In the classical model the manager is assumed to have all information regarding a particular situation whereas in the administrative model the manager is assumed as not to have complete information as regard to a particular information and has cognitive limitations in reference to information storage and manipulation. The first step in making a decision is problem identification whereby the manager has to critically analyze and determine the cause of a certain problem. After the cause of the problem is identified and verified the manager decides the course of action to be taken which mainly entails the question “how to solve this problem”. In the third step the manager analyzes the available options at hand carefully and then chooses the most effective plan of action to best fit the solution of the problem. After the selection, the process will now enter an implementation phase where the chosen option will be put into action. The sixth step is whereby the whole process of implementation is followed up or checked to assess its progress and effectiveness.
Organizational learning and creativity improves the ability and effectiveness of the members with new ideas which lead to great actions in an organization. Competitive advantage is the strategic advantage one business entity has over its rivals within its competitive industry .Its main aim is to strengthen and position a business better within the business environment. The strategies can be formulated through; differentiation, growth, innovation and cost leadership. In order to improve decision making the manager should avoid jumping into conclusions or what is referred to as “the ladder of inference”, the decisions that are made should be based on the information that one has at hand the manager should understand the risk preferences involved and make the best decision according to the situation. When all this techniques are applied unnecessary losses will be avoided and maximum benefits will be achieved.
Planning and Strategy in the World Package Delivery Business
Planning has a short term focus and it is usually a process in which results in the strategy are being implemented. Plans enable individuals or organizations to give necessary resources as well as set goals. Strategy’s focus is long term and shows a direct interest in the end results and overall achievements of an organization. A strategy has clear outlines of how the targets will be reached and how to go about the difficulties that can be encountered.
FedEx was able to take care of competition from UPS by putting emphasis on its speed during delivering of packages and this is known amongst its customers and more other people. It has also done this by expanding its business all over the world hence being sure of a high number of customers as well as a global market for its services. Besides these, FedEx is very much diversified and has created enough linkages with related companies and this enables it to deal with the competition and achieve success as well. With much losses encountered by the company, patience has enabled it to stay way ahead of rival companies like UPS.
In order to successfully compete with rival companies such as FedEx and DHL, UPS should come up with various strategies. This way include: try to fully invest in the most important target of distributing packages worldwide and logistics and also use technology when implementing novel services. It should also know their customers’ needs and act on them and UPS should also practice innovations for its growth. In addition, it should be able to work with talented people and be able to create competence while searching for funds or even information. Lastly UPS can come up with a special strategy where an environment is created in which each customer is treated specially and made to feel as the most important.