Decision Making

Under the old method the leases were treated as operating leases on the books. This resulted in what can be called “off-balance sheet” financing, because the leases were not required to be carried as assets on the balance sheet. Instead, leases showed up only through rent expense on the income statement. On the contrary, under the new method of accounting for leases, all leases are required to be carried as capital leases. This affects both the balance sheet and the income statement together. On the balance sheet, the leases are carried as an asset (Right-to-Use) and a liability (Lease Obligation). Both of these are decreased through amortization expenses that hit the income statement. In addition to the amortization expense recognized in the income statement, we also see interest expense due to the amortization process of the Lease Obligation. Financial Statement Analysis

First off, when we look at the old method, the rent expense hits the income statement above the line and affects EBITDA (Operating Income). Whereas, in the new method we see the expenses as Depreciation/Amortization and Interest Expense, which occur below EBITDA to arrive at Net Income. On the Cash Flow Statement, the operating lease affects Cash Flow from Operating Activities, while the capital lease affects the Cash Flow from Financing Activities. Ultimately, these differences do not affect the cash flow in aggregate. However, they do change the make-up of the Cash Flow Statement due to different uses in various activities. Ratios

Return on Assets (Net Income/Avg. Total Assets) In the “3 plus 2 year lease” the new method causes the Return on Assets ratio to decrease by multiple percentage points. This is due to the fact that the leases are now a capitalized asset, increasing our Total Assets as a whole. In the “five 1-year leases” both methods create the same ratio percentage. This is due to the leases being exhausted through depreciation in the only year of use. Therefore, they wash out and the asset that was carried on the books is essentially eliminated. Debt to Assets (Total Liabilities/Total Assets)

In the “3 plus 2 year lease” the new method causes the Return on Assets ratio to increase by several percentage points. This is due to the fact that the leases increase both the assets and liabilities in a proportionate manner, thereby increasing the total percentage of liabilities to assets. It also has a greater effect on the ratios in the earlier years when accumulated amortization/depreciation is lower. In the final year of the lease, there is no difference, because the asset and liabilities are fully exhausted. In the “five 1-year leases” it is similar to the effect in the Return on Assets ratio. Both methods create the same ratio percentage due to the leases being exhausted through depreciation in the only year of use. Therefore, they wash out and the asset that was carried on the books is essentially eliminated. Earnings per Share (Net Income/Total Outstanding Shares)

This calculation would provide for a good analysis, but the case does not allow for it. There are no outstanding shares referenced. Instead, we calculated the change in Net Income between the two methods to see the affect it would have on at least one of the variables. In the “3 plus 2 year lease” the old method essentially overstates Net Income compared to the new method by 271% in the first year, down to 10% in the fifth year. This is because the only expense incurred in the operating leases deal with rent. In the “five 1-year leases” both methods display the same Net Income. This is because the 1-year lease acts in the same manner as rent expense. Recommendation

We recommend that Ms. Janette Clark, of Magnet Beauty Products Inc., take on the five 1-year leases. Although this will ultimately increase the lease payments, it will also overstate the Net Income of her business. This will help her attain higher quality loans from banks and be more attractive to the investment community. Although footnotes will be disclosed allowing analysts to recompute her financial statements as though the leases had been classified as a long-term capital lease, the average user would not go through the effort.

INTRODUCTION

Neuromarketing, argues Lee, Broderick, & Chamberlain (2007) is an emerging interdisciplinary field that combines economics, neuroscience and psychology, with Neuromarketing being term just six years ago says Smidts (2002). The goal of neuromarketing suggests Laybourne & Lewis, (2005) and Smidts (2002) is to study how the brain is physiologically affected by marketing strategies and advertising.

Brain activity resulting from viewing an advertisement is monitored and measured using neuroimaging techniques such as functional magnetic resonance imaging (fMRI), as shown in Figure 1, and electroencephalography (EEG) is used in order to evaluate the Figure 1 fMRI Image effectiveness of these strategies (Laybourne & Lewis 2005). McClure et al (2004) says neuromarketing studies usually measure preference between products in terms of brand familiarity or product preference.

As a viewer may hold a cognitive bias in traditional marketing studies, measures such as the product preference for a particular advertisement is sometimes difficult to measure argues Schaefer, Berens, Heinze, & Rotte (2006). Walter, Abler, Ciaramidaro, & Erk, (2005) suggest in neuromarketing studies, brand familiarity and product preference have been correlated with neural activity. Further, consumer protection groups and academics view the field of neuromarketing with caution due to the possible ethical implications of designing advertisements to intentionally cause specific neurological effects (Commercial Alert, 2003).

Laybourne & Lewis (2005) and Smidts (2002) says functional magnetic resonance imaging (fMRI) and electroencephalography (EEG) are intrinsic neuromarketing are neuroimaging techniques and comprise the neuroscience aspect of the field. fMRI requires a participant to lay on a bed, with their head located inside the ring of a scanner. Researchers can measure the neural activity throughout the brain in terms of blood flow via oxygen usage by monitoring the participant? s brain with fMRI. As a contrast for this technique researchers can also use EEG equipment as it is fairly portable and light. Using numerous electrodes that are placed on the articipan net-like fashion, as shown in Figure 2, EEGs can measure brain activity by assessing electrical activity at the scalp. Using both behavioural responses as well as neural activations Fugate (2007) says researchers are able to use neuroimaging to monitor and conduct marketing studies of the participant? s response. Fugate (2007) explains neuromarketing as being the process that involves asking subjects to perform experimental tasks and control tasks whilst being wired to various electronic devices.

Researchers are able to compare differences in the images produced during the respective tasks as the devices generate instant, colourful images of a working brain. Researchers are then able to see what parts of the brain have responded to the stimuli used (Fugate 2007). Fugate (2007) describes the mechanics behind neuromarketing, as a revolution in the marketing, however, Fugate (2007) has overlooked some critical scientific concepts, specifically the corollary nature to neuromarketing research. Nneuromarketing as a concept suggests Smidts (2002) emerged prior to the word actually being used in 2002, despite suggestions otherwise.

Many studies lacked the spatial resolution to make any useful claims as to the mechanisms behind effective and ineffective advertising techniques due to limitations of neuroimaging techniques conducted in the past few decades (Smidts 2002). An example argues Reeves, Lang, Thorson, and Rothschild (1989), is their claim that in an EEG study television scenes with negative content causes activation of the frontal portion of the right hemisphere while positive messages cause greater left hemisphere activity in the frontal region.

It is important to note that as only four electrodes were used (in addition to the two reference electrodes) cortical arousal was only monitored in terms of frontal versus occipital (Reeves, Lang, Thorson, and Rothschild 1989). Now days, EEG systems are much more precise and often have up to 256 electrodes to monitor brain activity. Many other studies from the same time period by Krugman, (1971); Rothschild, Hyun, Reeves, Thorson, & Goldstein (1988); Rothschild & Hyun (1990); Weinstein, Appel, & Weinstein (1980) also employ „hemisphere? activations as key findings.

