Problem Solving and Decision Making in Business and Life Essay Example

by RH Financial and accurately measures customer satisfaction regarding the financial services provided by the franchise. This data helps the management team make informed decisions. However, determining the appropriate actions to improve these metrics can be challenging in an industry with minimal customer interaction once an account is established.

Methodology and framework for the survey

A structured approach for gathering information from a sample of individuals in order to describe the characteristics of the larger population to which they belong.

The properties aim to portray fundamental features or experiences of large and small populations in our universe. RH study characteristics

• Information is obtained by asking client questions.
• Information is gathered either by having interviewers ask questions and record answers or by having individuals read or hear questions and input their answers.
• Information is collected from only a subset of the population to be described (a sample) rather than from all members.

Surveys are widely used in the automotive industry to assess attitudes and characteristics of a wide range of cars and also new models. When data is obtained, or information is measured, the method, or process used to collect information, greatly influences the results. The extreme complaints may not represent the attitudes of the entire group.

Similarly, the measurement or quantification of information relies on the instrument or method used. The act of assessing client issues merely overlooked the overall range of other sentiments, which should be evaluated together, for example in a statistical sample of all the data.

Summarizing information using representative values, and using the results to draw valid and useful conclusions for RH Cars.

The root-cause analysis aided RH in identifying key factors that contribute to extended decision-making processes. These factors included

insufficient training in effectively communicating options, a lack of a strong teamwork model, and a management philosophy centered around control.

Decision-making occurs at various levels within an organization. While the Board of Directors makes high-level strategic decisions regarding investments and future growth, department managers make tactical decisions to support overall business objectives. Additionally, employees at all levels are increasingly expected to make decisions about their own tasks, customer interactions, and process improvements. This requires careful recruitment and selection, proper training, and effective supervision. There are different types of business decisions:

• Programmed Decisions: These decisions can be broken down into a series of predetermined steps that can be followed by anyone, and may even be programmed into computer systems.
• Non-Programmed Decisions: These decisions are unique and not routine. Each decision is distinct from previous ones.
• Strategic Decisions: These decisions involve choosing between options like acquiring Company A or Company B.
• Tactical Decisions: These decisions are medium-term choices regarding marketing strategies or staffing levels.
• Operational Decisions: These decisions pertain to day-to-day operations.

These are short-run determinations, concerning which house to use for deliveries.

Analyze data using methods of dispersion and use it to inform RH cars.

A proper description of a dataset should include both of these characteristics. There are various techniques that can be employed to measure the dispersion of a dataset, each having its own advantages and disadvantages. These statistics indicate how the data varies or is spread out. The range and the standard deviation are the two most commonly used measures of dispersion. Instead of demonstrating data similarity, they illustrate data differences (variations, spreads, or dispersions).

The study of scattering is crucial in statistical data. If there is consistency in the rewards of workers

in a certain car Manufacturer Company like RH, the workers will be satisfied. However, if some workers receive high rewards while others receive low rewards, it can lead to unrest among the low paid workers. This may result in work stoppages and organized presentations. It is reasonable to expect that higher monetary incentives are associated with greater scattering of pay increases, but also with increased perceptions of unfairness.

The analysis conducted by the writers on linked employer-employee data from Denmark during the years 1992-97 reveals that there is a negative relationship between pay growth dispersion within companies and firm performance. This finding holds true across different industries and company sizes, although it is more pronounced among white-collar workers rather than blue-collar workers.

Quartiles, percentiles, and correlation coefficient

Quartiles: These are one of the three numbers (or values) that divide a set of data into four equal parts. The first quartile (also known as the "lower quartile") represents the value below which 25 percent of the lowest data lies.

The 2nd quartile, also called the 'median', divides the range in half and includes 50% of the data below it. The 3rd quartile, or 'upper quartile', contains 75% of the data below it and the top 25% above it. Additionally, consider examining interquartile range and percentile. Percentile: A score equal to or higher than 97% of exam scores is considered to be in the 97th percentile. Percentiles divide a set of observations into 100 equal parts.

The percentile rank represents the proportion of values in a distribution that a specific value is greater than or equal to. For example, if someone achieves a grade of 95% on a math test and that

grade surpasses or equals the grades of 88% of students, then that grade would place them in the 88th percentile.

