On daily basis we face several problems and we take certain steps or decisions to solve those problems. Some decisions are became good and useful plus some result in damage however, the skill of problem dealing with and decision making electricity enhances with the passage of time. Similarly in organizations, management has to take several decisions to resolve different problems to be able to have clean features of daily procedures and most importantly for a continuous stream of income. There will vary models available in the literature for resolving the problems and making the decisions. This file is aimed to understand the decision making and problem fixing tools and techniques. In this particular document id of the situation in a renowned company working in Pakistan is done and analysis of the decisions taken up to fix that problem is conducted. The models used for decision making in response to the situation faced by the business are also talked about along with the constraints and shortcomings of these models. In the long run a personal analysis is performed that explored skills gained by myself after completing this brief research study on a particular group (Simon, 1956).
Company Introduction -
Mobilink Infinity and LINKdotNET
Mobilink is the leading telecommunication provider operating in Pakistan. It really is subsidiary of Orascom Telecom that is an Egyptian company. Mobilink is portion Pakistani market since 1994 and as per the latest report from PTA (Pakistan Telecommunication Expert) Mobilink is a market leader with market talk about of 31% (www. pta. gov. pk, 2010). Mobilink was only providing words services to its customers before October 2008, when it launched Mobilink Infinity a WiMAX broadband service in a single city Karachi. With high quality services and competitive costing programs, Mobilink Infinity gained a subscriber base of more than 20, 000 (www. mobilinkinfinity. com, 2010). Mobilink Infinity had been operated as a separate unit called "Broad Band Product". The major durability of the business is its quality customer services that have placed new benchmarks in Pakistan and place the new developments that have been never procedures before. Mobilink's broadband device persisted the same practice and shipped the services with the same quality customer services, that is the reason that company could get a major market show just in a single city (www. mobilinkinfinity. com, 2010).
Another subsidiary of Orascom Telecom for providing broadband services in different countries is LINKdotNET. LINkdotNET commenced its operation in Pakistan by acquiring two already existing Internet Service Providers (ISPs) named as World Online (WOL) Telecom Small and Dancom Online. LINKdotNET merged the resources of these two companies and by putting in more investment launched its procedures officially on 02 February, 2008. LINKdotNET was offering its services in more than 130 metropolitan areas in Pakistan and in two years this company raised its customer foundation up to 35, 000. LINKdotNET provided services for both home and commercial users and was the second largest broadband service agency in Pakistan after PTCL (Pakistan Telecommunication Small) (www. link. net. pk, 2010). The company got a significant response from the clients after its start, however the poor management and insufficient managerial skills the company didn't deliver the services as they promised. The effect was that in the first calendar year of its businesses the company gained an extremely bad reputation on the market and customer's started to leave to the other providers. However, in commercial sector LINKdotNET was still the major broadband company (www. link. net. pk, 2010).
Background of the Problem
To cater to the needs of the Broadband Internet market Orascom Telecom was operating two of its subsidiaries in Pakistan, one with the name of Mobilink Broadband Business Product (BBU) that was mainly wedding caterers to the needs of WiMAX Internet surfers and was functioning only in Karachi, and other was LINKdotNET with was operating in DSL, Dialup and Corporate Business Alternatives for data and internet market with its operation in every major locations in Pakistan.
Both of the firms were providing the same market, that was broadband internet market, to the users of same account and almost same physical locations. Both of the companies were independent and there was no coordination in any office, both of the companies had their independent departments, same marketplace and were treating one another as competition, while both companies belonged to same parent company. This situation was creating different problems to the parent company such as misunderstandings in the intellects of consumer; high operational cost, and high marketing costs, diagram below will help understand the circumstance of that time.
Orascom Telecom Subsidiaries
Source: (Author, 2010)
By considering these diagram we it has been made clear the two companies were employed in one market offering same kind of customer and with same organizational composition, at that time where competition was extreme in the market, and credited to upsurge in the operating costs and shrinking margins the success of the company was heading down, and such framework was creating next problems for the business.
Presence of equivalent departments were creating increased human being resource costs
Marketing costs were high as a result of distinct marketing departments were focusing on same customers and were nearly acting as competitors.
Business operation costs were high because of independent network management, individual network procurement, and individual inventory management.
Ambiguity in your brain of employees and consumers, who had been puzzled about the status of both of subsidiaries, resulting in destruction of brand in the eye of customers.
