Chrysler Bailout

The Chrysler Bailout and the Challenger Disaster are two examples of possible outcomes when implementing a strategic decision-making process. Without the presence of a decision‐making model a successful outcome is extremely unlikely. Chrysler’s decision to secure subsequent loans from the government resulted in success because it used a judgmental approach in search of a satisficing solution.
In the case of the Challenger Disaster, the decision to launch deemed to be premature because the launch objective was not attainable within the closed decision-making process. Instead of using judgment pertaining to this singular event and within an open decision-making model, NASA chose a computational approach by predetermining the outcome, and
However, the spacecraft failed its mission and proved to be a fatal disaster. NASA decision makers implemented a pre-determined decision in a closed decision-making model. The challenger launch was neither systematic nor routine. Because of NASAs’ closed decision-making process the launch was rendered unattainable. NASA failed to search the alternatives that were available and recognize the constraints that would have prohibited the launch of the Challenger. Had NASA operated in an open model decision-making process, this would’ve allowed NASA decision makers to consider all of the available alternatives and recognize the constraints.
The Chrysler bailout was successful in using the open-model. Although, the Chrysler decision was impacted by the environmental constraints such as:
• Increase of over-seas competition
• Succeeding General Motors in market share
• Increase of intrusions by the federal government placed on manufacturing
• Increase of monetary dependency on the federal government
The open decision-making process allowed Congress to search and consider the available alternatives and recognized the constraints that were set before them.
Recommendations
Classify as II Decision
The decision makers at NASA should have correctly classified the decision as category II. This could have been implemented if these questions were asked:
1) Is this a unique or generic event?
2) Is the structure of the decision procedural
Or do we have to rely on our judgment?
These questions serve as the road map to determining which decision is at hand.
Employ a Judgmental Strategy
After categorizing the decision as category II, NASA’s managers should have approached the task at hand from a judgmental perspective. Taking a look at the Chrysler bailout, it was successful because the decision makers recognized the situation as one with an uncertain outcome, as was NASA’s. A judgmental strategy could have been implemented using the Delphi method. Within the process, the experts would have listed the pros and cons of all alternatives and narrowed the search, based on which alternatives met the objectives with minimal costs.
Use an Open Decision Making Model
We recommend that NASA’s decision makers use an open decision-making model when the decision contains environmental constraints. rather than the closed decision-making model. The open decision making model includes recognition of all of the constraints, which limits the maximizing outcome. If the engineering consultant’s report would have made it to the decision maker, then one could assume that the conditions would have highlighted the need to reassess the implemented closed decision-making