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Decision making-a case study of Jabong
Submitted By:
RISHAB MISRA
0 2 11 9 8 0 1 8 1 3 , 2 0 1 3 { S E M 3 r d , B B A ( B & I ) }
This is to certify that I have completed the PDCS Minor Project titled
DECISION MAKING - A CASE S TUDY OF J ABONG under the guidance
of Ms. KRIT IKA NAGDEV in the partial fulfillment of the requirement
for the award of degree of Bachelor of Business Administration at
Vi v e k a n a n d a I n s t i t u t e O f P r o f e s s i o n a l S t u d i e s , D e l h i . T h i s i s a n
original piece of work & I have not submitted it earlier elsewhere.
RISHAB MISRA
Signature of Student
CERTIFICATE
This is to certify that the PDCS Minor Project titled DECIS ION
MAKING-A CASE STUDY OF JABONG is an academic work done b y
RISHAB MISRA submitted in the partial fulfillment of the requirement
for the award of the degree of Bachelor of Business Administration from
Vi v e k a n a n d a Institute of Professional Studies, Delhi, under the
g u i d a n c e & d i r e c t i o n . To t h e b e s t o f m y k n o w l e d g e a n d b e l i e f t h e d a t a i s
p r e s e n t e d b y h i m / h e r i n t h e p r o j e c t h a s n o t b e e n s u b m i t t e d e a r l i e r.
Signature
VI V E K A NAN D A I N S T I T UT E O F P RO FE S S I O N AL S T UDI E S
OBJECTIVES:
(b) Enhance analytical ability by comprehending management concepts through self study.
(c) Develop research ability by extracting the material from the different sources, compilation and
The title of the dissertation assigned to you is Decision Making:A Case Study Of Jabong and the
c) Types Of Decisions
e) Literature Review
i) Conclusion
Executive Summary
A decision involves the act of choice and the alternative chosen out of the available alternatives.
The process concerned with searching and evaluating alternatives to a problem & selecting the best
about what must be done in a given situation. A decision represents a course of behaviour chosen
1) It is a process of choosing acourse of action from among the alternative courses of action.
4) It is always related to the environment. A manager may take one decision in a particular set of
6) It always has a purpose. Keeping this in view, there may just be a decision not to decide.
7) It involves all actions like defining the problem and probing and analyzing the various
9) It is pervasive in nature i.e. managers at all levels take decisions that may vary from one level to
another.
10) It is futuristic i.e. it makes decisions to be taken in future for achieving goals.
3 Generation of alternative.
5 Implementation of decision.
6 Review.
Identifying the problem: The decision making process begins with recognition of a problem that
requires a decision. The problem may arise due to gap between present & desire state of affairs. The
threats & opportunities created by environment changes may also create decision problem. At this
stage manager should identify & define the real problem, imagination, experience & judgment are
Diagnose the problem: diagnosing the real problem implies, analyzing the pro in terms of its
elements, magnitude its urgency, its causes, its relationship. In order to diagnose the problem
correctly, a manager must obtain all pertinent facts &analyse them carefully.
Generation of alternative: After defining the problem, the next in decision making is to develop the
alternatives. In searching the alternatives some of the resources that can be drawn upon are past
experience of the decision maker, Similarly with the problems & solution occurred in the past
will have to evaluate all possible alternatives. Peter Drucker has laid down three criterias to
Limitation of resources- Physical, financial & human resources available / some of the criterias
against which the alternatives are to be measured are quantities in nature, such as return on
investment, market share, profits & so on Qualitative- consumer attitude, employees morale, ethics
Implementation of decision: Implementation means putting the selected alternative into action &
seeing it through its completion. The process implementation starts with assigning responsibilities
to person who will be involved in carrying out the decision. The possibility of any assistance to
change should be examined carefully specially if its effects or conflicts with the personal values &
Review: Monitoring the review of the decision. It means the effectiveness of the implemented
decision. If possible a mechanism should be built into the process to give or generate reports.
Chapter-1
Decision Making
The process by which managers respond to opportunities and threats that confront them by
analyzing options and making determinations about specific organizational goals and courses of
action.
Decisions in response to threats events inside or outside the organization are adversely affecting
organizational performance.
