Assignment 2 (case 1 part A)
Answer:
Fletcher-Terry report:
In the assessment of the management decision Fletcher-Terry of Farmington, the leading company in the glass cutting technology tools and accessories on its decisions to support the company’s operation. In operational management, a decision is made in responded to achieve outcomes that can contribute to the overall success of the company’s goals and strategy (Resell & Taylor). Decision analysis is known as the set of quantitative techniques for decision situation in area which uncertainty exist. In as a state of a nature situation, when the decision occurs that means on the economic situation, the indirect and direct control of organization don’t have which is usually uncertain. When situation arise that a probabilities can be assigned to the occurrence of states of nature in the future, the situation is referred to as decision making under risk, but in a situation whereby a probability cannot be assigned to the occurrence of future events, the situations is called decision making under uncertainty.
Acquisition:
a part of company grow strategy as part an acquisition are made. When one company grows over the other company and then clearly establish as the new owner, the purchase is called acquisition As. In the profitable grow strategy acquisitions are the integral part. A systemic acquisition process has been established and the strategy targets are identified. Several criteria also used in the acquisition. Firstly Strategy fit with clear synergies potential and ability to exploit these in reasonable timeframe, secondly strong ownership and commitment by acquiring business area etc. Fletcher-Terry took a management decision to buy Monce Company, a strategy that helps the enterprises expand and grow in the sector, by combing asset and knowledge and creating a dominate force in the Industry.
The success of the acquisition depends on the when synergies achieved the goals. Here the common goal is to create synergies that makes the value of the combined companies greater than the sum of the two parts and its only logical to create more value for the company due to the efficiencies from the new internal structure of delivered by the Acquisition, Area such as economics of scale and economics of scope is likely add some additional benefits to the organization via the transferring competencies and sharing infrastructure, etc.
Competition from counterparts: Competitions among counterparts are as a result of firms that offer the same products and services in the same industries. The management of Fletcher-Terry point of view has no direct control of the situation on direct completion or on the number of players in the market and the size of environment; competition can only increase the desire to provide better quality service by ensuring a more efficient product. Competition brings efficiency among firms, The case states that even though Fletcher-Terry company had posed a monopoly over the company, its largest customers and distributors, introduces their own private label and this caused a reduction to the overall sales of Fletcher-Terry.
Recession: Can be described Period of general economic decline, defined usually as a contraction in the GDP for six months (two consecutive quarters) or longer. Marked by high unemployment, stagnant wages, and fall in retail sales, a recession generally does not last longer than one year and is much milder than a depression. Although recessions are considered a normal part of a capitalist economy, there is no unanimity of economists on its causes. There is no method of control or level in influence by any organization during recession.
Sociocultural environment, is created by a population’s culture, which involves behaviors and values, in some societies, some ongoing situation in the work