A correlation coefficient indicates the level of relationship between the movements of two variables. It serves as a statistical measure for how these two variables vary together. The maximum possible value for a correlation coefficient is 1.00, which occurs when two variables exhibit an ideal positive correlation.

A negative correlation coefficient indicates that there is a reverse relationship between two variables. Additionally, studies are conducted to determine the specific needs of the target audience regarding the car, such as luggage space, passenger seats, and car size. The research uncovered interesting findings from interviews and surveys: The main concern for individuals is Cost and Efficiency. I have created a graph based on the survey results which illustrates this. 30.44% of the responses received from the 40 participants who completed the surveys are related to cost and efficiency. Furthermore, 13.77% of the responses indicate customer satisfaction with their car's efficiency.

However, 16.67% of the responses express an opposing view. The main concerns from individuals with financial difficulties regarding their vehicles include:

• The high cost of gasoline.
• The expensive and frequent servicing requirements.
• The costly replacement of car parts.
• In addition to these expenses, they still have to pay for auto insurance and registration.

The second highest priority is the car's exterior. According to survey responses, more people are opting for smaller and more compact vehicles due to their appreciation for compactness. Some individuals specifically prefer small cars because they find them easier to drive and park.

The text discusses the advantages of small cars, such as their ease

in driving and parking, as well as their contribution to reducing road congestion. Additionally, it mentions that some individuals are satisfied with their car's appearance but detest the fact that it gets dirty. This highlights the dislike many people have for washing their cars, which may imply two things.

Firstly, individuals do not view the interaction with their cars as an enjoyable activity; they simply see their cars as a means of transportation. Secondly, it could also signify that they do enjoy the interaction but lack the time to wash their cars due to other priorities. Regardless of the reason, the interaction between people and cars should be more pleasurable in order to generate more interest in purchasing a specific car.

Preparing a formal business report

RH has implemented several business practices with suppliers that aim to increase collaboration, ensure transparency of data, and expand the amount of business conducted with select suppliers, all while establishing a more sustainable business model.

The number of production providers eligible for major sourcing from RH has been reduced from 3,300 to about 1,600 providers currently, with plans for a further decrease to 750 providers. We have focused on strengthening minority and women providers, who currently account for approximately $4 billion of our annual $35 billion purchases from U.S. provider locations. Our consolidation efforts have resulted in increased business for our major providers, enhancing their financial strength. Additionally, as RH expands its global vehicle platforms, sourcing to common providers for the total global volume of a vehicle's components is increasing significantly. This means that a smaller number of providers will handle a larger volume of purchases made by RH to support our global

vehicle platform.

RH's traders are a source of strength, specifically our rural/small town traders. They serve as the face of RH in communities throughout the U.S., providing employment, revenue enhancement support, community leadership, and client service. However, we currently have too many traders, making it increasingly difficult to maintain a healthy and profitable trader network. To address this issue, RH is collaborating with our traders to downsize and restructure the RH, Lincoln, and Mercury network in our largest 130 metropolitan market countries. This will enable us to achieve targeted average-year sales of 1,500+ units for RH traders and 600+ units for Lincoln Mercury traders. As a result, we will generate sustainable profits in both good and bad years. Throughout this consolidation process, we are taking into account factors that are important to our customers, such as driving distance, location, and appealing facilities. Together with our traders, we are collectively funding these consolidation efforts in order to maintain our presence in the market.

To further reduce costs, RH recently made several important changes to our Compensation and Benefit programs, including: (1) eliminating merit additions and bonuses scheduled for payment in 2009; (2) suspending the Company's 401(K) matching contribution, as well as Company-paid tuition assistance and dependent scholarships; (3) capping retiree life insurance at $25,000; and (4) improving the cost-effectiveness of benefit plans through more efficient program offerings and increased employee cost sharing. In terms of our hourly workforce in the United States, RH and the UAW reached a transformative labor agreement in 2007, which is just beginning to show its benefits. This agreement significantly reduces our hourly labor cost disadvantage compared to our competitors, although it does not

completely eliminate it. These labor cost savings should start to materialize as we have the opportunity to bring workers into the workforce at our new pay rates. We will achieve merchandise excellence by leading in fuel economy, innovation, quality, safety, and cutting-edge "comfort and convenience" technology. We will also make substantial and continual improvements in engineering and investment efficiency by leveraging the global assets of "One RH" and reducing the number of vehicle platforms, engines, transmissions, and customer offerings. Additionally, there will be a significant improvement in the profitability of small cars. Our portfolio will be well-balanced.

