The PrOACT method Assignment Paper

The PrOACT method
The PrOACT method

The PrOACT method

Order Instructions:

• The PrOACT model has provided us a systematic approach to:
o Address the right decision problem (Pr).
o Clarify the objectives (O) – considering needs of key stakeholders .
o Develop a range of creative alternatives (A) – both creative and routine
o Understand the consequences of each alternative.(C)
o Make appropriate trade-offs among conflicting objectives (T) as we:

  • Create unweighted / weighted decision matrices or use even swap as decision aids
  • Deal sensibly with uncertainty.
  • Take account of your risk-taking attitude/preferences
  • Plan ahead for future linked decisions

o FYI: As many of you noted in LA 7-2, luck favors the prepared mind.
o I’ve truly enjoyed our learning experience together!

• Final Project – It’s Also Found in Syllabus
• Joan Salmon is the 35 year old daughter of Garret Salmon the owner of a medium sized party invitation company, “Invitations Inc.” Joan has recently received a degree from UMUC in Business Management and is anxious to take over her father’s company. She is a single mother, very attractive but a little retiring in her manner. She and her father have been planning her take over for several years ever since her ex-husband left the business after their divorce, an event that did not go unnoticed within the company. Joan has always worked in some capacity within the company but never in a serious leadership role. She is simply known as the “boss’s daughter”. Joan and her father have agreed that she will take over as CEO in the next two months. No one knows of this decision.

Having taken BMGT 317 Joan realizes that she has a lot of important decisions to make if she is going to make this transition work. The first thing she has to do is take stock of the company. This is what she sees. The company has netted 1.5 million in sales for the last two years with no growth rate. Costs have, however, increased by 3 percent. The company produces and sells a variety of invitation styles and price points but her most popular items seem to be either the “budget” invitations or the “high end” expensive paper products. Her sales people have traditionally only sold to card stores or stationers. The company has never sought to sell directly to the customer. Joan would like to explore the online market for future growth potential. In addition to new markets, Joan would like to revamp the company image and marketing plans. The business side seems solid right now but her father has never really changed things since he started the business forty years ago. The business needs growth products.

Her father, Joan thought, is another matter. What is his role going to be? He jokingly says that he wants to go into “semi retirement” but never really says what that means. In fact, Joan is not really sure that he wants to retire. When she asks him what role he wants his reply is “I have just one request, don’t make me a figurehead. I would rather retire completely. You choose the job or have me retire either way I will do what you want. It is your show now sweetheart. ” Garret Salmon is an extrovert through and through. He always wants to be near the action and thrives on running the company. Joan is not sure what would be best for him and her emotions are torn as she wants him to be happy but at the same time does not want him to usurp her authority. His open personality and hands on style has made the business what it is now, but is it what will make the business grow? Joan knows her Dad has been successful, but her role as the “I’ll do any job girl” has made her privy to company gossip and it has made her wonder. New middle management staff of which there are three, say he is nice but too controlling while others such as the Vice President and CFO, men who have been with him for 25 years, just go with “his” flow. They do not question anything he says. Joan wonders, “Can this work for the future? What should I do with my father?”

Final Project
This project is worth 30% of your final grade. This project allows student to demonstrate what they have learned in the course by applying the PrOACT model to a business decision as well as evaluate the interaction with stakeholders and the management of risk, and the role of change in decision making. Students should review all learning activities and assignments to ensure an understanding of key concepts.

Students will be provided with a business case study.
Required Elements to include in the Final Project:

  • You are to apply the PrOACT method to Joan’s dilemma.
  • You must explain each step in the process and how you arrived at your conclusions.
  • Make sure to reference the reading material covered in the course.
  • You must include in your analysis the application of the five step process and a weighted and unweighted decision matrix.
  • Make sure your five steps include an in- depth discussion of all the elements. Be sure to include a risk analysis, psychological traps, shareholders, consequences, and change. I urge you to think outside the box with your alternatives.
  • Review the application of the PrOACT method in the beginning of chapter one. You want to make sure you are exploring all the alternatives. Creativity is really a great tool in this exercise.

