The art of decision making in the world of international expansion is very important. International expansion involves a number of issues that has defined working practices of multinationals. Once such company is able incorporated which has moved forward to improve productivity. Expansion involves a number of issues such as technology, management, control and l engineering of productivity (Goodwin, P, and Wright, G., 1991).
Issues of the business scenario
The problem in this case is how Nike is going to fit in this business environment of the south pacific country. Being newly from college Nike is going to a different environment where the culture is different from culture and is going to work in a different business environment.
The country has very good environment. Nike is travelling to the country without a specific assignment however the main aim of any company that wants to go to a certain country is to introduce their product. In brief, the problem here is entry into a foreign market and this assignment is to ensure that the product enters into the market. Although they have an office currently the office appears to be poorly managed and the main is to reinforce the office so as the product sale will be good (Goodwin, P, and Wright, G. 1991).
Decision making approach
The systems approach involves the isolation of those functions most directly concerned with the achievement of objectives and the identification of main decision areas or sub systems. Viewing the organization as a system emphasizes the need for good information and channels of communication in order to assist effective decision making in the organization (Goodwin, P, and Wright, G., 1991).
Recognition of the need for decision making and the attainment of goals draws attention to a sub-division of the systems approach or a separate category that of the decision making (or a decision theory) approach. Here the focus of attention is on the managerial decision making and how organizations process and use information in making decisions (Goodwin, P, and Wright, G., 1991).
Successful management lies in responding to internal and external change. This involves the clarification of objectives, the speculation of problems and the search for and implementation of solutions. The organizations are seen as an information processing network with numerous decision points. An understanding of how decisions are made helps in understanding behavior in the organization. Decision making writers seek to explain the mechanism by which conflict is resolved and choices are made (Silver, M. 1992).
Formulation tools and techniques
Upon arrival at Kaya island Nike will have to use a decision making tree in order to be able to solve the problems facing a company’s office in the country. The decision value tree assists the decision maker to view the problem (Goodwin, P, and Wright, G. 1991).
The decision value tree above shows the structure Nike will use to solve the problems he will encounter while at the Kava island head office. Nike as a decision maker will consider office ethics’ as of paramount importance because with office ethics the reception will have a good outlook improving the marketing of the country. Office ethics should be uniform regardless of the culture, language or other factors of the Kava Island as stated in the facts about cover. The receptionist Alex will have to be trained on public relation and customer care service as part of keeping the office ethics (Making decision,1995).
Employees who are employed to work for the company should have defined roles which shall assist the organization to grow. The defined roles will be appraised annually to assist in decision making about promotion and demotion. The costs associated with solving the problem at the beginning may not make sense because it may be high but after some time it will be considered of high value (Data management, 1994). In this case eh decision value tree will be as below
This decision as represented above represents the decision maker attributes and concerns about Kava island office. The decision tree is complete and has all necessary steps to be taken by Nike to bring the office to respect. From the decision tree above it clearly shows that costs will be analyzed before other factors are taken into consideration. The costs will assist in determining what cause of action Nike will use. A good value tree should be able to have all attributes that assist the decision maker in decision making. In this case Nike is well presented (Byrne, J.A, 1996).
The outcome shows that Nike should start by bringing the office into normal operations before thinking of exploring the outside world. Then it is followed by alternatives of performance evaluation and promotions, demotions or separations. From the results carried out in the above decision tree analysis one can conclude that before a decision is made one must consider the value of the decision tool used. This will enable a decision maker to clearly make changes that will have a positive effect on the organization (Goodwin, P, and Wright, G. 1991).
In measuring the success of this decision making process the following structure will be used.
In the case of Kava branch, the culture of the organization should be changed to help the branch discover productivity. It provides the best example of environment analysis of foreign branch. The company and the partners should have. They have an innovative technology where there is always strategic improvement in the product they produce and sell. They are always surprising competitors with new and innovative products which are increasingly changing( Data management, 1994).
Byrne, J.A, 1996 business week guide to the best business schools, New Yolk: Mc Graw-Hill.
Data management (1994) Glasgow; strathclide Graduate business school, chapter, 2, pp. 1-151.
Goodwin, P, and Wright, G. (1991) decision analysis for management judgments, chichester; John Willey and sons, pp. 1-36.
Making decision (1995) Glasgow; strathclude business school, chapter 1, pp. 1.3 – 1.53.
Silver, M, (1992) business statistics, London; Mc Graw-Hill, pp. 120-154.