They plan to introduce six new small and medium-sized vehicles to the United States over the next four years, leveraging our strengths in planetary merchandise. This will boost our market share in the automotive industry from 48% to 60%, leading to growth in volume and market share. Their main focus is on becoming a leader in "people movers" and crossovers by introducing new vehicles like the RH Flex and redefining existing ones such as the RH Explorer.

Management information systems encompass tools for operational, tactical, and strategic levels of the organization.

The concept of management information systems originated in the 1960s and serves as the basis for integrating computer technology and data processing systems into business operations. Initially, computers were utilized in a fragmented manner, mainly automating clerical tasks and record-keeping. The development of management information systems aimed to resolve these inefficiencies and optimize computer utilization.

An organization needs to have control over its operations to ensure they align with the plans and goals that have been developed. For example, a car manufacturer must determine if their manufacturing operations are meeting their

targets and make decisions to correct any deviations or revise their plans accordingly. Similarly, a distributor would want to understand the impact their sales commissions have had on revenue and make decisions to address any negative trends. A municipal corporation has to oversee the tendering process and contractors responsible for executing pumping station projects. Overall, Management Information Systems (MIS) focuses on both planning and control. Information systems are often utilized to provide detailed data that supports these operational activities.

For illustration, the auto maker will hold a system for supplying information to the workers on the store floor about the occupation that needs to be done on a peculiar batch of stuff. There may be route sheets, which accompany the rate stuffs and constituents in their motion through assorted machines. This system per Se provides merely information to back up operation. It has no managerial decision-making significance.

A· Generally MIS has all the ingredients that are employed in supplying information support to director to doing planning and control determinations. Directors frequently use historical informations on an organisation 's activities every bit good as current position informations make planning and control determinations.

The information is sourced from a database stored in organizational files, making it an essential component of a Management Information System (MIS). The manual processes used to gather and process information, as well as computer hardware, are key elements of an MIS.

In summary, an MIS is a integrated man-machine system that provides information to support the planning and control function of managers in an organization. It performs the following functions.

• Assists in managerial function
• Gathers, evaluates information

consistently and routinely

All business organizations need effective management information systems due to the increased complexity and rapid changes in today's business environment. For instance, marketing managers require information on sales performance and trends, financial managers need information on returns on investment, production managers need information on resource demand and worker productivity, and HR managers need information on employee compensation and professional development.

Therefore, it is necessary to develop effective management information systems that provide current managers with the specific marketing, financial, production, and personnel information products they need to support their decision-making responsibilities.

Inventory control systems in Administration

An inventory control system is a collection of hardware and software tools that automate the process of tracking inventory. These systems can track almost any type of quantifiable good that consumers, retailers, or wholesalers may purchase, including food, clothing, books, equipment, and other items. Modern inventory control systems primarily rely on barcode technology. While barcodes were initially developed for automating grocery store checkouts, their ability to encode various alphanumeric symbols makes them ideal for encoding merchandise for inventory purposes. Inventory control systems operate in real-time, utilizing wireless technology to transmit information to a central computer system as transactions occur.

The use of inventory control systems is diverse, but they all focus on tracking the delivery of goods to customers. Inventory control is crucial in retail stores, especially those with a large number or variety of products for sale. It is also utilized in warehouses to monitor orders and shipments, as well as

for automated order processing. Additionally, inventory control systems play a significant role in manufacturing, transportation, and receiving.