Nonetheless, suggest Weinstein et al (1980) it is not the fact that earlier research in „neuromarketing? has been imprecise that is of greatest importance, but rather how quickly the field has evolved over the last few years. Two methods are typically employed in neuromarketing research as means of evaluating an individual? s preference between products: product preference and brand familiarity. Product Preference Product preference comparisons involve two known brands or products, which is unlike brand familiarity.

Walter et al. (2005) uses an example of male participants being asked to rate a cars looks regardless of cost and practical requirements, given the choice between a high performance sports vehicle, a midsized vehicle and a small car. Participants ranked the sports car first, followed by the med-sized car, with the small car ranked last. Walter et al (2005) suggested the sports cars as a primary reinforcer for social dominance, representing independence, power and speed. In this example, the sports car acted as a secondary reward.

Money or cultural goods are secondary rewards that reinforce behaviour only after prior learning, through associations with primary rewards (innate reinforcers including food, water, and sexual stimuli). The three main functions of rewards as outlined by Walter et al (2005) can: (a) induce positive effect, (b) induce learning via positive reinforcement, and (c) induce consuming behaviour for acquiring the reward. Sports cars are preferred, as seen from the study conducted by Walter et al (2005), as they correlate with primary rewards that we innately seek.

They also represents characteristics that we perceive our culture values. Morgan et al (2002), as cited by Walter et al, (2005) say this study was also adapted from a previous study of dominance and social hierarchy involving prime mates. In short, given two identifiable products, preference will be given towards one over the other, which is due primarily to the preferred product having more reinforcing qualities in terms of secondary reinforcers we identify as being relevant at a personally level, as well as to our cultural heritage. (Walter et al 2005) Brand Familiarity Comparisons between amiliar and unfamiliar products are defined as brand familiarity (Campbell and Keller 2003). When a consumer first sees an advertisement for an unfamiliar brand Campbell and Keller (2003) suggest they feel negative uncertainty towards it as it is unfamiliar. However, repetition of an advertising message, argues Campbell and Keller (2003),  at low levels, decreases this uncertainty and increases the effectiveness. One way that products can earn the trust of the consumer and become more familiar, suggest Fugate (2007), is through the use of celebrity endorsements.

Repeated exposures can decrease the effectiveness of the advertisement by annoying the viewer, argues Campbell & Keller (2003), so therefore advertisers must keep in mind not to advertise too much. Consumers can only store knowledge for the familiar, but not the unfamiliar, so repeated exposures for an already familiar product provides more time for the consumer to process the advertisement and their associated experiences from using the product (Fugate 2007). Consumer can become bored and even annoyed more easily for unfamiliar brands as there is less knowledge to process (Fugate 2007).

Therefore, for consumers to recognise a new brand entering into the markets Campbell & Keller (2003) suggest they need to be conservative in their marketing efforts by not overdo it. More identifiable brands, such as Pepsi, are able to advertise more often with less concern of annoying their audience argues Campbell & Keller (2003). Neural Correlates A key principle of neuromarketing, suggest Damasio (1996), is that it is based on finding a neural correlates for buying consumers such as product preference and brand familiarity.

As most studies are only able to monitor neural activity observationally it is important to acknowledge that researchers are only able to seek a correlate and do not induce product preference via neural stimulation (Damasio 1996). Interestingly, peer reviewed evidence has been found linking brand familiarity and product preference with the medial prefrontal cortex, says Damasio (1996). The medial prefrontal cortex (mPFC), suggest Damasio (1996), is a repository of linkages between bioregulatory states and factual knowledge.

In the more specific instance of advertising , this translates into experiences and product information being linked to positive effect, via the mPFC (Damasio 1996). mPFC Studies by Kable and Glimcher (2007) point to the medial prefrontal cortex (mPFC) as the locus of interest for neuromarketing studies are quite notable. As outlined in the sports car study earlier Walter et al (2005) advise product preference has been correlated with the activation of several brain regions in the reward circuitry of the brain, including the mPFC.

Brand preference and previous conditioning is only demonstrated in brand-cued delivery, and only then is there significant ventromedial prefrontal cortex activation. Koenigs & Tranel (2008) in a follow-up to the McClure et al (2004) study shed more light on the paradox of cola preference. Koenigs and Tranel (2008) explain that subjects tend to prefer Pepsi over Coca-Cola, or have no reliable preference, in a blind-taste test, yet Coca-Cola consistently outsells Pepsi therefore creating a Pepsi paradox.

When brand information is available, CocaCola is preferred, however, when brand information is not provided, no reliable preferences can be made, which is creating the paradox (Koenigs and Tranel 2008). Cola preference was counterbalanced in the McClure et al (2004) study. Koenigs and Tranel (2008) tested predictions from previous studies by using participants with damaged prefrontal cortex. Koenigs and Tranel (2008) discovered that when patients are presented with brand information, it makes no difference on their preferences.

The conclusion was this finding mirrors effects found in normal individuals participating in blind-taste tests. Gladwell (2005) suggest the strong brand image of Coca-Cola, not taste, is the reason Coca-Cola is preferred over Pepsi. Several studies have connected brand familiarity with mPFC. Schaefer et al (2006) and Schaefer & Rotte (2007) report that when comparing familiar and unfamiliar products with mPFC activity differences in neural activity are detected, which can also be connected to neurolearning literature of novelty detection in rat lesion studies suggest Dias & Honey (2002). Campbell and Keller (2003) suggest relative to behavioural principles, brand familiarity is of extreme importance to advertisers. Fear the unknown pushed consumers away, and in advertising, this fear creates uncertainty for product that results in consumers selecting a known product. For culturally familiar brands relative to unfamiliar brands Schaefer and Rotte (2007) demonstrate this as superior frontal activity and increased mPFC. In short, studies conducted McClure et al (2004), Paulus & Frank (2003), Walter et al (2005) have linked medial prefrontal cortex (mPFC) activation to preference judgements.

Further, Schaefer et al (2006) and Schaefer & Rotte (2007) suggest mPFC can be attributed to the preference for the familiar over the unfamiliar, assuming that the consumer is going to buy a product either way (i. e. a vehicle). Preferences between the available choices in terms of their relative value, suggests Montague (2008), is the next step in the consumer decision making. Consumers can evaluate their choices by weighing the pros and cons of all the available choices (Montague 2008). Research by Sutherland (2004) shows that this process is primarily undertaken by the medial prefrontal cortex, which some have dubbed the „liking centre? f the brain. Several other areas have been implicated as key brain regions relevant to neuromarketing research, suggest Walter et al (2005), other than the medial prefrontal cortex.