Managers particularly at the upper level must also have decision making skills. These refer to
abilities to break down a complex problem or situation into its components , to clinically examine
its dimensions , to proceed in a logical & step by step manner. Analytical skills are needed for
problem solving and decision making, for managing complexity, for evaluating performance and for
arriving at judgements. These involve competency to solve organizational problems in the light of
prevailing external environment in the organization are also called DIAGNOSTIC SKILLS or
ANALYTICAL SKILLS.
Diagnostic skills include ability to determine by analysis and examination, the natural and
A decision involves the act of choice and the alternative chosen out of the available alternatives.
The process concerned with searching and evaluating alternatives to a problem and selecting the
about what must be done in a given situation. A decision represents a course of behaviour chosen
1) It is a process of choosing acourse of action from among the alternative courses of action.
4) It is always related to the environment. A manager may take one decision in a particular set of
6) It always has a purpose. Keeping this in view, there may just be a decision not to decide.
7) It involves all actions like defining the problem and probing and analyzing the various
9) It is pervasive in nature i.e. managers at all levels take decisions that may vary from one level to
another.
10) It is futuristic i.e. it makes decisions to be taken in future for achieving goals.
Chapter2
Decision making is a process of selecting the best course of action from among many alternatives. It
is useful for the successful operation of organizational activities.All the managerial functions such
as planning, organizing, directing and controlling are determined by the decision. The following
1. Pervasive Function
Decision making is essential in each level of management. Top level management makes strategic
decisions such as planning, organizing, directing and controlling. Middle level management makes
tactical decisions such as division of works, fixation of authority and responsibility, integration of
efforts etc. Operating level management makes regular operating decisions such s preparation of
schedule of daily works, divisions of works, delegation of authority etc. Thus, decision making
function is performed in all the levels of management according to needs. This is necessary to bring
Decision making is known as an inseparable part of management functions. It is one of the essential
processes for successful operation of business. It determines all management functions and covers
every part of the organizational structure. Every manager from top level to the first line is involved
Decision making is a time consuming process and decision makers spend more time to select the
alternative. The quality of decision serves as the yardstick for evaluating managerial performance. It
provides a clear line of guidance to the management for the achievement of defined objectives. The
Decision making is the process of selecting a best course of action from among many alternatives. A
problem might be solved in different ways on the basis of time and situation. The decision maker
evaluates all the possible alternatives on the basis of organizational process and suitability. The
selection of the best course of action is significant to bring smoothness in operation and achieve
organizational goals.
The establishment of plans and policies is the initial part of decision making. Every organization is
established for a definite objective and for this, formation of plans and policies is necessary. Thus,
at the initial stage, the management decides the clear line of action and the procedures to gain
defined objectives. The practical implementation of defined line of actions and procedures is an
Decision making is one of the important tools for the successful operation of the business. In course
of operation, many problems may arise at different situations and times. The management solves
Decision making helps to utilise the available resources for achieving the objectives of the
organisation. The available resources are the 6 Ms, i.e. Men, Money, Materials, Machines, Methods
and Markets. The manager has to make correct decisions for all the 6 Ms. This will result in better
Decision making helps the organisation to face and tackle new problems and challenges. Quick and
9. Business Growth
Quick and correct decision making results in better utilisation of the resources. It helps the
organisation to face new problems and challenges. It also helps to achieve its objectives. All this
results in quick business growth. However, wrong, slow or no decisions can result in losses and
industrial sickness.
Rational decisions help the organisation to achieve all its objectives quickly. This is because rational
decisions are made after analysing and evaluating all the alternatives.
11. Increases Efficiency
Rational decisions help to increase efficiency. Efficiency is the relation between returns and cost. If
the returns are high and the cost is low, then there is efficiency and vice versa. Rational decisions
Rational decisions facilitate innovation. This is because it helps to develop new ideas, new products,
new process, etc. This results in innovation. Innovation gives a competitive advantage to the
organisation.
Rational decision results in motivation for the employees. This is because the employees are
motivated to implement rational decisions. When the rational decisions are implemented the
organisation makes high profits. Therefore, it can give financial and non-financial benefits to the
employees.
Decision-making is a vital part of the business world. Even a low-level supervisor makes several
decisions in a work day, and with some companies, decision-making is encouraged among workers
on the line. Unlike CEOs and managers of large companies, the small business owner is largely
responsible for the ultimate outcome of all decisions with regard to her company.