Inventory control is crucial for maintaining quality control in businesses that handle transactions related to consumer goods. Insufficient inventory control can lead to a large retail store running out of stock for important items. Implementing a well-functioning inventory control system ensures that the retailer is notified when it is time to reorder. Moreover, inventory control plays a vital role in automatically tracking large shipments. For instance, if a business orders ten pairs of socks for resale, but only receives nine pairs, this discrepancy will be evident upon inspecting the package contents, reducing the possibility of errors. Conversely, consider a wholesaler who orders 100,000 pairs of socks but finds that 10,000 pairs are missing.

Using a manual method to label each pair of socks is prone to errors. However, an automated inventory control system can minimize the risk of mistakes. Additionally, retail stores can benefit from inventory control systems by monitoring thefts and gaining valuable insights into store profits and the need for theft prevention measures. These automated systems function by scanning barcodes on items.

A scanner is utilized for reading the barcode, and the machine deciphers the information encoded within the barcode. This information is then tracked by a central computer system. For example, a purchase order may contain a list of items to be picked for packaging and shipping. In this case, the inventory control system can perform various functions.

It can help a worker locate the items on the order list in the warehouse, it can encode shipping information like tracking numbers and delivery references, and it can subtract

these purchased items from the inventory count to maintain an accurate count of in-stock items. All of this information works together to provide businesses with real-time inventory tracking information. Inventory control systems make it easy to locate and analyze inventory information in real-time through a simple database search.

Future planning for RH based on the secondary data collected:
"With the global economic crisis fading away, markets appear to be recovering faster than previously assumed," said Norbert Reithofer, BMW's chief executive. Across the automotive industry, luxury manufacturers are reporting strong growth in new markets and a resurgence in company car sales in the US and Europe, where the segment did not benefit from last year's scrapping incentives that favored smaller cars.

JD Power, the car consultancy, predicts that sales of premium and superpremium cars will increase by 10% this year, which is more than double the projected 4% growth for the overall market. In 2009, sales of these cars dropped by 12%, while the overall market only saw a 2.5% decrease. BMW's sales in the quarter increased by 13.8% to 315,614 cars, with China being the main driver of this growth. "Our performance has been influenced by the demand in China. . ."

"Friedrich Eichiner, BMW's main financial officer, stated that BMW, which currently sells 20% of its cars in Asia, is planning further expansion in China. This year, the company announced its intention to invest ˆ560m in a second factory in Shenyang."Daimler, BMW's biggest competitor, saw its Chinese revenue double in the first quarter, helping the company go from a loss of ˆ1.4bn to an operating profit of ˆ1.2bn. China is now Daimler's third-largest market and one of its

fastest growing. BMW also reported receiving an "outstanding" order income for its new 5 Series model. BMW attributes its success to a refreshed product lineup, which allowed them to reduce incentives for car buyers. Analysts describe BMW's goal of achieving an operating margin of 8-10% in its automotive business by 2012 as ambitious. Despite the crisis that the automotive industry has faced, executives in the industry can now celebrate as they have managed to survive without experiencing the collapse that they had warned would jeopardize millions of jobs. This was made possible by government bailouts, consumer subsidies, and soft government loans. Additionally, there are signs of market growth as US auto sales are starting to increase again after hitting a 27-year low in the previous year.However, the atmosphere in Geneva will not be very enthusiastic due to predictions of a weak recovery for a sector that has not resolved its ongoing issues. While the US market is starting to recover, the demand for cars in Europe is expected to decline this year as "cash for clunkers" scrappage programs reach their end. Dieter Zetsche, who is the CEO of Daimler and also leads the European industry group Acea, spoke this week about a difficult path ahead for the industry in 2010.

Analysts forecast that auto sales in mature markets such as Europe, North America, and Japan will not recover to pre-crisis levels until 2013. Despite global attention on the industry, it still requires substantial monitoring moving forward, according to Calum MacRae, lead car analyst with PwC. Experts warn that European governments' interventions specifically kept car manufacturers afloat without addressing the issue of overcapacity, which continues to be

a major source of their problems. In contrast, countries like France, Italy, Germany, and the UK tied their assistance to car manufacturers to the future of their plants. Prior to the crisis, US car manufacturers were in worse financial shape than their European or Asian competitors, leading them to cut capacity by 3.5 million units between 2007 and 2009. The US government mandated plant closures for GM and Chrysler in exchange for bailout loans totaling over $60 billion. In Europe, most car manufacturers reduced shifts or implemented shorter work hours instead of closing plants, resulting in only a cut of 1.2 million units of capacity, as reported by PwC. Since the crisis began, only two plant closures have been announced: Fiat's plant in Termini Imerese, Sicily and Opel's plant in Antwerp, Belgium.