This is used as a mechanism for learning as it is thought of as prediction error. The amygdale says Walter et al (2005) has also been correlated with reward intensity in neuromarketing studies, however, is commonly known for its role in processing emotional information. The orbitofrontal cortex (OFC), says Walter et al (2005), consists of mainly two regions: the lateral and medial (and is mainly thought of as a measure of preference. The medial OFC is activated by rewarding stimuli, which includes the medial prefrontal cortex. Lateral OFC activity is correlated with punishing stimuli.

Neuroscience academics tend to focus on more medically relevant questions, though there are many journals dedicated to economics and marketing (Thompson, 2003). As such, some believe that “brain imaging will be used in ways that infringe personal privacy to a totally unacceptable degree” (Editorial, 2004b, 71). An anonymous author in Nature Neuroscience, took a similar stance, saying “Neuromarketing is little more than a new fad exploited by scientists and marketing consultants to blind corporate clients with science. ” (Laybourne & Lewis 2005, 29). Neuromarketing research may help reduce the problems raised by Commercial Alert (2003).

For example, Montague, Hyman, & Cohen (2004) say, by examining the differences between the brain activity of compulsive overpurchasers may help to understand why these compulsive individuals tend to spend outside of their means. In addition, it can provide useful information for how clinicians treat these disorders by looking at the correlations between buying behaviour and clinical disorders. For example, the reward circuitry of the brain and in value-based decisionmaking and the medial prefrontal cortex are quite important says Montague, Hyman, & Cohen (2004).

Two significant ethical issues are present in neuromarketing research argues Murphy, Illes, and Reiner (2008), being:

• protection of consumer autonomy if neuromarketing reaches critical effectiveness,
• protecting vulnerable parties from harm.

To mitigate, recommendations for a „code of ethics? to be adopted by the neuromarketing industry are proposed by Murphy et al (2008). Some of the recommendations include

1. accurate representation of scientific methods to businesses and the media,
2. full disclosure of ethical principles used in the study,
3. protecting research subjects from any coercion.

Free will & Decision-making Murphy et al (2008) suggests that if neuromarketing ever does reach critical effectiveness then the concerns of Commercial Alert (2003) may not be unfounded after all as neuromarketing may infringe on an individual? s free will. The importance of neuromarketing is not restricted to neuroimaging, but also includes computational neuroscience, which is the study of quantifying the component steps that underlie a given behavioural process. Value-based decision-making, for example, can be broken down into five steps suggest Rangel, Camerer, & Montague, (2008), Page 9 of 18

Vohs & Schooler (2008) suggests that free will and the ability to manipulate perception of it have also recently become apparent. However, it has been many years, suggests Libet, Gleason, Wright, & Pearl (1983) since neuroimaging studies have suggested that neural activity does precede conscious intention, especially if it can be monitored. The decision of whether or not to buy a product is a result of from balancing the gain of obtaining the product, says Knutson et al (2007), offset by the act of actually having to purchase for the product, which is an interplay of corresponding valuations and choices.

Using computational neuroscience, rather than neuroimaging, Walvis (2008), is able to connect neuroscience with common marketing principles. Walvis (2008) suggests three propositions of how the brain organises information and states, “These three propositions function similarly to the basis of an artificial neural network model, implicating the importance of what other „elements? the brand is associated with, the strength of these associations, and the sheer number of associations that are present between the brand and other „elements? in the network” (Walvis, 2008, 182).

These form the basis, say (Walvis, 2008, 186) for the “Three Branding Laws”, based upon how engaging the branding environment is to the consumer, how repetitive and targeted the branding efforts are, and how personally relevant the brand? s marketing strategy is to the consumer. The stronger these pathways and connections are, the more likely a given product will be selected by a consumer. We can again quantify factors involved in choice behaviour, through the use of an artificial neural network, by using these laws says Walvis (2008).

Neuromarketing can greatly improve marketing techniques when using a strong neuroscientific basis for branding, as suggested by Walvis (2008), even without the use of neuroimaging, but rather employing other aspects of neuroscience.

CONCLUSION

Fugate (2007) suggests a revolution will soon overcome current market research as a consequence of several key implications of neuromarketing. Researchers are better able to evaluate an advertisement? s effectiveness much more scientifically, when applying neuromarketing techniques, in terms of how the ad affects the viewer? emotional state (i. e. , excitement or humour) as well as the viewer? s attention to the ad. Product appeal, suggested by Walter et al (2005) and the „sports car? study are also identified with respect to the findings with the reward circuitry of the brain. Neuromarketing was shown to be able to connect and quantify the effects of celebrity endorsements, suggested by Fugate (2007) that links the auditory and visual stimuli of the celebrity as they cause hormonal secretions in consumers that identify with the product endorsement, which can lead to a positive emotional response and feelings of trust.

As researched by McClure et al (2004), logo/brand selection and emotional attachment was shown to be significant with consumers, which explained the result that Coca-Cola outperforms Pepsi. Only time will tell how much of an effect these new techniques will have on marketing success as the future implications of neuromarketing show great potential. Neuromarketing, in its current stage, is by no means adequate in determining if an advertisement is effective. Stimulating the medial prefrontal cortex does not mean that an advertisement will be effective as it is only a corollary response.

The medial prefrontal cortex region of the brain is also the subject of other research studies, which include those in fear conditioning as suggested by Baratta, Lucero, Amat, Watkins, & Maier (2008), provocation resulting in eating disorders (Uher et al. , 2004), and startle responses (Day-Wilson, Jones, Southam, Cilia, & Totterdell, 2006). The field shows great promise as being the next step in market research despite the current flaws in neuromarketing research.

Advertisers are likely to be more successful in making a longer lasting impression on the consumer if they took advantage to the many psychology studies that have been previously conducted as they would be better able to direct their efforts towards a target demographic. It is debatable if improved marketing capabilities are good or bad for the consumer; however, with ethics being enforced through legislation I feel we are seeing the myths of neuromarketing being debunked.

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When it comes to discussing the performance of hotels in the hospitality industry over the past two decades, a few words come to mind: competitive advantage, globalization, and business survival. All three aspects of the hotel industry point in one direction i.e. increased competition faced by all hotels. This competition exists for both hotels operating locally only as well as multinational firms looking to expand into different geographic markets. In an improved effort to increase or regain profitability, hotels are looking towards differentiating themselves (Jeffery, Barden, Buckley and Hubbard, 2002). This differentiation could be anything such as creating a more visitor focused package and providing creative value added services.