Managerial Decision Making Models & Application
In the below lines writer will explore the current ideas on different decision making models produced by management commentators and then publisher will explore your choice making process adopted by the management of Orascom Telecom, then this decision making process will be critically analyzed on managerial decision making models. Author will dsicover which model was applies how the application of that model helped the management to make best possible decision regarding the problem identified previously.
Decision Making Models
There are two decision making models that are trusted my managers in making their decision regarding their daily business problems, some may be logical decision making model and other is non-rationale decision making model (Bazerman & Max, 1994).
Rationale decision making is one the most widely known and most used procedure, this model revolves around the thinking process and which is also known as cognitive process, this model involves several steps that are described below, there are several pros and cons of this model which can be also identified in below lines, this model focuses on problem solving where problem has already been discovered and clear in the heads of management (Bazerman & Max, 1994).
Rationale Decision Making Steps
Source : (Publisher, 2010)
As defined in diagram above rationale decision making consists of fives steps, the first step is to recognize the problem, this step includes the careful research of the situation presented to the organization and then by this examination the genuine problem which is the cause of this situation is determined. Second step is to create the requirements for desired results required, this criteria is set to attain the minimization of unwanted situation or removal of them, this step is also called benchmarking of results (Gelatt, 1991).
The thirds step is to find all possible alternatives of the issue, this step consists of the collection of all possible solutions to reduce the current problem, this step is followed by the fourth step that is evaluating each of the decision option on the pre defined standards of desired results. The ultimate step is to recognize the perfect solution to the problem and then apply that decision, and by doing this ration decision making process ends (John, 2001).
Pros and Cons of Model
This model supposes, before the application of the answer, that there surely is one best answer and hence adapts the perfectionist way, more over critical evaluation of the option delays your choice making which some time cause the loses to business where exterior environment is turbulent (Graham, 1993).
This model also take this assumption that every effect of every option can be expected with no it tested the truth is, and implications and future implications of every decision related option are remaining on the discretion of decision machine (Simon, 1956).
Rationale decision making requires your choice to be dependent upon the cognitive skills and creativity of your choice maker, moreover this model also require the extended time and information for the decision to be made (Bazerman & Utmost, 1994).
Non-rationale models are the second widely used decision making models, in below lines publisher shall explore the primary characteristics of the models.
Source: (Publisher, 2010)
Satisficing Decision Making
This is one the solutions designed as non-rationale decision making, this approach aims for satisfying solution for the situation, rather than going for the most optimized methodology, this approach is used when lengthy techniques of decision making like information needs, and analysis of alternatives should be prevented (Gelatt, 1991).
Incremental Decision Making
This decision making is required when problem accessible requires quick decision making, in this case managers make alternatively small reactions to the challenge and instead of completely eliminating it they reduce it to lowest level (John, 2001).
Garbage-Can Decision Making
This approach is utilized when the challenge is clearly described or the professionals do not know what to do, this technique uses learning from your errors approach and different solutions are examined on the basis of randomness, this approach is also used where there is emergency situation and management was not prepared to deal with such situation (John, 2001).
Approach & Solution Employed by Orascom Telecom
In below lines writer will critically explore your choice making approach employed by Orascom Telecom the focus on the problem provided earlier, the challenge faced by the organization was not immediate and turbulent in nature, rather its character was more of proper, for this kind of problem, rationale decision making is best to utilize, as the company had the time and information resources required to make such decision making, they logically opted for this and decision was created by using rationale decision making, in below lines we shall note that what decision was made how it was made by using said model. To explore this writer will need step-by-step approach and will notice that how each step was applied.
Identification of Problem
During enough time in which both of the subsidiaries of Orascom Telecom were working separately in the same market, management began to identify the condition that their profitability was decreasing due to increase in operating costs. At exactly the same time your competition level in market was at its maximum, prices were going down because of heavy competition therefore was profit margins, the only way to increase or support profitability was to reduce costs. But Orascom Telecom was working at redundant hierarchy by deploying two separate companies in the same market.
In this scenario to sustain success was a problem that management had face and also to deal with that they had no other option but to examine their tactical business management in the broadband industry of Pakistan.
