Discuss the triggers or opportunity pushing Hannah’s Hats (HH) to make a decision.
The overwhelming opportunity for HH to make a significant jump in sales heightened the opportunities towards positioning Hannah’s Hats as the first design embellishment to generate a revenue of $75 million dollars and the opportunity towards taping the advanced type of selection wave (Universal Class, n.d.).
- Identify the goal Harry wants the decision to achieve in making this decision. (Later on in the model, HH will create specific objectives it wishes to accomplish in the final decision)
The goals that Harry wants to achieve is income growth of $75 million dollars, improving the adult section of the business, ensure strong performance through more intelligent management of operating costs, expanding the online channel, and joining forces with enormous retailers that can produce products at a higher efficiency.Other goals for HH include overlooking huge competitors such as the LLB.
- Examine the following decision statement: HOW CAN HARRY HANNAH INCREASE SALES?
This statement is a factual based on the general sales that decreased for HH from 35% to 25%. Including the adult hat sales that dropped 22% over the last year.
- Discuss the validity of this decision statement. Is this the best decision statement for HH? Defend and support your discussion. Your logic and argument must be clear and based on the MDQ model as well as the case study facts. If it is not supportable from the facts and the purpose of the model step, it is not considered logical.
The decision statement is the best for HH because it characterizes the proposed decision by assessing the facts encompassing the decision. For example, the monetary information about HH’s sales decreased 10% and 22% decrease of sales in the Adult cap fragment. The purpose of the decision is for HH to increase its net income to 75 Million dollars. The scope of activities is to be incorporated and rejected from the decision for instance, HH would need to zero in on sales in the Adult section rather than the kids section. The association’s perspective on the best way to move toward the decision. Constructing the decision incorporates truth based examination and can potentially open doors recommended by the decision statement and destinations. The statement allows for a survey and can take into consideration the decision by assessing all features of the decision as a whole examination. Measuring the effect of the decision by assessing the cycle up to the hour of execution to assess if the decision is prompting the satisfaction of the goals.
- Does this decision statement seek to solve a problem or make a decision? Why?
Throughout this tough decision, the question of sales growth is addressed because this is the main issue for Hannah’s Hats at this time.
- Explain and justify why a decision statement would not contain solutions. Refer to the material addressed in Week 1 of the course.
A declaration of judgment should include nothing more than providing a solution to the problem instead of anticipating alternatives. By anticipating alternatives, the decision declaration can become predisposed to the decision-psychs makers.
- What is a sustainable growth rate for the company?
A suitable growth rate is the growth that can be attained by a company without having to add financial support from other sources. The company sales went from 35% to 25% which is a major decline. For the company to meet its potential earnings of 75 million, it should focus on attaining a suitable growth rate of 12.7%.
- How can a company develop a sustainable growth rate?
In case the company has a large number of investors, the first strategy is to reduce its dividend payout. The company should also focus on increasing its profit margin through maximizing the amount of revenue earned. If need be, the company can issue its business equity so that to finance its growth in terms of profit margins.
- What is the group consensus relating to the decision statement?
The entire team of stakeholders agreed that there is a need to increase its sales to that to assist the company in attaining its goal of 75 million. Everyone also agreed on the need to come up with a plan on how to achieve the goal.
- Summarize the group’s consensus relating to the decision statement and incorporate it in the final draft of your presentation.
The team agreed on reducing the dividend rates for a period of three years. This aimed towards increasing the amount of capital that would be used to sustain development in the company. The second issue was that the company was willing to share 10% of its equity with the aim of achieving a sustainable growth rate. The company should also focus more on its future growth rate so as to remain competitive with related companies.
UMGC. (n.d.). Hannah’s Hats Case Study. Retrieved November 11, 2021, from https://learn.umgc.edu/d2l/le/content/608677/viewContent/22561841/View
Week 4: The Decision-Making Model, the Cornerstone to the Decision Process Affords the Decision Maker a Rational Approach to Making a Decision. (n.d.). Retrieved November 11, 2021, from https://learn.umgc.edu/d2l/le/content/608677/viewContent/22561866/View