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Is 533 Homework 4

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Is 533 Homework 4
IS 533 HOMEWORK 4
BY AHMET CAN AYKUT (1835917)
1. What is meant by a symptom versus a problem? Relate these ideas to the case. (5 points)
In the Intelligence Phase of the Decision Making Process, the decision maker, Elena, attempts to determine whether a problem exists, identify its symptoms, determine its magnitude and explicitly define it. What is described as a problem may only be a symptom, or measure, of a problem. In the case, MMS sales are off by 10 percent, which is the main problem.
In the intelligence phase, the CEO calls the Board of Directors to search through the procedures in order to state and classify the problem. She consults Directors to reach the main reason for the problem or to find the real problem which the off-sales are symptoms of it.
2. Why is problem ownership so important? (5 points)
A problem exists in an organization only if someone or some group takes on the responsibility of attacking it and if the organization has the ability to solve it. The assignment of authority to solve the problem is called problem ownership.
When problem ownership is not established, except for professional employees, there will be an uncertainty of who is responsible to solve the problem and role diffusions/shifting, tendency to avoid form responsibility may occur easily. Problem ownership ensures accountability.
3. Even though the problem was not identified at the end of the intelligence phase, what was?
(5 points)
Effects were identified and problem ownership was established.
Effects of the problem:
1. Rentals did not increase while the total market did. (CMO)
2. Sales are dropping fastest on primary markets. (CFO)
3. Advertising expenditures are up. GMC Spiders should be a hot seller but they are off by 50 percent. All the new cars came on in on schedule and inventory is OK from CLAUDIA. (CEO)
4. Half of the GMC Spiders are rented although some local agencies set the prices 15 percent less.
Rentals are down 8 percent nationally

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