Jaguar Land Rover has announced its plans to close one of its three factories in the United Kingdom in the coming years. This decision is a result of the industry's structural challenges, which will continue to put pressure on car manufacturers even after the withdrawal of scrappage subsidies. According to Robert Schulz, an analyst with Standard & Poor's, although the situation seems to have improved, a slow recovery is expected.

PSA Peugeot Citroen from France recently reported its earnings and expects a 10% contraction in the European auto market this year. Similarly, Renault, its competitor, predicts a 9% shrinkage. Fiat's stocks have declined after Italy's government decided not to extend the scrapping subsidies that drove demand for its cars last year. Germany's decision to end its scrappage program alone could reduce total sales in Europe's largest car market by up to 1 million units this

year.

The Britain's "cash for clunkers" program is expected to end in March if its budget of ?400 million is not depleted sooner. Pete Kelly, a forecaster with JD Power, predicts that any improvements in the US and Canada will be offset by the European downturn caused by the withdrawal of incentives. As scrappage programs wind down, analysts believe that European car manufacturers will increase their own spending on incentives to retain buyers. Some manufacturers are already doing this. In the UK, Hyundai recently introduced a "Trade and Upgrade" program that offers a ?2,000 incentive to customers trading in cars between seven and ten years old. This amount is equivalent to the UK's scrappage bonus, which applies to cars that are ten years old or older.

Toyota's recall crisis could hurt them if they increase spending to maintain market share. Analysts predict that emerging markets, especially China, will continue to be a bright spot for car manufacturers this year. JD Power forecasts global auto sales to reach 66.5m this year, up from 64m last year. Beijing's stimulus measures in 2009 caused a 48% increase in car sales, but slower growth is expected this year. Another risk to the sector's recovery is the inability of automotive suppliers to keep up with their customers' sales. Rising commodity prices also pose a threat. "The worst of the crisis is past," says Mr MacRae. "The question is whether there is light at the end of the tunnel or a train coming."

The Financial Times provides an explanation of fiscal tools such as discounted cash flow and internal rates of return (IRR map). It is important to note that cash flow should not

be confused with profit, as they are separate concepts. Profit refers to the difference between total revenue (TR) and total cost (TC) over a specific period of time. When starting a business, expenses must be paid in order to establish necessary items. In the case of a fruit business, the students had to spend money on purchasing essential items such as a shed, lab coats, show boxes, and a moneybox. These costs are considered fixed costs that do not fluctuate. Cash flow refers to the movement of money in and out of a business within a month.

Here is how hard currency flow plants: What Does Internal Rate Of Return - IRR Mean? TheA price reduction rate frequently used in capital budgeting that makes the net present value of all hard currency flows from a peculiar projectA equal to nothing. By and large talking, the higher a undertaking 's internal rate of return, the more desirable it is to set about the undertaking. As such, IRR can be used to rank several prospective undertakings a house is sing. Assuming all other factors are equal among the assorted undertakings, the undertaking with the highest IRR would likely be considered the best and undertaken foremost.

IRR comparisons can be made with prevailing rates of return in the securities market. If a company cannot find projects with IRRs higher than the returns achievable in the financial markets, it may decide to invest its retained earnings in the market. RH was awarded $5.9 billion in government loans last year to support mill renovations and the production of more fuel-efficient vehicles. Part of this funding is being used by RH to construct

the next iteration of its Explorer SUV in Chicago later this year.

GM and Chrysler have also applied for similar Energy Department funding. Mulally did not discuss fourth-quarter results due on Thursday but said January U.S. sales are slightly lower than December and higher than last year. He said RH gained market share in 2009, is making money on hybrids, and remains on track to be profitable in 2011. RH continues to adhere to industry sales projections of between 11.5 million and 12.5 million units for this year.
Conclusion
For more complex decisions and problems involving more than