Chapter-3
Types Of Decisions
Decision Making is the process of choosing the best alternative for reaching objectives
Managers make decisions affecting the organization daily and communicate those decisions to other
organizational members.
Some decisions affect a large number of organization members, cost a great deal of money to Carry
out, or have a long term effect on the organization. Such significant decisions can have a major
impact, not only on the management systems itself, but on the career of the manager who makes
them.
Other decisions are fairly insignificant, affecting only a small member of organization members,
costing little to carry out, and producing only a short term effect on the organization.
Types Of Decisions:
Programmed Decisions
Programmed decisions are routine and repetitive, and the organization typically develops specific
ways to handle them. A programmed decision might involve determining how products will be
arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard
programmed decision.
Strategic decisions
Strategic decisions involve long term commitments and exercise on enduring influence on the
future of the organization. These decisions define the relationship between the organization and its
environment..
Administrative decisions
These are directed towards developing divisional plans; structuring workflowsthey are primarily
Individual decisions
These decisions are taken by an individual. These are concerned mainly with routine problems for
which broad policies are available. In such decisions analysis of various variables is relatively
simple..
Group decisions
These decisions are taken by a group of persons constituted for this purpose. Ex; decision taken by a
board of directors
Rational decision making means taking decisions on the basis of facts and logical reasoning .A
decision making is said to be rational when he identifies and analysis systematically identifies
alternatives and selects the most appropriate alternative on the basis of relevant data. On the other
hand decision making becomes irrational when the decision maker depends purely on hunch and
The administrative model of bounded rationality was given by Prof.Herbert Simon to explain the
decision making behavior in real life .the model recognizes the fact that due to several constraints
managers are unable to make perfectly rational decisions.There are several boundaries to rationality
attitude etc.
2. An individual does not have full knowledge of the alternatives and their consequences.
4. An individual does not search for the best solution but search for a good solution.In other words
5. The effectiveness of the decision is dependent upon the environmental factors that are beyond the
Consensus decision-making tries to avoid "winners" and "losers". Consensus requires that a
majority approve a given course of action, but that the minority agree to go along with the course of
action. In other words, if the minority opposes the course of action, consensus requires that the
Voting-based methods.
Range voting lets each member score one or more of the available options. The option with the
highest average is chosen. This method has experimentally been shown to produce the lowest
Bayesian regret among common voting methods, even when voters are strategic.
Majority requires support from more than 50% of the members of the group. Thus, the bar for
action is lower than with unanimity and a group of "losers" is implicit to this rule.
Plurality, where the largest block in a group decides, even if it falls short of a majority.
Delphi method is structured communication technique for groups, originally developed for
collaborative forecasting but has also been used for policy making.
Dotmocracy is a facilitation method that relies on the use of special forms called Dotmocracy
Sheets to allow large groups to collectively brainstorm and recognize agreement on an unlimited
Pros and cons: listing the advantages and disadvantages of each option, popularized by Plato and
Benjamin Franklin. Contrast the costs and benefits of all alternatives. Also called "rational decision-
making".
Simple prioritization: choosing the alternative with the highest probability-weighted utility for each
technique was introduced by Amos Tversky in 1972. It is a covert elimination process that involves
comparing all available alternatives by aspects. The decision-maker chooses an aspect; any
alternatives without that aspect are then eliminated. The decision-maker repeats this process with as
Preference trees: In 1979, Tversky and Shmuel Sattach updated the elimination by aspects
technique by presenting a more ordered and structured way of comparing the available alternatives.
This technique compared the alternatives by presenting the aspects in a decided and sequential
order. It became a more hierarchical system in which the aspects are ordered from general to
specific .
Taking the most opposite action compared to the advice of mistrusted authorities (parents, police
officers, partners...)
Opportunity cost: calculating the opportunity cost of each options and decide the decision.
take advantage of additional input, opens up the decision-making process to a group for a
collaborative effort.
Individual decision-making techniques can often be applied by a group as part of a group decision-
making technique.
A need to use software for a decision-making process is emerging for individuals and businesses.
