Decision-Making without Blinders.  Harvard Business Review, 84(1), 88-97. [Online]. Available from: (Accessed: 26 July 2012).
Bazerman, M.H. and Moore, D.A. (2008) Judgment in Managerial Decision Making, 7th ed. Chichester: Wiley.
Brown, S. L, and Eisenhardt, K.M., 1997. The art of continuous change: Linking Chugh, D. & Bazerman, M. H. 2007 Bounded awareness: what you fail to see can hurt you, Mind & Society, 6 (1), pp. 1-18. [Online]. Available from: (Accessed: 27 July 2012).
complexity theory and time-paced evolution in relentlessly shifting organizations. Administrative Science Quarterly 42:1-34. Available at: (Viewed: June 10, 2012).
Chugh, D. & Bazerman, M. H. (2007) Bounded awareness: what you fail to see can hurt you, Mind & Society, 6 (1), pp. 1-18. [Online]. Available from: (Accessed: 27 July 2012).
 Crossan, M, Lane H & White, R., 1999. An organizational learning framework: From intuition.
De Bono, E., 1999. Six Thinking Hats. New York, NY: Bay Back Books.
Floyd, S and Wooldridge, B., 1999, Knowledge creation and social networks in corporate entrepreneurship: The renewal of organizational capability, Entrepreneurship: Theory & Practice, 23 (3), pp. 123-143. Available at: 9b- ba5c-4e4f-adf8-55c4193eb220%40sessionmgr111&vid=5&hid=120 (Accessed: April 8, 2011).
 Floyd, S and Wooldridge, B., 1999, Knowledge creation and social networks in corporate entrepreneurship: The renewal of organizational capability, Entrepreneurship: Theory & Practice, 23 (3), pp. 123-143. Available at: 9b- ba5c-4e4f-adf8-55c4193eb220%40sessionmgr111&vid=5&hid=120. (Accessed: April 8, 2011).
Hackman, J. R, and Wageman, R., 1995, Total quality management: Empirical, conceptual, and practical issues, Administrative Science Quarterly 40, no. 2: 309+.Available at: (Accessed September 30, 2010).
Janis, L., 1973, Groupthink and group dynamics: A social psychological analysis of defective policy decisions, Policy Studies Journal, 2(1), pp.19-25. Available at: 0072.1973.tb00117.x/abstract. (Accessed: July 19, 2012).
Marshak, R., 2004, Morphing: The leading edge of organizational change in the Simon, H. A., 1987. Making Management Decisions: the Role of Intuition and Emotion, Academy of Management Executive, 1(1), pp. 57-64. [Online]. Available from: 5905&site=eds-live&scope=site (Accessed: 28 July 2012).
to institution, Academy of Management Review, 24 (3), pp. 522-537. Available from: (Accessed: 23 February 2011).
twenty-first centuries, Organization Development Journal 22.3.  Available at: (Accessed: 11 Mar. 2011).
 Vaughan, F. E., 1990, Varieties of intuitive experience in Intuition in Organizations, W.H. Agor (ed.) 40-61. Newbury Park CA: Sage. Read More
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