FINAL DECISION ON UTILITY STRATEGY

This study source was downloaded by 100000759545726 from CourseHero.com on 12-05-2021 20:58:04 GMT -06:00 https://www.coursehero.com/file/84331131/Week-7-Final-Postdocx/ This study resource was shared via CourseHero.com o Explain the purpose in using decision matrices in Step Four of the MDQ.

By first rating each of the objective the decision maker is determining the level of importance for each one (UMGC, 2021). As only the decision maker knows why each objective was rated each way the decision maker needs to explain why each number has the value that it does (UMGC, 2021). It is very possible another decision maker would rate the objectives differently as “matrices are not self-explanatory” (UMGC, 2021). The matrices help bring clarity and final decision making to complex decisions (UMGC, 2021). o Use a scale of 0 – 3 to rate the first decision matrix. (0 being does not meet the objective well to 3 being meets the objective well).

Hannah’s Hats Objectives Alternatives Maximize Growth Decrease Expenses Develop Customer Relationships Strong Staff Engagement Continue Investor Discussions 3 1 2 1 New Product Line for Summer/ Sunglasses 3 1 2 2 Reduce Manufacturing Costs 1 3 2 1 Increase Online Marketing 2 3 2 3 o Post the first decision matrix in the text box (unweighted). Do NOT use attachments. Explain WHY and HOW Harry derived the ranking of the objectives and alternatives (each of the individual numbers) in the first matrix.

Continue investor discussions, I felt had a strong ability to maximize growth. It is really unknown whether or not expenses would decrease or staff engagement would stay strong so a 1 was provided. I felt customer relationships could be developed with the investor connections and provided a 2. New Product Line/Sunglasses could maximize growth capturing a new audience so a value of 3 was given. Developing a new line would like increase expenses and accordingly a 1 was provided. A new product line could increase customer relationships and engage staff in the development and marketing process so a 2 was provided. Reduce manufacturing costs could easily decrease expenses providing a value of 3. If big box retailers agreed to contract with the lower cost product this would develop customer relationships, a 2 was provided as the contract is not established but has a high potential. Maximizing growth and strong staff engagement each have a 1 as it is unknown how the objectives would impact this alternative. This study source was downloaded by 100000759545726 from CourseHero.com on 12-05-2021 20:58:04 GMT -06:00 https://www.coursehero.com/file/84331131/Week-7-Final-Postdocx/ This study resource was shared via CourseHero.comIncrease online marketing was given a 2 for maximize growth as online marketing has a large reach and is low cost so a 3 was provided decreasing expenses. Being able to target new audiences and markets with online marketing would develop new customer relationships so a 2 was provided. As the marketing team and IT team would be necessary in fulling a strong team engagement was noted with a value of 3. o Use weights that total to 100% for the second decision matrix.Post the second decision matrix in the text box (weighted). Explain WHY and HOW Harry derived each of the weights for the objectives.

Harry’s main goal is to grow the business to $75 million, a weight of 50% was given as the most important objective. Both decreasing expenses and developing customer relationships have an equal importance to Harry but are secondary to growing the business determining a value of 20%. Staff engagement was least important to him growing the business so 10% was given as the value. Hannah’s Hats Objectives Total Alternatives Maximize Growth Decrease Expenses Develop Customer Relationships Strong Staff Engagement Continue Investor Discussions 3×50% .15 1×20% .20 2×20% .40 1×10% .10 .85 New Product Line for Summer/ Sunglasses 3×50% .15 1×20% .20 2×20% .40 2×10% .20 .95 Reduce Manufacturing Costs 1×50% .50 3×20% .60 2×20% .40 1×10% .10 1.6 Increase Online Marketing 2×50% 1 3×20% .60 2×20% .40 3×10% .30 2.30 o Based on the results of the Decision Matrices, evaluate and analyze all of HH’s alternatives and objectives.

Reducing manufacturing costs would decrease expenses, increase customer relationships and maximize growth potential. Staff engagement should not be reduced but would most likely remain the same and not increase. Investor relationships could maximize growth and develop customer relationships, it is unknown whether expenses would decrease. However, with investors it is likely staff engagement would decrease as investors may have strong opinions on how the business should be run verses how it is currently operating. A new product line could maximize growth, develop customer relationships, and maintain staff engagement with marketing. I think adding a new product that is complimentary of the current products is a smart move. Increasing online marking presence could reduce This study source was downloaded by 100000759545726 from CourseHero.com on 12-05-2021 20:58:04 GMT -06:00 https://www.coursehero.com/file/84331131/Week-7-Final-Postdocx/ This study resource was shared via CourseHero.comexpenses with lower cost advertising, increase staff engagement with input from IT and Marketing, maximize growth and develop new customer relationships o State the final decision by explaining and justifying it with the numbers in the matrix. The final decision is based on the matrices! The final decision is to increase online marketing and presence. This is a good decision as it allows Harry Hannah the most effective way to maximize growth, decrease expenses, develop customer relationships, and maintain a strong staff engagement. While the matrix helps to eliminate bias, it is possible a different outcome could be selected based on how the same objectives were rated by someone else (UMGC, 2021). o Discuss Step Five: The Final Decision. Explain HOW the final decision (chosen alternative) fulfilled Hannah’s Hat’s objectives. Hannah’s main priority has been to grow the businesses. In order to do so, finding new ways to expand at low cost is an excellent alternative, whereas growing brick and mortar strores is very costly and may not yield an immediate return on investment. Increasing online marking presence could reduce expenses with lower cost advertising, increase staff engagement with input from IT and Marketing, maximize growth and develop new customer relationships.

UMGC. (2021a) Example using MDQ: Which House Do We Purchase? learn.umgc.edu.

https://learn.umgc.edu/d2l/le/content/542196/viewContent/20449754/View .

Create a memo to the internal stakeholders of the company to discuss the decision that you have made regarding moving forward in a way that fixes the financial situation that outlines exactly how you have come to the decision. In your memo, you want to provide specifics, some of which you provided in Week 5:

 Triggers for Decision  Decision Statement  Goal of Decision  Purpose, Scope, and Perspective  Four Objectives (Class Consensus)  Alternatives and how they met your objectives  Your decision matrices (weighted and unweighted) and how you chose to weight each criteria  Your final decision  Make sure that all of your steps make sense with one another and fully align so that your final decision completely lines up with the rest of the steps in the process. This study source was downloaded by 100000759545726 from CourseHero.com on 12-05-2021 20:58:04 GMT -06:00 https://www.coursehero.com/file/84331131/Week-7-Final-Postdocx/ This study resource was shared via CourseHero.comTo: Harry Hannah, Owner, Hannah’s Hats From: All Staff, Hannah’s Hats Date: March 2, 2021 Subject: Final Decision and Future Endeavors Summary In reviewing financial reports, annual growth is not on target. In years prior, Hannah’s Hats growth trend was on target to double in size in three to five years with the addition of our adult cold weather products. Unfortunately, growth this year was not as expected due to increased expenses. All expenses were necessary for the acquisition of a new facility, acquisition of new staff and acquisition of a new product line. Now that these building blocks have been laid, it is time to refocus sights on the mission at hand, growing Hannah’s Hats to $75 Million a year in annual sales. This will not be an easy undertaking. This endeavor will require hard work and the dedication of each team member. Together Hannah’s Hats can be the best in children’s hats and accessories. Decision, Triggers and Goal of Decision Based on the financial information received, it is clear a decision must be made as to the future direction of Hannah’s Hats. Remaining on the course of increased expenses and declining sales will lead to failure. How can Hannah’s Hat increase sales growth?

Is the decision, most important to reengage staff and customers alike. This decision statement also provides an opportunity to think creatively and evaluate multiple alternatives. With the conclusion of a final decision Hannah’s Hat should be able to continue with historical growth numbers and obtain $75 Million in annual sales. Purpose, Scope and Perspective In order to grow the business, it is important to analyze costs and opportunities for growth. This information is derived from detailed historical company information.

Information will include sales trends, financial information, customer analysis, product information and vendor agreements. As decisions can contain basis, key team members will be involved to avoid bias in decision making. Experts from each field of expertise will be selected to ensure the best decision is made. Objectives and Alternatives After careful consideration, several objectives and alternatives have been identified. Alternatives include : continuing investor discussions, developing a new product line for summer, reduce manufacturing costs and increasing online marketing. Objectives include maximizing growth, decreasing expenses, developing customer relationships and maintain strong staff engagement. Reducing manufacturing costs would decrease expenses, increase customer relationships and maximize growth potential.

Staff engagement should not be reduced but would most likely remain the same and not increase. Investor relationships could maximize growth and develop customer relationships, it is unknown whether expenses would decrease. However, with investors it is likely staff engagement would decrease as investors may have strong This study source was downloaded by 100000759545726 from CourseHero.com on 12-05-2021 20:58:04 GMT -06:00 https://www.coursehero.com/file/84331131/Week-7-Final-Postdocx/ This study resource was shared via CourseHero.comopinions on how the business should be run verses how it is currently operating. A new product line could maximize growth, develop customer relationships, and maintain staff engagement with marketing. Adding a new product that is complimentary of the current products is beneficial. Increasing online marking presence could reduce expenses with lower cost advertising, increase staff engagement with input from IT and Marketing, maximize growth and develop new customer relationships.

Decision Matrices- Unweighted Hannah’s Hats Objectives Alternatives Maximize Growth Decrease Expenses Develop Customer Relationships Strong Staff Engagement Continue Investor Discussions 3 1 2 1 New Product Line for Summer/ Sunglasses 3 1 2 2 Reduce Manufacturing Costs 1 3 2 1 Increase Online Marketing 2 3 2 3 Decision Matrices-Weighted Hannah’s Hats Objectives Total Alternatives Maximize Growth Decrease Expenses Develop Customer Relationships Strong Staff Engagement Continue Investor Discussions 3×50% .15 1×20% .20 2×20% .40 1×10% .10 .85 New Product Line for Summer/ Sunglasses 3×50% .15 1×20% .20 2×20% .40 2×10% .20 .95 Reduce Manufacturing Costs 1×50% .50 3×20% .60 2×20% .40 1×10% .10 1.6 Increase Online Marketing 2×50% 1 3×20% .60 2×20% .40 3×10% .30 2.30 Conclusion After consideration of all alternatives and objectives with weighted decisioning a decision was revealed. Increasing online marketing and sales is the best alternative for continued growth of Hannah’s Hats. These continued efforts will allow for full engagement of staff, decrease in expenses, maximize growth potential and help develop new and current customer relationships. Focused efforts are a must to This study source was downloaded by 100000759545726 from CourseHero.com on 12-05-2021 20:58:04 GMT -06:00 https://www.coursehero.com/file/84331131/Week-7-Final-Postdocx/ This study resource was shared via CourseHero.com Powered by TCPDF (www.tcpdf.org)accomplish a desired team goal. As a team, we can achieve the ultimate goal of $75 Million in sales.