Decision making- McDonald’s

Outline the stages of the decision-making process and the tasks required in each .

• explain and give examples of DECISION MODLE in your company (for example: programmed and non-programmed )
• what kind of models might be more convenient for the company you study. Contrast rational,administrative,political and garbage can decision models. • Give 4 examples of common sources of potential bias in decisions for your company I.

The stages of the decision-making process consists of eight steps:

1.identify problem ：analyze existing condition and desired condition
2.identify decision criteria: line out each important and relevant criteria after careful consideration
3.weight the criteria: give the important criterion a highest weight(for example: using a weight of 10) and then assign the weights to the rest.
4.develop alternative: list viable alternatives
5.analyze alternatives: multiply each alternative by assigned weight in step 2 and then get the sum of weighted criteria,
6.select alternative: choose the highest score in step 5
7.implement alternative: put the decision into action by conveying it to those affected and getting their commitment to it.
8.evaluate decision effectiveness: evaluate the outcome or result of the decision to see whether the problem was resolved.

II. Programmed and nonprogrammed decision programmed decision is made in structure problem(standardized routine) which the manager relies on one of three types of programmed decisions: procedure, rule, or policy. nonprogrammed decision is a decision which a manager must make a decision that is unique to the situation and results in a tailored solution. Nonprogrammed decisions generally take longer to make because of all the variables an individual must weigh.

Compare and contrast programmed and nonprogrammed decision-making in organizations and give two realistic business examples of each of these two types of decision-making.

Programmed decision are decisions that have been made so many times in the past that managers have developed rules or guideline to be applied when certain situations are expected to occur. Programmed decision making is used when an inventory manager of mc Donald’s decides to order beef patty stocks because the stocks are three-quarters empty. Programmed decisions making are a routine that you make every time so that the organization run smooth. Managers can develop rules and guidelines to regulate all routine organizational activities.

On the other hand , nonprogrammed decisions are made in response to unusual opportunities and threats. Nonprogrammed decision making is used when mc Donald’s are deciding to invest in new deep fryers. It is a nonroutine decision making . This means it is made for big decisions that will affect an organization for a long time. This type of decision making does not need rules or guidelines to be followed because the situation is unexpected or uncertain. For example if mc Donald’s plans to launch a new line of menu, they will have to make decision base on their intuition and reasoned judgments.

III. DECISION MAKING MODEL

I think the most convenient decision model for McDonald is rational decision-making: they have clear problem and goals, high degree of certainty, full information about costs and benefits of alternatives, the choice is aim to maximise benefit.

THE THREE-LEGGED STOOL McDONALD’S BUSINESS MODEL
The strength of the alignment between the Company and its employees, franchisees and suppliers has been critical to McDonald’s success. This business model enables McDonald’s to consistently provide customers locally-relevant restaurant experiences and be an integral part of the communities we serve.

McDonald’s is committed to offering value at an affordable price. They also committed to the well-being of our customers. They work together with our employees, franchisees and suppliers to serve a balanced array of quality food products, and to provide the information needed to make individual choices.

Franchisees – own and operate the majority of our restaurants
Suppliers – provide food and packaging
Company employees – support and deliver
restaurant operations around the world

IV. common sources of potential bias in decisions
• Optimism bias
McDonald’s developed new, uniform production methods such as using frozen beef patties, instead of fresh ground beef, and developing a genetically-modified potato rather than using locally grown produce to ensure that all McDonald’s fries have the same uniform taste. Environmentally, McDonald’s practices are questionable. Unlike a fresh ground beef patty at a local butcher shop, “a typical fast-food hamburger patty contains meat from more than one thousand different cattle, raised in as many as five countries” (Schlosser, 2004). //This raises the possibility of a particular patty containing contaminants of unknown origin. As noted previously, instead of locally grown potatoes, the corporation uses their own genetically modified potatoes. The practices of using food from extreme distances, is problematic environmentally.// From a public health perspective, the use of beef from multiple sources makes contaminated sources far more difficult to trace.

• Mcdonald’s want to reach international customers, the company has added specialty foods for different countries.Actually young people will not even care about the foreign origin of McDonald’s which will be serving ordinary food to people, but more interested in getting a quick meal than in having a cultural experience