Required Formatting of Final Project:

  • This report should be double spaced, in narrative format, 12-point font, and 7-8 pages in length excluding the title page and reference page;
  • Title page with your name, the course name, the date, and instructor’s name;

Include a reference page;
Use headings to separate the different sections;
This paper is to be written in the third person. There should be no words in the paper such as “I. we, you or your;”
Use APA formatting for in-text citations and reference page. You are expected to paraphrase and not use quotes. Deductions will be taken when quotes are used and found to be unnecessary;
Submit the paper in the Assignment Folder.
Due Date
Dec 14, 2014 11:59 PM
Hide Rubrics
Rubric Name: Written Assignment (30%)

Criteria Outstanding Superior Good Substandard Failure
Subject Matter Knowledge: Decision Alternatives, Consequences, Stakeholders, Trade offs, Change Management 10.5 points

Demonstrated complete understanding of problems – their symptoms, causes, and definition 8.93 points

Demonstrated complete understanding of all but one of the knowledge requirements associated with this assignment. Knowledge of one element was not demonstrated or was only partially demonstrated. 7.88 points

Demonstrated complete understanding of all but two knowledge requirements associated with this assignment. Knowledge of two elements was not demonstrated or was only partially demonstrated. 6.83 points

Demonstrations of knowledge requirements associated with this assignment appeared to be superficial. 5.78 points

Did not demonstrate knowledge of any of the knowledge requirements associated with this assignment.

Critical Thinking Skills: Developing Alternatives, Exploring Consequences, Stakeholder Analysis, Tradeoff Analysis, Change Management Considerations 10.5 points

Demonstrated clear evidence of critical thinking skills. Provided sound rationale in identifying symptoms and potential root causes. Problem definition based on strong foundation of facts or reasonable assumptions. 8.93 points

Usually demonstrated clear evidence of critical thinking skills. One or two areas showed a deficit in analyzing the situation or coming to conclusions based on facts or reasonable assumptions. 7.88 points

Occasionally demonstrated clear evidence of critical thinking skills. Three or more areas showed a deficit in analyzing the situation or coming to conclusions based on facts or reasonable assumptions. 6.83 points

Rarely demonstrated clear evidence of critical thinking skills. More than three areas showed a deficit in analyzing the situation or coming to conclusions based on facts or reasonable assumptions. 5.78 points

Did not demonstrate clear evidence of critical thinking skills.
Responsiveness to Assignment Requirements 4.5 points

Demonstrated full understanding of requirements. Responded to each aspect of assignment. 3.83 points

Demonstrated understanding of requirements. Missed one minor aspect of assignment. 3.38 points

Demonstrated some understanding of requirements. Missed a key element or two minor aspects of assignment. 2.93 points

Failed to show a firm understanding of requirements. Missed two key elements or several minor aspects of assignment. 2.48 points

Did not demonstrate understanding of assignment requirements.
Writing Skills 4.5 points

Paper was well-organized and clear. Error-free grammar and spelling. Citations followed correct APA formatting. 3.83 points

Paper was for the most part well-organized and clear. Grammar and spelling were mostly correct. APA formatting of citations was correct or mostly correct. 3.38 points

Paper was difficult to follow, or grammar, spelling, or APA formatting was often incorrect. 2.93 points

Paper was difficult to follow and grammar, spelling, and APA formatting were often incorrect. 2.48 points

Paper was not well-organized and clear. There were numerous errors in grammar and spelling. APA formatting of citations was incorrect or missing.
Overall Score Outstanding
18 or more Superior
16 or more Good
14 or more Substandard
12 or more Level 1
0 or more

SAMPLE ANSWER

Introduction

The  PrOACT method  is a decision making model that assists decision makers to make better decisions and PrOACT is an acronym for Problem definition, Objectives, Alternatives, Consequences and Tradeoffs.   Defining the problem involve identifying the decision the decision maker is trying to make. For instance if a company is faced with increased demand, the problem could be whether to install additional capacity or outsource some of the functions. Framing the decision problem is the most important single step. A decision problem framed well will a drive the entire process of decision making (Akridge & Foltz, 2005).  A good decision problem assists in determining alternative courses of action in solving the problem.  The next step in the model involves specifying the objectives of the decision being made. For instance what is the objective of installing additional capacity or outsourcing some of the functions? What the decision maker intends to accomplish has an impact on the decision to be made (Akridge & Foltz, 2005).

The next step involves creating alternative courses of action. This step is not difficult if the first two steps have been made properly that is defining the problem and outlining the objectives to be achieved by the decision to be made. Identifying a set of possible alternatives that offer possible solutions to the problem is what is required in this step. The alternatives selected should be the ones that will enable the decision made to achieve the objectives of the decision problem (Akridge & Foltz, 2005). The next step in the PrOACT decision making model is to understand the consequences of every alternative identified. The decision maker at this step maps the alternatives selected with the objectives of the decision problem. This step in some cases makes use of a decision matrix to identify the best alternative that best achieves the objectives of the decision problem (Akridge & Foltz, 2005). The last step in the PrOACT decision making model is grappling with trade-offs. Many complex decisions in business involves making trade-offs. This step involves identifying what will be given up by choosing one alternative relative to what will be given up by choosing another alternative a decision is being made. These steps of the PrOACT model briefly define what Joan Salmon should do to arrive at a smart decision on the way forward for Invitations Inc. (Akridge & Foltz, 2005).