Criteria Arranging for Result
Since Orascom Telecom's profitability was decreasing due to high operating costs involved the criteria place for results was to increase success by lowering costs. Management had a clear understanding that business was growing at time as so was growing the market, but at the other palm competition was also increasing due to entry of new player in broadband internet market. So there was no chance of increasing profitability by increasing price and customer bottom part. So the requirements establish by the management to increase profitability by lowering costs was well justified and was predicated on rationality.
List of Solutions
At that point management of corporation had two answers to cater with this issue, the first one was to verify the profitability and operations of every of subsidiary and then close the functions of 1 subsidiary with less customer platform and profitability. Using this method management can give one business to the other one and then be rid of needless costs.
The other solution that management was considering to combine the procedures of both of the subsidiaries and then form a new company under the umbrella of these already more developed GSM brand Mobilink, since both the subsidiaries possessed same organizational composition and operational departments merger of both can be done without much disruption in daily business operations.
Examination of every Solution
Management of Orascom Telecom reviewed both of the solutions and their careful evaluation revealed following shortcomings and benefits of both of the solutions.
The first that was to close the business enterprise of one unit and continue with the other one was not good for the overall image of the organization, this may have brought the negative announcements for the consumer and could have harmed the brand image, the other short arriving was the Mobilink BBU has the license of functioning in WiMAX business and LINKdotNET had the permit of working in DSL and other top quality technology, and Orascom Telecom wanted to remain in both of the market segments.
So the shutting of one operation would have triggered lack of licenses and getting away from the business, however this solution can have reduced their operating costs and increase their profitability but with all these risks.
Other solution that was merger of both of the machine into one consolidated product was also likely to keep your charges down by creating synergies and single procedures at every team level by eliminating duel use of resources and duel costs, along with meeting the predefined selection requirements this solution also had certain benefits like merging both of the devices and then re-launching procedure with a "big-bang" was likely to bring a positive message to the potential customers that a large operator has merged their different businesses and now these are constantly in place to provide them better still. The other advantage that solution could bring is the utilization of licenses of both of the subsidiaries and empowering the business to use the entire ground to try out on. By employing this solution company could play in WiMAX market as well as DSL and other top quality technology market segments.
Selection of Best Solution
After the study of the above mentioned solution options, management decided to go for the second option and Mobilink BBU and LINKdotNET were merged for Mobilink Infinity in June 2009. After the merger, all relevant departments were merges and solitary point resources utilization and synergies with their GSM part of business were permitted, yes solution also led to layoffs however the number of employees losing careers were less than the number could have been in case there is selection of option one.
Mobilink Infinity premiered to provide WiMAX and all other services that both of the business were offering to both corporate and business and domestic clients, that decision was able to achieve the required results also came with the great things about increased brand image, more clarity in employees and consumer belief of the company, so far it's been witnessed that company's business keeps growing and their profitability is increasing, and this decision is turning out to be successful one.
Limitations of Process Employed
Orascom Telecom hired the answer by opting for rationale decision making process, this decision ended up being an effective decision but there are a few limitations that would have to be looked after and publisher have identified, by taking good care of such limitations this decision could have been carried out well and results might have been more successful, below author have mentioned few limits that are natural in your choice (Bazerman & Maximum, 1994).
As rationale decision making is a lengthy process so that it took a long time for management to complete this technique, the evaluation of each option took greater than a year and at the same time marketing of both subsidiaries were continued hold, however the business didn't stop and they were selling with their customers but without marketing support (Gelatt, 1991).
That time the competition in market was strong and there needed the entire marketing support for just about any organization to succeed the market show, however the decision to carry all marketing activities for both of the subsidiaries and then taking one year to reach on any conclusion badly affected the business, the competition kept on building their brands, new comer were also ambitious that is why their business transpired rapidly through the decision making process.
Since this decision was manufactured in the Egypt mind quarters and same decision making process was used to globally combine their broadband entities using their GSM entities, this factor also enjoyed its role to make this happen in quite a while. The entire time used by this decision was more than expected and recommended, that caused the business enterprise to miss some opportunities on the market that competition grabbed (Gelatt, 1991).
Another shortcoming that creator have noticed with this strategy that model is a step by step process and management cannot jump on to any other step without completing the previous one, even they know very well what is necessary and what is to be achieved and how it can be achieved they have to follow all the necessary procedures that again lead to more time eating. Since Orascom Telecom is a sizable organization, plus they cannot manage their business to carry at any level that's the reason they were struggling to explore more options as solutions and only stick to two decision related options pointed out earlier, there could have been other option instead of shutting and merging the business enterprise, but their evaluation stage would have cost them more damage in business that is why they were sticking with only two solutions to the described problem (John, 2001).
