Business : 3 Managerial Decision Making (mini cases)

Managerial Decision Making

Mini-Cases

Prepare your responses to the following 3 mini-cases (address all 3).

Case 1

            A state government official approaches your employer, a bank asking you to hire three people who will soon be released from prison.  All 3 were found guilty of altering bank computer records for personal gain.  The official says that the men have paid their debt to society and they need jobs.  Your bank has 3 openings for computer specialists. 

1. Do you hire them?  Why or why not?
2. What rationale did you use in arriving at your answer?
3. How do you explain your answer to the public?

Case 2

            You are a toy company executive starting to plan your holiday season line.  You anticipate that the seasons hottest item will be Robo-Woman, a battery operated crime fighter and superhero.  Robo-Woman should have a wholesale price of $26.50, and a retail price of $43.00.  Your company anticipates a gross profit of $9.00 per unit.  You receive a sales call from a manufacturing broker who says he can produce any toy you want for one third of your manufacturing cost.  He admits that his firm uses prison labor in China, but his business arrangement violates no laws.  You estimate your firm could earn a gross profit of $12.00 per unit if you contract with this broker.

1. Do you do business with the new broker?  Why or why not?
2. What rationale did you use in arriving at your decision?
3. How do you explain your decision to the shareholders?

Case 3

            You have just been hired by a community park district as a consultant to assist in making a decision about the local (park district run) golf course. The park district is running a large deficit (approximately $40,000). The golf course has lost money over the past few years (last year it lost approximately $2,500). The park district offers no services at the golf course; it just maintains the grounds and the restroom.  There is no pro shop, and the club house simply takes the green fees ($8.00).  A real estate developer has made an offer of $250,000 for the land the golf course sits on. 

1. What advice would you give to the park district?
2. What other information would you want before deciding to recommend selling the land to the real estate developer? 
3. What are some possible solutions you could offer to make the golf course more profitable?