The Decision Making Process

This presentation shows the general guidelines of the decision making

process in Foundation®

School: Bloomsburg University Professor: Dr. Lam Nguyen

Class: MGMT 481-Business Policies

The Six Basic Strategies:

The “Six Basic Strategies” give you a starting point. Make sure before you start making any decisions to go over the strategies and choose one that you feel comfortable using. Keep in mind that all these strategies are proven to work, if you’re not doing well it’s more likely that you’re executing the strategy incorrectly.

Link to Six Basic Strategies

Choose: Work with my decisions online

Enter your User ID and Password

Go to Decisions

Practice or Competition Rounds

Double click on: Foundation.xls

Marketing Production Finance Additional Modules

R &D

Change: Size, Performance & MTBF

For New Products: Change product’s attributes to meet

“Customers Buying Criteria”

For Existing products: Change product’s attributes to meet

“Customers Buying Criteria”

Go to Decisions > R&D

2. Choose: Size, Performance & MTBF

1. Age of the product (current age/2)

2. Revision Date (when will the product be available for sale)

Changes in R&D affect:

3. Buy Capacity & Automation (buy it this year, use it next year)

1. Give name to new product

3. Cost

Research and Development

Marketing Production Finance Additional Modules

R &D

Enter: Price (Look at Customer Buying Criteria)

Go to Decisions > Marketing

Enter: Promo Budget & Sales Budget (Look at Six Basic

Strategies + Student Guide)

Enter: Your Sales Forecast (Look at Online Manager Guide or Student Guide >

Forecasting)

Enter: A/R & A/P (Look at Online Manager Guide)

Link to Sales Forecast

Marketing

Marketing Production Finance Additional Modules

R &D

Buy or sell capacity (if applicable) In “Buy/Sell Capacity” cell: - Buy: enter (+) number - Sell: enter(-) number

For New Products: For Existing Products:

Go to Decisions > Production

Discontinue a Product:

2. If there is inventory > Sell all but 1 unit of capacity

1. If no inventory > Sell all capacity (enter negative number in Buy/Sell Capacity)

Buy Capacity: Buy/Sell Capacity > enter positive number

Enter Production Schedule

Change Automation in: New Autom. Rating (if applicable)

Choose automation level: Enter (+) number in: New Autom. Rating.

Production

Marketing Production Finance Additional Modules

R &D

Your Goal is: Cash Position by the End of Year should be

POSITIVE

Go to Decisions > Finance

Issue 10-year bonds: Long Term Debt

Retire bonds early

Borrow Money Retire Money

Issue Stocks: selling common stock to the public

Borrow 1-year notes: Current Debt

Retire stocks

Issue Dividends: give money to Shareholders

Dividends

Important: these numbers are as good as your FORECASTING. The real numbers might be different.

Finance

Marketing Production Finance Additional Modules

R &D

Go to Online Manager Guide Or

Help > Tutorials & Demos > Additional Modules

Or Student Guide

For Additional Modules:

Link to Additional Modules

Additional Modules

Links to Additional Resources:

Spreadsheet Demonstrations:

Student Guide PDF

Developing a Sales Forecast

Manager Guide

Finance

Production

Marketing

Product Invention

R&D

Additional Material:

Best of Luck!