Decision Making Essay
Decision
Making Essay
Decision-making in UPS, Holiday Inn, and Nathan’s Hot Dog
Organizations like UPS, Holiday Inn, and Nathan’s Hot Dog deal with services, which demand speed, quality, and accuracy. For such companies, where customers’ satisfaction is the most important factor, decision-making is a crucial process, which demands a lot of attention and effort. UPS is a logistics company, which delivers around 15 million packages in more than 200 countries and deals with nearly 6 million customers every day. Company makes its deliveries by package cars, trucks, aircrafts, bicycles, and trains. Holiday Inn owns more than 1400 hotels worldwide. It offers its customers high-level accommodations in a pleasant atmosphere. Holiday Inn hotels include restaurants, swimming pools, and fitness centers for the most comfortable stay for its visitors. Nathan’s Famous is an American chain of restaurants offering fast food. It was recognized worldwide for the quality and taste of its hot dogs.
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Since all three companies specialize in the high quality services, the ability to make decisions fast and efficiently is their most important process. When dealing with customers, it is crucial to respond to the problems in a quick and accurate way. All three brands own chains with different structures, approaches to the business, and, consequently, different decision-making techniques.
UPS decision-making
UPS is a logistics company, which operates in more than 200 countries. It is a complex business, which involves 360,000 people, 1,800 facilities, 90,000 vehicles, and 580 aircrafts. For running such a large and broad organization UPS needs techniques that ensure its efficient and successful functioning. Decision-making is a very important process, which must be able to provide the company with the best strategies and policies.
UPS uses operations research methodologies as a part of its decision making. It has even received an award for the successful usage of the above mentioned method in its organization in 2003. Operation research method is used in order to analyze complex situations and improve system performance. It is usually used in the organizations that are dealing with logistics for routing, traffic optimization, distribution, etc. Method combines both managerial decision making and mathematical modeling. Usually it is used to examine the information system as a whole. Operations research is the most convenient method for decision making in UPS since it combines people and machines when calculating a productive organizational system. This method provides company with a better control over its decision making and assists in problem solving through calculating outcomes and probable risks. It gives the best possible solution to a problem connected to the scheduling, use of resources, transportation, etc and helps company to avoid wrong decisions. However, since operations research method has to deal with an enormous amount of information, it highly depends on computers. There is no human involvement in this method and the decision suggested by it is based strictly on statistics and quantitative data. Additionally, managers’ and operations researchers’ approaches to the problem are different, and sometimes they face difficulties in coming to the same conclusion.
Holiday Inn decision-making style
The Six Continents PLC was separated into two new groups, InterContinental Hotels Group PLC (IHG) and Mitchells & Butlers PLC (MAB). Holiday Inn is a brand of the InterContinental Hotels Group. Since Six Continents PLC is an organization with a big scope of activities, it was divided into strongly differentiated brands in order to achieve company’s higher value and returns. Each group is a separated and independent entity with its own management, culture and decision-making style.
One of the main ideas behind the Separation of Six Continents PLC was to review the organization, redesign its structure and practices, and to speed up the decision-making processes within each division. Each separated group became responsible for concentrating strictly on its industry and to increase the effectiveness of its business practices, including problem solving methods. While being an absolutely separated and independent brand, Holiday Inn stayed a part of InterContinental Hotels Group PLC and had to continue working in a way established by it. The connection between IHG and its brand is designed through facilitative decision-making method. Holiday Inn possesses all the information needed for identifying, formulating and solving the problem; however, it must always communicate its activities and potential outcomes with InterContinental Group’s management. This assists in avoiding serious mistakes, which can affect the entire Group, and in keeping the initial values and culture set by it. On the other hand, this method is very time-consuming and costly. The communication and reporting must be made regularly between the authorities. It has a crucial effect on the problems that need to be solved in a quick manner.
Nathan’s Hot Dog fast food franchise decision making
Nathan’s Hot Dog is a fast food franchise. The organization operates in 50 States and has over 234 restaurants system units offering high-quality food service. Among 234 units there are 228 franchised and licensed units and only 6 company-owned units. Through franchising organization seeks for potential partners willing to invest into the company and helping it to continue developing and to stay one of the leaders in the food service industry.
As a franchise, Nathan’s Hot Dog offers its partners a possibility to run the business on their own while observing the basic organizational values and missions. The company provides its potential investors with customized equipment and designs of its restaurants; however it does not interfere in its management. It is concerned with franchised units acting in the best interest of Nathan’s Famous, and working toward the same goals it has initially set for its business.
The decision-making process in franchises is made exclusively by the management of a certain unit. It is usually not communicated with other units’ authorities, since franchise is an independent company and has its own organizational structure and business practices. This kind of decision-making processes saves organization a lot of time and money, since decisions can be made in-house and do not have to be communicated with anyone from outside. On the other hand, this can cause the discrepancy from the initial design of the business. Not communicated activities can result in acting toward the goals opposite from the goals set by the parent company.
UPS, Holiday Inn and Nathan’s Hot Dog are companies with different business structures, therefore their decision-making processes strongly differ. UPS is one organization, where all the activities have to be communicated and decided on collectively. Holiday Inn is a relatively independent brand, which, however, is strongly supervised by InterContinental Group. Finally, Nathan’s Hot Dog is a franchise with a separate and independent management, which only has to follow the goals set by the parent company.
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