Individual Analysis Report

Topics: Decision theory, Decision making, Rational choice theory Pages: 5 (1527 words) Published: July 11, 2013

Individual Analysis Report
The decisions any company makes are very important and determine the success or failure of the company. How those decisions are made are challenging in a corporate setting. As well, the structured process needs to follow a predetermined order so the results can be quantified and qualified. CanGo fails miserably when it comes to making well thought out and planned decisions. Currently, the CEO may be over reaching her authority when it comes to the hierarchy of control.

SWOT Analysis
CanGo has made a good decision in purchasing a competitor at an early stage of entering the online gaming market. This has afforded them the opportunity to view from the inside a successful online gaming company. This will save CanGo a tremendous amount of capital in the future, notwithstanding the current investment. While the decision was made to purchase Webjouster, there remains a few in the company who are risk–adverse, who want to further analyze the purchase by using rational decision making techniques. As one would expect and true to form the financial sectors are the ones who come to the forefront and champion the cause of the risk-adverse position. However it is healthy to have those who are risk tolerant who provide encouragement, like marketing, who paint a rosy picture for expansion. It is a healthy balance between these two positions that maintain good judgment and logic that results in the stability of the company and its continued success. In a conversation between finance, operations and marketing it becomes apparent that some decision criteria have been chosen. Here we see the beginnings of a rational decision making model. Albeit in retrospect, the criteria outlined are as follows. Questions: Is online gaming going to take the place of the video gaming console found in arcades? Are gamers willing to stay at home and sit in front of a computer screen to play? Are they going to be gratified enough to sit at a desk and play? Is gamin so addictive that people will do anything to play? Are there closet gamers who love the games but due to social affiliations, do not want to be known as a gamer? Are there stigmas that go with being a gamer? Could a closet gamer fulfill their needs in front of a computer screen at home? What are the social aspects of gaming? Is it more fun to play at an arcade or can that experience be satisfied by playing someone half a continent away, online? Online gaming is a huge market, but how big is it? Can CanGo compete? Does CanGo have the resources to compete? All of these questions need to be addressed in order to make a qualitative decision. However, other powers are afoot.

All of the above questions should have been put in order by allocating weights to each of these questions or criteria. Some of them may not be valid or applicable and therefore not considered a qualified criteria nor part of the decision of a weighted decision model. By taking a closer look at heavily weighted criteria a clearer picture would emerge before the go ahead was given to pursue online gaming. CanGo continually exemplifies the company unwilling to plan. In the beginning we saw the CEO forge ahead with plans to purchase an online gaming company because she had an acquaintance with the owners from college days. The marketing department probably spearheaded this most. At this point the company should have had a rational decision-making model in place. However, infected by this enthusiasm and the availability heuristic, they march forward with the development of a marketing plan. Blinded by a fivefold increase in sales, they are willing to take a satisficing decision to purchase Webjouster. This minimal research puts them in a position of bounded rationality with their cavalier justification that is later questioned by the finance department. The voice of reason is exemplified by that...

References: CanGo, Inc. (Producer). (2000). [Video]. Retrieved April 10, 2010 from
Harvard Business Review. (February 2, 2010). Why is retaining employees important? HBR Answer Exchange. Retrieved April 10, 2010 from
Pirraglia, W. (2010). Why a Business Line of Credit is Important for Every Business? Retrieved April 13, 2010 from
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