Every organization makes decisions based on the type of problem at hand. In some situations managers make accurate decisions when they feel they are certain about the outcomes, in other situations managers make decision with lack of complete knowledge and in some other situations managers are confronted with a situation where they do not know the alternatives and consequences.
Following is a situation where managers have to make some important decisions:
“Managers at iGlobal, an IT solutions company, are faced with the dilemma of an inactive business line. The product line was launched seven years back but it could not respond to changing demands and trends. As a result, their business suffered heavy losses and also resulted in lower market share of iGlobal. Now managers have to take certain decision to revive the product line as well as to increase the market share.”
For the above situation you are required to identify the decision making situation – whether it is certainty, uncertainty or risk. Give proper reasons in favor of your choice.
iGlobal is faced with the dilemma of an inactive business line. The product line was launched are old and the company did not respond to changing demands and trends. As a result, their business suffered heavy losses. And there is risk that the news Business will be a successful venture or not. So there is high uncertainty in this situation but a little hope that company can re-establish itself with new IT product.