The author believes that hotels, especially those in the international industry find themselves in a situation otherwise characterized by Charles Darwin for humans. In other words, only the fittest hotels will manage to survive in this industry; and the biggest factor that determines is financial performance. Contrary to the fact that a small hotel, in the UK for example, is preferred or well liked by some or only a few loyal customers, the hotel’s existence ultimately depends on its ability to ensure a high enough occupancy rate.

Financial performance and sustainability are the outward tangible results of a strong performing hotel. However, we wish to examine the role of an overarching aspect behind the key differentiator between good and bad hotel performance i.e. marketing and management. Based on research from various sources (Ward, 1997; Jeffery, Barden, Buckley and Hubbard, 2002) branding has been identified as the key differentiating factor between the success and failure of hotels in the UK. The UK will be the primary geographic focus in this paper; however, Ingram (1995) argues that the problems faced by hotels are similar and becoming more common all over the world. This assumption will be followed in this paper because much of the articles published in the International Journal of Hotel Management show that hotels are increasing becoming international and that the problems they face are quite similar as well (Ingram, 1995).

The author argues that hotel branding, as a sub theme of marketing and management will ultimately determine the success of any operating hotel in the UK. Also, this argument can be applied to at least, other European countries of equivalent economic and social prosperity. This argument is being based on the research of Trevor Ward (1997) and Jeffery, Barden, Buckley and Hubbard (2002). While the focus of both the papers is quite different, both papers find that branding is the most important success factor for hotels in the industry. This is not to say that environmental factors such as proximity to a major tourist attraction or metropolitan city do not play a role in determining the financial success of a hotel. This is to say that, based on all the aspects that will be covered in this paper, hotels will become profitable and competitive if smart management techniques will be employed, past trends are incorporated in the business plan and possible future uncertainties are taken into account for any hotel. Although HRM and IT are the not the core focus of this paper, the author believes that the two subjects nonetheless can not be ignored. Therefore, their impact on hotel competitiveness and contribution to management objectives will be discussed but not in great detail.

Based on the 15 year UK hotel occupancy analysis by Jeffery, Barden, Buckley and Hubbard (2002), this paper suggests that there is a strong link between the success of a hotel and its occupancy rate over a considerable time period; high performing hotels or those rated as hotels with good management and marketing practices are shown to have a consistently strong or above par occupancy rate compared to other competitors in the locality. The research provided some interesting initial findings; on a basic level, two major segments were identified i.e. the leisure and business market. For both segments, hotels that were successfully able to maintain high occupancy rates possessed a combination of the following qualities:

• Good location compared to competitors
• Historic or romantic image
• Successfully attracted foreign visitors
• Good conference facilities
• Wide range of rooms with facilities
• Central London location
• Member of a marketing consortium

Also, hotel occupancy showed a great amount of seasonal variation. The business segment generally preferred to use hotels in the mid week whereas the leisure segment showed greatest preference at the end of the week; mostly higher quality hotels with substantial marketing budgets and variable pricing policies were able to successfully attract the leisure segment.

On a more specific level, each hotel with a strong occupancy result was compared to other comparable hotels in terms of size, location, situation/events. These comparisons showed a clear correlation between the success of the hotel and its management practices. Some of the important management implications and practices that were observed in the more successful hotels and found lacking in unsuccessful hotels are as follows:

• Use of various tools and techniques customized to each segment; Market Intensification or expansion of market segment in which the hotel achieves some success
• High emphasis on staff service that results in high frequency repeat visits by customers
• Hotels tried to spread or increase off-season demand by creating special pricing packages
• Databases were used to target the segmented markets by sending package offers by mail to previous guests
• Hotels provided the maximum number of booking channels for example, internet booking that was offered by some hotels in the mid 1990s
• Successful hotels were aware of seasonal and variable trends in occupancy they also had a finely tuned sense of awareness about environmental factors determining these occupancy rates

These findings show what sets apart a successful hotel from other hotels i.e. a keen focus and reliance on marketing techniques. This can be supported by the fact that even though high occupancy hotels may have a combination of qualities as mentioned earlier, what sets the successful hotels from poorly performing ones is the use of segmentation and targeting, highly trained staff and ability to detect and adapt to environmental factors such as the economy or even major international events such as the Olympics.

The use of databases and IT to support the above discussed marketing efforts or Customer Relationship Management (CRM) provides a competitive advantage that can make a difference between a successful and poorly managed hotel. Enterprise Resource Planning software like SAP, for example, provides numerous benefits such as identifying the most profitable segments and even the exact revenue increase due to a decrease or increase in price. Using this information, hotels can more actively pursue this segment i.e. use market intensification. One way of doing this is to provide discounts to these segments that will add greater value to the hotel product and also ensure that the resulting fall in revenue is offset by greater repeat visit by customer or positive word of mouth to other potential customers. These ‘best’ practices are generally missing from the poorly performing hotels in the UK (Jeffery, Barden, Buckley and Hubbard, 2002). These hotels were found relying on very few marketing tools with no quantifiable results; most resorted to expensive local newspaper advertising but did not have an idea of which specific segments they were targeting. Pricing was also used on ad-hoc basis with no specific strategy in place. Most hotels changed or matched price to those offered by hotels with similar services. There was no initiative or control by management to create special offers for customers; often third parties such as national tour operators negotiated significantly lower prices that increased occupancy but came at the cost of much lower revenue.

CRM can make all the difference between a successful and unsuccessful hotel. John Riddel, Senior VP Pricing at PROS revenue management brings to attention a concept known as price optimization. According to Riddel, “pricing is currently a commodity type of pricing, where a customer that has stayed 100 nights is quoted the same rate as one that only one night over a peak time(Riddel, quoted by Milla and Shoemaker, 2007).” The point being made here is obvious: any successful hotel must understand CRM; it must understand that profits will not be sustainable until consumer relationships are created and valued. A greater understanding of consumer needs and an ability to provide an exceptional brand experience can undoubtedly sustain a hotel business, even if the the market is extremely competitive.

Another strategic area where the low occupancy hotels were found lacking was that they lacked a clear sense of direction and awareness of the environment and competitive industry. These hotels blamed the receding economy, their locality and price competition by budget hotels as reasons for low occupancy. While these factors may have some weight, they clearly do not provide enough reason to counter the fact that the UK hospitality industry has been in a very stable and growth oriented position since the mid 1990s (Ward, 1997). It becomes clear then that the crucial difference between the successful and unsuccessful hotels is more a case of management and adaptation to the quickly changing and increasingly competitive industry.

