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Managerial Decision-Making Process

In: Business and Management

Submitted By Mitya
Words 596
Pages 3
Mitya, 09/14/2015
Managerial decision-making process. Bias.
I was a product manager in my German-Polish company in 2009. The company was supplying building materials to the Polish market. Due to non-satisfactory financial results caused by the financial crisis in 2008 I was instructed by my General Director to increase the sales volume of my product portfolio up to 50% by the end of 2010. The product set consisted of aluminum composite panels, building aluminum profiles, and polycarbonate panels.
I made a decision to relocate production lines of aluminum profiles from Germany to Poland by using one of our partners’ plants. My decision was based on the largest aluminum trade margin that allowed me to pursue a more flexible pricing policy. As a consequence, it could lead to increased levels of demand at the local market. At the same time simplicity and low cost of tech manufacturing process made this solution less financially risky in case of my managerial decision failure. My product portfolio did not have another alternative that would help me to increase my turnover index up 50% within 1 year. Therefore, I had no other alternatives except for moving the production line to the local Polish market. Plus, it could provide me with factually reduced cost per unit, cost of logistics and, as a consequence, an increase in sales. Back then I followed the exact rational model of decision making process. I conducted a thorough marketing research project. In 2009, I visited all our 20 branches across the country, and met with all directors and employees at our branches. I consulted with them on how to gather information concerning needs of our customers (e.g., profile types, the monthly volume of possible sales, the amount of customer discounts, delivery times, etc.) In one quarter I proved to the owner of the company with viability of my business plan pertaining to move of…...

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