An opportunity to grow HH into a $75 million dollar business
Please utilize the following objectives to complete the assignment:
NOTE: The objectives are not prioritized. You will prioritize the objectives in week seven after the completion of the decision matrix analysis.
- The best way(s) HH can develop a sustainable growth strategy
- The best way(s) HH can enhance its competitiveness and capture new opportunities.
- The best way(s) to keep abreast with changing market trends and consumer preferences.
- The best way(s) to develop HH’s core capabilities and fulfill its strategic objectives.
1. By FRIDAY, complete the following:
- All conclusions, justifications, reasoning, and explanations must be supported with course material in the form of APA in-text citations (page/paragraph numbers required) and a reference list.
- Discuss the type of information HH needs to gather to make a decision. Discuss the biases and traps that should be avoided in gathering information and interpreting (selecting it). Watch your predisposition to select information that is in your comfort zone or might lead to a problem solving approach rather than a decision making one.
Good decision-making requires Harry to be as informed as possible in order to the challenge that HH faces from all angles(MasterClass staff, 2020a). The type of information that should be gathered by Harry would include the any feedback that he received from his expert consultant and or team. Seeing as the goal is to restructure HH so that is in a better position to have better growth potential, all of the financial information as well as opportunities provided in the case study would be applicable to Harry’s decision making process. He must orient himself to the challenge and then decide to evaluate his information based on whether or not the potential alternative opportunities will meet the objectives of the company (Structured Decision Making, 2013). Based on the aforementioned objectives, it would behoove Harry to work with his team and consultant to develop a formal growth strategy. He could also analyze the market observing what the current trends are and then compare that to his particular product in order to develop objectives to be more competitive.
While gathering and evaluation this information it is important that Harry avoid certain biases that may hinder brainstorming such as either or traps when the decision maker settles for the two most obvious alternatives. Moreover, Harry should also be mindful of wishful thinking and overconfidence when evaluating his gathered information, both of which can negatively impact Harry’s perspective and therefore, the decision making process.
- Create FOUR possible alternatives for HH. Discuss each of these alternatives in detail, identifying potential biases, consequences and risks.. You are prioritizing risks and uncertainty relative to each alternative.
Four possible outcomes that Harry can consider are taking Hannah’s Hats public, collaborating with a larger competitive company, Harry could transition HH exclusively to a web-based company, and HH can alter the prices of their products. Taking Hannah’s Hats public with an initial public offer will grow the company by allowing the public to invest into the company. Collaborating with a larger brand can allow HH to expand its customer base and increase notoriety of HH. Transitioning solely to an e-commerce can significantly cut expenses of having a brick and mortar store. Lastly, altering the prices of HH products has the potential to make the company more appealing to large retailers while being more competitive with other brands, this can increase customer sales.
When creating these alternatives, it is important to be aware of all of the previously mentioned biases mentioned especially wishful thinking which will cloud Harry’s judgment by having him continue to pursue alternative that are no longer valid simple because he wants them to work. The risk associated with any of these outcomes is that they will not meet the established objectives for HH. There is a risk that these alternatives will further increase the expenses of the company while failing to grow the company. The overall risk being that the alternative does not meet the objectives.
MasterClass staff. (2020a, November 8). The Importance of a Decision-Making Process. MasterClass. https://www.masterclass.com/articles/how-to-make-informed-decisions#7-steps-of-the-decisionmaking-process
Structured Decision Making. (2013, November 27). Step 3: Alternatives. http://www.structureddecisionmaking.org/steps/step3alternatives/
Decision Education Foundation. (2020b). It’s Your Choice Episode 11. DEF. https://www.decisioneducation.org/its-your-choice-episode-11
Decision Education Foundation. (2020b). It’s Your Choice Episode 12. DEF. https://www.decisioneducation.org/its-your-choice-episode-11
Decision Education Foundation. (2020b). It’s Your Choice Episode 14. DEF. https://www.decisioneducation.org/its-your-choice-episode-11