Ob : All the Wrong Moves

Topics: Decision making, Flipism, Decision theory Pages: 5 (1326 words) Published: November 20, 2012


All the Wrong Moves

Submitted to:
Dr. Saleena Khan
Asst. Professor, OB & HRM Area IMT, Nagpur
Submitted By:

Aakanksha Garg 2012001
Abhinav Aggarwal 2012007
Abhishek Gupta 2012013
Abinash Dash 2012015
Aditya Mohan 2012022
Akash Agrawal 2012029
Anant Kr Ajmera 2012040 Ankita Pandey 2012051

This case is about a company ‘Nutrorim’ which was founded in 1986 by an organic farmer and his wife. Nutrorim manufactures various lines of vitamins and nutritional supplements. The case is about the flaws in decision making process of the company. Don Rifkin is the main character of the case who tries to correct the decisions made by the company at the time of crisis or otherwise. The employees of the company give mixed and different reviews over the same discussions. Don the CEO of the company tried to find out the feedbacks with the help of consultants. While going through the case we tried to find out the main reasons for poor decision making of the company and tried to find the solutions for the same.

Nutrorim which was founded in 1986 by an organic farmer and his wife had been at the top of its field. Nutrorim’ s products had gained national attention and the company’s organic, performance-enhancing supplement powder Charge Up had gone through the roof due to an endorsement by a famous Olympic athlete. This lead the Nutrorim to hire hundreds of new employees, expand its production facilities and acquire two vitamin firms. Nutrorim went public in the year 1997 and by 2002 Changeup was the best-selling performance-enhancing sports powder on the market. Don Rifkin who joined Nutrorim as CEO in 1989 had tried hard to foster a happy, participatory, democratic culture at Nutrorim. Steve Ford was the head of the R&D section of Nutrorim. But during the past one year, Nutrorim had suffered from a spate of bad decisions. A consultant was hired to review the company’s decision making processes that had individual interviews with senior managers. Objectives:

* Understanding the importance of objective analysis and oversight at strategic level decision making in an organisation

* Necessity to have a firm and clear hierarchy within an organisation for effective decision making in face of crisis.

* Understand need for a Leader to identify the expertise that his subordinates have and assigning them responsibilities accordingly for running an organisation effectively.

* Understanding the ineffectiveness arising out of decision making process in an organisation if it is too democratic at strategic level. Analysis:

The said company was presented with an accusation that their product was making people sick. The company's options were to keep the potentially dangerous product on the shelves, which could turn into a law suit, or to accept the costs and do a recall. In meeting of the top managers there were huge disagreements on who should have the most power in the decision-making process and there was little organized discussion and not all the voices were being heard. There was a lack of centralized leadership that was able to weigh all the voices and make a more discerning decision. The committee members were not unified on what should actually be done. Employees in positions of power did not ask the right questions to make well-informed decision. The decision to recall Charge Up was made under a lot of uncertainty and was the facts were not analyzed thoroughly before taking decision. The company knew the consequences of recalling or leaving the product on the shelves. This decision was a non-programmed decision that should be made by top managers. The situation was brought to a local radio station and the company began to panic that the information would go public ruining the...
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