The application of the PrOACT method to Joan’s dilemma

            In applying the PrOACT model, it is critical to design the decision problem. An analysis of the company shows that it made sales of $1.5 million over the last two years with no growth rate and costs have increased by 3 percent in the period. The company’s business model has never undergone any major shift since the company was started over forty years ago. There is therefore a lot of resistance to change. The organizational structure is hierarchical with the CEO practicing an authoritarian leadership style (Akridge & Foltz, 2005). This can be attested to the fact that the middle level managers feel that Mr. Garret Salmon, the CEO, is too controlling whereas the CFO and Vice President just go with the flow. Decisions are made from the top and cascaded downwards for implementation.  Jane is also seeing opportunities that the company can exploit to grow the company but which either no one is seeing or they are too scared to mention. These opportunities include developing new products to grow the product line, selling to customers directly etc. Jane’s decision problem is therefore what is the best strategy to grow sales which have flattened, manage costs which are growing and increase employee productivity to get competitive advantage?  (Ram, Montibeller & Morton, 2011)

The objectives of the decision problem are that Jane would like to increase the company’s market share and increase sales revenues. The fact that the company made $1.5 million over the two year period with no growth is one of her major concerns. She would like to identify the best organizational structure, grow sales, and manage costs, increase employee morale and productivity as some of the objectives of the decision problem. She wants also to improve customer satisfaction by increasing engagement with the end users of the company’s products. The other objective is that she wants the company to be adaptable to the changing environment. The last objective is that she wants to design an organizational structure that improves the productivity of all employees and especially assigns an appropriate role for his father that fits his skills and competences. Other objectives includes coming up with an ideal organizational structure that will accommodate Jane’s father (Tompkins & Rhodes, 2012).

The next step in the PrOACT decision model is developing a range of creative alternatives to solve the decision problem facing Jane Salmon. The first alternative is vertical integration. This strategy will enable the company to produce its raw materials and be engaged in transportation, marketing and retailing. The next strategic option is divestiture. The other strategic option is divestiture. In this strategic option, Jane will need to carry out a value chain analysis to identify which activities or divisions in the company to divest from to cut costs. The other strategic option that Jane could choose is market development (Woiceshyn, 2011). Market development is the expansion of the total market for products. The strategy could involve developing new products for the existing market, increasing sales of existing products to new customers or developing new products for new markets.  The next alternative is adopting market strategic option. Market penetration is a strategy that identifies ways to eliminate internal barriers to sales and increases promotional efforts to sell more to current or new customers (Ram, Montibeller & Morton, 2011). The next alternative solution to the decision problem is restructuring the company. This strategy will involve modifying the structure and operations of the company to eliminate significant problems in the company that are preventing it from optimizing sales and minimizing costs. The last alternative solution to the decision problem is retrenchment. This is a strategy aimed at reducing the overall size of the company. This strategy is aimed at cutting expenses to enhance the financial stability of the company (Ram, Montibeller & Morton, 2011).

The next step in the PrOACT decision making model is that Jane needs to understand the consequences of each alternative strategic options. The first alternative solution to the decision problem is vertical integration. The first consequence of this strategic option is that it could be very costly to implement. The company will require funds to make its raw materials and it will also require substantial amounts of money to set up card stores and stationeries in the location it chooses to locate them (Oliveira, 2010). The firm will also incur costs in hiring and training additional employees to undertake the new activities.  The next alternative is divestiture. This strategy will require that a consultant firm that is competent in divestiture strategy is hired. The strategy may involve laying-off some staff which would cost the company in terms of severance pay to those affected. The strategy could also lead to poor morale among the survivors. The strategy could also lead to a lot of resistance to change especially when it will be substantial.  This will be costly as well. The next strategic option alternative is market development (Ram, Montibeller & Morton, 2011). This strategic option is also expensive especially when it involves developing new products or moving into new markets. These activities will require an increase in promotional activities and investment in new infrastructure such as new delivery vans, new sales staff etc. The next strategic option is market penetration which involves identifying and eliminating barriers to sales and increasing promotional activities to increase sales. This strategy is also expensive since requires that the company increases its expenses in promotional activities (Ram, Montibeller & Morton, 2011; Malakooti, 2012).

