Decision Making Paper
The Decision
On what did Jeff Bezos base his decision to buy the Washington Post, one of the most recognizable newspapers in the world for $250 million? It’s a pretty big deal when you are willing to buy something, anything, for that much money. A lot of thinking and analysis had to be done, and a lot of important decisions made. In fact after initially being approached by the Post in March of 2013, Bezos didn’t communicate with them for two months, and Donald Graham, the owner of the Post, thought that he wasn’t interested in the deal any more. (Williams, 2013) What were the pros and cons of the massive deal? I will demonstrate what processes may have been used to come to the decision that was made and why.
PrOACT Model There are six criteria that are considered when making a decision using the PrOACT model. (Hammond J, 1999) Focusing on what is important, being logical, and being both subjective and objective in making your decision are among some of the important criteria I am referring to. One of the first things that Mr. Bezos had to come up with was what was important to him. He must have considered his values, his financial situation and that of the company he was going to buy. But the main decision problem in this case was obviously whether or not to buy the Washington Post. I should point out that Jeff Bezos bought the paper, not Amazon. He used his own money to purchase the legendary newspaper. So we must look at what his objectives may be in order to analyze what alternatives, and consequences he most likely considered. Once he had formulated the correct decision problem, the next thing to do was specify what objectives he needed to meet. One predominant theme suggested in an article in the Christian Science Monitor concerning the sale is that Bezos purchase of the Post is a logical step in the growing presence of digital media in markets that were previously dominated by traditional media such as newspapers and television. (Goodale,
On what did Jeff Bezos base his decision to buy the Washington Post, one of the most recognizable newspapers in the world for $250 million? It’s a pretty big deal when you are willing to buy something, anything, for that much money. A lot of thinking and analysis had to be done, and a lot of important decisions made. In fact after initially being approached by the Post in March of 2013, Bezos didn’t communicate with them for two months, and Donald Graham, the owner of the Post, thought that he wasn’t interested in the deal any more. (Williams, 2013) What were the pros and cons of the massive deal? I will demonstrate what processes may have been used to come to the decision that was made and why.
PrOACT Model There are six criteria that are considered when making a decision using the PrOACT model. (Hammond J, 1999) Focusing on what is important, being logical, and being both subjective and objective in making your decision are among some of the important criteria I am referring to. One of the first things that Mr. Bezos had to come up with was what was important to him. He must have considered his values, his financial situation and that of the company he was going to buy. But the main decision problem in this case was obviously whether or not to buy the Washington Post. I should point out that Jeff Bezos bought the paper, not Amazon. He used his own money to purchase the legendary newspaper. So we must look at what his objectives may be in order to analyze what alternatives, and consequences he most likely considered. Once he had formulated the correct decision problem, the next thing to do was specify what objectives he needed to meet. One predominant theme suggested in an article in the Christian Science Monitor concerning the sale is that Bezos purchase of the Post is a logical step in the growing presence of digital media in markets that were previously dominated by traditional media such as newspapers and television. (Goodale,
Cited: Craig Timberg, a. J. (2013, August 6). The sale of The Washington Post: How the unthinkable choice became the clear path. Retrieved August 13, 2013, from The Washington Post: http://www.washingtonpost.com/business/technology/the-sale-of-the-washington-post-how-the-unthinkable-choice-became-the-clear-path/2013/08/06/46216532-fed7-11e2-9711-3708310f6f4d_story.html Drehle, D. V. (2013). The Fixer. Time, 182(8), 14. Ferenstein, G. (2012). Bezos In 2012: People Won’t Pay For News On The Web, Print Will Be Dead In 20 Years. Berliner-Zeitung. Goodale, G. (2013, August 6). Washington Post sale sign respected brands will matter, even online. Retrieved August 13, 2013, from The Christian Science Monitor: http://www.csmonitor.com/USA/2013/0806/Washington-Post-sale-a-sign-respected-brands-will-matter-even-online-video Hammond J, K. R. (1999). Smart Choices, A Practical Guide to Making Better Life Decisions. Boston: Harvard Business School Press. Ignatius, D. (2013, August 7). Sale of Post was Grahams ' Gift to Journalism. Retrieved August 16, 2013, from The Washington Post: http://www.washingtonpost.com/opinions/david-ignatius-post-sale-was-grahams-gift-to-journalism/2013/08/07/5442c212-feed-11e2-9a3e-916de805f65d_story.html Kurtzleben, D. (2013, August 5th). US News Online. Retrieved August 15, 2013, from US News: http://www.usnews.com/news/articles/2013/08/05/inside-the-washington-post-sale-to-amazons-jeff-bezos Maurer, R. (2010). Beyond the Wall of Resistance. Austin, Texas: Bard Press. Prynn, J. (2013, August 6). Watergate Duo Welcome Sale of Washington Post to Amazon Chief. Retrieved August 9, 2013, from http://ehis.ebscohost.com.ezproxy.umuc.edu/eds/detail?vid=2&sid=92c2c2ac-be7a-4ca0-a957-c24fef605e5a%40sessionmgr110&hid=105&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=bwh&AN=89564658 Williams, M. a. (2013, August 6th). How the Bezos-Post Deal Came About. Washington DC, USA.