“Apple Inc --- Failing and Succeeding”

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Chapter Seven
(Making Decisions)
Application Case:
“Apple Inc --- Failing and Succeeding”
1)How would you classify each of Apple’s two decisions --- programmed or nonprogrammed? Explain your answer. The decision regarding Apple’s choice to not license their operating system and software to other computer companies was a non-programmed decision because the decision was made solely on the fact they were the first (pioneer) to introduce an operating system and thought that they were superior with their command in a premium market making their non-programmed decision uncertain of what the outcome would be making the consequences unknown as well. Apple’s decision to introduce the “iPod” while adding a Window’s version of “I-Tunes” was a programmed decision because it did stem from prior experience or technical knowledge about what works or does not work in a given situation (such as the choice not to license their software and how they learned that it wasn’t working as well as Microsoft who did license their software enabling them to surpass when they were new and clueless as to merging with other computer companies. 2)What type of decision-making environment --- certainty, risk, uncertainty--- did Apple have for each decision? Explain your answer. The initial decision not to license their technology put the decision-making environment at a Uncertainty as a result of this decision. Uncertainty increases the risk of failure for organizational responses and makes it difficult to compute costs and probabilities associated with decision alternatives. The uncertainty was what caused a risk decision-making environment to begin with.

The decision making environment for the decision to: release the Apple iPod while integrating a Windows version was a “risky” decision because the alternatives to and consequences could not be determined. The idea is success and the probability is greater than the degree of risk. This would in turn cause the environment to be...
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