Airtram Case Study Bmgt 317

Case Study #2

University Of Maryland University College

BMGT 317 4/27/14

One of the most difficult aspects of organizational development is making a good business decision. These decisions may have many risk and could possibly make or break a business. Management uses the information presented to them to make an effective business decision. Several factors influence business decision making. "These factors include risk, past experiences, effect on resources, opportunity cost and return on investment" (Juliusson, Karlsson, & Gӓrling, 2005). In the case of rest assured these factors must be included before any alternatives or decisions can be made.

Alternatives

There are four alternatives that the store owners have at their disposal. One alternative is to further market the business to make sure it stays relevant. The owners should promote in their advertisements that rest assured prides itself to offer Made-in-the-USA products and can meet the customers needs at a reasonable cost. With this aspect of Rest Assured being marketed it should create some profit as many people in a small town would most likely prefer buying well built American products. Another alternative is that the owners could move the store to a different location. This location may be far away or could be as close as the highway nearby. The cost of the new space may be higher but with a store closer to the highway or in another town with less competition revenue could increase.

The third alternative is to Cut out every unnecessary expense and regardless of the pain and reduce all expenses. Unfortunately this may include not having any employees at all and the owners maintaining the store themselves. This may conflict with one of Rest Assured employee objectives but it may be a necessary evil to save money and ultimately save the business. One more alternative is that the owners may sell the property. Selling the space will transfer the risk of owning a business to some other...