Find a news event/article that relates to the topic of this week, which is Manag

Question

Find a news event/article that relates to the topic of this week, which is Managerial Decision Making.

Criteria for the news:

From a reputable news source (print, internet, TV). Avoid blogs and personal websites.

Related to Managerial Decision Making and explore a topic that interests you.

Current (published within the last 5 years).

Initial Post: Your first post must be a substantive post (250 words) . It must include the following:

Introduction: What is the title, source, and publication date of the news you found?

100-word Summary: What are the most important details to get across?

200-word Analysis: How does the news you found relate to this week’s topics? What connections can you draw between this week’s readings/lectures and the specific elements from the news? How, if at all, did the news help you understand a concept/idea from this week? What questions arose while you read? (Remember: This part of your post is not a summary; use your analytical skills).

Explanation / Answer

Article: quote “A Founder steps back from her startup by David R Dixon, Harvard Business Review, September-October 2018 issue.” unquote

The author discusses the dilemma of Elena Pelc the founder of 2 proud pups. A manufacturer of all natural dog care products.

She wants to decide on the future of 2 Proud Pups which she has built from a scratch. After 6 years of successfully running the business, she has to make a choice on divesting from the business because she feels burnout and needs more personal time.

The Key goal is to have more time for herself as she is expecting a baby. She also feels burnt out and needs more time for herself.

The options available to her are as follows:

Option 1: It is preferable because she still has control over the organization and she can step back into the CEO position whenever she feels like it. She can get fresh inputs and remain in the advisory role. The basic model of the business will remain intact.

Negative is that it will still keep her involved and she might interfere with the daily working of the organization and the organization will suffer. Further her main goal to step back and take it easy will not be realized as she is still the founder and main shareholder.

Option 2: It is a good option as she can give the reins of the business to a new professional who is also a shareholder. The profitability of the organization might improve and the organization will get new ideas and inputs.

Negative is that since she is still the main shareholder her ideas might conflict with the new CEO and the efficiency of the organization will suffer.

Option 3: This will totally relieve her from the business while retaining 10% shareholding for both the companies and she can get a clean break, which she is looking forward. It is also good for the organization, as the organization will grow into a bigger business since she has offers from Dog House Luxe, which is a good strategic fit.

Negative is that she might regret it once she is more relaxed and she might feel depressed with the way its managed as his business model is different. Further, the retailers are worried about her selling to Dog House Luxe as his major sales are online and he also uses ingredients other than natural products in the product offerings.

Based on the above she must make a decision to sell or not sell.

Summary:

Elena Pelc founder of 2 Proud Pups set up a company six years back when she could not find a good shampoo for her dogs Maggi and Broccoli. She experimented with many natural ingredients to come up with a good range of shampoo, conditioners, and toothpaste. She had 1000 plus independent retail stores and many other regional stores. Her annual revenue was $ 1 million. She was working 24/7 and now felt burnt out. She was also expecting her first baby soon and wanted some me time. She was keen to exit from the business and had explored the option of hiring a new CEO or selling out completely to a bigger pet company Dog House Luxe.

Analysis:

Elena Pulc the CEO and founder of 2 Proud pups have nurtured the company from zero. The company has grown on her personal investments and from bank loans. She must make a critical decision to sell or not sell.

The article studies the decision-making process and how she must arrive at the decision to sell or not to sell.

The goal is clear that she needs to step down and have more time for herself.

The options available are also studied by her i.e. either to sell out completely to Dog House Luxe with a 10% shareholding in the combined company and no say in the decision-making process or option 2 of hiring a new CEO who also invests in the company.

She is studying the alternatives their positives and negatives. She is also analyzing the outcomes of her decision by discussing it with the retailer who gives her feedback on Dog House Luxe and highlights the difference in management style and business model of the two organizations.

This article highlights the five steps in a decision-making process clearly ie. Identify the goal, define the problem, brainstorm alternatives, finalize a decision and review the decision. Here we see Elena is still brainstorming the alternatives. She has to finalize her decision soon.

Further, it has clearly highlighted what we studied in class regarding brainstorming alternatives and how to study the various angles before a decision can be made.

The questions which came to my mind were as follows:

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