This is due to increasing decision complexity and an increase in the need to consider additional
following 4 groups:
Rational
Intuitive
Combinations
Satisficing
Rational
In economics, it is thought that if humans are rational and free to make their own decisions, then they
would behave according to rational choice theory. This theory states that people make decisions by
determining the likelihood of a potential outcome, the value of the outcome and then multiplying the
two. For example, with a 50% chance of winning $20 or a 100% chance of winning $10, people more
In reality, however, there are some factors that affect decision-making abilities and cause people to
make irrational decisions, one of them being availability bias. Availability bias is the tendency for
some items that are more readily available in memory to be judged as more frequently occurring. For
example, someone who watches a lot of movies about terrorist attacks may think the frequency of
when people decide that they want to improve their decision making. These are logical, sequential
models where the emphasis is on listing many potential options and then working out which is the
best. Often the pros and cons of each option are also listed and scored in order of importance.
The rational aspect indicates that there is considerable reasoning and thinking done in order to select
the optimum choice. Because we put such a heavy emphasis on thinking and getting it right in our
society, there are many of these models and they are very popular. People like to know what the steps
are and many of these models have steps that are done in order.
People would love to know what the future holds, which makes these models popular. Because the
reasoning and rationale behind the various steps is that if you do x, then y should happen. However,
most people have personal experience that the world usually doesn't work that way.
Intuitive
The second of the types of decision making are the intuitive models. The idea here is that there may
be absolutely no reason or logic to the decision making process. Instead, there is an inner knowing, or
And there are probably as many intuitive types of decision making as there are people. People can
feel it in their heart, or in their bones, or in their gut and so on. There are also a variety of ways for
People talk about extra sensory perception as well. However, they are still actually picking up the
information through their five senses. Clair sentience is where people feel things, clair audience is
And of course we have phrases such as 'I smell a rat', ' it smells fishy' and 'I can taste success ahead'.
Other types of decision making in the intuitive category might include tossing a coin, throwing dice,
Combinations
Many decisions are actually a result of combinations of rational and intuitive processes. This can be
Satisficing
Instead of evaluating all the possible options and choosing the best, satisficing is where we pick the
first one that will give us the result. We choose an option that is 'good enough', one that satisfies our
Because computers can process large amounts of data quickly, they were soon put to use to help
make decisions. Decision Support Systems range from a simple spreadsheet to organize information
graphically, to very complex programs organizing info in international companies and including
There are various types of decision making systems depending on how many people are involved, the
form of the information being processed, what type of result is required, and so on.
There are pros and cons to using computers in this way, and of course, the computer is only as good
as the information that it is processing. Which means that it still comes down to the humans...
Gary Klein has spent considerable time studying human decision making and his results are very
interesting. He believes that we make 90 to 95% of our decisions in a pattern recognition way. He
suggests that what we actually do is gather information from our environment in relation to the
decision we want to make. We then pick an option that we think will work. We rehearse it mentally
that seems to work, we go with that one. We pick scenarios one by one, mentally check them out, and
He also points out that as we getmore experience, we canrecognise more patterns, and we make
Of interest here is that the military in many countries have adapted his methods because they are
considerably more effective than any of the types of decision making we've discussed already. In
fact, you could say that his model is a combination of the rational and intuitive approaches. (That's
why I said above that there are only 4 groups!) It's also an example of satisficing
The boundaries on rational decision making imposed by ones values, abilities, and limited capacity
for processing information. Evans et al. (1993) distinguish between rationality as defined by rules of
logic (e.g. deductive reasoning principles) and something being rational if it enables you to achieve
what you want to achieve. Evans et al. (1993) make the point that where people are shown to be
irrational in cases where the principles of particular decision making theories are violated, this is
because these two different ideas of rationality are incorrectly taken as connected (i.e. that rational
process reasoning (fulfilling logical principles) is needed to achieve rational desires). Therefore, it
seems that the question is not so much as to whether decision making is rational, but how rationality
is qualified. In cases of suspected financial elder abuse, the rationality debate highlights the conflict
professionals have to address in terms of how they know the rules state they should act, versus what
they think is logical. To study decision making it is important to consider how professionals address
Literature Review
MAKING
conclusion about what must be done in a given situation. A decision represents a course of
planning, coordinating, and controlling. These functions all require that decisions be made.
