BUS 5115- Portfolio Activity Unit 4

University of the People

To answer the cases, I will use some management skills according to an anonymous

writer[ CITATION Anond5 \l 1033 ] and also according to Jeff Murphy [ CITATION Jef20 \l

1033 ], as it affects any of the cases.

1. You disagree with your subordinate because you do not think restaurants are

good investments in general, so you have a bad feeling about this customer's

ability to repay the loan based on your experience with the market rather than

any financial facts.

Answer: One of Jeff’s roles of a manager is to negotiate and track contracts. Based on this

role alone, even though I may disagree with my subordinate, I would ask to meet up with the

owner of the restaurant with their financial statement. I would peruse them and draw up my

conclusion based on their repayment history and using other relevant ratio metrics.

If they are capable of repairing the loan; then we are in business but if they were not, then I

would abort the deal.

Again, understand that a manager is interested in people’s process; by going through this

process with the restaurant owner and their financial statements, I would have shown my

subordinate how to attend to such.

       2.   You disagree with your subordinate because you think medical operations

are high risk for legal problems, so you have a bad feeling about this customer's ability

to repay the loan based on your experience with the law rather than any financial facts.

 
Answer: Firstly, business can be less risky when actual steps are followed. One of a

manager’s skills to be able to access and manage any type of risks, so I will look for possible

ways to see how I can tap into this business.

Insurance companies don’t back out on high-risk business rather they would ask for a

premium on that. I can copy that method and seek for a risk premium and possibly some sort

of legal guarantees before sealing such deals.

So, if after checking the company’s financial statement, asking for a premium on the

repayment plan, and a legal guarantee, then I can go ahead but if after all these steps and am

not satisfied, I can forfeit the business deal.

3. You disagree with your subordinate because you think members of their

family are business failures, so you have a bad feeling about this customer's ability to

repay the loan based on your experience with social history rather than any financial

facts.

Answer: Are there facts to back up the claims that the family business history shows they are

failures, otherwise it is not ethical to deny anyone loan or even any business deal based on

just unproved stories. As a manager, the client will present their financial statement and

possibly their plans for the business.

When all these are deliberated on thoroughly then I will decide whether or not to grant the

loan.

4.You disagree with your subordinate because you just have a bad feeling about

this customer's ability to repay the loan based on your gut instinct rather than any

financial facts.

I have closed some business personal deals on my instincts and they paid off for me,

but that is my personal business. As a manager in as much as I want to believe my instincts, I

won’t for some reasons; like what is the company’s way of doing business and also recent

economic history shows that good business data and experience should come into play in

such instances (Anonymous n.d.).

So, it’s a big no to my instinct and follows the due procedures to business, if data

shows positive, then there is a deal and vice versa.

 
 References

Murphy, J. (2020, Apr 10). Office Administrator vs Office Manager: Understanding the

Roles. Snacknation. https://snacknation.com/blog/office-administrator-vs-office-manager/

Anonymous. (n.d.). What are Management Skills? Corporatefinanceinstitute.

https://corporatefinanceinstitute.com/resources/careers/soft-skills/management-skills/

Anonymous. (n.d.). Gut Instinct vs. Data: Which Is More Important When Making a Business

Decision? Allbusiness. https://www.allbusiness.com/gut-instinct-data-more-important-

business-decision-17420-1.html