Cattle Inspection
Order Instructions:
For this assignment, you need to review chapter 11 in the text.
Bauer, T., & Erdogan, B. (2012), Organizational behavior (1.1 ed.). Nyack, NY: Flat World Knowledge.
In addition, you need to read chapters 8, 9, 10 and 11 in Accounting in a Nutshell.
Please refer to the bottom of page 287 in Accounting in a Nutshell. Read Self Test Question 4. I would like you to use the information from this question to respond to the following:
•What decision making model would you use to make this decision?
•Are any of the decision-making traps discussed in our text in danger of clouding your judgement?
•Would any of the tools and techniques for making better decisions assist us in this decision?
•What is your final decision and why?
Please be aware that I am not asking you to provide the calculations for this problem. While I would like you to understand how the problem is solved, the solutions are at the end of the section, so you should have the accurate information to make your final decision. The point of this paper is for you to apply the decision making techniques to the area of managerial accounting. In addition, use the above bullets as a guide for your paper…I do not want to see these listed as individual sections within your paper.
This paper should include 3-5 pages of content with an additional cover and reference page. This is a total of 5-7 pages.
Your paper should be written in proper APA format. This link will take you to the section of the APUS library that can assist you with your formatting apus.campusguides.com/content.php.
Supporting Materials
http://ezproxy.apus.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=248111 (1 KB)
SAMPLE ANSWER
Cattle Inspection
Effective management requires that leaders adopt suitable models that are in line with their short and long-term goals (Walker, 2009). The consideration of this aspect is often significant when it comes to the making of decision affecting organization’s operations. Since leaders are always involved in the establishment of decisions that possess significant impacts on their firms, they should ensure that they comprehend the various decision-making frameworks alongside what it required for efficient decision-making (Bauer & Erdogan, 2012). One of the significant aspects that should be taken into consideration during decision-making is critical thinking.
Pareto Analysis and SWOT Analysis
Taking into consideration the issue facing BSE Veterinary Services, rational decision-making should be adopted in this organization. This BSE’s management is faced with the problem of selecting a suitable method that can be employed in the realization of maximum gains within the shortest time possible. The firm is required to increase its output to 18,000 laboratory tests so that it can manage to respond effectively to the increasing the demands resulting from the problems experienced with the beef herd. However, the firm’s current output is 12,000 laboratory tests. As such, the organization requires the addition of another shift on its schedule to address this problem. Being that this problem will impact significantly on the organization’s resources, its management should employ a rational-decision making model using tools such as SWOT analysis to accomplish its objectives. Rational decision making takes into consideration the aspect of following a rational four-step pattern when making decisions (Bauer & Erdogan, 2012). These steps include identification of a problem, generation of solutions, selection of solutions and implementation and evaluation of the solution. This framework is founded on the cognitive assessment of cons and pros. Moreover, it is structured around choosing the most sensible and logical alternative, which can yield the required outcomes. As such, it involves a detailed evaluation of options and a comparative analysis of benefits of each alternative with the aim of picking the most appropriate one.
Some factors that might lead to the clouding of efficient decision-making in relation to the problem facing BSE are unrealistic search for silver-bullet remedies, failure to consider options in an explicit manner and failure to embrace opportunity cost. Searching for silver-bullet may involve looking for complex alternative with minimal effects/results (Walker, 2009). Moreover, the firm’s management may fail to focus on various solutions that can impact positively on the decision-making process, thereby leading to an inefficient decision-making process. The failure to consider the aspect of opportunity may arise from the company’s management disregarding the costs involved in other alternatives, which might be inexpensive.
As a decision-making technique, the SWOT analysis can be employed in making appropriate decisions concerning the problem facing BSE. SWOT analysis takes into consideration aspects of weaknesses and strengths associated with an organization alongside the threats and opportunities to which the firm is exposed. These four aspects are often drawn in 2-by-2 matrix with the aim of making the model read like a series of disadvantages and advantages. This framework is often employed together with other models in handling management issues facing organizations (Bauer & Erdogan, 2012). Focusing on BSE’s weaknesses and strengths in relation to its assets, inventories, staff, financial position and equipment will help the firm’s management in identifying suitable measures of handling the problems. On the other hand, focusing on the opportunities and threats to which the company is exposed will help the management in adopting efficient strategies of addressing the problem. For instance, the company’s management can decide whether to employ new workers or outsource the contract. Besides, the firm’s management can also decide whether to increase its inventories or not.
BSE’s management can also employing feasibility study in determining the level of profitability associated with the new demand or undertaking. For example, the company’s management can decide to perform a study on the effect of increasing the prices of its services on the level of demand or profits. Furthermore, the Pareto Analysis can also be employed in solving the company’s problem. This model often operates on the principle of 80:20, when organizations need to initiate several changes (Walker, 2009). This framework is vital in pointing out areas where initial alterations/changes should be made to be enable firms obtain maximum benefits/gains as early as possible.
Apart from increasing the firm’s output to 18,000 laboratory tests, the firm can also focus on increasing the prices of its services in order to raise its profit margins. Taking into consideration the fact that the demand for the veterinary services is high, the firm’s management should employ the principle of demand and supply in its operations. Increasing the prices of the firm’s services will help the firm realize its objectives in an easier way than when it focuses on increasing its outputs. Therefore, BSE’s management should embrace the idea of increasing the prices of its services or charges/fees of laboratory tests.
In conclusion, selecting an appropriate solution for problems experienced by a company is significant in ensuring that its objectives are met in an effective manner. Therefore, leaders should ensure that they employ decision-making models that are in line with their goals and resource capabilities.
Reference
Bauer, T & Erdogan, B. (2012). Organization Behavior. Nyack, New York: Flat World Knowledge.
Walker, J. (2009). Accounting in a Nutshell : Accounting for the Non-specialist. Amsterdam: Elsevier/CIMA.
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