For example, at the outset, management must make a critical decision as to which of several
strategies would be followed. Such a decision is often called a strategic decision because of its
long-term impact on the organization.Also, managers must make scores of lesser decisions,
tactical and operational, all of which are important to the organization's well-being.
small business success. Decisions that are based on a foundation of knowledge and sound
reasoning can lead the company into long-term prosperity; conversely, decisions that are
made on the basis of flawed logic, emotionalism, or incomplete information can quickly put a
small business out of commission (indeed, bad decisions can cripple even big, capital-rich
corporations over time). All businesspeople recognize the painful necessity of choice.
Furthermore, making these choices must be done in a timely fashion, for as most people
Ultimately, what drives business success is the quality of decisions, and their implementation.
Chapter-6
Each step in the decision-making process may include social, cognitive and cultural obstacles to
successfully negotiating dilemmas. It has been suggested that becoming more aware of these
obstacles allows one to better anticipate and overcome them.The Arkansas program presents eight
1. Establishing community: creating and nurturing the relationships, norms, and procedures that will
influence how problems are understood and communicated. This stage takes place prior to and
3. Interpretation: identifying competing explanations for the problem, and evaluating the drivers
4. Judgment: sifting through various possible actions or responses and determining which is more
justifiable.
5. Motivation: examining the competing commitments which may distract from a more moral
course of action and then prioritizing and committing to moral values over other personal,
6. Action: following through with action that supports the more justified decision. Integrity is
supported by the ability to overcome distractions and obstacles, developing implementing skills, and
ego strength.
7. Reflection in action.
8. Reflection on action.
Decision-making involves a number of steps which need to be taken in a logical manner. This is
treated as a rational or scientific 'decision-making process' which is lengthy and time consuming.
decisions. Decision-making process prescribes some rules and guidelines as to how a decision
should be taken / made. This involves many steps logically arranged. It was Peter Drucker who first
strongly advocated the scientific method of decision-making in his world famous book 'The Practice
The figure given below suggests the steps in the decision-making process:-
Identification of the real problem before a business enterprise is the first step in the process of
relevant to the problem should be gathered so that critical analysis of the problem is possible. This
is how the problem can be diagnosed. Clear distinction should be made between the problem and
the symptoms which may cloud the real issue. In brief, the manager should search the 'critical factor'
at work. It is the point at which the choice applies. Similarly, while diagnosing the real problem the
manager should consider causes and find out whether they are controllable or uncontrollable.
Analyzing the Problem: After defining the problem, the next step in the decision-making process is
to analyze the problem in depth. This is necessary to classify the problem in order to know who
must take the decision and who must be informed about the decision taken. Here, the following four
After defining the problem and analyzing its nature, the next step is to obtain the relevant
information/ data about it. There is information flood in the business world due to new
developments in the field of information technology. All available information should be utilised
fully for analysis of the problem. This brings clarity to all aspects of the problem.
After the problem has been defined, diagnosed on the basis of relevant information, the manager has
to determine available alternative courses of action that could be used to solve the problem at hand.
Only realistic alternatives should be considered. It is equally important to take into account time and
cost constraints and psychological barriers that will restrict that number of alternatives. If necessary,
group participation techniques may be used while developing alternative solutions as depending on
alternative that seems to be most rational for solving the problem. The alternative thus selected must
be communicated to those who are likely to be affected by it. Acceptance of the decision by group
After the selection of the best decision, the next step is to convert the selected decision into an
effective action. Without such action, the decision will remain merely a declaration of good
intentions. Here, the manager has to convert 'his decision into 'their decision' through his leadership.
For this, the subordinates should be taken in confidence and they should be convinced about the
correctness of the decision. Thereafter, the manager has to take follow-up steps for the execution of
decision taken.
Ensuring Feedback
Feedback is the last step in the decision-making process. Here, the manager has to make built-in
arrangements to ensure feedback for continuously testing actual developments against the
expectations. It is like checking the effectiveness of follow-up measures. Feedback is possible in the
form of organised information, reports and personal observations. Feed back is necessary to decide
whether the decision already taken should be continued or be modified in the light of changed
conditions.
Every step in the decision-making process is important and needs proper consideration by
managers. This facilitates accurate decision-making. Even quantitative techniques such as CPM,
PERT/OR, linear programming, etc. are useful for accurate decision-making. Decision-making is
important as it facilitates entire management process. Management activities are just not possible
dangerous.
