As Chief Financial Officer, discuss your critical thinking
process upon seeing the Q1 financial statements for the
first time. What decisions did your review lead you to
reevaluate for Q2 and why?
Did the cash flow statement show you were about to take
an “Emergency Loan” and what did you adjust to avoid it
or pay it back this quarter?
For example - Did you have to make any adjustments to
the brands you designed last quarter, such as creating
too many or too few after seeing the Research and
Development costs? Did that cause you to change or add
brands this quarter?
As you read about your peers’ thought process and
strategy, suggest other facets or scenarios they may not
Your initial response to the prompt above should be 3-4
sentences at a minimum, in order to be thoughtful and
thorough with your ideas and communicating your
understanding. Don't forget to respond to at least 2
classmates by Sunday to earn full credit for this
Based on examples from one of the recommended articles selected by you, the lecture
notes, the text, and other sources, discuss one or several of the themes: strategic
decision making in organizations, strategic decision success in organizations,
evaluation of strategic decisions – the VRIO framework, management cycles and
business decisions in organizations.
Student 1: The VIRO technique is considered as a “textbook approach” to help
managers perform better in strategic decision making. It evaluates the attributes of a
firm’s resources and capabilities in terms of its value, rarity, the difficulty of
imitation, and the degree of exploitation of the firm (Knott, et al, 2015). The
assessments of the value of the firm’s resources and capabilities determine
whether the strategies can improve their effectiveness and efficiency. For
example, Amazon provides the next-day delivery, discounts on books and other
hardware and code-activated lockers services for students via establishing
Amazon Campus. This strategy leads Amazon to improving the services for
students effectively and efficiently, which reduces customers’ waiting time and
the threat of theft. For the rarity, Amazon Campus is considered as rare since
Amazon campus can guarantee the next-day delivery service for students, but
the traditional campus bookstores cannot. Additionally, Amazon Campus
discounts on textbooks in comparison with traditional bookstores that save
students money. The services of Amazon Campus are also imperfectly imitable
due to Amazon’s unique history on selling books. Amazon started from selling
books online, its valuable experience, selling strategies and success are unique in
the industry. Amazon is a well-organized firm since Amazon devotes to organize
the whole process from sellers to customers to provide better users experience.
Consequently, Amazon has the sustained competitive advantage in its industry,
and that is the reason why Amazon is such successful.
Knott, P., et al. (2015). Does VRIO help managers evaluate a firm’s resources?
Management decision. 55(4), p.745-765. Retrieved from https://searchProquestcom.ezproxy.bu.edu/docview/1892225188?accountid=9676&rfr_id=info%3Axri
Rothaermel, F (2017). Amazon.com, Inc. Harvard Business Publishing Education.
Retrieved from https://hbsp.harvard.edu/coursepacks/635763
Student 2: There is no doubt that organizations or companies may face a
lot of negotiation in work. For example, when I was working in the
advertising company, I always see my manager negotiate something with
our client. The most common thing they negotiate is the price. How much
budget can both agree always take a lot of time. Besides, client has a
limited budget, so they want the price as low as possible. However, as
company side, we hope the budget can be high enough. This is because
we have to make money and we have to make a good quality
advertisement (low budget can’t have good quality content). Therefore,
strategic decision making plays a significant role in organizations. In order
to make a great decision, the most crucial part is to control our emotion.
According to the article, the side that is showing more anger often has a
bad result. Therefore, a great negotiator is good at making counterpart
feeling anxious and thus take advantage of it. However, if the negotiator is
not good at controlling the anger, he or she should reach out for thirdparty negotiator. Since third-party negotiator may have more experience
dealing with negotiation and most importantly, they don’t have a personal
issue in the outcome. As a result, third-party negotiator can have better
control in emotion and hence to bring out the excellent result.
Brooks, A. W. (2018, October 26). Emotion and the Art of Negotiation.
Retrieved from https://hbr.org/2015/12/emotion-and-the-art-ofnegotiation
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