The role of marketing has been discussed in great detail; what also needs to be considered is a subset of management i.e. human resource management. The author reflects the argument of Jamal Feerasta (2007), who states that a hotel’s promise is only as good as the people that provide it. In other words, the essence of marketing is lost unless the ‘people factor’ is clearly understood i.e. people (employees) are the key to upholding the brand image of any hotel. It stands true because the most important aspect of a hotel is the service it provides to its consumers. Watson and Green (1996), develop this argument further by showing that a clear correlation exists between creating a positive culture via HRM and its significantly positive impact on success in the hotel industry. Crawford and Hubbard (2007), also show a clear positive impact of goal setting on employee service and performance in hotels. All the above mentioned research on HRM shows how HRM can be instrumental in making any hotel a success along with the use of other key management and marketing efforts (as discussed earlier).

This paper has therefore provided a clear case of what it set out to do i.e. to provide insight into what is the core success factor of hotels in the UK. The decisive role of management and marketing has clearly made a difference in the success of hotels in the UK hospitality industry. Using more examples and research from cases of different countries and hotels and with the inclusion of HRM, CRM and IT to the essential managerial and marketing perspective, this paper adds to the research of Jeffery, Barden, Buckley and Hubbard (2002) that showed that only management and marketing were the key success factors. Concerning HRM, goal setting and other motivational techniques and its precise impact on carrying the brand promise can be an area of further study. Similarly, a greater insight into the shift from revenue management to customer relationship management can again help the hospitality industry to apply these concepts with great success.

References

1. Watson S. and Green N. (1996) Implementing cultural change through human resources: the elusive organization alchemy? International Journal of Contemporary Hospitality Management, 8 (2) pp. 25-30. Accessed from Online Database : EBSCO Host.
2. Crawford A. and Hubbard S. (2007) The impact of work-related goals on hospitality industry employee variables. Tourism and Hospitality Research, 8 (2) pp. 116-124. Accessed from Online Database : EBSCO Host.
3. Milla S. and Shoemaker S. (2007) Three decades of revenue management: What’s next? Journal of Revenue and Pricing Management 7 (1) pp. 110-114. Accessed from Online Database : EBSCO Host
4. eerasta J. (2007) In a service industry, people make or break business. Hotel & Motel Management Online version p.19 Accessed from Online Database : EBSCO Host
5. Ward T. (1997) Hotel market trends in the UK. International Journal of Contemporary Hospitality Management 9 (7). pp. 270-273. Accessed from Online Database : EBSCO Host
6. Jeffery D. Barden R. Buckley P. and Hubbard N. (2002). What Makes for a Successful Hotel? Insights on Hotel Management Following 15 Years of Hotel Occupancy Analysis in England. THE SERVICE INDUSTRIES JOURNAL. 22(2) April pp. 73-88. Accessed from Online Database : EBSCO Host
7. Ingram H. (1995) Hospitality and tourism: international industries experiencing common problems. International Journal of Contemporary Hospitality Management. 7 (7) Accessed from Online Database : EBSCO Host

The growing complexity of the business world has created the increasing need for analytics; “according to a 2009 BusinessWeek Research Services survey, 83% of C-level executives agreed that the importance of using the information to run their businesses has never been greater”(Haag, Cummings, 2012). The need for analytics is coupled with a need for business intelligence and the hardware and software that comes with it. Many companies have invested large amounts of time and resources to create operational databases and data warehouses in order to perform analytics.

While operational databases support online transaction processing (OLTP) and are therefore used for day-to-day operations (inventories, purchasing, manufacturing, payroll, etc. Data warehouses support online analytical processing (OLAP) and are used for more in-depth analysis and report generating. Both are in fact supporting decision-making, just on different levels. As OLTP is aimed at routine operating decisions it is more suited to the lower levels of an organization; whereas OLAP is more suited towards the higher levels to create a long-term strategy or to deal with problems and opportunities.

Oddly enough, this matches up quite well with the two schools of thought regarding the decision-making process. The classical theories of decision-making are focused on rationality; the selection of the optimal solution is ‘guaranteed’ through the analysis of information (data) and objective evaluation of all alternatives in comparison with the objectives of the organization. [3] This theory seems more suited to OLTP, to make structured decisions; what is meant by ‘structured’ is the processing of information in a certain way to always get the right answer.

The ‘old-school’ theories work on a basis where there is some sort of agreement on the objectives between all of the stakeholders. The more recent school of thought (which can be called ‘bounded rationality) argues that stakeholders have different conflicting objectives; therefore there are many uncertain factors that can affect the decision-making process. [5] Many rational models of decision-making have been written; as structured decisions can be described more precisely and are therefore more prone to quantitative analysis these models will only be briefly mentioned in this paper.

In contrast, very few models of unstructured decisions have been created; one of them is the “trichotomy” of decision processes written by Simon in 1960; this theory is further developed in the study “The Structure of ‘Unstructured’ Decision Processes” by Mintzberg, Raisinghani and Theoret. This paper will resume the findings and the subsequent model for the ‘unstructured’ decision-making process proposed by Mintzberg et al. We will examine how rational and bounded rationality models fit in with analytics, more specifically OLTP and databases and OLAP and data warehousing.

Finally, we will see how the very book that is supposed to teach us MIS can be improved by including decision process models. In their study “The Structure of ‘Unstructured’ Decision Processes”, Mintzberg, Raisinghani, and Theoret continue the work of the other “bounded rationalists” such as Simon, going from the standpoint that strategic decisions are made up of a series of complex and unknown decisions; it is not a process one does in complete certainty, but rather mostly in uncertainty.

Using empirical evidence collected over 5 years by master students in management policy, (especially examining in-depth 25 decision processes that were deemed strategic) they have managed to create a framework for the strategic decision process. The 25 decision processes were broken down into routines and dynamic factors that then were used to create the model. Their framework is based on Simon’s trichotomy but they have replaced the terms “intelligence, design, choice and implementation” with “identification, development and selection”.

The three latter terms represent the three main phases of the unstructured decision process, which is then broken into seven routines. Simon et al. have also identified three routines that support the main framework. In addition, they have acknowledged the existence of six dynamic factors that influence the process quite significantly. The main phases are highlighted in blue and the seven routines in red. This model also takes into account the supporting routines as well as the dynamic factors, which explain the delays, the interrupts and reason the diagram seems to have a circular flow if you follow the arrows.

According to the authors, any strategic decision (therefore unstructured as there isn’t one certain answer) starts off with one or several stimuli that they categorize as a crisis, an opportunity, or a problem that evoke the need for a decision to be made; the act of doing this is the recognition routine. The decision can then move onto the evaluation/choice routine and finish there; “these two routines must be part of any decision process”(Mintzberg et al.).

They found however that all decision processes went through at least one of the other routines, and many would cycle back and forth through two or three routines. Their findings showed that all decision processes followed this general model but took different routes within it, so they created seven different route configurations each with specific characteristics of decisions. Throughout this model, there is evidence that analytics can help facilitate the decision-making process. During the recognition routine a data warehouse could be greatly beneficial for recognizing problems and opportunities previously gone unseen.