Various advantages of decision-making (already explained) are easily 'available when the entire
decision-making process is followed properly. Decisions are frequently needed in the management
process. However, such decisions should be appropriate, timely and rational. Faulty and hasty
decisions are wrong and even dangerous. This clearly suggests that various advantages of decision-
making are available only when scientific decisions are taken by following the procedure of
Pear Products is a technology firm that makes cool gadgets for consumers. They are responsible for
over 10 years of successful product launches and sales profits. Recently, though, the company's
stock price has plummeted amidst horrible new product launches and marketing programs. An
outside consultant has been hired to try and get Pear Products back on track.
The consultant thinks that Pear Products' woes stem primarily from bad decision-making, so his
main job will be to identify common biases and judgment errors in those decisions and figure out
recommendations to fix them. Common biases are prejudices or decisions that are not fair and
balanced. Judgment errors are business errors or mistakes that occur due to poor decision-making.
In other words, biases focus on small bits of information instead of the entire amount, and
Biases usually creep into decision-making processes. Many different people have made a decision
about the same question (e.g. "Should I have a doctor look at this troubling breast cancer symptom
I've discovered?" "Why did I ignore the evidence that the project was going over budget?") and then
Selective search for evidence (aka confirmation bias; Scott Plous, 1993).
People tend to be willing to gather facts that support certain conclusions but disregard other facts
that support different conclusions. Individuals who are highly defensive in this manner show
significantly greater left prefrontal cortex activity as measured by EEG than do less defensive
individuals.
People tend to accept the first alternative that looks like it might work.
Cognitive inertia.
Selective perception.
We actively screen out information that we do not think is important (see also prejudice). In one
demonstration of this effect, discounting of arguments with which one disagrees (by judging them
Wishful thinking.
A tendency to want to see things in a certain usually positive light, which can distort perception
and thinking.
Choice-supportive bias
Occurs when people distort their memories of chosen and rejected options to make the chosen
Recency.
People tend to place more attention on more recent information and either ignore or forget more
distant information (see semantic priming). The opposite effect in the first set of data or other
Repetition bias.
A willingness to believe what one has been told most often and by the greatest number of different
sources.
Decisions are unduly influenced by initial information that shapes our view of subsequent
information.
Group think.
A tendency to reject a person's statement on the basis of a bias against the person, organization, or
group to which the person belongs. People preferentially accept statement by others that they like
(see prejudice).
We look at a decision as a small step in a process and this tends to perpetuate a series of similar
decisions. This can be contrasted with "zero-based decision-making" (see slippery slope).
Attribution asymmetry.
People tend to attribute their own success to internal factors, including abilities and talents, but
explain their failures in terms of external factors such as bad luck. The reverse bias is shown when
Role fulfillment.
Framing bias.
Sunk-cost fallacy.
A specific type of framing effect that affects decision-making. It involves an individual making a
decision about a current situation based on what they have previously invested in the situation. A
possible example to this would be an individual that is refraining from dropping a class that that
they are most likely to fail, due to the fact that they feel as though they have done so much work in
Prospect theory.
Involves the idea that when faced with a decision-making event, an individual is more likely to take
on a risk when evaluating potential losses, and are more likely to avoid risks when evaluating
potential gains. This can influence one's decision-making depending if the situation entails a threat,
or opportunity.
Reference class forecasting was developed to eliminate or reduce cognitive biases in decision-
making.
Ability-Type Biases
The consultant was set on discovering why Pear Products was self-destructing and unsuccessful
after so many profitable years. First, he found several biases relating to the company and its
members' perceived ability. The very first reason for Pear's issues was because upper management
was culpable of anoverconfidence bias. This is when upper management has a higher confidence of
their capabilities and successes than their actual skills and experience will support.
As with most successful companies, Pear Products felt that they were untouchable and that they
could slap their pear emblem on any product and it would sell. They were overconfident due to their
many years of success. The consultant found that they were not paying attention to new technology
startups that were designing more advanced and cooler products. His first recommendation was to
get humble quick, and go back to designing unique products that fulfill a consumer need.