Another restriction with the model utilized by Orascom Telecom was that this model will not support the creative decisions, because the result area is already defined and business managers are bounded with the rationality, they tend to seek and explore the decision that makes common sense and may be sold to management, to attain the desired consequence of an issue there are always some ordinary solution that pop-up in manager's brain, and by following this rationale model, and in try to be rationale professionals tend to ignore the creative ideas to issues that in one look might not make sense but after careful exam can have benefitted the business more than the usual solutions(John, 2001).
So there's a inherent restriction in rationale decision making model that is leads the director to only stick to their rationale and make the decision that are acceptable in public and ignore the creative options which come into head, another reason of overlooking creative decision is the fact that rationale model is already and prolonged process to check out and managers tend to avoid creative process because such ideas would require them to judge and anticipate their implications, which again will cause extended time used decision making and professionals hold the pressure to make the decision promptly so that problem can be rectified in credited time (Graham, 1993).
How to Company Could Avoid Limitations
As author mentioned above that decision making process took greater than a 12 months to get come to on, organization had to put up with their valuable opportunities that could have been exploited otherwise, and the solution to this limitation, in author perspective is that they must have used the parallel examination techniques, rather than deploying all the resources to one step at onetime, they might have increased the amount of managers focusing on the this problem and then ask them to parallel on each step, in this way the amount of time consumed in making decision could be reduced to couple of months. This could also have achieved by employing dedicated resources to the situation and realizing the fact the competitive environment in Pakistan in various from the competitive environment in Egypt and by using dedicated resources in Pakistan and by doing parallel research and execution of the process they might have achieved the desired results in lowest time(Graham, 1993).
Another problem with the methodology employed by the organization was to keep everything on hold for the time of decision making, while the external competitive environment was turbulent and competitive, their decision to hold all marketing activities for the period of transition had not been effective, using this method they lost the marketplace opportunities plus they position as leading telecom player was jeopardized. To avoid such situation they must have keep on providing marketing support to their products and by enough time of attaining to any solution and also starting the new entity produced they would havent missed the marketplace (John, 2001).
How this Module Affected My Decision Making
Participation is this component has positively affected my problem resolving and decision making abilities, as learner of management and in lifestyle, on work or elsewhere, we daily face different problems with different degree of complexities, some problem are of critical character and some are not that important, for some problems immediate decision making is necessary and for some problems we need a complicated decision making that time is also required, we also face the situations where we even don't know very well what the real problem is, and all of this happens on continues basis and in regular intervals.
This module has transformed the way I used to look at the several situations, it has additionally taught me that there surely is a solution to every problem no matter how complex it may seem in first time, after going right through this module I've learned that how a complex situation can be converted into a favorable situation by carefully studying it, how to find the real problem by doing root cause analysis, and not to judge any situation on its face view.
I also have learned that after locating the genuine problem what contacted that I could employee as street map to finding the perfect solution is to my problem, I've been through various exercise which have trained me that how I could find solution and answer to various problem on my professional life and exactly how I could use different decision making model on my working and then in my personal life. I've also came to know that which model of decision making and problem resolving best suits the several situation, the way to handle problems that happen to be of immediate characteristics, how to solve problem that have long term have an impact on, by going through this component I am positive on my decision making and problem resolving abilities and I could use them in my professional and personal life.
This newspaper was directed to explore the many decision making models and their applications by analyzing a genuine time problem research study that author have made on Pakistan's leading telecom company Mobilink which is a subsidiary of 1 the largest telecom operators on the globe Orascom Telecom. In this paper, writer have examined real time problem which the organization had to face, while operating broadband industry of Pakistan and being a market leader these were jogging two of their subsidiaries with different titles and operations however in the same market, and that dual procedure was badly hitting their success.
To focus on this problem organization then employed the rationale decision making model and after going through the process of decision making, they made a decision to merge the functions of both of the organization, later on publisher has examined the constraints in the analysis and then mentioned the steps that may be taken to avoid such shortcomings.
Later in this paper author have mentioned that how involvement in this component have influenced his decision making and problem resolving abilities and exactly how author may use the data and experience gained out of this component in his personal and professional life.
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