Analytics could also be used during the development phase, especially during the design stage either for modifying an already existing solution or to create a new one; it could also be used to improve the screening process, which is a very superficial routine done simply to reduce the number of different solutions into a more feasible number before presenting them to upper management, the choice/evaluation routine. The latter routine could also greatly be improved by analytics as both judgment and bargaining are made mostly by intuition.

Mintzberg et al found little evidence of the analysis routine being used. The analysis routine most definitely uses analytics in order to evaluate the possible solutions; this routine should be used more often as it seems sort of redundant to go through all these routines, to then have executives with limited knowledge of the subject in question make a decision based on their ‘feeling’. These are just a few examples of how data warehousing and analytics could be used in parallel with the model for strategic decision processes developed by Mintzberg et al.

As mentioned previously, I believe that data warehouses and OLAP are more suited to the needs of unstructured decision-making processes due to the very capable decision support systems (DSS) and data-mining tools. DSSs are developed for the very purpose of aiding in decision-making, however, there are many different tools to use; several different artificial intelligence systems, data-mining tools, and agent-based technologies. Having a model for the decision-making process at hand can help in understanding what to use when, it could serve as a guideline for using data warehouses efficiently.

My opinion is also that the framework developed for structured decisions could be used in conjunction with databases and OLTP in order to further improve the day-to-day operations decisions. We have shown that there evidently is a link between MIS and decision process models such as the one developed by Mintzberg et al. Consequently shouldn’t the very book that is supposed to teach its readers how to implement, manage and utilize information systems to optimize decision-making contain the models of structured and unstructured decision process models? The answer is yes, it should.

The book, ‘Management Information Systems for the Information Age’ by S. Haag and M. Cummings does contain brief information about Simon’s trichotomy showing the four phases of decision-making, as well as resuming his theory of ‘satisficing’; it further goes to explain the difference between structured and unstructured decisions. However, it stops there. The first issue with this, and probably the most surprising, is the fact that they chose to put the work of Simon without including any of the other research done using Simon’s basic principles such as the work by Mintzberg which develops a much more precise model that could realistically be followed by organizations in conjunction with analytics and in general as a map for using management information systems. The second issue is that they don’t explain the link between the decision models presented and management information systems, as I have attempted to do in this paper. Finally, they have made most of the information about decision-making processes very brief, only scratching the surface of the potential that is there in terms of effective management of information and information systems.

Acer Incorporate is a leading manufacturer of personal computers and notebook computers. The company is into research, design, development, manufacture and distribution of IT products worldwide. The company markets Acer brand products, including mobile and desktop personal computers, servers and storage, LCD monitors, projectors, high-definition TVs, peripherals and e-business solutions throughout the world.

The company principally offers its products under four key brands which are Acer, Gateway, Packard Bell and e-Machines. Acer is also a provider of ICT solutions and services, including mobility applications, information security management, systems integration, software systems development, system operation services, Internet data centre services, and value-added business solutions. The company’s operations are pned across the Americas, Asia-Pacific, Europe, Middle East, and Africa. Acer is headquartered in Hsien, Taiwan.

Acer founder and Chairman Stan Shih designed Taiwan’s first desktop calculator in the early 1970s. Acer is the EMEA region leader in the notebook sector, holding 18% market share in Q1 2005. Confirming its leadership in the EMEA notebook market, Acer ranks first in 13 countries which is Italy, Spain, Austria, Holland, Switzerland, the Czech Republic, Russia, Portugal, Belgium, Denmark, Poland, Hungary and the Slovakian Republic. Acer’s product range includes PC notebooks and Desktops, servers and storage systems, monitors, peripheral devices, digital devices, LCD TVs and e-business solutions for business, Government, Education and home users. Acer employs 5,400 people throughout the world and has created a consolidated sales and service network in more than 100 countries. Revenues reached 7 billion US dollar in 2004.

Mission of Acer Company

Mission Statements contain important information about a company in a nutshell. This should include the company mission such as what the company does, what is the products, how its services and its customers. The Acer Company as we know it is a multinational information technology and electronics corporation headquartered in Xizhi, New Taipei City, Taiwan. Acer’s products include desktop and laptop PCs, tablet computers, servers, storage devices, displays, smart phones and peripherals. It also provides e-business services to businesses, governments and consumers. Acer’s mission is to create and promote research-based knowledge, products and services that can be used to improve learning across the life p. Read about Evolution of Job Design

Quality management Quality is represented by how close the project and deliverables come to meeting the client’s requirements and expectations. ACER is producing high quality, innovative research and research-based services and materials to improve learning.

Layout design Acer was taking a creative, flexible and bold approach to the development of knowledge, services and materials in innovation.

Independent Acer independence to providing advice and commentary that is informed through doing some research is authoritative, and non-aligned.

Responsiveness Acer was integrity being ethical, honest and trustworthy in all our relationships and interactions. Besides, Acer will respond in anticipating, understanding, meeting and exceeding client to achieve the customer expectations.

Positive relationship Positive relationships are creating an organisational environment characterised by respect, fairness, openness and support of physical and emotional wellbeing.

Human resources

Develop and manage human resources including recruitment, training, administration, career development, compensation and welfare, and staff relationship.

Strategies for competitive advantage The Acer strategy is to remain the third largest PC manufacturer in the globe in this highly commoditized and competitive industry. The strategy includes acquisitions, development of new technology, growing the emerging EMEA and Japanese regions and solidifying strategic alliances with firms such as Microsoft. Cost leadership

Acer’s overall competitive strategy is to be a low cost provider; undercutting rivals to maintain cost leadership to a large range of buyers. However, while this is true for the Acer brands, more premium offerings, such as Gateway and Ferrari, are targeted at other competitive strategies. Gateway has a focused low-cost strategy while Ferrari has a niche market strategy based on differentiation. Acer has also adopted a transnational strategy, selling their product anywhere in the globe and sourcing the components and production from the least cost source. This is unlike Dell which has taken an international strategy to source from a narrow range of producers and then to manufacture close to the market. While this provides efficiencies to Dell, it also allows Acer a competitive advantage to source product at a lower price. This is especially evident in laptops where the Acer product equivalent is considerably cheaper than Dell. The Acer business model is to provide low cost, premium PC that suit the local conditions. This is appealing to the public and is successful due to: Clearly defined vision

This factor is to have cost leadership, but allow customers to trade up or down according to their needs or requirements. This allows emerging markets consumers to afford a quality and trusted PC while in mature markets the consumers can choose to upgrade.

Distribution This factor is Acer using known retailers to help Acer company to grow the market share. Manufacture `Manufacture is one of the factor that sourcing premium product from the globe where a price advantage can be leveraged. Innovation Innovation this factor means that Acer Company pushing the boundaries to find new markets.

