Anchoring Trap
According to the authors, anchoring is commonplace among business leaders and laypersons in the business community and society. Under the anchoring trap people, base their decisions on past information. Consequentially, the thinking process for a current problem will start on historical information of some similar event. However, this approach is wrong because the historical event may have involved different circumstances from the current information. I have seen this problem in a previous gaming where I was working.
In a brainstorming session, a colleague suggested that a video game could be made on the lines of a zombie apocalypse. The manager asked people what they thought about a game with a theme of zombie apocalypse to which many replied it would not work for the company’s clientele who loved driving ga
...mes. The manager concluded it would not work either. The manager anchored on the idea that the company’s clientele would not have loved Zombie apocalypse game. Best Decision and Trade off: the manager should have reviewed the idea on a merit basis and conducting surveys how customers would take the new game.
The results would have guided the company on what to do next. If the company had resulted to making the game it would have been the first giving its product an advantage over the latter advents.
Status Quo Trap
Status quo is another trap that I have seen in business. On the status quo trap, the authors argue that decision makers choose decisions based on familiarity. If a decision is within familiar grounds, the manager will go for it because they know how to proceed and have been in similar circumstances before where they
triumphed. A good example of status quo is Yahoo a tech giant of the 90’s decade.
Yahoo is one of the oldest internet based companies however, it is has stagnated unlike latecomers Google and facebook that have grown in leaps and bounds. Today Google is one of the wealthiest technology companies worth a lot of money. Alternative decision and Trade off: yahoo should have bought Google and leveraged its web experience with the new concept of search engines to grow its clientele and business. If Yahoo had purchased Google and later facebook, it would have been the largest technology company today however, yahoo fell into the status quo trap and now it is struggling.
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