The next strategic option is restructuring. This strategy is less expensive than the ones previously discussed. However, if it requires that Jane outsources the function to a consultant then it will be costly to undertake. The other consequence is that it is likely to be resisted by staff since the company has never implemented any change since inception. Any proposal to introduce a new way of doing things will most likely meet strong resistance.  This strategy might involve laying-off staff which might be costly and lead to low morale to the surviving staff. The last strategic option alternative is retrenchment (Ram, Montibeller & Morton, 2011). Retrenchment is costly especially when it involves reducing the number of employees to cut the size of the payroll. In this case the staffs who survive the retrenchment are normally demoralized as they become uncertain about the level of job security in the company. It will also be quite expensive to retrench staff since it involves paying them their retirement benefits and a generous severance package (Baer & Liabotis, 2009).

The next stage in the PrOACT decision making model is for Jane to make appropriate trade-offs among objectives. The best way to do this is by using a decision matrix. The alternatives are ranked as from 1 to 5 ;  1 being the most  ineffective, 2 as being  ineffective, 3 as being unsure, 4 being  effective to achieve the objective and 5 being the most effective to achieve the objective. The matrix is as follows. The matrix uses the flowing acronyms; Vertical Integration –VI, Diversification-D, Market Development-MD, Market penetration-MP, Restructuring-Res and Retrenchment-Ret

Objectives VI D MD MP RES RET
Increase market share 1 1 5 5 3 1
Achieve sales growth 1 1 5 5 3 1
Cut costs 3 5 1 1 5 5
Increase motivation levels 4 1 5 4 2 1
Improve customer satisfaction 1 1 5 5 2 1
An ideal  organizational structure 1 1 1 1 5 1

 

The main trade-off areas is to achieve sales growth and market share versus coming up with an ideal organization structure that will ensure the father is gainfully engaged. The other trade- off is cutting costs versus increasing market shares and achieving high sales growth.

The most ideal alternative is market development (MP) which will assist the company to achieve most objectives identified. The next step involves identifying uncertainties and coming up with mitigating strategies. The risks that are involved in market development strategy include market risk, operational risk and financial risk. Market risk relates to the inability to get an adequate market to enable the company meet its sales growth projections (Malakooti, 2012). Operational risk relates to the inability or lack of capacity by the company internal operational set up to service a large market.  Financial risk relates to the inability by the company to obtain adequate funds to finance the new strategy activities. Jane needs to prepare a budget to implement the activities involved in market development strategy. It is important for Jane then to identify decisions that will be linked to the market development strategy decisions.  A decision to enter new markets will require new capital expenditure decisions. It is important for Jane to identify uncertainties involved in the decisions he will make and if possible try to forecast future linked decisions (Malakooti, 2012).

References

Akridge, J., & Foltz, J. (2005, Oct). Making better decisions. Feed & Grain, 44, 29-30,32-34.

Retrieved from http://search.proquest.com/docview/197753517?accountid=45049

Baer, D., & Liabotis, B. (2009). MANAGING A PORTFOLIO OF GROWTH OPTIONS: THE STRATEGIC TRADEOFFS BETWEEN GROWTH AND RISK. Ivey Business Journal Online, , 1. Retrieved from http://search.proquest.com/docview/216185890?accountid=45049

Malakooti, B. (2012). Decision making process: Typology, intelligence, and optimization.

Journal of Intelligent Manufacturing, 23(3), 733-746. doi:http://dx.doi.org/10.1007/s10845-010-0424-1

Oliveira, F. S. (2010). Bottom-up design of strategic options as finite automata. Computational Management Science, 7(4), 355-375. doi:http://dx.doi.org/10.1007/s10287-008-0084-1

Ram, C., Montibeller, G., & Morton, A. (2011). Extending the use of scenario planning and MCDA for the evaluation of strategic options. The Journal of the Operational Research Society, 62(5), 817-829. doi:http://dx.doi.org/10.1057/jors.2010.90

Tompkins, T. C., & Rhodes, K. (2012). Groupthink and the ladder of inference: Increasing effective decision making. The Journal of Human Resource and Adult Learning, 8(2), 84-90. Retrieved from http://search.proquest.com/docview/1318922285?accountid=45049

Woiceshyn, J. (2011). A model for ethical decision making in business: Reasoning, intuition, and rational moral principles. Journal of Business Ethics, 104(3), 311-323. doi:http://dx.doi.org/10.1007/s10551-011-0910-1

We can write this or a similar paper for you! Simply fill the order form!

Unlike most other websites we deliver what we promise;

  • Our Support Staff are online 24/7
  • Our Writers are available 24/7
  • Most Urgent order is delivered with 6 Hrs
  • 100% Original Assignment Plagiarism report can be sent to you upon request.

GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total: