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The Decision Making Process


      This presentation shows the
general guidelines of the decision making
        process in Foundation®
School: Bloomsburg University
Professor: Dr. Lam Nguyen

Class: MGMT 481-Business Policies
The Six Basic Strategies:
The “Six Basic Strategies” give you a starting point. Make
sure before you start making any decisions to go over the
strategies and choose one that you feel comfortable using.

Keep in mind that all these strategies are proven to work, if
you’re not doing well it’s more likely that you’re executing
the strategy incorrectly.


                  Link to Six Basic Strategies
Practice or Competition Rounds

            Double click on:
            Foundation.xls


         Choose: Work with my
           decisions online


         Enter your User ID and
                Password


            Go to Decisions
Research and Development
R &D            Marketing          Production        Finance           Additional
                                                                        Modules
      Go to Decisions > R&D


For Existing products: Change             For New Products: Change
 product’s attributes to meet             product’s attributes to meet
“Customers Buying Criteria”              “Customers Buying Criteria”

Change: Size, Performance &             1. Give name to new product
           MTBF
                                        2. Choose: Size, Performance
                                            & MTBF
  Changes in R&D affect:
                                        3. Buy Capacity & Automation
  1. Age of the product (current
                                            (buy it this year, use it next
  age/2)
                                            year)
  2. Revision Date (when will
  the product be available for
  sale)

  3. Cost
Marketing
R &D         Marketing         Production     Finance          Additional
                                                                Modules
       Go to Decisions > Marketing


       Enter: Price (Look at Customer
               Buying Criteria)


       Enter: Promo Budget & Sales
         Budget (Look at Six Basic
        Strategies + Student Guide)


         Enter: Your Sales Forecast
         (Look at Online Manager            Link to Sales Forecast
         Guide or Student Guide >
                Forecasting)


         Enter: A/R & A/P (Look at
          Online Manager Guide)
Production
  R &D             Marketing            Production           Finance        Additional
                                                                             Modules
                               Go to Decisions > Production



For Existing Products:           For New Products:             Discontinue a Product:
Enter Production Schedule        Buy Capacity: Buy/Sell        1. If no inventory > Sell all
                                 Capacity > enter positive     capacity (enter negative
Buy or sell capacity (if
                                 number                        number in Buy/Sell
applicable)
                                                               Capacity)
In “Buy/Sell Capacity” cell:     Choose automation level:
- Buy: enter (+) number          Enter (+) number in: New      2. If there is inventory >
- Sell: enter(-) number          Autom. Rating.                Sell all but 1 unit of
                                                               capacity
Change Automation in:
New Autom. Rating (if
applicable)
Finance
R &D    Marketing         Production         Finance          Additional
                                                               Modules
                             Go to Decisions > Finance

                           Your Goal is: Cash Position by
                             the End of Year should be
                                    POSITIVE


             Borrow Money                        Retire Money
        Issue 10-year bonds: Long             Retire bonds early
                Term Debt
                                                 Retire stocks
       Issue Stocks: selling common
             stock to the public                  Dividends
       Borrow 1-year notes: Current      Issue Dividends: give money
                  Debt                         to Shareholders
        Important: these numbers are as good as your FORECASTING.
                     The real numbers might be different.
Additional Modules
R &D   Marketing   Production      Finance           Additional
                                                      Modules


                          For Additional Modules:

                        Go to Online Manager Guide
                                    Or
                        Help > Tutorials & Demos >
                            Additional Modules
                                    Or
                               Student Guide


                        Link to Additional Modules
Links to Additional Resources:


Spreadsheet Demonstrations:            Additional Material:

R&D                                    Student Guide PDF
Product Invention
                                       Manager Guide
Marketing
                                       Developing a Sales Forecast
Production

Finance
Best of Luck!

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Foundation decision making_process_2013

  • 1. The Decision Making Process This presentation shows the general guidelines of the decision making process in Foundation®
  • 2. School: Bloomsburg University Professor: Dr. Lam Nguyen Class: MGMT 481-Business Policies
  • 3. The Six Basic Strategies: The “Six Basic Strategies” give you a starting point. Make sure before you start making any decisions to go over the strategies and choose one that you feel comfortable using. Keep in mind that all these strategies are proven to work, if you’re not doing well it’s more likely that you’re executing the strategy incorrectly. Link to Six Basic Strategies
  • 4. Practice or Competition Rounds Double click on: Foundation.xls Choose: Work with my decisions online Enter your User ID and Password Go to Decisions
  • 5. Research and Development R &D Marketing Production Finance Additional Modules Go to Decisions > R&D For Existing products: Change For New Products: Change product’s attributes to meet product’s attributes to meet “Customers Buying Criteria” “Customers Buying Criteria” Change: Size, Performance & 1. Give name to new product MTBF 2. Choose: Size, Performance & MTBF Changes in R&D affect: 3. Buy Capacity & Automation 1. Age of the product (current (buy it this year, use it next age/2) year) 2. Revision Date (when will the product be available for sale) 3. Cost
  • 6. Marketing R &D Marketing Production Finance Additional Modules Go to Decisions > Marketing Enter: Price (Look at Customer Buying Criteria) Enter: Promo Budget & Sales Budget (Look at Six Basic Strategies + Student Guide) Enter: Your Sales Forecast (Look at Online Manager Link to Sales Forecast Guide or Student Guide > Forecasting) Enter: A/R & A/P (Look at Online Manager Guide)
  • 7. Production R &D Marketing Production Finance Additional Modules Go to Decisions > Production For Existing Products: For New Products: Discontinue a Product: Enter Production Schedule Buy Capacity: Buy/Sell 1. If no inventory > Sell all Capacity > enter positive capacity (enter negative Buy or sell capacity (if number number in Buy/Sell applicable) Capacity) In “Buy/Sell Capacity” cell: Choose automation level: - Buy: enter (+) number Enter (+) number in: New 2. If there is inventory > - Sell: enter(-) number Autom. Rating. Sell all but 1 unit of capacity Change Automation in: New Autom. Rating (if applicable)
  • 8. Finance R &D Marketing Production Finance Additional Modules Go to Decisions > Finance Your Goal is: Cash Position by the End of Year should be POSITIVE Borrow Money Retire Money Issue 10-year bonds: Long Retire bonds early Term Debt Retire stocks Issue Stocks: selling common stock to the public Dividends Borrow 1-year notes: Current Issue Dividends: give money Debt to Shareholders Important: these numbers are as good as your FORECASTING. The real numbers might be different.
  • 9. Additional Modules R &D Marketing Production Finance Additional Modules For Additional Modules: Go to Online Manager Guide Or Help > Tutorials & Demos > Additional Modules Or Student Guide Link to Additional Modules
  • 10. Links to Additional Resources: Spreadsheet Demonstrations: Additional Material: R&D Student Guide PDF Product Invention Manager Guide Marketing Developing a Sales Forecast Production Finance