Making Important Decisions

Lea Pratt

American InterContinental University

Unit 2 Discussion Board Assignment

Making Important Decisions

February 24, 2013

When managing a business the priority role as a manager is to make important decisions. Many decisions are based off assumptions. Making good decisions can have a short term or long term effect on the business. One business decision was made by Wendy’s when they attempted to launch a new burger called the “W” sandwich. The decision was based off an assumption that if the sandwich was priced at $2.99 than the sandwich would bring the customer focus off the value menu and more toward the premium sandwiches (Eaton, 2013). According to Elie Ayrouth (2012) Wendy’s decision on the promotion of the “W” sandwich was not a good one and resulted bad for profits for the company. The company assumptions of buyers to upgrade did not turn out in favor for the company. As a manager at a Wendy’s restaurant launching a similar burger that had the same toppings as a Big Mac was a bad decision. The quality of the sandwich and the size was not worth the price they put on the sandwich. Many buyers would buy the sandwich and leave off the sauce because they thought they were getting a premium sandwich at a lower price. The development of the burger was intended to gravitate customers from the value menu but instead the sandwich ended up cannibalizing sales over other burgers causing lower margins and disappointing results. Wendy’s has accepted their poor decision making when it comes to the sandwich and now is trying to find new creative ways to boost their menu and image.

The McCallum Sweeny Consulting firm is making the decision to build a Megasite in Jefferson City, TN. The decision is based off that if the Megasite is built than it would attract major automotive manufacturer, associated suppliers, and hundreds of high quality jobs. This site would help increase a larger tax base and enhance the educational system and the quality of life (Daily Sun,...