Six Thinking Hats

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Business Finance

Description

Using the Edward DeBono's Six Thinking Hat's format create a PowerPoint presentation outlining each hat perspective on the business problem below, Also include the team consensus.


You have the opportunity to purchase a piece of property for $500,000. If it can be
rezoned for business use, you will be able to immediately resell the property
for about $750,000. You estimate that there is a 60% chance that your rezone
request will be successful. Should the team approve the purchase of the property?

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Explanation & Answer

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Student’s Name

Institution

WHITE HAT
 It analyzes existing information of the problem.

 There is a huge opportunity to cash a property with huge returns.
 The economic conditions are favorable for investment decisions.
 Steady growth of this property is expected and the reselling can be

pushed to later date.
 The probability of rezoning the property for business is high and a

profit of $250,000 is expected.

RED HAT
 The opportunity to buy the property is unreal.
 The statistics of reasoning the property for business use might

be misleading.
 Economic conditions have fluctuated recently and expecting to

stabilize involves risks.
 The whole idea looks good to be true.

BLACK HAT
 Economic predictions of stability might be wrong.

 Incase of an economic downturn, the property might not be

rezoned for business.
 The property might be deemed unproductive for business.
 Changing tastes and brands might require a renovation to be done

on the property to make it attractive.
 The resell value of the property might fall.
 The 60% chance might not be the case.

YELLOW HAT...


Anonymous
Very useful material for studying!

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