The consultant also found that most of Pear's upper management was guilty of hindsight bias, which
is when managers falsely believe that they predicted the result of a decision after the outcome is
known. It is understandable that since Pear Product's business is plummeting, all of the managers do
not want to be blamed for the mistake. Now each manager is reporting to the consultant that they
had known the products were poor choices for the market.
Information-Type Bias
The consultant also began to tackle how Pear Products came to decide on what products to develop
and found numerous biases relating to how they analyzed information. For instance, he found that
they were responsible for anchoring bias in their decision-making. This is when managers rely too
For example, Pear Products gave the go-ahead to two new phones that had large screens. Consumer
research studies showed that people wanted larger screens on their tablets, but not their phones.
Pear Products relied on this piece of information to design their new phones without paying
attention to the whole thing. The end result was that consumers felt the phones were too large and
Some of the managers were responsible for even more bad decisions. Pear Products' last new
product was the release of music streaming software, a feature that some managers in the company
heavily supported. In one research study, the team did mention the popularity of music streaming
applications. However, the team also ignored numerous trend reports that showed this area was
Product team still invested large development costs in this idea. They were guilty of confirmation
bias, which is when managers only use data that will confirm their decision. The team spun the facts
to support the new product and ended up with a failure. The consultant felt that Pear Products
needed an independent research team to make suggestions on new products and eliminate
Finally, the consultant found availability bias, which is when individuals overcompensate for the
chance of something occurring because it is a memorable event, making it the first available thing
you think of. Pear Products felt that any product with their logo would be successful, because in the
past each new product launch brought in rave reviews and big profits. The team felt that they were
untouchable, and this cavalier attitude resulted in their failure. The team also did not know when to
admit defeat because they were only thinking about past successes.
There was one more bias the consultant found. One of Pear Products' biggest mistakes was
constantly having an escalation of commitment to failing product lines. Pear Products would keep
selling and marketing bad products just because enormous amounts of time and money were
initially invested. The consultant found that the company needed to cut their losses with poorly
performing products.
Chapter-8
Jabong.com is an Indian fashion and lifestyle e-commerce portal. It retails apparel, footwear,
accessories, beauty products, fragrances, home accessories and other fashion and lifestyle products.
The company is headquartered in Gurgaon, NCR. Company Information It is an Indian fashion and
lifestyle e-commerce portal The company is headquartered in Gurgaon, NCR.It was one of the
most visited e-commerce sites during the Great Online Shopping Festival 2013 The e-store at
present carries over 1000 brands and over 90,000 products. Other products include jewellery and
gold coins.
Jabongs successful penetration in the Indian e-tail market is helped by various partnerships.
Because of its success, Nike partnered with Jabong and launched its new range of cricket gear on
Jabongs site.
Jabong.com won the "Online Retailer of the Year" award in the first eTailing India e- commerce
industry awards. Jabong.com received the award for the Most Impactful Launch of the year at
The site started operations in January 2012. It was co-founded by Arun Chandra Mohan, Praveen
Sinha, and Lakshmi Potluri after which Manu Jain, & Mukul Bafana joined the organization.The
of Jabong was estimated to be 100-150 mn USD. During September 2013 Jabong was shipping
14,000 orders on a daily basis out of which 60% were from small towns.
Jabong was one of the most visited e-commerce sites during the Great Online Shopping Festival
2013. Company representatives claimed that its revenues increased five to six times compared to a
usual day, and that Jabong set a record for sale in the male fashion category.
Jabong sells shoes, apparel accessories, home dcor and furniture through its website. The e-store at
present carries over 1000 brands and over 90,000 products. Other products include jewellery and
gold coins. In November 2012, Jabong.com and cricket equipment maker SG Cricket presented a
range of Virender Sehwag cricket bats VS319 which was sold exclusively through Jabong.
Jabong has an exclusive partnership with the Spanish casual clothing brand Desigual, Italian
clothing and shoe brand Geox and UK high street fashion brands Dorothy Perkins,Miss Selfridge
and River Island. In November 2013, Jabong entered into a partnership with the brand Jack &
In January 2014, Jabong partnered with Stylista, a collaborative fashion platform. The collection
includes Indian designers like Wendell Rodricks, Priyadarshini Rao and Nishka Lulla.