10 Critical Decisions

Design of goods and services

Acer is in the business of manufacturing and leading manufacturer of notebook, desktop, and notebook computers. Other Acer products include servers, storage systems, smart phones, projectors, LCD televisions, digital cameras, and computer displays. The company also provides IT support services, and its Acer facility is the largest stand-alone data centre in Asia. Acer has differentiated its customers into the various segments that such as home and home office, small and medium business, large business, global accounts, government, healthcare and education.

Quality

Quality means how the company process the product of material to meet the customer’s expectation. The quality of a computer can be broken down into the quality of various components that go into the manufacture of a computer. For example, customers can think of a quality computer application of the response time, look and feel, ease of understanding, level of help documentation, and absence of defects.

Quality control and quality assurance is two of the general quality processes of quality plan. Quality control activities ensure the deliverables produced by the project meet customer expectations. An example of a quality control activity is an inspection of each component that will be used to complete a final deliverable. Quality assurance activities ensure that the processes used to create the deliverables are of high quality. Besides, an example of a quality assurance technique is a checklist that contains all of the steps that a deliverable must complete before it reaches final acceptance.

Process and capacity design

The Acer operations strategy is the Acer direct models which enable Acer to direct sell to customers thereby eliminating middlemen like wholesalers and retailers. Acer also makes each and every system built to order which is built to the specifications that the customer wanted. Operation management such as product should decide what process it, what type of technology and to what extent, human resources, quality and maintenance that determines its basic cost structure. Services operation decision on this area is much simpler and it can determine by customers who directly involved in the process. For example, Acer might come out a limited edition design for few customers.

Location strategy Location can be an area for operation management to decide and with globalization of business, operation managers too must think global for instant Acer headquarters is located in New Taipei. For physical goods, location selection can be determined by pools of qualified human resources, technology, raw material, access to market and government policy. For services as it is direct to customers, the location is determined by market accessibility or near to customer as possible. For instant: Acer has manufacturing facilities located in most of the major markets that it sells to. In the early 2000s Acer implemented a new business model, shifting from a manufacturer to a designer, marketer and distributor of products, while performing production processes via contract manufacturers. All of Acer’s products are now made by original equipment manufacturers in the People’s Republic of China. In addition to its core business Acer also owns the largest franchised computer retail chain in Taipei, Taiwan.

Layout strategy Layout strategy is the material flow, process selection technology used, capacity needs, workers needs, inventory requirement, and capital will influence the decision for layout design. As described in the process section, Acer follows a process where the inventory is order only after Acer has received a firm order from the customer. The factory is also arranged in such a way that it is aligned to the manufacturing philosophy of just in time production. The layout that is implemented allows the in process system to easily move from one sequential stage to another before it is tested and then sent outside the factory to be picked up by the courier company. Human resources and job design

Acer is a very process oriented company with it having well defined set processes for each and every function in the company. To ensure that the employees understand these processes and have a clear idea of what is expected out of them, the human resources department has to ensure well defined job description with roles and responsibilities assigned to every job. At the factory operations, Acer has defined jobs and people specifically for the jobs, so that they get better at them leading to higher efficiencies. However Acer also encourages people to explore newer jobs if they are interested in trying out other functions that what they are trained on. Supply chain management

A supply chain consists of three types of entities which is customers, a producer, and the producer’s suppliers. The extended supply chain includes customer’s customers and supplier’s suppliers. In order to identify the labour issues in Acer’s supply chain, research was undertaken on the working conditions in four factories in China and one in the Philippines. All of the companies that were researched provide manufacturing services to Acer. Acer is credited with having one of the most advanced and responsive supply chains in the world and this is one of the reason that why Acer had meet with such huge success. Acer has other business partners such as the courier companies that deliver the finished goods to the customer. Inventory

The decisions on how and where the inventory level to keep long term customers satisfaction, suppliers, material availability for not to disrupt the production, human resources needed for this purpose and important the holding cost from financial perspective. For example, Acer’s board of directors today agreed to take one-time action on recent findings of high channel inventory and disputed accounts receivable in Europe, Middle East and Africa operations. Acer will provide channels with 150 million US dollar in sales allowance to clear inventory, which will result in operating loss of the same amount. Scheduling

Scheduling is the efficient way of allocation, control and management of materials, capital goods and human resources to efficiently produce the final goods from the input available. Schedules are more formal in goods production with short, medium and long term planning to accommodate customers demand. For example, Acer Incorporation is the world’s second largest Personal Computer brand, is planning to set up a second operations hub in Chongqing, China, early next year. The move is designed to keep Acer close to the computer manufacturing supply chain in Chongqing, where top computer brands and makers such as Hewlett-Packard Corporation and Quanta Computer Incorporation have operations or manufacturing bases. Maintenance

Maintenance is the decision that must be made regarding the desired level of reliability, stability and systems must be established by management to maintain that reliability and stability. Maintenance and timely services of the machines are one of the most important things to ensure that they perform what they have to do and also churn out quality and defect free product. Acer uses lean periods in demand and off hours to perform its maintenance works. It also has the choice to switch production to other nearby facilities when there is maintenance going on at one of the facilities.

Conclusion Nowadays, Acer had expanded their business in to the worldwide. Acer Incorporated is a leading original equipment manufacturer of notebooks, tablet, handheld, and desktop computers from Taiwan. Acer has efficient its operations in recent years, spinning off all of its manufacturing operations, which the company considers to be of low value.

Acer has implemented a new channel business model, shifting from being a manufacturer to a pure brand company that markets and distributes its products, while leaving the actual production process in the hands of contract manufacturers. According to Acer, the company now sources from about one hundred system suppliers and primary component suppliers in Asian countries. Labour conditions at these suppliers are often appalling.

Why managers may face difficulties when managing employees in a cross-cultural context? In today’s world, issues linked to a cross-cultural context are mainly raised because of the internationalization and globalization of the economy. Helped by many free trade agreements or some emerging countries, numerous firms have established new offices and factories in countries all around the world.

The questioning on the cross-cultural context has been raised because of the problems that many managers faced in the country they were sent to. In Expansiin1, a management/strategy magazine in Mexico, we could read in the July 6th 2005 issue the story of Donald Gleason, a U. S. factory manager who moved to Mexico in order to raise the productivity of his firm factory in the State of Mexico.

He apparently was not able to understand main cultural points and his management was a complete failure which led to a 500. 000 $ loss for his company. In the following essay, we will present the origin of the problems, trying to identify the causes. Our aim will not be to find answers to these problems, only to understand their nature.

