Toy Company Expansion: Identifying an Ideal Model for Decision Making - Essay Sample

Introduction

Business growth is associated with expansion and entry into new markets to increase the ability of the company to generate revenues. In the case of the toy company, entry into new markets is a dilemma considering the various entry points under consideration. Also, the level of uncertainty is worth considering as it affects the possible outcome of the decision. The identification of an ideal model influences the ability to make decisions. The rational decision-making model is identified with the steps associated with it used in making decisions with regard to the above aspects for the toy company. As the opposite of intuitive decision making, that is, the rational model for making decisions involves the use of information and facts to analyze in a step-by-step manner to select the ideal option (Uzonwanne, 2016). Thus, as an advanced model of decision making, the rational model influences the development of a firm positively since it leads organizations into a natural selection of the ideal decision making while matching their needs and information presented. The rational decision-making model, on the other hand, is embraced using various steps to enhance the selection of the ideal course of action that would enhance the expansion of the toy company into new markets. The model is relied upon to select the ideal entry points into the market and dealing with the uncertainties associated with entry into a new market.

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Identification of the Problem Seeing Solutions

The rational decision-making model is comprised of seven steps, with each contributing towards the selection of an ideal option as the ultimate objective. The first step focuses on the identification of the problem requiring a solution. Uzonwanne (2016) emphasizes that the ideal approach to finding solutions is first to identify the problem. Failure to understand the problem may result in poor decision making or implementing inadequate efforts aimed at providing solutions. In the case study presented, the toy company is faced with two primary challenges for which it seeks decision-making. First, the decision on an entry point through which the company may implement its expansion plans. The company is in a dilemma on the selection of an entry point while looking at the possibilities of developing new collections of learning toys that develop and enhance the analytical skills of children. The other option is the development of technological toys and the establishment of a branch of toys that specializes in sustainable and green production designs. Secondly, the company faces a challenge in dealing with uncertainties associated with the market intentions of the company. Therefore, the toy company is faced with two problems that include the selection of an entry point and the elimination of uncertainties associated with entry into the new market. Therefore, defining these challenges will ensure a better solution is developed to attain the market objectives of the toy company.

Solution Scenario Identification

The second step is the identification of an ideal solution scenario that the organization seeks to attain in the decision-making model. This step involves the determination of the final outlook of the decision-making process with the identification of the characteristics that will define the solution. Uzonwanne (2016) emphasizes that this stage seeks to look at ways of becoming successful from the process. In line with the same, Kandemir and Gur (2009) add that the development of creative problem-solving scenarios has been identified as ideal approaches in mathematics education. The possible scenarios provide a picture of what the outcome would look like hence influencing the process on decisions to reach this objective. The outcomes targeted for the toy company include both financial and non-financial. Following the above strategy, the toy company desires to have a successful market entry in which it will have a positive impact. The toy company grapples with the decision to select an approach that will have a competitive impact as it also contributes to revenues generated in the long-run. The company seeks to attain uniqueness and originality in its toy products as well as embrace an environment that is educative and able to implement green practices in its productions. Therefore, its decisions should translate into profitability for the company.

Conducting a Gap Analysis

The third step seeks to identify the existing gaps in the market. Uzonwanne (2016) defines gap analysis as the process through which definition and understanding of the existing gap between the problem identified and the solution desired are made. Also, gap analysis is viewed as a technique used in businesses to determine steps required to take to shift from the current state of a company to reach its future or desired state. It seeks to find what the company will undergo to shift from the problem to the solution or to attain its desired level of satisfaction. Considering an accurate definition of the problem is already made in this step, seeking to find the solution is the reason for gap analysis. Thus, relating this to the case scenario, gap analysis looks at what is needed for the toy company to select an entry strategy and deal with existing uncertainties to attain its ultimate objective, which is to enter into a new market. This step will enable the toy company to understand the effort needed in implementing the strategy that allows it to meet its desired outcome. The financial resources needed to enable the company to reach its desired outcome are also considered under this step, such as other resource needs.