In 2014, the company will launch an ethnic womenswear collection designed by Rohit Bal. It is also
In May 2014 Jabong partnered with NBA to retail NBA merchandise in India.
Business Models
Jabong.com follows both an inventory model and a managed marketplace model. In the inventory
model, products are sourced from brands and stored in the Jabong warehouse. In the managed
marketplace model, Jabong doesnt store the inventory but takes care of customer service and
returns.
Jabongs logistic operations launched JaVAS as a separate service independent of Jabong. JaVAS
covers around 50-55 cities and a majority of its customers are e-commerce firms. In 2013 Jabong
sold its third-party logistics service JaVAS to Gurgaon based QuickDel Logistics.
Marketing Campaigns
The company launched its first TV campaign in March 2012.Other television campaigns appeared
In November 2013 Jabong together with Puma launched the digital fitness campaign Gear up
Week for next four seasons and with designer Rohit Bal for an exclusive collection.
Jabong.com launched the first ever Online Fashion Week 'India Online Fashion Week'. As per India
Today the event has been positioned as a platform for young and aspiring designers,stylists, models
and photographers. The selected artists are to be mentored by fashion industry experts which
Jabong.com launched a monthly fashion magazine "The Juice" in April. The magazine covers
stories and features around fashion, beauty, people, trends, travel and pop culture.
In May 2013 Jabong presented a fashion collection based on the Bollywood movie Yeh Jawani Hai
Deewani. Jabong showcased the fashion apparel used in the movie by the movie stars.
In July 2013 Jabong associated with Bollywood again through the movie 'Bhaag Milkha Bhaag',
In its third association with Bollywood, Jabong in Dec 2013 presented a collection of products
inspired by the movie Dhoom 3, including bags, hats, pendants and rings.
Online Traffic
According to a ComScore report of September 2012, Jabong.com had the second highest amount of
traffic on its website, among Indian e-commerce websites, within a few months of its launch.In
November 2013, Jabong.com held an Alexa Traffic ranking of 37 in India.Jabong also ranked 10th
in Google Zeitgeist India trends making it 10th most searched term in 2012 in India.
International Store
Jabong also has an international store called Jabongworld.com, which sells Indian ethnic wear and
western wear such as sarees, lehengas, salwar suits and dress materials, dresses and tunics priced in
foreign currencies.
Jabong.com won the "Online Retailer of the Year" award in the first eTailing India e-commerce
industry awards.
Jabong.com received the award for the Most Impactful Launch of the year at Pitch Brands 50
Awards 2013.
According to The Brand Trust Report India Study - 2013 by Trust Research Advisory, Jabong
Jabong is among the top 3 ecommerce players in India when it comes to customer satisfaction.
It has Google page rank 5/10. It has been receiving a daily page view of 3 million hits. Daily
advertisement revenue is $9,116 USD and monthly revenue $273,481 USD. Average page load time
is 2 seconds, which is 31% faster than other websites around the world. It is linked with 2049 other
websites.
Conclusion
Research needs to be undertaken to explore decision making in the context of financial elder abuse.
This is important to determine how professionals identify that financial abuse is occurring, the
decisions that have to be made in such cases and factors that can help or hinder decision making.
This paper considered a range of judgement and decision making theories and approaches including
utility theory, actuarial judgements, dual process models, heuristics and biases and social judgement
theory. The normative, descriptive and prescriptive application of these theories and approaches to
the study of decision making in relation to financial elder abuse was discussed.
An additional consideration is how the theoretical underpinning of the research impacts upon the
methodology chosen. The theoretical overview segment of this working paper indicates that
judgement analysis methodology would be useful in context of research on financial elder abuse.
After detailed information from participants about their experience of decision making is obtained,
the relationship between decision making cues and judgements can then be examined in more detail
http://en.wikipedia.org/wiki/Decision-making
http://notes.tyrocity.com/chapter-5-meaning-and-importance-of-decision-making
http://www.decision-making-confidence.com/types-of-decision-making.html
http://toolkit.smallbiz.nsw.gov.au/part/8/42/200
http://www.tutorialspoint.com/management_concepts/decision_making_process.htm
https://www.inkling.com/read/organizational-behavior-kreitner-kinicki-10th/chapter-
12/decision-making-biases
http://en.wikipedia.org/wiki/Jabong
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