Bahria University Total Pages: 6

Lahore Campus
Mid Term Assessment (Spring-2020 Semester)
Department of Computer Sciences

Solution Uploaded on LMS

Date & Time: 23-5-2020 at 10am

Due Date: 22-5-2020

Instructor Name: Fatima Siddiqui Program/Semester: BSCS 2 (A, B)
Course Code: Course Title: Principles of Management
Max Marks: 100 Weightage: 20%

Instructions:
Read out the Instructions carefully.
I. Attempt all questions
II. Assignment should not be hand written.
III. Plagiarism is to be less than 20%
__________________________________________________________________________________________

OBJECTIVES:

No. Detail Question No.

CLO1 C2 Students will be able to understand the process of decision making, QNo.1
along with types of problems and their solutions as well as biases
and errors in decision making.
CLO2 C3 Students will be able to understand the concept of organizational QNo.2
culture as well as its influence on an individual’s behavior.
CLO3 C5 Students will be able to understand the types of planning, approaches QNo.3
to setting goals, developing plans, approaches to planning, how can

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 managers plan effectively in dynamic environments,

Case 1:
Great product design is absolutely critical for most consumer products companies. But, how do these
companies know when a design feature will pay off, especially when every dollar counts? How do they
make those tough decisions? That’s the challenge that faced Whirlpool’s chief designer, Chuck Jones.
He knew he had to come up with a better way.

Chuck's realization that the whole process of making design decisions needed to be improved came after
a meeting with whirlpool’s resource allocation team. Chuck wanted to add some ornamentation to a
Kitchen Aid refrigerator that was being redesigned, but it would have added about $5 in extra cost.
When the team asked him to estimate the return on investment (that is, would it pay off financially to
add this cost?), he couldn’t give them any data. His “trust me, I’m a designer”, argument didn't sway
them either. Chuck resolved to improve the approach to investing in design.

His first step was the survey other "design-centric" companies, including BMW, Nike and Nokia.
Surprisingly only a few had a system for forecasting return on design. Most of them simply based future
investments on past performance. Chuck said, "No one had really figured this stuff-out." With so many
smart, talented people in their field why had no one been able to come up with a good way to make
those decisions? According to two accounting professors, one reason is that it’s incredibly difficult to
discern designs contribution from all the other business functions (bargaining, manufacturing,
distribution and ethics). And even the designs profession couldn't agree on how to approach this
problem. Despite the obstacles, Chuck continued his quest to find a way to objectively measure the
benefits of design.

What he eventually concluded was that a focus on customer preferences would work better than a focus
on bottom-line returns. lf his team could objectively measure what customers want in a product and then
meet these needs, the company could realize financial returns. Chuck's design team created a
standardized company-wide process that puts design prototypes in front of customer focus groups and
then gets detailed measurements of their preferences about aesthetics, craftsmanship, technical
performance, ergonomic, and usability. They chart the results against competing products and the

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company's own products. This metrics - based approach gives decision makers a baseline of objective
evidence from which to make investment decisions. Design investrnent decisions are now based on fact,
not opinion. The "new" decision-making approach has transformed the company’s culture and led the
boarder designs because the designers can now make a strong case for making those investments.

Q1.

a) Would you characterize product design decisions as structured or unstructured problems?

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 b) Explain in detail, what types of decision making biases were being made by Chuck and
what could have been their circumstances?

A)
It could be both. Product design is a collaboration between art and science. Structured decisions are those which
are known as identifiable and specified. Unstructured decisions are characterized as new or different issues
where the information is sufficient and for which information is insufficient. For this purpose, Whirlpool had no
previous knowledge or method in place to consider the amount (dollars) for design changes. As Chuck went
ahead and developed this mechanism by forming committees to work on improvements as well as promotions,
this will be viewed as an unstructured challenge that Chuck made to Whirlpool's industry norm.

B)
Chuck Jones wanted to change the design process to a data-backed approach rather than a return on the
investment strategy. When the resource team asked Mr. Jones to provide evidence that his new design concepts
would generate revenue, he was unable at the moment to provide tough financial data to confirm that the design
would pay off. Mr. Jones' first move was to outsource and interview other companies which were similar in the
design and manufacturing of the item. He figured out that other businesses, which were just a few, had a method
to assess expectations for the future with previous success. Mr. Jones wanted a different plan to measure how
clients would respond to new improvements. Good reviews from the customers would mean a potential future
return on the investment demanded by the research team. Therefore, Whirlpool could and should be able to
concentrate on the needs of the consumer. The business was putting the consumer first.

