Case Study Of Yellow Auto Company Commerce Essay Example

item and are discouraged from making decisions on their own. Many of the company's policies are not written down but are known and followed by the household members. Client satisfaction is a priority for Yellow Auto, and they have come up with various strategies to enhance it. One of their efforts is to attract young clients in the future, and they also ensure effective communication with existing clients through phone conversations and text messages.

Relevant Decision-Making Issues

From 2001, Yellow Auto's top directors have made hazard determinations in the midst of a severe economic crisis in Turkey. Throughout the entire process of change, they conducted extensive analysis on employee psychology. They even sought assistance from external advisors affiliated with a university in Turkey to ensure the smooth implementation of policy changes. Therefore, this study aims to conduct a case study of Yellow Auto from a psychological perspective.

The company Yellow Auto made determinations and implemented them in the changing procedure as follows: First, the top directors decided to achieve a goal of obtaining 50% of the market share in the field, despite the high risk involved due to the economic crisis. To ensure the successful execution of this decision, Yellow Auto sought assistance from university academics.

Under the guidance of external advisors, efforts are being made to improve working conditions, distinguish responsibilities for managers and employees, design career programs for young generations, and adhere to the "right person for the right job" principle. The company will now analyze the implementation of these decisions using psychological theory. According to Berne's (1961) transactional analysis, the human mind comprises three ego states: parent, adult, and

child. Yellow Auto Company assumes the role of the adult state.

They have a strong aim and are always able to measure and review. When implementing the determinations, top directors evaluate the consequences in time, face the real consequence of the changing process and make adequate adjustments to ensure proper changing method. What is the consequence? After two years of the changing process under the suggestion from faculty members, the job satisfaction and organization loyalty of employees in Yellow Auto are greatly enhanced. The next increased profitability of the company is 25% more than the profitability result of 2001. Yellow Auto also extends their sales and added two shops around lzmir. In the future, the owners of Yellow Auto would maintain the good results and continue the investment in human resources. Through the cooperation with a university in lzmir, human resources of Yellow Auto will have a bright future and bring more good results.

Evaluations on the Issues and Decisions

The analysis of decision-making in company directors is crucial as it determines the future path of the company. If top managers make incorrect decisions, it can lead to a crisis and negatively impact employee morale and loyalty. There are various psychological approaches, including psychoanalytic, behaviorist, humanist, neurobiological, and cognitive, utilized in decision-making analysis (Lecture 7).

In this study, we will analyze the psychological science of determination making using a psychoanalytic approach. Additionally, we will explore the changing strategy of Yellow Auto from the perspective of decision shaping psychology. According to Lauent and Kapferer (1985), there are four factors that influence individuals' decision making: sense of self, perceived risk, social factors, and hedonic factors. These

factors are not only relevant for consumers but also crucial for decision makers (Berne, 1964). On the consumer level, if individuals want to purchase products from Yellow Auto, they must seek a sense of satisfaction.

All individuals have the potential for experiencing pleasure. High-quality services and products can enable consumers to achieve a sense of satisfaction. Although consumers may have concerns about potential risks, direct communication with company employees can alleviate these concerns. For example, the staff at Yellow Auto are instructed to engage with consumers through phone calls and messages, which fosters a sense of familiarity and builds trust in the company. As senior managers, it is important for them to understand consumer psychology in order to improve their future management and sales strategies. Additionally, as decision-makers at Yellow Auto, they hold a position of authority.

They made an important decision for the company's development. Self-confidence is crucial for top executives and shareholders. With their experience in the auto market, they may have an intuitive feel for where the "big fish" is. However, due to the economic crisis background, a 50% selling share entails significant risk.

A smart director should be capable of focusing on the perceived hazard and taking action, like the top directors at Yellow Auto. They sought assistance from faculty members at a local university, using societal factors to ensure their company's changes. These external advisers were skilled in analyzing employees' psychology and offered valuable suggestions to improve employee satisfaction and commitment. The excellent results achieved by Yellow Auto, with a 54% market share in 2008, highlight the significance of employees' and directors' psychology in the sales strategy.

Strengths and weaknesses of the decisions made

in the case

Pisharodi and Langley (1990) previously proposed a Perceptual Process Model to aid in the analysis of decision-making processes. This model consists of three parts: selective attention and emotional response, perceptual organization and interpretation, and attitude and behavior.

