Yini

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NEWCASTLE BUSINESS SCHOOL
& LEARNING DEVELOPMENT

GSBS6001

Assignment 1
OVERALL STRUCTURE

Due Date: 3 March 2013
Submit Date: 28 Feb 2013

Student Name: Yini Xia
Student ID: 3176472

The Decision
A car decoration store was opened in a street of China Town. Shelly was the boss of such store and also one of my friends. She has investigated many types of store before making decision to open an exclusive car decoration store in the area. For the purpose of decorating and protecting cars, car owners in China will surely buy car decoration. Considering there was only one such store and it could surely sell well, she was full of confidence before opening and she further spent thousands of Australian dollars on fitting up of the store. The rent of store has to deposit for 3 months, which made her fund became tight at a time. Therefore, she stocked some interior decoration that imitates premium cars instead of the lovely cartoon style decoration that she loves. The store was only 10m2 such that there was no space for putting a lot of car mats. Then she printed some posters and intended to stock when any of them are ordered by customers.

Unexpectedly, there were few customers who had even taken a look in the store and there was not a single transaction done in one month. Occasionally, there was a customer come into the store and ask about goods, but he or she would be shocked by the high prices. Due to she felt depressed and become busier for her studies, she hired salesman to run the store and she might not come to the store even for a whole week. The salesman had only watched films in the store all day long without concerning the business. The store rent of three months consumed up all her fund and she looked having not a little ambition at the time when the store was just opened. Reluctantly, she could not but sublet the store via internet. At present, this store was emptied and she even gave counters to neighbor stores when she moved out. After that, I haven’t seen her any longer. Analysis of the Decision

According to conditions of problem, decision is generally classified into three types that are decision under fully knowing conditions, decision under risk and decision under not fully knowing conditions(Fitzgerald,2012). This type of decision is classified into that under not fully knowing conditions. The probability of result of this type of decision cannot be known, it therefore requires that the decision-maker shall have keen market analysis capabilities.

There were many wrong steps in Shelly’s decisions. It increased risk that the market was not deeply invested and funds were centrally invested. The more important was that she completely neglected the differences of consumption habit of consumers in both countries.

In China, almost everyone’s car will be fitted up with decoration that they love. Whereas, in Australian, the cars that can be seen everywhere are telling us the fact that nobody fit up such trivial things. There are also less people driving premium cars such as Buick and BMW. There are only economic cars such as TOYOYA and HODLEN can be seen everywhere. Therefore, this kind of decision made in haste and neglects difference of habit is infeasible.

Disney has planned to build a theme park in France as early as 1976. However, Disney didn’t select site and investigate until 1982. With the tremendous success of Tokyo Disneyland, the management considered building European Disneyland has become an urgent affair. Therefore, Disney finally chose France after successively considering 200 site proposals(Kober, 2010). The predicted cost in 1988 was US$ 2.5 billion, but the actual cost was up to US$ 4.4 billion. The company optimistically considered travelers would reach to 11 million and also considered travelers would not concern too much about price. Therefore, the ticket was priced at US$51 for adults and US$ 43 for children, but the...
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