Gathering of Facts, Identification of Options and Alternatives

In the definition of the rational decision-making model by Uzonwanne (2016), it is revealed that facts and information are an important ingredient of this model. The step implements the gathering of facts associated with the problem. The facts presented provide options associated with the steps and gap analysis. The radical decision making is based on information presence that facilitates better consideration of the stakeholders. Also, the process enables the development of alternatives. Swami (2013) emphasizes that gathering of facts that target an outcome is an essential part of the decision-making process. Swami (2013) further asserts that an effective gathering of facts should not involve cognitive biases or systematic errors that may affect decision making. The use of heuristics for better decision making is also encouraged as this ensures the use of practical methods that may not guarantee perfect outcomes but sufficient to cover the immediate goals. Some of the facts presented on the toy company include the entry points identified and presented as options. The development of new collections is considered as an option with the development of technological toys are considered. The development of a new branch entirely focusing on sustainable designs. Thus, green production is considered as the only option despite providing other alternatives to consider.

Analyzing the Outcomes of Options

Each of the options presented has various outcomes. The consequences of each of the options are important as they present the situation for identification if ideal or desired for the company objectives. The determination of the outcomes of the options is important to facilitate the identification of the most effective and functional option to consider. Sharma et al. (2014) affirm that the transformation of the decision-making process leads to options with the outcomes that are important in determining the ideal selection made. An option that does not provide or match the desired outcomes of the company is rejected, while those that provide the required objectives are selected. The implementation of business analytics is also considered as an ideal means of eliminating uncertainty and finding workable solutions to the problem. Of the three options for the toy company, the development of a new collection of learning toys to enhance the analytical skills of the children will create a disruptive effect on the market, thus leading to better sales. The development of technological toys would also enhance the brand as would lead to the establishment of a whole branch of toys that are focused on sustainable designs and green production. Despite sustainable designs and green production, providing a good option for the environment and the appeal associated with this to children may not present it as an ideal option. Thus, the combination of the new collections and technological toys will provide a better outcome as these will not only enhance the analytical skills of children but will provide entertainment in a way that promotes learning.

Selection of the Best Possible Option

After an analysis of the outcomes of the possible options presented, this step involves the selection of the option considered the best. Rahman and De Feis (2009) reveal that the decision models aim at examining the available alternatives to ensure the best decision is made of the many options available. Defining the radical decision-making model as a management science method with a low level of complexity, time, and pressure elements, Rahman and De Feis (2009) identify it as an ideal method in helping select the best alternative. The other models suggested by Rahman and De Feis (2009) include the incremental, Boundedly-rational model, and the Garbage can model are considered options too. However, the complexity, time, and pressure aspects of these other models affect their selection leading to the adoption of the radical decision-making model. Of the options presented, the combination of the new collections of learning toys to develop children's analytical skills and technological toys. The combination of the two options will provide a better market viable approach to entering the new market. The selection of the two options independently would not provide a sufficient impact on the company. However, the combination of the two would improve profitability and enhance customer satisfaction. Also, to meet the regulatory standards, the development of toys with materials that meet green production and sustainable designs will enhance the outcomes. However, this should not provide the primary focus as the main purpose of the products is to provide entertainment to the children.

Implementation of the Decision and an Evaluation of the Outcomes

The last step suggested by Uzonwanne (2016) is the implementation of the selected decision to evaluate the actual outcomes. The selection of the best option is, however, not the last aspect as the correct implementation is also important. The accurate implementation is also worth noting as it will lead to the outcomes. The stage is imperative in the radical decision-making model despite being passive. An evaluation of the outcomes is done to evaluate if the selected option has met the company objectives. In case of failure or insufficient outcomes, improvements are suggested and implemented for the process to meet the needed outcomes. Also, the final stage ensures that the selected option also meets the profitability needs, which are the primary driving forces influencing the decision on expansion. Furthermore, the market impact of the selected option is also evaluated to ensure it is as anticipated or above. The cases of failure may require better redevelopments or improvements in the options to ensure the desired outcomes are met. The ability of the human resource in place to support implementation is also important as this will determine the effectiveness of this option. Therefore, this stage is crucial as it will determine the level of success attained and if improvements are necessary.

The radical decision-making model provides an evaluation of the alternatives presented to identify solu...