The Perceptual Process Model will be utilized to analyze the strengths and weaknesses of decisions made in this case. Initially, under environmental stimuli, selective attention and emotional shaping responses are made (Pisharodi and Langley, 1990). This is dependent on various factors, including the characteristics of the perceiver, assumptions, and expectations of future events. Yellow Auto has a strong advantage in this regard as their top manager performed well in this step. They correctly perceived the current market trend and anticipate a promising and achievable goal for the company. The next step is perceptual organization and interpretation.

One important aspect is the cognitive process involved. In this process, the participants or managers need to engage in logical thinking and perceptual grouping to ensure the viability of the assumption and expectation. The top managers in Yellow Auto successfully carried out the perceptual organization and interpretation by collaborating with academics to ensure a smooth implementation of the change. This is a noteworthy strength in this case. However, it is important to consider that every situation has its pros and cons.

Yellow Auto still has some shortcomings. Their main focus is on the psychology of their employees, aiming to improve their job satisfaction and commitment. While it is important for the company's development and culture to have employees with good morale and loyalty, it becomes extremely risky when all the attention of top managers is solely on the psychological analysis of employees. They

have neglected to give more attention to the changing trends in marketing and the need for a flexible future. If there is a sudden shift in the market, all the previous work may become inefficient.

As for the weaknesses of Yellow Auto, its competitors may exploit this vulnerability and attack the company during changing market conditions. If Yellow Auto focuses only on the psychology of its managers and employees without devising strategies to adapt to the changing market, it will encounter major problems. Ultimately, Yellow Auto must demonstrate the appropriate attitude and behavior, which is the final step of the Perceptual Process Model.

Recommendations

Based on the results of the changes in Yellow Auto Company, they have done well; however, there are still areas for improvement. This report will provide advice on maintaining advantages and improving decision-making in the future. Firstly, Yellow Auto should continue with their adjustments, which will preserve current employee job satisfaction and commitment.

From experience, boosting employee morale helps individuals view the company as their own family and leads them to put in 100% effort when working. Additionally, it is crucial to continue hiring the right individuals for each job, as this saves time for both managers and employees. From a psychological perspective, this change somewhat enhances employee morale and loyalty. It allows individuals to feel valued, ensuring that no one's talent goes to waste in a meaningless position.

However, there are various sources of perceptual process bias that deserve more attention (Zajonc; A; Nieuwenhuyse, 1964). Yellow Auto should pay sufficient attention to these perceptual processes as they could potentially hinder the company's growth. For example, making attribution errors can easily contribute to perpetual process bias.

All

human beings tend to focus on the positive outcome in the future, but that can actually be dangerous. If the top executives at Yellow Auto make an attribution error, they might overlook the current sales strategy and fail to make the initial decision of achieving a 50% market share. Another persistent bias in decision-making is the recency effect (Broadbent, 1967). This is why top managers in a company should have a broader perspective and be able to prevent any confusion caused by recent but irrelevant events.

In conclusion, Yellow Auto must prioritize the sales trend and potential changes. While employee morale and loyalty are crucial for company growth and shaping its culture, it is extremely risky if top managers solely focus on the psychological analysis of employees. This gives competitors the opportunity to exploit good sales prospects. Saving a massive loss solely through psychology is difficult.

Decision

The purpose of this paper is to examine the decision-making issues in Yellow Auto Automotive Company using the perspective of psychological science. Initially, a brief introduction of the company is provided to give an overview of Yellow Auto. As a highly recognized automobile company, Yellow Auto Company was established in 1989 by two brothers and held a 54% market share in 2008. Throughout the entire transformation process, Yellow Auto made several crucial decisions. This study evaluates the implementation of these decisions by analyzing them from a transactional analysis standpoint.

In this analysis, we examine the altering schemes of Yellow Auto from a psychological perspective. We also assess the strengths and weaknesses of the determinations made in this case using the Perceptual Process theoretical model. One notable strength

of Yellow Auto is their top manager's adeptness in understanding the correct selling trend and anticipating a positive and feasible outcome for the company. However, their main focus lies in the psychology of their employees, as they strive to enhance job satisfaction and commitment among their workforce.

They did not pay enough attention to the changing market trends and future possibilities. If the market suddenly changes, all of their previous work may become obsolete. Finally, suggestions are provided for maintaining both long-term and short-term strategies for Yellow Auto and improving their decision-making in the future. Yellow Auto should continue with their current adjustments, which help to keep employees satisfied and committed to their jobs. Additionally, they should continue recruiting individuals who are the best fit for each specific role.

Despite the various causes of perceptual process bias that require more attention, such as attribution error and recency effect, Yellow Auto needs to focus more on the marketing trend and potential transformation.