In Developing Cultural Understanding2 Tina Matikainen and Carolyn B.Duffy present us a definition of culture: The culture in which each of us lives influences and shapes our feelings, attitudes, and responses to our experiences and interactions with others. Because of our culture, each of us has knowledge, beliefs, values, views, and behaviors that we share with others who have the same cultural heritage. These past experiences, handed down from generation to generation, influence our values of what is attractive and what is ugly, what is acceptable behavior and what is not, and what is right and what is wrong. Our culture also teaches us how to interpret the world.

From our culture we learn such things as how close to stand to strangers, when to speak and when to be silent, how to greet friends and strangers, and how to display anger appropriately. Because each culture has a unique way of approaching these situations, we find great diversity in cultural behaviors throughout the world. According to this definition, culture is made of all that defines our background and this is exactly why, as it is stated, we find great diversity in cultural behaviors throughout the world and this is the exact reason why managers may face cross-cultural problems.

As they have different cultural i. e.different knowledge, beliefs, values, views and behaviors, they will not have the same approach regarding a work, a problem, a situation. According to DuPraw and Axner3 (1997) there are six fundamental patterns of Cultural Difference: Communication Styles, Attitude towards conflict, Approaches to completing tasks, Attitudes towards disclosure, Approaches to knowing. From a culture to another, even if they share the same language, the meaning of words change and doesn’t convey the same ideas and the importance of non-verbal communication is not the same. Conflict, depending on the culture, can be seen as a bad or good thing.

Western countries often consider conflicts as being undesirable and often do all that is possible to tackle the issues immediately, whereas some other cultures don’t have the same considerations on conflicts and believe that it is profitable for both parts. Another aspect of the conflict is the way to tackle it. Some cultures are accustomed to settle a conflict by a written exchange, contrary to the western face-to-face confrontation which can be embarrassing for them. How to complete task also differs from a culture to another because they will consider the same approach to complete it and also the way to work in teams are not the same.

The process to make a decision in the working process is also submitted to variation depending on the cultural background. In some countries there is only one decision maker for the entire working process whereas in others the there must be a common agreement on what to do. Expressing feelings can also be an issue because it may be considered rude in some cultures to frankly expose emotions regarding a problem. Finally, the knowing process is also a relevant matter in a cross-cultural context. In some countries, you know because this is the way you learned it in school but in others it is more based on your experience or on witnessing events.

Though understanding the differences that all of these fundamental patterns bear, it is not the principal and unique approach to a cross-cultural context. Hofstede4 (1996) considers five fundamental approaches to national culture: hierarchy, ambiguity, individualism, achievement and long-term orientation. Hierarchy is seen differently through the cultural point of view. In some culture there is an appointed leader who will make all the decision but in others there is no leader and all the decision process is driven by consensus.

Ambiguity is encouraged in some cultures – taking risks and own initiatives – but in others workers prefer tested ways of workings instead of -to their opinion – useless risk taking. Depending on the culture you address, individualism cannot be seen as a favorable aspect of work where collectivism is the main belief. Regarding achievement Hofstede separates masculine and feminine dimensions for the values that have been associated to them is mainly a consequence of their gender. A masculine culture will be seen as valuing success, achievement and money and a feminine one will, on the other hand, value life quality, sharing, and harmony.

As for long-term orientation, some countries and cultures try to foresee the long-term benefits of their work opposed to others which will encourage immediate gain. According to these several analysis, the main problems that may occur in a cross-cultural context are the direct consequences of the differences of the cultures represented. If we take back the example of Donald Gleason when he first arrived in the Mexican plant, he was not considered as a manager but as a usual worker because he was wearing casual clothes and not a suit and a tie like all Mexican managers do.

When he was confronted to a problem in the production system he tried to address the issue directly with the workers and not with the plant director. It ultimately led to a lack of understanding of his work from the workers and, as I stated before, to a 500. 000 $ loss. Bond through the theory of Edward Hall5 (1959) presents us the difference between a Honk Kong Chinese organization considered as polychromic and a Western one considered as monochromic.

On one hand the Honk Kong Chinese worker will focus on the involvement and the completion of a transaction rather than strict application of a schedule which can cause the frustration of Western managers because it leads to arriving late or even forgetting meetings and reorganizing daily ones working priorities. As pointed out in the introduction of the essay, its goal is not to offer solutions to these issues but principally to identify them. The previous theories main arguments can be sum up in one idea: difference.

The main problem raised by a cross-cultural context is the very cultural difference that all, the workers and the managers, want to benefit from. Because culture is based on beliefs, religion, nationality, beliefs, values, views and behaviors the problems that may rise from the cultural difference lie in each and every one of these aspects. All persons having a different cultural background and often an ignorance of other’s, it can ultimately end by a confrontation on the working place but as we realized in our essay, even these confrontations must be considered from a cultural point of view.

Critacal thinking is neither cold nor despassina ie although It cvan slow down on activity because one evaluates the issue on something at hjand in all the foul four dimension necessary for the righ methods of critical thinking-meaning discipline, vision and passion the way these four elements are potrayed in everything we set our minds about is very important. The best way to handle assumptions in critical thinking isdigging deeper into the situation. Deos you heart fe a passion for this isues?

You mind should visualize and your consciiesnce get meaning in this issue at hand and youshould also feel at ease and within you displine’s any assumptions that creap in should never be ignored because they can blur one’s live of thinking critical right. In critical thinking there are both negative and positive emotions that set in as one see success on ones sides and failure on the other, the way to handle them is looking out for which outweighs the other and that’s why it is even more important not to ignore them.

Personal at tributes importance thinking styles and urgencies are forces behind that influences a problem identification process because our characters trades give us the important of the issue at hand perception and the urgency of the problem are considered. An intelligent person unravels a problem with wisdom and vice versa, a person with a rational way at looking at a problem will identify it accordingly. If a problem is one critical needs to be identified it is given a priority as well as the urgency it deserves.

Trade of analysis alternative generations fallacy avoidance and criteria identification are the points that should be considered in solution selection, because they are inner making of a business and correctly identified and used in the solution they can propel a business to higher heights. The three making tools are the mind, the heart and the soul. The mind sets the vision one has for the business but at time it can misled one through the wrong direction by setting to high goals or very low goals.

The heart helps one to pick the line of the business he or she is passionate about but at times may choose a poor line through misguided passion. The soul gives one meaning in the kind of business one chooses to undertake through conscience based on evaluations but it can fail one especially one the turn out are low or the economy is strained. Ethical implication in decision making including personal responsibilities legal compliance and moral standards because going against these elements means lack of discipline.

In management negotiation of the outcome of the action managers should minimize risk at all cost because any single actions that cause a financial drain to the company because of a risk undertaken unnecessarily some up to poor management in evaluating decisions managers should consider a intended consequences and the organization ability to survive with the result because all the negative consequences brings a loss to the company. Decision making is a process that undergoes several stages of evaluation before the final outcome is given- the mind, heart , soul and one physical outlook on a problem at hand.