Thesis Statement
This presentation synthesizes and summarizes the contents of a simulation situation. The situations (questions) and the responses to the situations (answers) and the grading of the responses will be summarized. This paper also seeks to explain how can the advantages and limitations identified in the simulation impact the decision-making process. Another feature of this presentation is the enumeration of four key points from the reading assignments that were emphasized in this simulation. Finally some thought will be given to the probability and modalities of the ‘application’ of the theoretical concepts dealt with in the simulation.
Analysis
Credenhill Industries, headed by Linda James, has launched a Through-Cred management development program. Linda personally monitors and oversees the selection of the deserving candidate through to his/her progress in handling a business situation.

The four important steps in decision-making are as follows:
Defining the problem This identifies the subsequent solutions
that would be considered.
Evaluating alternatives This involves highest number of steps.
Good evaluation is necessary for a
Informed decision. Criteria, targets, objectives are defined here.
Evaluating the decision It is important to know the results. Like
achievement of sales targets, profitability etc.
Take decision The experience thus gained helps in decision making.

The Credenhill store in our illustration is experiencing problems for which the manager under development has to find solutions. The manager is to make sure that the mere symptoms are not mistaken for the actual problems. The problems are perceived to be as follows:
(1) Declining Sales
The store has experienced a loss in sales for a continuous period of eight weeks, particularly in its high-end product categories like the home theatre systems and the digital hi-fi equipment. This loss situation is not common to other Credenhill stores in the area.
A new store has opened in the vicinity, which is competing aggressively and eating into Credenhill store’s share.

(2) Employee attrition

(c) Variable Pay
Junior employees rate the disparity between variable pay for junior and senior level employees as their major source of dissatisfaction. Linda feels this is necessary to make the employees strive harder and move up.
(d) The wide area network (WAN), that connects Credenhill stores and updates sales and inventory levels daily, is prone to frequent breakdowns. Though an alternate system takes over and there is no disruption but still this poses difficulties.
The rookie manager listed falling sales as a critical and urgent problem. Linda says the declining sales are but a symptom of the core issues, which are the new store and an unsatisfactory product mix.
Linda also disagrees with the manager’s identification of low variable pay among junior employees and she calls this too as a symptom.
Linda however agrees with the identification of legal threat as a non-urgent but critical issue.
As for identification of unsold inventory as a non-urgent but critical problem Linda observes that the wrong product mix is the real problem as the market for home theatre systems and digital hi-fi equipment may have been saturated.
Linda also disagrees with the manager’s identification of Shauna Holland as a problem. She explains that Shauna’s variable pay rests on her staff’s productivity and as such she has the right to be pushing for achieving better results.
Identification of new stores as a critical and urgent problem finds favor with Linda.
Linda does not share the view that exclusive brand stores are a problem. She cites Credenhill survey that shows customers prefer multi brand electronics store.
The CEO calls low variable pay as urgent and critical. The manager had rated this as non-urgent and non-critical!
Both feel WAN outages is urgent but non-critical problem.
Next step is problem resolution. The four steps in decision-making have already been outlined and no repetition is necessary.

Last step is measuring success, which requires selection of correct metrics.
Manager’s selection and Linda’s evaluation are listed below:
Manager’s selection Linda’s Evaluation
Return on Promotion as a metric Does not fit with manager’s solution
Because provision for hike in expenditure is not included there.
Success of product mix orientation New products have lower as a metric. Profitability and so a wrong conclusion may be reached.
Sales per employee as a metric. Agreed. Okayed.
Not selected Sales per Associate.
WAN downtime
PR fallout ( compliance of disability access regulations)

Summary/Conclusions

This study method clearly shows the professional method of critical thinking and analysis. The four steps in decision-making have been well described. This approach should help all mangers and for that reason is highly recommended for further study and implementation.