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Case 2:

People who want to open hotels to make business are clever. Because they know what make them
successful and more money. But people should know first how to attract customer and how they should
provide customers service for their clients to make them happy and to make you rich in business ways.
The important thing in business is finding customers because this will support the businessman who
wants to expand his business in fast and famous ways. Making business is hard job because in the
market you will find many other businessmen have same your business. But you have to study the
customers and know what they like to make something make them happy and comfort to come to you.

         Ritz-Carlton is one of the famous luxury hotel in the world especially Europe.  It is a good place
for rich people. The beginning of the hotel starts in 1898 when it was open by its owner César Ritz. It is
a good place for business and travelers who are rich. It was a small hotel with only 225 rooms. Then it
was open in 1927 in Boston. The owner start as working in restaurant and then he develop himself
because he has big dream which make him very famous to become the manager of Ritz-Carlton hotel.
He knew to serve his customers and he always got positive supports which helps him to be successful
businessman. In the beginning it was opened in 3 places London's Carlton and The Savoy, and the Ritz
in Paris. By the time the hotel expands its branches in 23 countries.  28,000 employees work in the hotel.
Even the owner of the Ritz-Carlton died in 1918 his wife makes his name popular internationally.
The Ritz-Carlton Hotel provides a very strong customer services. Its goals always to take care of their
customers, make them feel rest, relax and live like royal. It focuses in making a good weather that match
their customers need and wants. One of the important thing that The Ritz-Carlton Hotel always make is
trained its employees to know how to communicate with customers and respect them.  It strategy is to
attract people who are rich, business men and tourist. There were no many management issues in The
Ritz-Carlton Hotel because in my opinion it grow quickly and make more money. I think they put plans
to avoid have issues to have well-known name all over the world.

           In conclusion, it is important to offers perfect services for the customers. I think every hotel if
they make like The Ritz-Carlton hotels they will got high customers satisfactions. This hotel always
studies how they want their guests to be treated and this is a good thing for success. My

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 recommendation is to study the culture of the customers and know what they prefer and new
organizations should learn from other successful organization in the business industry.

Q2. What kind of employee do you think would be the most happiest and most successful in this
culture? How do you think new employees learn the culture?

 The goal of Ritz-Carlton is to represent its customers far above the ground and to ensure that its
employees carry out their work effectively and efficiently with the following attributes:
 Observing the execution of other staff to the guest.
 Love for interaction with other peoples.
 Have a good personality.
 They know how to communicate.
 Know how to amuse or serve your clients.
 Have the consistency of creativity.
 Observing the execution of other staff to the guest.
 Like tackling various circumstances.

 Employees who have the above-mentioned qualities could discover unique organizational goals
relevant to orientation.

 New employees learn the culture by:

 Rituals: Committed to treat your guest as a royalty.
 Language: We are Ladies and Gentlemen who serve the Ladies and Gentlemen.
 Stories: luxury, beauty and formality.
 Material Symbols: Outstanding Customer Services.

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 Case 3: https://knowledge.insead.edu/node/7766/pdf

Q3. What were the reasons for the failure of Nokia? (For instance, strategic or operational or both? Short
term, long term, or both?) In your opinion, what types of decisions could be taken differently to avoid
such a drastic downfall of Nokia.

 There were the strategic decisions that triggered the failure of Nokia. And it was a long term failure.
As:
 Nokia did not adapt to change. It continued to produce the old versions of the handset, while rivals
began to switch to advanced smartphones.
 In the market, there was a strong competition and there was lack of repositioning in the company.
 There was lack of strategic plan and lack of innovation.
 Another factor that is the cause of Nokia's downfall is the company's internal conflict.
 Another important aspect that can be assumed to be the cause behind Nokia's downfall is that the
company was being overestimated by the management.

1. Macro-environmental conditions:
 Firstly, the significance of modifying the macro-environment needs to be recognized. If all the other
factors are shifting, you can't expect your company to stay as it is. You're going to have to adapt
accordingly. Only then will you be able to remain on the market, or your customers will reject you.

2. Competition:
 Second, rivalry is still there. In this case, you will notice that certain small competitors did exist even at
the initial level, but the aim of the company was not to maintain its competitive advantage. It offered
these companies an opportunity to invest in technology and development and to achieve a stronger
position on the market.

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3. Organizational Structure:
 Additionally, it is important to be aware of the organizational structure and culture within it. You may
not even think that it would be essential to the company's success, but in the case of Nokia, you might
have found that it had at least an important role to play.
4. Vision:
 Finally, the ambition of the leaders and the business will help to find the right combination of
approaches that would continue to grow significantly. Moreover, do not forget the flexibility factor
when evaluating this aspect of your company.

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